Maya Robertson
Global mobile spending continued its upward trajectory in Q3 2025, with in-app purchase (IAP) revenue climbing to $43.2 billion, an 11% increase year-over-year. The surge pushes the market closer to the long-anticipated $50 billion quarterly milestone, according to Sensor Tower’s latest Digital Market Index.
The gains came despite persistent tariff pressures and a slowdown in key retail categories—signaling sustained consumer willingness to spend across apps, particularly in non-gaming segments and emerging AI tools.
Non-Game Apps Extend Their Lead as AI Spending Accelerates
Non-gaming categories outpaced mobile games for the second consecutive quarter, reaching $22.3 billion, supported by more than 20% year-over-year growth across most major verticals. Generative AI remained a standout: consumer spending on GenAI apps jumped from $400 million in Q3 2024 to nearly $1.5 billion in Q3 2025, representing almost 7% of all non-gaming revenue.
Mobile gaming also delivered a solid performance. Revenue rose 2.5% year-over-year to $20.9 billion—its second-highest quarter on record, trailing only the pandemic-era peak.
Both major platforms recorded double-digit growth: iOS revenue rose 10%, while Google Play climbed 14.5%. iOS retained its dominance in non-game monetization, accounting for 72% of global non-game spending, though Google Play’s faster acceleration signals room for further growth.
ChatGPT Climbs the Revenue Charts, TikTok Holds the Top Spot
Generative AI continues reshaping the top-grossing rankings. ChatGPT, which sat at #16 a year ago, climbed to #2 globally by IAP revenue in Q3 2025, second only to TikTok. In several markets—including Spain, Turkey, Argentina, Brazil, and Canada—the app claimed the #1 position by quarterly spending.
Download rankings remained stable: ChatGPT held the top position worldwide, followed by TikTok, Facebook, Instagram, and WhatsApp. Google Gemini saw one of the strongest movements this quarter, jumping 12 spots to land at #6.
Downloads Hold Steady, With AI and Emerging Markets Driving Growth
Global downloads totaled 37.6 billion, up 0.8% year-over-year. Beneath the modest increase is a clear divide:
- Non-game downloads increased 5.5%, driven by productivity and AI apps.
- Game downloads declined, continuing a post-pandemic cooling trend.
Regional performance varied widely. India delivered its strongest quarter in more than two years, surpassing 6.5 billion downloads, helped by rising interest in Food & Dining and Jobs & Education categories. Nigeria, Côte d’Ivoire, Iraq, and South Korea also contributed significant gains, each adding more than 45 million downloads year-over-year.
Tariffs Pressure Retail Apps While Advertisers Shift Budgets
Q3 2025 produced mixed results in digital advertising. Overall US ad spend grew 12% year-over-year, but tariffs reshaped investment patterns across verticals.
The Shopping category continued its decline, affected by earlier budget pullbacks from major Chinese retailers. However, both Temu and SHEIN reversed course late in the quarter, increasing spend by more than 100% and softening the overall contraction.
Gaming advertisers expanded aggressively, boosting spend by 28% quarter-over-quarter, the fastest growth across all verticals. The auto insurance sector also surged, driven by tariff-related increases in car prices and premiums. Liberty Mutual and Geico responded by dramatically increasing their advertising budgets—up 205% and 316%, respectively.
US, Europe, and Latin America Lead Global Revenue Expansion
The United States remained the largest mobile market, generating more IAP revenue than the next five countries combined. Western Europe also posted strong growth, with the UK, Germany, and France adding nearly $800 million collectively.
Latin America stood out as a fast-growing region. Brazil recorded a 29% increase in IAP revenue, the fastest among the top 20 global markets.
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