A drop in US virtual goods sales in games dragged in-app spending down overall in 2022, but growth is set to return in 2023. Even so, sales of subscriptions and virtual goods—together, in-app purchases (IAPs)—will still bring in barely a quarter of what in-app advertising (IAA) earns. And the gap in revenue generation will only grow in the future.
Key Question: Which app monetization methods are poised to grow—and what does that mean for advertisers and app publishers?
KEY STAT: IAP sales volume will remain barely a quarter (26.6%) of the size of IAA spend in 2023, with the ratio dropping every year through our forecast.
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