App fatigue is real: Users are downloading fewer apps than ever

There are too many mobile apps and not enough buzz to keep users engaged. While most apps are advertising-driven, paid apps are the most viable business model — 5% of apps offer subscriptions, yet they account for 48% of all revenue.

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That’s the state of the mobile app economy, explored in a new market analysis from Aarki. There has actually been a decline in mobile app downloads, the report states, noting an overall 2.3% decline in global app installs for both iOS and Google Play. App downloads in the US declined by 3.4% to 10.6 billion in 2024.

Decline in mobile app downloads

There is intense competition for screen space. Smartphone users explore 40 to 100 apps annually, but only 10 to 15 become daily staples. Devices typically hold 80 to 100 apps, “making users uninstall unused apps and intensifying competition for user attention.”

Retention of current mobile users is key. The Aarki study sought to make connections between primary apps being downloaded and users’ affinity for other apps. This app ecosystem — what the study’s authors refer to as the “app hive” — may provide clues to the affinity between what, to a casual observer, may seem to be unrelated apps and help app designers and developers achieve higher retention rates for increasingly valuable screen real estate.

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“For example, users of a casual gaming app may also engage with shopping or music apps — strategic insights that drive both retention and acquisition simultaneously,” the study suggests.

App users have an affinity for puzzle games  

The study’s authors looked at several major categories of apps:

Gaming apps: These comprise the leading use case for apps, accounting for 41% of all iOS and Google Play downloads. Since 2021, however, global gaming app downloads have dropped 6% year-over-year.
Photo and video apps: At least 10% of users download these types of apps.
Shopping platform apps: Preferred by 8% of users.
Entertainment and productivity apps: These account for 4 to 7% of downloads.  

The study examined app user journeys and interactions between apps to develop profiles on what users of specific apps prefer to see on their screens. The purpose was to “identify which users are likely to explore complementary app categories, allowing for more targeted acquisition strategies.”

For example, fintech app users also like puzzle games (22%), entertainment (15%), and casual games (15%). Shopping app users also have an affinity for puzzle games (46%), casual games (14%), and word games (12%).

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Those who use lifestyle apps have an affinity for health and fitness apps (37%), puzzle games (16%), and shopping (16%).

It’s interesting how various app user cohorts are attracted to puzzle games as part of their screen lineup. 

How app makers can compete

Here are some of the methods the study’s authors offer to take greater advantage of this interconnected app ecosystem:

Deep linking: “Guide users directly to personalized landing pages or app sections — be it a seasonal menu, a product offer, or a financial tool-using deep linking.”
Advanced segmentation algorithms for greater personalization: Such algorithms can enable “retargeting users with tailored creatives based on historical behavior, such as frequent orders, cart abandonments, or prior app activity.”
Data-driven creative optimization: “Incorporate programmatic creative testing to adapt ad visuals and messaging dynamically. Highlight features such as security for finance apps or enticing promotions for food apps, ensuring maximum relevance for diverse audiences.” 
In-app advertising: “Use dynamic product ads powered by AI to serve hyper-relevant recommendations based on user preferences and behaviors. This ensures users see products or services that resonate with their needs, driving higher engagement.”