Mobile Spending Surges Even as Daily Active Users Drop: X’s Surprising Trend
Recent data reveals that social network X has experienced a significant rise in in-app revenue over the past year, even as its active user base has seen a decline. This increase in consumer spending on the X mobile app highlights a complex landscape for the platform, with notable shifts in user engagement and market competition.
Surge in In-App Revenue Amid User Decline
According to app intelligence firm Appfigures, global consumer spending within the X mobile app on both iOS and Android platforms surged by 76.3% year-over-year. This rise, measured during the period from January 1-20, shows a jump from $7.6 million in 2024 to $13.4 million in 2025.
Understanding Revenue Sources
It’s important to note that this revenue only reflects in-app purchases and does not include advertising or web subscription revenues. Despite the increase in in-app spending, X remains predominantly an advertising-driven business, and this data merely provides insight into consumer spending trends.
Factors Driving Increased Consumer Spending
One of the contributors to this growth may be the integration of xAI’s Grok AI chatbot within the app. Following the testing of a free version of Grok in November 2024, spikes in net revenue were observed, particularly after the introduction of a faster model and new features in December.
- Launch of a new Grok button in mid-December 2024.
- Introduction of a new image generation model on December 9.
- Creation of an NFL portal in late November to boost sports engagement.
Consumer Spending Trends in the U.S.
In the United States, consumer spending on X also grew, recording a 61.4% increase from $4.4 million in January 2024 to $7.1 million in January 2025. However, monthly spending has fluctuated throughout the year.
Monthly Spending Insights
The analysis of monthly spending indicates variability, with February 2025 seeing the lowest total at $9.6 million, while December peaked at $25.6 million, likely influenced by the U.S. elections.
Top In-App Purchases in January 2025
The leading in-app purchases on the X iOS app for January 2025 include:
- X Premium Monthly subscription ($11/month)
- X Premium Plus Monthly subscription ($30/month)
- X Premium Basic Monthly ($4/month)
- Subscription to Elon Musk’s account ($4/month)
- X Premium Annual Subscription ($114.99/year)
Decline in Active Users
Despite the increased spending, data indicates a decline in daily active users on X. Estimates from Sensor Tower show that both U.S. and global daily active users fell by approximately 13% year-over-year in January 2025.
Competitive Landscape
While X’s user base has decreased, competitors like Instagram Threads and Bluesky have experienced substantial growth, with increases of over 170% and 495% in user engagement, respectively. Factors contributing to this rise include international expansions and new feature rollouts.
Advertising Revenue Outlook
Interestingly, while consumer spending has varied, there are indications that X’s advertising revenue might be improving. Data from Guideline reveals that X saw a 123% increase in ad spending in December 2024, following declines in previous months.
In conclusion, while X’s in-app revenue has seen a notable increase, the platform faces challenges with declining user engagement amid rising competition. For more insights into mobile app trends, visit our mobile apps section.
