SensorTowerSensorTower

January by the Numbers: How App Behavior and Ad Spend Shifted in Early 2026

Feb 26, 2026·5 min read

Summary

January 2026 advertising spend reached $12 billion, flat YoY, but category-level shifts reveal where brands see opportunity and risk. The top six categories accounted for 69% of spend, but rankings changed: Financial Services climbed to third place, overtaking CPG, which dropped to fourth. Gaming surged into the top six for the first time, displacing Food & Dining, with a 42% YoY spend increase.

Health & Wellness spent 12% of total ad dollars in January (vs. 10.5% in other months), reflecting New Year resolution trends. Shopping's share fell from 21% in December to 17% in January, indicating seasonal pullback.

For Gaming, downloads rose only 2% YoY to 21 million, but revenue jumped 5% to $185M, and revenue per download (RPD) improved 8% to $3.14. Health & Fitness RPD grew 6% to $3.39. For ad ops decision-makers, these data points suggest: 1) Invest in Financial Services and Gaming for growth; 2) Monitor CPG and Food & Dining for potential softness; 3) Focus on monetization tactics as acquisition plateaus, leveraging RPD improvements; 4) Capitalize on January's Health & Wellness spike; 5) Plan for Shopping's post-holiday decline.

The overall message: reallocate budgets toward categories with strong RPD growth and consumer engagement trends.

Analyst Note

What's notable here is the early signal from Financial Services' ascent to the third-largest January spender, overtaking CPG—a category historically reliant on discretionary spending. This shift suggests brands perceive sustained consumer financial engagement, possibly tied to tax season and resolution-driven financial planning. For UA teams, the implication is a more competitive auction environment for financial app installs, requiring tighter targeting and creative differentiation.

Meanwhile, Gaming's 42% YoY spend growth, paired with an 8% rise in revenue per download, underscores a market pivot from volume-driven acquisition to monetization efficiency. The key implication for monetization strategists: as installation plateaus, optimizing LTV through in-app purchases, subscriptions, and ad formats becomes paramount. The displacement of Food & Dining from the top six further signals caution in categories sensitive to inflation or shifting consumer habits.

For ad ops professionals, these patterns highlight the need for dynamic budget allocation early in the year, as January's reset reveals where brands see opportunity versus risk. The RPD increases across Gaming and Health & Fitness reinforce that sophisticated monetization strategies—not just spend levels—are driving performance in a mature mobile ecosystem.

You Might Also Like

SensorTowerSensorTower

Sensor Tower APAC Awards 2025

In 2025, non-game apps surpassed games in revenue, with total in-app spending hitting $167B. APAC publishers drove a $2.58B increase in gaming revenue. Short Drama and AI Assistant categories saw explosive growth, while Blinkit, Shopee, and DeepSeek led their sectors. For ad ops, this signals shifting user attention toward lifestyle, commerce, and AI tools, creating new inventory opportunities beyond gaming.

DiDi Rider·Feb 27, 2026·8 min readRead article →
SensorTowerSensorTower

State of Short Drama Apps 2026

Short drama apps are reshaping mobile entertainment, surpassing 850M downloads in Q1 2026 (up 140% YoY) with IAP revenue reaching $750M. Growth is concentrated in Southeast Asia, Latin America, and India, where these apps outpace traditional OTT in user acquisition. Engagement is surging: daily time spent grew 85% to 25 minutes globally, nearing OTT levels in Southeast Asia. For ad ops, the shift toward ad monetization in addition to IAP opens new inventory opportunities. Key players like FreeReels, NetShort, and Melolo are scaling via localized content and paid acquisition, creating competitive ad markets.

Jun 27, 2026·3 min readRead article →
SensorTowerSensorTower

State of Digital Banking 2026

Digital banking ad impressions surpassed 50B quarterly with spend above $350M by Q1 2026, driven by mobile-first adoption. Neobanks like Nubank lead downloads, while traditional banks modernize apps. SeaBank's integration with Shopee exemplifies ecosystem-driven acquisition. For ad ops, key takeaways: prioritize mobile channels, leverage partnerships for scale, and balance reach with trust-building to sustain engagement.

Jul 9, 2026·10 min readRead article →
AppsFlyerAppsFlyer

Where European Finance Apps Win or Lose Users

European finance app installs hit 960M in 2025 but grew only 0.4%. BNPL apps grew 40% while crypto fell 35%, signaling a shift to utility. Neobanks win acquisition; traditional banks win retention (1.5-2x Day 30 rates). Web-to-app drives 41.8% of conversions but most brands can't measure the handoff. Nearly 1 in 2 investment app installs in Western Europe is fraudulent, distorting CPI and ROAS. Winning brands prioritize engagement, fraud detection, and cross-platform measurement.

Lesia Kupriienko·Jun 18, 2026·12 min readRead article →
AdjustAdjust

Mobile app trends and insights for Songkran 2026 | Adjust

During Songkran 2025 in Thailand, overall app installs rose 8% and sessions 12% YoY. Food & drink apps surged up to 141% in installs and 160% in sessions during the festival. E-commerce saw a post-festival spike (+49% installs). Entertainment apps had longer sessions (+30%), while social and messaging apps also grew significantly. Key actionable insights: align campaigns to pre/during/post phases, optimize for intermittent usage, segment tourists vs. locals, and capture long-term value post-festival.

steady gains in installs·Mar 31, 2026·6 min readRead article →
SensorTowerSensorTower

State of AI 2026: Competition, Commerce, and the New Digital Economy

AI is reshaping digital advertising as platforms like ChatGPT and Gemini become new discovery channels. Key findings: ChatGPT ad impressions surged 7x since March 2026, and AI-related ad spend tripled in Q1 2026. Early advertisers are concentrated in Shopping, Software, Travel, and Financial Services. AI assistants drive referral traffic to retailers, with Walmart and Target exceeding 1.5% GenAI share. Competition among AI platforms is intensifying, with Claude gaining professional users. For ad ops, integrating AI into media plans and optimizing for AI-driven discovery is critical.

Jun 27, 2026·5 min readRead article →
MolocoMoloco

Super Bowl LX: Why Sportsbook Advertisers Should Bet on January

The Super Bowl drives huge deposit volume but is only average in cost efficiency due to competition. January NFL and college playoff games offer up to 3x better cost per first-time deposit (cpFTD), with lower CPMs and CPI. Advertisers should shift some Super Bowl budget to January playoff dates—especially the Triple Header weekend (Jan 17-19)—for more efficient acquisition. Extending optimized spend through March Madness also yields below-average cpFTD. The key insight: earlier activation captures high-intent bettors before market saturation.

Tom Shadbolt·Jan 18, 2026·3 min readRead article →
SensorTowerSensorTower

State of AI Apps 2026: APAC Edition – Gen AI Enters an Exponential Growth Era, with Revenue Soaring 232% YoY to US$6.1 Billion

Gen AI apps have become the primary growth engine of the non-gaming market, with revenue surging 232% YoY to $6.1 billion between Q2 2025 and Q1 2026. The US leads with 38% of global revenue, while Japan and Korea emerge as key growth markets. AI Assistants are increasingly concentrated, with ChatGPT dominating, but vertical segments like AI Companions, AI Agents, and AI Image & Video offer fragmented, high-growth opportunities. Lessons from Plaud highlight success through vertical focus, deep localization, and precision advertising. For ad ops, targeting vertical AI segments and localized user acquisition strategies present significant opportunities.

Jun 27, 2026·3 min readRead article →

More from SensorTower