Data presented by Burga, which makes cases and other accessories, indicates that consumers globally spent US$3.23 billion in social applications during the first half of 2021. The spend represents a growth of 50.23% compared to a similar period last year when the amount stood at $2.15 billion.
Between the period, quarter one of 2021 represented the highest spending at $1.62 billion. During quarter one of 2020, the spending was at $0.98 billion, growing to $1.17 billion in the second quarter of 2020. The data on spending is a combination of apps both on the iOS and Google Play platforms entailing social, social networking and communication categories.
Elsewhere, during the second quarter of 2021, consumers worldwide cumulatively spent $22.19 billion on social apps. The figure represents a growth of 7.8% from the $20.58 billion spent as of quarter one 2021. Overall, the spending has steadily grown by 44,280% between the first quarter of 2011 and the second quarter of 2021. The first quarter of 2011 also registered the lowest spending at $0.05 billion.
Creator economy spurs social app spending
The Burga report highlights some of the factors contributing to the increase in social apps spending. According to the research report:
Notably, the spending reflects the app economy that skyrocketed from last year due to the coronavirus pandemic. With countries imposing lockdowns, most people leveraged social apps as an alternative form of entertainment. During the period, social apps like Tinder have been one of the largest drivers of growth in consumer spending during the pandemic.
Although spending is likely to surge in the coming years, social platforms must remain innovative to keep users engaged and willing to spend more money.
