Mobile Game Monetization Trends: Numbers & Top Strategies
This story originally appeared on the MAF blog.
Keeping up with mobile game monetization trends can be challenging.
Just when you think you’re all caught up, something new comes up.
To help you stay updated, we’ve done comprehensive research to bring you the latest data and key mobile game monetization trends, all in one place.
IAP Revenue and Number of Payers is Down
In 2023, we saw a sharp decline in IAP revenue.
Specifically, the global mobile gamer ARPDAU in 2023 (average revenue per daily active user) dropped by 13% compared to 2022. Additionally, the number of IAP purchase payer rates has slightly decreased year-over-year (Unity Gaming Report).
In other words, fewer players are making purchases.
This is particularly important news for developers who monetize their apps exclusively through in-app purchases. With this downward trend, it’s a good idea to consider additional monetization options.
Average Spend Per Player Remains Steady
Despite the drop in overall IAP revenue, there’s a silver lining — the average spend per player hasn’t declined, according to Unity.
So, even though not so many players are making purchases, those who do are still willing to spend similar amounts as before.
What does this mean for developers?
Instead of trying to convert players who are unlikely to make purchases, developers should prioritize engaging and retaining loyal, spending users. For example, through exclusive perks, personalized deals, and targeted promotions.
By doing so, they can maintain stable IAP revenues and LTVs — even if there’s a drop in overall player purchases.
Further Rise of Hybrid Monetization
Hybrid monetization is one of those mobile game monetization trends that has been around for years and continues to thrive. Games that previously monetized with IAPs only are incorporating ads and those that primarily monetized with ads are adding IAP and subscription features.
This way, developers can tailor user experiences for different types of players, giving them various options to engage with the game.
For example, a player who hates ads might be interested in buying a “no ads pack” or other IAP features that create a premium experience. On the other hand, a non-payer might tolerate an occasional interstitial ad.
With a hybrid strategy, you can make the most out of each player.
The fact that IAP revenue is down also adds to the adoption of hybrid monetization. To avoid being overly reliant on IAPs, more and more developers are broadening their monetization mix with ads.
IAA Revenue is Growing
Players might be sick and tired of seeing ads, but, according to Unity, mobile game ad revenue is growing. Precisely, in-app advertising ARPDAU has increased by 26.7% from 2022 to 2023.
This is some serious growth.
It’s also important to note that the biggest IAA growth happened in simulation (41%) casual (33%) and puzzle (31%) games.
Interestingly, in the past, these genres traditionally relied on IAP revenue. For example, when games like Candy Crush and Homescapes were first released, they were monetized exclusively through IAPs, with no ads. Over time, mobile game monetization trends have evolved, and now most games in these categories have embraced some type of in-game ads.
This tells us that players in these genres have become increasingly receptive to ads. Note that players are particularly positive about rewarded ads which create value for players while generating revenue for the developer.
Diversifying Ad Strategies is the Key
One of the hottest mobile game monetization trends of 2024 is diversifying ad strategies.
The thing is, more and more developers are using multiple ad formats in their games. Some of the most popular choices include interstitial ads, rewarded video ads, banner ads, and offerwalls.
It’s very common to see a game combining two or even three of these ad formats.
For example, the hybrid casual hit Hexa Sort by Lion Studios combines rewarded video ads, interstitial ads, and banner ads. To diversify things even further, the game introduces different rewarded video ad placements such as revival options, free daily rewards, reward multipliers, etc.
This game is just one of many examples of this practice. From our experience analyzing mobile games (check our game analyses), nowadays, it almost feels weird seeing just one ad format in a game.
Combining Rewarded Video With Offerwalls Drives Retention
The winning ad combo?
If you’re aiming to maximize your engagement and retention, you might want to consider a combination of rewarded video ads and offerwalls.
According to Unity’s latest Gaming Report, a mix of these two ad formats showed superior results compared to rewarded video ads only, offerwalls only, and no rewarded videos at all.
Games that combined rewarded video ads and offerwalls had over 3 daily active sessions, while games with no rewarded ads had around 2 daily active sessions. Additionally, when it comes to retaining players, this combination scored highest in day 7, day 14, and day 30 retention.
Already have rewarded videos in your game but not sure how to get started with offerwall monetization? Check out our expert guides on monetizing with offerwalls and choosing the right offerwall partner.
Leveraging High-ROAS UA Channels
When talking about mobile game monetization trends, it’s important to consider the big picture.
Besides in-game monetization, developers should also keep an eye on how their UA strategies affect their revenue.
How do you ensure that the players you acquire bring value rather than just being a cost?
To achieve this, developers are increasingly focusing on high-ROAS (Return on Ad Spend) UA channels and campaigns. ROAS-optimized campaigns target users who are likely to generate significant revenue, make in-app purchases, or engage with ads and have high LTVs.
As a result, the developers get a higher return on their investment.
In light of this trend, many leading ad networks have included ROAS optimization in their campaign options. This includes Facebook Audience Network, Google Ads, Apple Search Ads, etc. Additionally, some UA channels, such as offerwall ad networks, traditionally deliver high ROAS.
Mobile Game Monetization Trends Wrap-Up
Key takeaways?
The best way to monetize your game heading into 2025 is to diversify your revenue streams. Not just by combining monetization models but also by including various ad formats and IAP features.
Interested in adding an in-game offerwall to your game monetization mix? Explore the possibilities of the MyChips offerwall powered by MAF and feel free to reach out for more information!
