Gaming drives growth as app store revenues rise 40 percent in 2016

apps, digital, iOS, Android

People are spending increasing amounts of time in and money on apps, according to new research.

App Annie’s 2016 Retrospective of the mobile app market found that the total time spent in apps rose by 25 percent to reach nearly 900 billion hours in 2016, while app store revenues rose 40 percent to $35 billion.

Games remain the most lucrative and popular app category across both the iOS App Store and the Android Google Play store, the market research firm said.

Major examples of the success of gaming apps included Monster Strike, Clash of Clans and Pokémon Go, which App Annie said remained a major revenue driver despite not launching until July.

Social networking apps took second position for iOS revenue, followed by entertainment, while communication and social apps remained the second and third biggest earning categories respectively on Google Play.

In terms of individual apps, the highest earner was music streaming app Spotify, followed by messaging service LINE, on-demand video provider Netflix and dating app Tinder.

Overall, the average consumer now typically uses over 30 apps per month, according to the report.

The most popular apps, regardless of the revenue they generated, were Facebook and WhatsApp in terms of downloads.

In terms of monthly active users the top apps were Facebook for iOS and WhatsApp for Android.

China produced the most downloads and the highest revenue on iOS.

It also replaced the US in the top spot for App Store revenue.

India saw the most Google Play downloads while Japan saw the most Google Play revenue.

A November report by Publicis Media found that the average UK consumer downloads two apps per month, but one in five are deleted after just one use.

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