Q1 2025 Digital Market Index: The Digital Economy Starts 2025 with Strong Growth Across Advertising and Mobile

The digital economy continued its strong performance into Q1 2025.
Mobile apps achieved a milestone with global in-app purchase revenue reaching $40 billion for the first time, an 11% year-over-year increase.
Non-game apps drove most of this growth, with revenue up 24% to $19.4 billion, boosted by generative AI and short drama subgenres.
ChatGPT ranked #6 by IAP revenue, with over $330 million in subscriptions, while short drama apps like DramaBox and ReelShort showed strong growth.
Games still led total IAP at $20.6 billion but grew only 1% YoY.
US digital ad spend hit $31 billion with 3.9 trillion impressions, both up over 10% YoY.
Video ads outperformed, growing 18% YoY versus a 6% decline for other formats.
Social channels accounted for over 75% of US digital ad spend, while OTT provided higher growth.
European markets like France (+17%), Italy (+16%), Spain (+16%), and the UK (+15%) showed particularly strong ad spend growth.
Retail media also surged, with US retail media ad impressions up 31% YoY to over 56 billion.