Gaming Apps Earned $267 Billion in 2022 Alone

Smartphone apps have been seeing an uptick in their revenue rates for quite some time now, but in spite of the fact that this is the case none of them can hold a candle to the tremendous profits that gaming apps tend to generate. This subset of the overall app economy is famous for generating record revenues, which is why they comprised 62% of the revenue that all apps ended up bringing in for 2022.

With all of that having been said and now out of the way, it is important to note that gaming apps raked in a whopping $267 billion last year. Social networking apps came in second with $43 billion, followed by entertainment apps with $29 billion, Photo and Video apps with $18 billion, Lifestyle apps with $11 billion and finally music apps with $10 billion. A further $50 billion was distributed among aps in the Others category.

This brings the overall revenue for smartphone apps in 2022 up to an impressive $432 billion with all things having been considered and taken into account. A little over half the share of this revenue came from a single source, namely that of in-app advertising. $221 billion came from advertising that can be seen from within the app itself. In app purchases were another major driver of revenue, with a healthy $205 billion coming from this source.

Finally, there is the category of premium apps that obtain revenue through one time purchases. Interestingly, these apps comprise a very minor portion of app revenues, with just $5.3 billion coming from this source. This seems to suggest that the freemium model reigns supreme. It allows apps to get many users onboard, and once they see what the app ha to offer they will be more amenable to paying up extra than might have been the case otherwise.

Gaming apps can offer the best of both worlds, especially from in app purchases. However, social media and other apps tend to have the edge when it comes to ad revenues, and it will be interesting to see how this affects the balance moving forward.

H/T: Statista

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