Global app spending hits record $41B in Q2 as non-gaming apps overtake games for the first time

The mobile economy reached a major milestone in Q2 2025, with global in-app purchase (IAP) revenue climbing 11.5% year-over-year to nearly $41 billion. For the first time, consumers spent more on non-gaming apps than on mobile games, according to Sensor Tower’s latest Digital Market Index report.

Non-gaming apps generated $21.1 billion in IAP revenue during the quarter, up 24% from the previous year, driven largely by the subscription boom, innovative monetization models from platforms like TikTok, and growing consumer comfort with in-app payments. Artificial intelligence apps have added fresh momentum, with ChatGPT emerging as one of the biggest revenue drivers.

In contrast, mobile game spending remained steady at around $20 billion globally, with modest gains in Europe (+8.5% YoY) and Latin America (+6.2%) offset by small declines in Asia and North America. A decade ago, games out-earned apps by almost six to one, underscoring the magnitude of this shift.

ChatGPT continued to shatter records in Q2, becoming the fastest app in history to reach one billion downloads and surpassing 500 million monthly active users. It ranked fourth globally for IAP revenue, capturing more than two-thirds of all spending on generative AI apps. This dominance comes despite new competition from Meta’s “Meta AI” and X’s “Grok.”

TikTok retained its position as the top-grossing app worldwide, with nearly $1.7 billion in quarterly IAP revenue—its second-best performance to date—more than doubling any other app’s earnings. Its sibling app CapCut also landed in the global top 10 by revenue.

ChatGPT overtook TikTok as the most-downloaded app of the quarter, boosted by its first major digital advertising campaign, which offered free ChatGPT Plus to college students. Meta secured three of the top five download spots, while its Threads platform ranked tenth.

In the United States, digital advertising spend across mobile, desktop, and OTT platforms reached $34.2 billion in Q2, up 12% YoY, with impressions hitting a record 4.17 trillion. The inclusion of in-app advertising data provided a fuller picture of market performance.

Outside the US, South Korea led digital ad spend growth at +21% YoY, followed by Brazil (+18%) and Mexico (+16%). New ad channels—including NAVER, TikTok, and YouTube in South Korea and LINE in Japan—are further fueling the expansion.

Europe and Latin America emerged as key growth regions, with IAP revenue rising more than 20% YoY in both markets. Software apps, particularly those powered by AI, saw revenue climb more than 50% YoY, while Short Drama apps continued their rapid ascent in popularity.