Global Consumer Spending Grows Thanks to Entertainment Apps

Consumer spending has seen a lot of lows recently, and that is thanks in no small part to the global pandemic. In spite of the fact that this is the case, the years after the pandemic have seen an uptick in consumer spending. While developed countries are still struggling to keep the pace, developing nations and emerging markets have ensured that the growth rate is higher than might have been the case otherwise.

With all of that having been said and now out of the way, it is important to note that global downloads saw huge boost due to the pandemic. While the rate of downloads has slowed, it still sits at a far higher number than what was seen prior to the emergence of Covid-19. Africa is looking to be a major player, with its relatively young population set to make the continent a massive market in the next few years or so, as per ST data.

However, one concerning statistic involves a drop in consumer spending on Android apps. In-app purchases and other forms of consumer spends have gone down by 7% year over year. That is largely due to Apple’s anti tracking policies along with inflationary pressures that are hitting consumers in the wallet with all things having been considered and taken into account.

Despite so many headwinds, consumer spending prospects are continuing to look up. Entertainment apps are coming to the fore, with apps like TikTok and YouTube driving a lot of growth in this sector. That suggests that entertainment apps will be an even bigger focus in the coming years, and considering how important Africa is about to become, it stands to reason that the continent will be responsible for a lot of the decisions that are made down the line.

Much of the digital ad spend is going towards TikTok, and that has led to record breaking numbers for the Chinese social media platform. Brand spending is decreasing, but the prospects for 2023 are looking up as brands hope to increase spends after inflationary pressures begin to subside. That will leave TikTok well poised to take over the industry over the next decade.

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