Japan, South Korea Lead 157% AI App Growth as Users Hit 666M

The global Artificial Intelligence Generated Content (AIGC) sector is experiencing explosive growth. According to the latest data, the number of monthly active users of AI applications worldwide reached 666 million in Q1 2025, marking a 24.64% year-over-year increase. Among them, DeepSeek emerged as the biggest dark horse in the global market, achieving an astonishing 1,688% growth rate and increasing its market share from 0.7% to 7.9%.

In response, SocialPeta has released its latest report, Marketing Analysis of Overseas AIGC Apps in Q1 2025, offering a data-driven perspective on global trends and uncovering new growth opportunities.

Global AIGC Market Overview: Established Global Monetization and Youth-Dominated User Base

1. Market Overview

North America accounts for 47% of global revenue, while India contributes 21% of total downloads. The global AIGC market is projected to generate $3.3 billion in revenue by the end of 2025.

2. User Base and Monetization

Users aged 18–35 make up 70% of the AIGC user base, highlighting strong adoption among younger demographics. Demand is equally driven by entertainment and utility, with subscription-based monetization models firmly established.

Global Marketing Insights: Video Creatives Dominate, with Japan and South Korea Showing Strong Potential

Compared to other sectors, media buying for AI applications tends to be more refined and targeted, rather than driven by aggressive, large-scale campaigns. The market also exhibits a strong head-effect, with top advertisers dominating ad spend.

On average, AI advertisers produced just 403 creative assets per month in Q1, marking a sharp 50.37% year-over-year decline. Among all formats, video ads accounted for over 83.46%, primarily highlighting product features. Short-form videos ranging from 15 to 30 seconds were the most prevalent, making up more than half of total video creatives.

In terms of geographic distribution, the United States led in both the number of advertisers and total creative volume. Overall, AI applications saw a broad increase in media creatives in Q1 2025, with Japan posting the highest year-over-year growth at 157.9%, followed closely by South Korea. This surge was largely driven by growing demand for localized content.

Breakout Case Studies: Chinese AI Applications as a Bellwether for Global Expansion

The report also analyzes the global marketing strategies of several trending Chinese AI applications, including DeepSeek — a rising game-changer in the AI model landscape.

Developed by Hangzhou DeepSeek AI Fundamental Technology Research Co., Ltd., DeepSeek represents a comprehensive general-purpose AI technology system. Its core offerings include the V3 foundation model and the R1 inference model. By delivering high performance at low cost—training the R1 model required just $5.576 million—DeepSeek is reshaping competitive dynamics in the AI industry and is widely viewed as a symbol of China’s growing technological strength in AI.

Its most popular ad creatives follow a KOL endorsement format, leveraging influencer-led comparisons of cost and performance against competing products to emphasize its competitive edge. Each video typically ends with a clip from an interview with NVIDIA’s CEO, reinforcing the brand’s credibility and enhancing its premium image.

Advertising Platform: YouTube 

Estimated impression: 55K

The report also highlights [Monica AI], which integrates multimodal models and successfully broke into the Japanese market with a creative campaign themed “Battle of the Top 3 AI Tools.” Additionally, it examines [Notta], a tool that precisely targets the productivity needs of Japanese professionals. With its minimalist, business-focused creatives, Notta has generated over 1 million impressions. 

Future Outlook: Localization and Creativity as Core Growth Drivers

Global users are now demonstrating a strong willingness to pay. Driven by the influence of major players like [DeepSeek] and [ChatGPT], user acceptance of AI has grown significantly compared to two years ago, highlighting the vast growth potential of subscription-based models.

However, this opportunity also presents challenges. Some regions have started implementing AI-related regulations, imposing stricter compliance and operational requirements on companies expanding globally. Moreover, leading AI applications typically exhibit high user retention, making it crucial for emerging players to differentiate themselves by creating emotionally resonant, hyper-localized content—incorporating cultural references and dialects—to effectively engage their target audiences.

Regarding the future of AI applications, Anna Zdorenko, Founder and CEO of INCYMO.AI, shared her exclusive perspective:

“The core of paid conversion lies in whether the creative can directly address users’ pain points, and whether it can be optimized through data. Users are willing to pay for the feeling of being ‘seen’—this means the first impression of an AI service must be personalized, not generic.”

In summary, by 2025, competition in the AIGC application space has evolved from pure technological innovation to a dual challenge of precise marketing and localized operations. Moving forward, emotional resonance and data-driven strategies will be critical to gaining a competitive edge.