Digital spend in SEA hits new phase as non-gaming apps overtake

Southeast Asia’s app market has hit an inflection point. For the first time, non-gaming app spending has surpassed gaming, according to data from Sensor Tower.

David Law, regional sales director of the market research firm, revealed the milestone at the TikTok App Summit in Hanoi, Vietnam.

David Law, regional sales director of Sensor Tower, speaks at the TikTok Apps Summit Southeast Asia in Hanoi / Photo: TikTok

Specifically, data showed that in the second quarter of 2025, in-app revenue for non-gaming apps hit US$672 million against US$646 million for gaming apps.

Gaming, which is traditionally dominant for in-app purchases in Southeast Asia, is still growing. Its revenue was at US$625 million in the first quarter of this year, while non-gaming significantly took a larger slice of the pie. Law said overall in-app purchases for the region were about US$2.6 billion per quarter.

“So that’s US$10,000 spent per minute,” he pointed out, adding that the third quarter of 2025 saw about 1.2x more spending on in-app purchases for non-gaming apps compared to the same period in 2024.

Sensor Tower data also pointed to social media as Southeast Asia’s biggest driver of non-gaming revenue. Users spent about US$575 million over the past year, up 35% year-on-year.

Meanwhile, the fastest-growing categories are AI assistant apps (+244%), short-drama platforms (+175%), and video editing tools (+109%). These numbers show how content creation and personalization are fueling new spending habits.

Over-the-top streaming grew by only 2%, highlighting the challenge posed by short-form videos from TikTok and other social media platforms.

Law also talked about TikTok’s growing dominance in attention and engagement. He said users in the region now spend around 90 to 100 minutes on the app daily and “that’s the length of a full-length movie.”

Nikhil Rolla, TikTok’s head of strategic accounts for Southeast Asia, noted that app marketers are changing focus as the region’s app economy matures. The company’s platform support is shifting to pay more attention to business impact than pure download numbers, he added.

“We’re trying to move away from downloads equating to success, and how downloads should drive the right kind of transactions and long-term growth for these apps to really drive success,” Rolla explained.

He said this mindset applies across categories – from gaming to travel, finance, and food delivery – as developers look to turn installs into sustainable business results, not short-term spikes.