The Future of Mobile & Beauty: Two Stories You Can’t Miss

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How Mobile Apps Are Shaping Consumer Spending in 2024

Consumer spending on mobile apps reached an astonishing $150 billion globally in 2024, marking a 13% year-over-year increase, according to Sensor Tower’s latest State of Mobile report. For the fourth consecutive year, non-gaming apps outpaced gaming apps, with spending on non-gaming apps soaring 25% YoY compared to just 4% YoY growth for gaming apps.

The biggest winner? Generative AI apps. Consumer spending on AI-powered apps like ChatGPT, Google Gemini, and Doubao skyrocketed 200% YoY, hitting $1.1 billion. At this growth rate, AI-driven apps are expected to break into the top 10 mobile app categories by consumer spending within the next year.

Mobile Trends to Watch

The report highlights that global mobile phone usage increased by 5.8% YoY in 2024, totaling a staggering 4.2 trillion hours spent on mobile worldwide. Social media and streaming services continue to dominate in-app revenue, accounting for $11.7 billion and $11.9 billion in spending, respectively. However, they monetize differently:

• Social media apps (TikTok, YouTube) thrive on in-app purchases and creator tipping, making up 70% of the category’s consumer spend.

• Streaming platforms rely on subscriptions, leading to a fragmented market where nine apps hold at least 3% of total streaming revenue, with none exceeding 15%.

Meanwhile, finance and food delivery apps are experiencing rapid growth. Digital wallets and mobile banking led to an 8% YoY increase in finance app downloads, with time spent rising 21% YoY to 7.5 billion hours. Similarly, food and drink app downloads surged 8.5% YoY, as companies integrated mobile ordering into their customer experience.

“As consumers spend more time on mobile, they are becoming far more comfortable making purchases on their devices,” said Oliver Yeh, CEO of Sensor Tower. “Apps have shifted their monetization strategies to capitalize on this increased attention, finding innovative ways to streamline and improve consumers’ digital experience.”

With AI, social media, and digital payments reshaping mobile habits, 2024 is proving to be a pivotal year for the app economy.

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Sephora’s Commitment to Diversity: A Bold New Film

At a time when many companies are scaling back their diversity and inclusion initiatives, Sephora is taking a stand with its latest international film, “Beauty & Belonging.” The documentary, directed by Anastasia Mikova, showcases 75 Sephora employees and beauty brand founders, including Makeup by Mario and Glow Recipe, highlighting diverse perspectives on beauty.

The film, shot across eight countries, debuted at the BrandStorytelling event at Sundance and reinforces Sephora’s commitment to inclusion and representation in the beauty industry.

Why This Matters

While some corporations are backing away from DEI (Diversity, Equity, and Inclusion) initiatives, Sephora is doubling down. The company has taken concrete actions to support diverse communities:

• Joined The 15% Pledge in 2020, allocating 15% of its shelf space to Black-owned businesses.

• Focused its brand accelerator program exclusively on founders of color.

• Launched the “Black Beauty is Beauty” campaign to bring more diversity into its marketing strategy.

• Conducted a study on racial bias in 2021 and developed an action plan across marketing, merchandising, operations, and store experience.

“At Sephora, everything that we do—from deciding the brands to partner with to hosting large-scale events for our community—is guided by our purpose to champion a world of inspiration and inclusion,” said Jenny Cheah, Managing Director of Sephora Southeast Asia & Oceania. “Beauty & Belonging has succinctly and powerfully captured that essence.”

Sephora is also investing heavily in revamping its retail stores, with over 700 North American locations set for redesigns in the next five years. This move signals a commitment not only to inclusivity but also to enhancing the customer experience.

As brands navigate shifting consumer expectations, Sephora’s dedication to representation and inclusivity may set it apart in the competitive beauty industry.

Final Thoughts

From the booming mobile app economy to Sephora’s commitment to diversity, 2024 is shaping up to be a year of rapid transformation and innovation. AI-powered apps are reshaping consumer spending habits, while forward-thinking brands are proving that inclusion isn’t just a buzzword—it’s a business strategy.

What are your thoughts on these trends? Hit reply and let us know!

Until next time,