Kuala Lumpur, 14 October 2025 — Asia’s mobile economy is entering a new phase defined by three converging forces: the mass adoption of AI-powered apps, the global spread of “short-drama” entertainment formats, and the explosive rise of third-party Android stores as cost-efficient growth channels.
This is the key takeaway from Mintegral’s 2025 APAC App-Economy Report, released today. The global advertising and monetization platform revealed data showing that AI consumer apps are now mainstream, short-drama from APAC is reshaping global viewing habits, and alternative Android app stores are delivering record-low acquisition costs for marketers seeking scalable returns.
AI Crosses into the Everyday Mainstream
According to Mintegral’s dataset, AI consumer apps have moved from novelty to necessity. In 2024 alone, downloads for AI-powered applications surged to 1.5 billion, generating US $1.3 billion in revenue.
The AI chatbot category led growth at 119 % year-on-year, followed by AI art generators, up 21 % YoY. Sixteen generative-AI apps have already surpassed US $10 million in in-app purchases (IAP), while 25 apps exceeded 10 million downloads each, clear proof that consumers now routinely pay for AI-enhanced productivity, creativity, and personal assistance.
“AI has officially crossed the chasm,” Mintegral noted in the report. “Developers solving real-world user pain points, from document handling and finance to chat and workflow automation, are finding conversion-ready audiences at scale.”
For advertisers, the implication is clear: AI app users convert faster and are more retention-resilient than users from traditional app categories, making this one of the most attractive verticals heading into 2026.
Short-Drama: Asia’s Next Cultural Export
Mintegral’s analysis shows that short-video apps centered on episodic ‘short-drama’ content — serialized, high-emotion storytelling delivered in bite-sized episodes, have grown 50 %–200 % quarter-on-quarter since Q3 2023.
The model is overwhelmingly ad-supported (90 % IAA) with only limited in-app purchase contributions. Interestingly, Indonesia now accounts for 39 % of all short-drama downloads, followed by Brazil, the Philippines, Thailand, Mexico, and Japan–Korea, signaling that the format has truly gone global.
Short-drama platforms thrive on rewarded-video loops, allowing users to unlock new episodes or bonuses by watching ads or completing daily tasks. This fusion of entertainment and interactivity offers marketers a new performance playground, one that combines reach, engagement, and monetization clarity.
“A new mobile entertainment category born in Asia is now being exported worldwide,” said the report. “Advertisers that adapt fast to the storytelling rhythm of short-drama formats will capture audiences with unprecedented cost efficiency.”
Third-Party Android Stores: The New ‘Blue Ocean’
While Google Play and Apple’s App Store remain dominant, Mintegral’s report highlights the emergence of third-party Android marketplaces, including Xiaomi, Samsung, Amazon, Oppo/Vivo, Huawei, and others, as a “blue-ocean” ecosystem for scalable, low-cost user acquisition.
These alternative stores are delivering CPI bands as low as US $0.26 – $0.42 and daily install volumes ranging from 2,000 to 5,000 per app, depending on genre and bidding approach. For advertisers, that represents fractional acquisition costs compared to mainstream platforms.
Through its self-serve and SDK integration solutions, Mintegral claims marketers can now target and optimize across these non-traditional stores without additional permissions — tapping into millions of users across emerging markets in Asia, Eastern Europe, and Latin America.
“Marketers no longer need to be small fish fighting in red-ocean auctions,” the company noted. “Alternative stores are expanding reach, stabilizing costs, and unlocking new sources of scale.”
What Advertisers Can Do Now
Mintegral’s report concludes with actionable recommendations for developers and advertisers:
- Adopt ROAS-aligned bidding: Use Target ROAS, Hybrid ROAS, or IAA ROAS to optimize toward revenue outcomes, not just clicks.
- Lean into creative automation: Deploy dynamic creative optimization, playable ad formats, and fast iteration cycles to keep pace with short-drama and AI-driven verticals.
- Diversify distribution: Add third-party app stores to the media plan to expand audience coverage and reduce CPI volatility.
