Why Users Are Spending More on Apps Despite Using Apps Less

A curious trend is emerging in mobile app usage: people are spending less time in apps, but they’re spending more money in them. According to recent data, U.S. consumers spent approximately $52.4 billion within apps in 2024. That is a staggering 16% increase from the previous year despite a slight decline in overall app usage.

The Shift in User Behavior

At first glance, this might seem contradictory. If people are using apps less, why are they spending more? The answer lies in underlying priorities of mobile app users. Consumers are streamlining their digital habits, engaging more selectively with apps that provide high value, frictionless experiences, and meaningful engagement. Instead of hopping between numerous applications, users are gravitating toward a few high-quality apps where they see real benefits. This is a universal trend across entertainment, productivity, and convenience.

This shift suggests that app retention and monetization strategies need to evolve. Companies can no longer rely on sheer engagement metrics like screen time; instead, they must focus on delivering premium experiences that justify user investment.

According to an article from Investopedia, "About 12.3 billion apps were downloaded in the U.S. in 2024, down from 12.6 billion in 2023 and 12.7 billion in 2022. Americans collectively spent slightly less time on apps, logging 323 billion hours in 2024, compared to 325.1 billion hours in 2023."

The Rise of High-Value Apps

What kinds of apps are benefiting from this shift? 

• Streaming & Entertainment: Users are more willing to pay for ad-free experiences, premium content, and exclusive access.

• Productivity & Subscription-Based Services: Whether it's cloud storage, AI-driven tools, or wellness apps, people are willing to invest in services that enhance efficiency and personal growth.

• Gaming: In-app purchases for premium content, upgrades, and in-game currencies continue to drive revenue growth in mobile gaming.

What This Means for Businesses & Developers

For companies building digital products, this trend presents both challenges and opportunities:

• Quality Over Quantity: Instead of trying to capture attention for long durations, focus on creating impactful, engaging experiences that users find valuable enough to pay for.

• Frictionless Monetization: Subscription models, microtransactions, and value-driven premium tiers are increasingly effective.

• User-Centric Design: Personalization, intuitive interfaces, and AI-driven features can keep users engaged without requiring constant interaction.

• Retention Over Acquisition: It’s becoming more cost-effective to deepen relationships with existing users than to constantly acquire new ones. Loyalty programs, meaningful push notifications, and community-building features help sustain long-term engagement.

The Future of Mobile App Revenue

As users refine their app choices, businesses must rethink their digital strategies. With increasing inflation and rising costs of everyday goods, users are spending smarter rather than more frequently. Mobile apps must offer a meaningful, indispensable, and premium experience. The era of chasing downloads and engagement time is fading; the future belongs to apps that deliver undeniable value.

How We Help

At APG, we help businesses navigate the shift towards frictionless, personalized user experiences. Whether you’re looking to optimize your app’s monetization model or refine user engagement strategies, we’re here to help you stay ahead of the curve.