The year 2023 was a remarkable one for the mobile app industry, as it witnessed unprecedented levels of engagement and spending from users across the globe. A comprehensive report by data.ai revealed the trends and insights that shaped the app landscape last year and which apps dominated the US market in terms of time and money.
According to the report, Americans spent slightly less time on their phones in 2023 than they did in 2022. The average daily screen time for US users decreased from 4.42 hours in 2022 to 4.34 hours in 2023, a marginal decline of 1.8%. However, this was still lower than the global average, which reached a staggering 5 hours per day in 2023, an increase of 6% from 2022.
Top 20 Global App Subgenres by Download in 2023
The report also analyzed the app categories and subgenres that attracted the most downloads, consumer spending, and time spent in 2023. Globally, the VPN Service & Web Accelerator category saw the highest growth in downloads, with a 42% increase from 2022. This was driven by the increasing demand for online privacy and security, as well as faster internet access in emerging markets.
However, in the US, the entertainment category was the most popular one, with HBO’s Max app leading the way. The app, which was rebranded from HBO Max in 2023, offered a wide range of content, including original shows, movies, documentaries, and live sports. The app also benefited from the exclusive streaming rights to some of the biggest blockbusters of 2023, such as Dune, Matrix 4, and The Batman. The app saw a massive surge in downloads, as well as consumer spending, in 2023.
But entertainment was not the only thing that US users were interested in. The Shopping and E-Commerce category also performed well, with the app Temu making a splash in the market. Temu was a social shopping app that allowed users to discover, buy, and sell products from their favorite influencers and brands. The app also integrated features such as live video, chat, and gamification to create a more engaging and interactive shopping experience.
Another app that maintained its popularity in the US was WhatsApp Messenger, which belonged to the Social Media and Communication category. The app, which was owned by Facebook, continued to be the preferred messaging platform for millions of users, who used it to stay in touch with their friends and family, as well as to make voice and video calls, send media, and join groups. The app saw a modest growth of 3% in downloads in 2023.
But perhaps the most surprising app of 2023 was ChatGPT, which belonged to the Generative AI and AI Chatbot category. ChatGPT was an app that used advanced artificial intelligence to generate realistic and engaging conversations with users. The app could talk about various topics, such as news, sports, entertainment, and personal interests, and could also create content such as poems, stories, jokes, and lyrics. The app was a huge hit among users, who enjoyed its creativity and humor. The app saw a phenomenal growth of 2792% in downloads in 2023, making it one of the fastest-growing apps of the year.
Top 20 Global App Subgenress by Consumer Spend in 2023
The report also revealed where US users spent their money on apps in 2023. Once again, Max topped the charts, with total consumer spending of over $3 billion, a 2% increase from 2022. The app also had the highest average revenue per user, at $12.3, indicating its strong monetization strategy and loyal user base.
The second place went to Tinder, which belonged to the social media and dating subgenre. The app, which was owned by Match Group, was the most popular dating app in the US, with over 50 million users. The app allowed users to swipe right or left on potential matches, chat with them, and arrange dates. The app also offered premium features, such as unlimited likes, boosts, super likes, and a passport, which enabled users to change their location and match with people from other countries. The app generated over $2.3 billion in consumer spending in 2023, a 1% increase from 2022.
Another app that made a lot of money in 2023 was TikTok, which belonged to the Short Video and Video Sharing subgenre. The app, which was owned by ByteDance, was the most popular video-sharing platform in the world, with over 2 billion users. The app allowed users to create and watch short videos, ranging from 15 seconds to 3 minutes, on various topics, such as music, dance, comedy, education, and lifestyle. The app also offered features such as filters, effects, stickers, and music to enhance the video quality and creativity. The app also had a thriving creator community, which earned money from tips, gifts, and sponsorships from fans and brands. The app made history in 2023, as it became the first app to reach $10 billion in total consumer spending.
Meanwhile, Snapchat, which belonged to the Media Sharing Network subgenre, also had a remarkable year in 2023. The app, which was owned by Snap Inc., was a popular social media platform with over 300 million users. The app allowed users to send and receive ephemeral photos and videos, called snaps, to their friends and followers. The app also offered features such as filters, lenses, bitmojis, and stories to make the snaps more fun and expressive. The app also introduced a new subscription service in 2023, which gave users access to exclusive content from celebrities, influencers, and publishers. The app saw a huge growth of 366% in consumer spending in 2023, making it one of the fastest-growing apps in terms of revenue.
In 2023, the US consumer spending scene was dominated by video apps, with the Over-the-Top (OTT) subgenre being the most lucrative one. The subgenre, which included apps such as Max, Netflix, Disney+, and Hulu, offered users access to a vast library of content, including original shows, movies, documentaries, and live sports. The subgenre also benefited from the cord-cutting trend, as more users opted for streaming services over traditional cable and satellite TV. The subgenre generated over $15 billion in consumer spending in 2023, a 12% increase from 2022.
But video apps were not the only ones that saw high consumer spending in 2023. Other subgenres, such as short video and video sharing, live sports, and video editing, also saw impressive growth rates, ranging from 15% to 25% compared to 2022. This showed that US users were willing to pay for quality and diverse video content, as well as tools to create and edit their own videos.
Top 20 Global App Subgenres by Time Spent (Hours) in 2023
Finally, the report also revealed the most important category of all: the apps where US users invested their time. In 2023, the entertainment and social media categories accounted for four out of the top five subgenres by time spent, capturing more than two-thirds of the total time spent on mobile apps. To put this into perspective, consider this: on Android devices alone, globally, users spent a staggering 2.3 trillion hours on social media apps in 2023.
The undisputed leader of the time spent category was YouTube, which belonged to the Video Sharing Platform subgenre. The app, which was owned by Google, was the most popular video platform in the world, with over 2 billion users. The app offered users access to a vast variety of content, such as music, comedy, education, gaming, news, and live streams. The app also had a large and diverse creator community that produced original and engaging content for its audiences. The app also had features such as YouTube Premium, YouTube Music, YouTube Kids, and YouTube TV, which catered to different user needs and preferences. The app was the favorite destination for digital entertainment for US users, who spent more than 40 billion hours on the app in 2023, a 1% increase from 2022.
The subgenre that saw the highest growth in time spent in 2023 was Media Sharing Network, which grew by 35% year-over-year. The subgenre, which included apps such as TikTok, Snapchat, Instagram, and Facebook, offered users a platform to share and consume media content, such as photos, videos, stories, and live streams. The subgenre also offered features such as filters, effects, stickers, music, and hashtags to make the media content more attractive and interactive. The subgenre also had a strong social aspect, as users could follow, like, comment, and chat with other users, as well as join groups and communities based on their interests and passions. The subgenre was a major source of social connection and expression for US users, who spent more than 30 billion hours on the subgenre in 2023.
The report by data.ai provided a comprehensive and insightful overview of the mobile app industry in 2023 and highlighted the trends and patterns that shaped the app behavior and preferences of US users. The report also revealed the apps that stood out in terms of downloads, consumer spending, and time spent, and the categories and subgenres that were the most popular and lucrative ones. The report also offered some predictions and recommendations for the app industry in 2024, based on the data and analysis. The report was a valuable resource for app developers, marketers, investors, and users who wanted to understand and leverage the potential of the mobile app market.