Mobile Technologies and Digital Advertising: Sensor Tower Q2 2025 Report

The Digital Market Index report by Sensor Tower examines trends in digital advertising and in the field of mobile apps for the second quarter of 2025.

What defines the market today and which insights about digital advertising will help brands move forward — are described in the article.

Mobile market: insights about digital advertising from Sensor Tower

#1. Users make more purchases in apps than in games

For the first time, mobile users spent more on in-app purchases and subscriptions in non-gaming apps than in games. This shows how strongly consumer behavior is changing.

According to statistics, revenues from non-gaming apps grew from 26% of total IAP revenue in Q2 2019 to 52% in Q2 2025.

Global revenues from in-app purchases on iOS and Google Play reached a new record — exceeded $40 billion, which is 11% more compared to last year. This underlines the growth of the mobile market.

The mobile games market remained stable, generating revenue of about $20 billion.

iOS remains the dominant platform for mobile app monetization. Out of almost $41 billion spent by consumers on both platforms, iOS accounts for about $28 billion.

#2. The number of mobile app downloads stopped growing

The era of rapid download growth in developing markets and spikes caused by the pandemic has ended. This shows the maturity of the market: most users already have the necessary apps.

To succeed, new apps must stand out from others. For example, offer unique features, improved user experience, and innovative solutions.

At the same time, a competent approach to digital advertising is becoming increasingly important: it is what helps to highlight a product against the background of competitors and attract the attention of the target audience.

In a saturated market, the key factor will be the ability of apps not only to retain users but also to build long-term relationships through personalized offers, precise targeting, and a strategic approach to digital advertising.

Although iOS leads in monetization, Google Play dominates in terms of downloads. In Q2 2025, they accounted for 77%.

However, iOS is gradually narrowing the gap in downloads with strong growth of 4.4% compared to last year. This is especially noticeable in the Indian market.

#3. The USA leads in mobile app revenues

Consumers in the USA spent almost $15 billion on mobile apps in Q2 2025. Growth of 8% compared to last year was recorded.

Although the USA leads in total spending, the UK stands out with growth, increasing by 24% compared to last year. It significantly outpaced North America (+9% YoY) and Asia (+7% YoY).

The United States topped the list of countries, increasing revenues from in-app purchases over the past year by $1.16 billion. This exceeded the profit of the entire Asia region — +$860 million for the same period. In this competition, investments and attention to digital advertising played an important role, allowing brands to scale faster and strengthen consumer engagement.

The Latin American region also stands out. Despite the market still being relatively small, it showed impressive growth — by 27%. For example, in Brazil revenue growth of 33% was noted. Such rapid expansion makes the region one of the most promising, especially for companies that turn to digital advertising to promote apps and strengthen brands.

#4. Growth of the mobile market in Asia and Africa

App developers are turning to the Asia-Pacific region and Africa in search of new users.

In the Asia-Pacific region, Japan and South Korea showed significant growth with positive download figures. This is due to a strong increase in demand for software apps, including Generative AI, utilities, and business and productivity apps.

Africa is also an important growth driver. The region as a whole achieved strong growth of 9% compared to last year. This is linked to highly developing markets. Morocco, South Africa, and Kenya entered the top five fastest-growing markets in the world.

#5. The highest revenue growth was shown by apps in the software category

AI stimulates revenue growth from apps in the software category — increased by 53% compared to last year.

However, this is not the only category that, thanks to neural networks, received a significant boost. In fact, 8 out of 10 leading categories showed growth of at least 15% compared to last year, social networks and TV-movies — growth of more than 20%.

#6. In-demand game genres — Simulation, Puzzle and Arcade

Games in the Simulation, Puzzle and Arcade genres accounted for about 20% of total mobile game downloads. The TOP games included:

• Cookingdom (Simulation)
• Music Piano 7 (Arcade)
• Royal Kingdom (Puzzle).

Strategy showed positive annual growth, increasing downloads by 5% worldwide. This signals growing competition and increased attention of publishers to this segment.

At the same time, to promote games, companies are increasingly turning to digital advertising. It helps to quickly bring a product to the top and retain the audience in conditions of high competition.

#7. ChatGPT entered the TOP-5 apps in the world

ChatGPT reached 1 billion downloads worldwide on iOS and Google Play and for the first time entered the TOP-5 non-gaming apps by in-app purchase revenues. It managed to surpass such major players as Disney+ and Tinder.

TikTok still remains the leader on mobile devices and holds first place by IAP revenues — almost $1.7 billion.

#8. Among the leaders — video editors and streaming apps

Among popular apps in the field of video streaming and editors — TikTok, CapCut, ReelShort. The Short Drama genre showed rapid growth, i.e. streaming services for watching short dramatic series and videos.

This is a vivid example of how video has become the main way of attracting users on mobile devices. The trend has also been reflected in digital advertising. Some of the popular in-app advertising formats through the BYYD platform have become:

• Video Interaction. Interactive video advertising — a synthesis of Rich Media and video or Fullscreen and video.

• Split Screen. An interactive mobile advertising format in which the screen is divided into two zones with different advertising content. Allows you to simultaneously display two types of creatives: Video and Rich Media.

The main points about mobile apps and digital advertising

• Growth of spending in non-gaming apps. For the first time, users spend more in utilities, services and subscriptions than in games.
• Stagnation of downloads. New apps must stand out with functionality and UX. To promote, it is important to turn to digital advertising.
• The USA leads in revenues from in-app purchases.
• Asia and Africa are becoming key growth regions due to AI apps, business utilities and new users.
• The software category is the growth driver thanks to AI integration.
• Simulation, Puzzle, Arcade apps — +20% downloads.
• ChatGPT entered the TOP-5 by revenues and downloads among non-gaming apps, surpassing Disney+ and Tinder.
• Video apps and editors — TikTok, CapCut, ReelShort, Short Drama services set trends and formats in digital advertising.

Why in-app promotion has become a key tool in digital advertising

The Sensor Tower study showed that the modern user spends more and more time in mobile apps — from social networks and streaming services to utilities and games. Therefore, in-app advertising is becoming the main channel of interaction between brands and the audience.

Unlike the web, here more precise targeting by Device ID, behavioral data and interests is available, as well as deep personalization of creatives. Thanks to this, advertising becomes as relevant as possible and increases campaign effectiveness.

Taking these trends into account, choosing a reliable partner in digital advertising becomes critically important. BYYD is a mobile DSP platform with more than 10 years of experience in in-app promotion.

We help brands scale in local and international markets, providing precise targeting, transparent analytics, and innovative advertising solutions.

The main points about digital advertising — BYYD cases

Check out the cases on the website and contact us to launch a campaign.

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