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Lensa AI: a viral AI avatar boom that faded within weeks

Magic Avatars made a four-year-old photo app No. 1 in late 2022 and earned an estimated $37M net in 60 days. Then copycats and backlash ended the spike.

Product
Lensa AI
Founder
Prisma Labs
Launched
2018
Model
Subscription plus paid avatar packs

Published · 2 min read · 4 sources

Key takeaways

  • Lensa existed since 2018; its Stable Diffusion 'magic avatars' feature launched in late November 2022 and took it to No. 1 in Photo & Video.
  • Appfigures estimated more than $37M in net revenue in 60 days, about 91% from iPhone.
  • By February 2023 Apptopia data showed AI photo app downloads and spending had fallen far from their mid-December peak.

What it is

Lensa AI is a photo editor from Prisma Labs. Its "magic avatars" feature took 10-20 selfies and used the open-source Stable Diffusion model to generate artistic portraits (TechCrunch).

Timeline

  • 2018: Lensa AI launches (TechCrunch).
  • Late Nov 2022: magic avatars launch; the app hits No. 1 in the iOS "Photo & Video" chart, ahead of YouTube and Instagram. Sensor Tower counts 1.6 million downloads in November, up 631% from October (TechCrunch).
  • Late Nov 2022: Appfigures estimates a single Tuesday with 232K downloads and net revenue near $160K, against about $16K on a standard day (Appfigures).
  • Early Jan 2023: Appfigures estimates more than $37M in net revenue over the previous 60 days and says the run "seems to be over" (Appfigures).
  • Feb 2023: Apptopia data shows the AI photo app group peaked in mid-December at 4.3 million daily downloads and about $1.8 million a day in spending, and has dropped sharply since (TechCrunch).

Why it worked

  • A shareable result. Every avatar pack produced images people wanted to post, which advertised the app (TechCrunch).
  • An existing app ready to monetise. It had a paywall and in-app purchases in place: a $39.99 yearly plan after a trial, and avatar packs from $3.99 for 50 (TechCrunch).
  • Timing. The viral run began around Thanksgiving 2022, before a wave of similar apps filled the charts in mid-December (TechCrunch).

What to learn

  1. Novelty can make money fast, but plan for the drop. Some users only wanted to see their own avatars once (TechCrunch).
  2. If a feature runs on an open model, assume copycats within weeks.
  3. Keep the app ready for the next spike. Appfigures noted Lensa "wasn't the first, last, or even best app for AI-generated avatars" but "it was there" (Appfigures).

Risks and what didn't work

  • Backlash. Artists objected that their work trained the models without consent, and people found it easy to produce NSFW images (TechCrunch).
  • Copycats. The store was "immediately overly saturated" with similar avatar apps (TechCrunch).
  • Paywall concerns. Appfigures called its trial-at-onboarding paywall something "others consider a dark pattern" (Appfigures).
  • All revenue and download figures are third-party estimates (Appfigures, Sensor Tower, Apptopia), not company-reported.

FAQ

Short answers drawn from the sections above.

What is Lensa AI?

Lensa AI is a photo editor from Prisma Labs. Its "magic avatars" feature took 10-20 selfies and used the open-source Stable Diffusion model to generate artistic portraits (TechCrunch).

Why did Lensa AI work?

  • A shareable result. Every avatar pack produced images people wanted to post, which advertised the app (TechCrunch).
  • An existing app ready to monetise. It had a paywall and in-app purchases in place: a $39.99 yearly plan after a trial, and avatar packs from $3.99 for 50 (TechCrunch).
  • Timing. The viral run began around Thanksgiving 2022, before a wave of similar apps filled the charts in mid-December (TechCrunch).

What can indie builders learn from Lensa AI?

  1. Novelty can make money fast, but plan for the drop. Some users only wanted to see their own avatars once (TechCrunch).
  2. If a feature runs on an open model, assume copycats within weeks.
  3. Keep the app ready for the next spike. Appfigures noted Lensa "wasn't the first, last, or even best app for AI-generated avatars" but "it was there" (Appfigures).

What didn't work for Lensa AI, and what are the risks?

  • Backlash. Artists objected that their work trained the models without consent, and people found it easy to produce NSFW images (TechCrunch).
  • Copycats. The store was "immediately overly saturated" with similar avatar apps (TechCrunch).
  • Paywall concerns. Appfigures called its trial-at-onboarding paywall something "others consider a dark pattern" (Appfigures).
  • All revenue and download figures are third-party estimates (Appfigures, Sensor Tower, Apptopia), not company-reported.

Sources

Every link cited above, in order of first use.

  1. 1.TechCrunch (techcrunch.com)
  2. 2.Appfigures (appfigures.com)
  3. 3.Appfigures (appfigures.com)
  4. 4.TechCrunch (techcrunch.com)

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