The mobile gaming industry is rapidly evolving, and so are its monetization strategies. For developers and gaming studios, staying informed about how monetization trends vary across different game genres is essential to refining and optimizing your approach. In this article, we will be diving into the report made by AppsFlyer on the state of gaming app marketing in 2024.
Monetization Trends
The monetization strategy for your mobile game can differ greatly depending on the type of game you’re developing. Mobile game developers generally utilize three main monetization methods: In-app advertising (IAA), In-app purchases (IAP), and Hybrid monetization (a blend between the two methods). The Appsflyer report discusses the changes in these monetization strategies in 2024
Puzzle Games
Puzzle games have traditionally been viewed as a genre with a high-quality audience that steadily makes in-app purchases. Studios once believed that focusing heavily on IAPs (in app purchases) was the most profitable approach. However, recent data presents a different perspective. As of Q1 2024, 50% of puzzle games are now monetizing primarily through ads, up from 47% in Q2 2023. This shift is transforming the puzzle game landscape, with developers increasingly relying on rewarded video ads and interstitial formats.
Interstitial Ads
In the past, interstitial ads—those full-screen pop-ups between gameplay—were viewed as disruptive. However, strategically placed interstitials, like when a user exits the app, are now seen as less intrusive. This shift has alleviated concerns about alienating users, creating new opportunities for revenue. Interstitial ads are becoming more accepted as studios learn to implement them strategically. When used effectively, such as during onboarding sequences or in card games, they can enhance retention and engagement without compromising the user experience. Partnering with high-quality platforms like Integr or Meta Audience Network provides strong interstitial options that deliver results without increasing user churn.
Casual Games
Hybrid monetization is rapidly gaining traction in casual games, a category known for its low cost-per-install (CPI). In Q1 2024, 43% of these games used a combination of ads and in-app purchases, a sharp increase from just 9% in Q2 2023. Casual games have traditionally relied on in-app purchases (IAPs), but this is shifting as well. Between Q2 2023 and Q1 2024, the percentage of IAP-heavy casual games decreased from 9% to 7%. Major advertisers in the industry now recognize that ads are just as essential as IAPs for sustaining long-term profitability.
Casino Games
Interestingly, the AppsFlyer report also highlights social casino games. Although these games have traditionally relied heavily on in-app purchases (IAPs) due to their “slot machine” mechanics, hybrid monetization is becoming more prevalent. In Q1 2024, 51% of casino games adopted hybrid monetization, up from 41% in Q2 2023.
The 2024 AppsFlyer report delivers a clear message: there is no one-size-fits-all approach to game monetization. Developers need to strike a balance between in-app purchases (IAPs) and ads to cater to different audience segments. With the rise of hybrid monetization, it’s more crucial than ever to experiment with new ad formats, leverage audience segmentation, and take a long-term view of how your game’s monetization strategy evolves over time.
Access the full report here: link
If you’re aiming to expand your gaming app’s user base, Iconpeak provides top-tier performance marketing solutions tailored to the fast-paced gaming industry. With deep expertise and a keen understanding of evolving technologies, we are well-equipped to deliver high-quality traffic that drives long-term success for your app. We’ve had the privilege of partnering with top brands like Com2uS, Jam City, and Gameskraft, helping them scale and achieve remarkable growth in an increasingly competitive market.