YouTube Rises to Number 1 App by Consumer Spend

YouTube Rises to Number 1 App by Consumer Spend

According to a report on app spending worldwide in Q1 2021, YouTube is currently the number one app in terms of consumer spending.

New data from App Annie suggests that app spending records in general were broken in the first few months of 2021, and nowhere was it that YouTube was more prevalent within the app.

YouTube has introduced TikTok and Tinder to become the market leader in in-app purchases.

Consumer spending on apps is increasing at an unprecedented pace. By Q1 2021, app spending is growing at 40% year-on-year, which is another evidence of the impact of the epidemic, which continues on the app market.

Smartphone users spent almost $ 9 billion more on Q1 and 2020 games in Q1 2021.

In-app spending increases by a similar percentage on iOS and Android, and downloads are also substantial on both platforms.

The latest report by App Annie is a stack of data on the state of the app market in 2021. In this post I will focus on data related to YouTube, as the earning potential for video creators is stronger than before.

YouTube App Spend: What Are People Buying?

A top question that comes to your mind when you hear that YouTube is the number one app of consumer spending: Are people spending money?

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This is an app where people go to watch videos for free, so it is reasonable to question where the money is going.

App Annie’s report is not found in the granular details of specific in-app purchases, but there are many ways to spend money within YouTube. Many of them contribute directly to manufacturer revenue.

In-app purchases include YouTube:

  • YouTube Premium: A monthly subscription that removes ads on all videos and gives users special features.
  • Channel subscription: Monthly subscription to a specific channel, which can come with different perks.
  • Super chat: Viewers can pay to highlight chat messages during the producer’s live stream.
  • Super sticker: Viewers can pay to send stickers in chat during the producer’s live stream.

Channel subscriptions, super chats and super stickers all go directly towards the creator’s earnings.

Increased in-app spending on YouTube shows that these features are popular with viewers, showing users delight in supporting their favorite creators when they could otherwise consume content for free.

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Users are consuming Much more Recent YouTube content, which may be an important factor for increased consumer spending.

YouTube viewership is 6 times higher than other streaming apps

Looking back at 2020, App Annie reports that smartphone users are watching YouTube 6x more than the next closest streaming app.

YouTube Reaches Number 1 App by Consumer Spending

YouTube viewers watch an average of 38 hours of content each month. In 2020 YouTube was the # 1 ranked video streaming app in all markets analyzed (except China).

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Mobile video streaming is across the board, as App Annie has streamed 40% more hours on mobile in 2020 than in 2019.

Time in streaming apps ended in the US in Q2 2020, around the time when the first wave of COVID-19 forced people inside.

YouTube Reaches Number 1 App by Consumer Spending

In 2021, App Annie predicts that the average mobile streamer in the US, South Korea and the UK will download 85%, 80% and 60% more video streaming apps, respectively, than pre-epidemic levels.

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In other words, the meteoric rise of mobile video streaming represents a new normal for the web.

For more information on mobile app usage in 2021, see App Annie’s full report here.