Ad revenue in the mobile games industry saw a 4% increase overall in the second quarter of 2024. This growth was primarily driven by a 12% rise in ad revenue on Android platforms. However, iOS experienced a 10% decline in ad revenue during the same period.
Conversion Rates and Marketing Investments
According to the latest report from AppsFlyer, a significant percentage of paying users on both iOS and Android platforms make a purchase on the first day of using a mobile game. Specifically, 22.99% of paying users on iOS and 21.11% on Android convert into customers on day one.
The report also reveals that mobile games companies invested a total of $X billion in marketing efforts last year. The United States led the pack by spending $Y.6 billion on iOS and $Z.5 billion on Android marketing. Japan and South Korea followed as the second and third largest markets for marketing spend, respectively.
Diversification Through Hybrid Monetization
AppsFlyer’s report emphasizes the trend of mobile games incorporating multiple monetization strategies to diversify revenue streams. Games with in-app purchases are now incorporating ads, while ad-based games are integrating in-app purchases. The share of hybrid monetization games increased from 36% in Q2 2023 to 43% in Q1 2024, with ad-only and IAP-only games decreasing.
Shifting Popularity Among Game Genres
When it comes to game genres, casual games are on the rise, particularly in match and simulation genres. In contrast, mid-core and hypercasual games are experiencing a decline in popularity.
Furthermore, the report highlights the impact of early purchases on long-term monetization. The first week of a mobile game’s launch is crucial for evaluating its revenue potential. The top 5% of paying users on both iOS and Android platforms contribute approximately 50% of total revenue.
Platform-Specific Trends
Interestingly, iOS saw significant declines in installations for RPGs and strategy games, while genres like sports, racing, and merge games experienced growth in non-organic installs. On the other hand, Android witnessed a rise in puzzle game installations, with Sudoku leading the way in subcategory growth.
