Top IAP Trends in Mobile Gaming for 2024 & Beyond
This story originally appeared on the MAF blog.
Want to get the inside scoop on the latest IAP trends in mobile gaming?
You’re in the right place.
We’ve gathered the most recent data on IAP spending from the industry’s top sources and identified the most important findings. Let’s explore 8 big IAP trends influencing mobile game monetization strategies in 2024 and beyond.
Gamers Are Becoming More Selective With IAP Spending
As the mobile gaming market changes and evolves, so do user spending behaviors.
Asked if they planned to spend less, the same, or more on games in 2024, 32% of mobile game spenders have stated they plan to reduce their spending. Meanwhile, 35% of them said they plan to spend roughly the same, while only 5% plan to spend more (Mistplay).
Obviously, IAP spenders are becoming more budget-conscious with their in-game purchases.
What does this mean for game developers?
It’s another monetization challenge to deal with. Developers can address this by actively optimizing their strategies to align with the latest IAP trends and player preferences, many of which we’re listing below.
RPG, Strategy & Match Games Dominate IAP Spending
Mid-core genres traditionally take the lead in consumer IAP spending.
In 2023, mobile gamers spent $24.5 billion on RPG games, and $10.2 billion on strategy games (Statista).
Besides mid-core games, gamers also spent significant amounts of money on match puzzle games ($10.7 billion), casino games ($8.3 billion), and simulation games ($7.7 billion).
What changed compared to the year before?
Almost nothing — the top genre rankings stayed the same, with only small changes in revenue amounts.
This just shows that, no matter how much the gaming industry changes and evolves, gamer spending preferences remain consistent. So, if your games fall into one of the leading IAP genres, there is no need to worry about abrupt changes and fluctuations in consumer behavior.
Most Spenders Make 1–2 IAPs Per Month
To understand the IAP trends among modern mobile gamers, let’s get acquainted with some of their basic spending habits.
According to research by Mistplay, 37% of all IAP spenders make 1 to 2 purchases per month, while 34% of them make one every few months.
Also, note that the majority of IAP spenders aren’t exclusive to just one game. About 50% of spenders spend on 2 to 3 games per month, whereas 39% of them invest in one game per month (Mistplay).
By leveraging these insights, you can optimize your IAP strategy to meet player expectations and create IAP offers that resonate with their spending habits.
Currencies Are The Top Purchase Type
Wondering what types of items mobile gamers spend the most on?
The best-selling IAP item type is currencies, accounting for 23% of total IAP revenue on Android and 22% on iOS, according to Unity. Currencies are followed by limited-time sales (20% and 15%), and bundles (18% and 15%).
So, no, you don’t need to reinvent the wheel to convert users.
When players enjoy a game, they are most likely to spend on these classic, tried-and-true IAP items, so it’s important to design these offers properly.
When it comes to currencies, it’s a best practice to provide multiple offers (typically six), ranging from lower to higher prices. Moreover, discounts and bundles are always a good idea, especially when they provide great value and communicate this clearly to the player.
First-Time Buyers Prefer Lower-Priced Offers
Getting players to open up their wallets and make their first purchase is a daunting task.
What can you do to increase your chances? Among other things, you can make sure to set attractive prices for your game’s early offers.
According to Unity’s report on IAP trends, the majority of first purchases made by players are in the price range from $1.01 to $5.
This is the sweet spot for the initial IAP offers in mobile games.
To increase the chances of first-time conversions, game developers can provide players with multiple IAP offers within this price range. For example, as currency offers in the in-game shop, through a Starter Pack offer, bundles, etc.
Gamers Spend More on Personalized Offers
Personalized offers are one of the most long-standing IAP trends and best practices for game developers.
A recent report by Mistplay confirms their worth, with over 40% of IAP spenders saying they would be willing to spend more in a game if they encounter personalized offers.
This includes offers based on player data such as birthday discounts, as well as deals based on their playstyle, in-game progress, and previous purchases.
What makes them so tempting?
When players get served with personalized offers, they perceive them as more relevant than standard, generic offers. This catches their attention and makes them more likely to engage with these offers.
Most IAP Spenders Convert Within Two Weeks
When IAP spenders like a game, they don’t wait long before making the first purchase.
According to a recent report by Unity, 77% of players who have ever made an IAP have done it within two weeks of playing. By day 21, 80% of players who intend to make IAPs will already do it.
How can you use these insights to your advantage?
Identify players who have been playing your game for a while, but haven’t made an IAP within the first two weeks.
These players are unlikely to ever make a purchase, so it doesn’t make sense to focus on monetizing them through IAP offers. Instead, try to monetize these players through other methods.
A lot of developers do it like this: early in the game, they introduce rewarded video ads. While some players aren’t keen on spending money on the game, they might show they are willing to engage with ads in exchange for rewards. After a while, developers can segment these players to serve them with additional rewarded video ad placements instead of numerous IAP offers.
What to do when a player isn’t interested in either making IAPs or engaging with rewarded video ads? Two weeks into playing, you can segment these players to show them more forced ads such as interstitial and banner ads.
Spenders Are Churning From Pay-to-Win Games
Pay-to-win games have always been controversial.
But did you know they are also the top reason spenders stop playing mobile games?
According to Mistplay’s recent research, 69% of all spenders and 78% of high-value spenders say they churn from games when they become “too pay-to-win.”
Spenders are the most valuable group of players in all IAP-based games, and losing them due to monetization imbalance is a major issue.
To prevent this, it’s critical to ensure players don’t perceive your game as pay-to-win. The key is to achieve a balance between free player progress and strategic IAP placements for additional perks and content. To identify where your monetization strategy might frustrate users, make sure to monitor app store reviews and common churn points.
IAP Trends: Over to You
That’s it — these are some of the top IAP trends that are currently shaping up the world of mobile game monetization. Hopefully, you can make good use of these insights and apply them to your monetization strategies.
Want to stay updated with the latest monetization and UA trends? Don’t forget to subscribe to our newsletter!
