AppsFlyer has released the State of Gaming App Marketing for 2024, an in-depth report on gaming trends for app developers, marketers and game studios. The report investigates the shifts behind the modest growth in mobile gaming over recent years, including the blending of revenue sources, optimal engagement timing for maximum revenue, and nurturing trust through retention strategies.
In 2023, the divisions between the revenue strategies of Hyper Casual and Mid-core, such as role-playing and strategy games, have blurred, with both categories adopting a hybrid model of monetization that has surged 20% across the industry. Traditionally, Hyper Casual titles primarily relied on In-app Advertising (IAA), while Mid-core games leaned toward In-app Purchases (IAP) for revenue streams. However, a visible shift for these two categories occurred in 2023, with apps on both ends diversifying their income channels, which translates to Mid-core games increasing their advertising efforts and Hyper Casual incorporating more in-app purchases. This diversification of revenue strategies drove a 39% jump for Hyper Casual games, while Mid-core games increased 16%.
The State of Gaming App Marketing report also details that early engagement in mobile gaming remains a pivotal factor in determining the success of revenue through IAP purchases, particularly within the first week after downloading. On iOS platforms, the spending trend initiates swiftly, with the first purchase typically occurring two days after download. By the third day, an additional 17% of users engage in transactions.
“The paradigm shift that we see in this report has not only blurred the boundaries of how gaming apps are bringing in revenue, but has also crafted a market that thrives on nuance and adaptability. This transformation signifies a substantial recalibration impacting the entirety of mobile gaming,” said Adam Smart, Director of Product, Gaming at AppsFlyer. “For marketers looking to capitalize on the current market, not putting too many eggs in one basket is the right way to go. With Cost Per Installs (CPIs) down on iOS, meaning the time to benefit from the lowest cost of media that can be exploited, and Android posting positive results across several indicators such as installs and NOIs, the future of growth will be around diversifying.”
Additional Key Insights from the 2024 State of Gaming App Marketing:
- $29 Billion total gaming app install ad spend worldwide in 2023. The US dominates in app install ad spend, with iOS reaching $6.6B and Android hitting $5.5B. The US is followed by Japan at $3B and South Korea at $1.5B. Match games attracted the most spend at $8B+, with mid-core close behind.
- More than 70% of buyers repeat purchases. Among less than 5% of users who make a purchase, the transactions occur daily in the first 10 days post install.
- User Generated Content brings the highest retention rates. Retention values correlate with specific creative patterns, with key variables including the use of UGC, gameplay footage, and scene types, both animated and non-animated.
- Casual games see 13% rise in Non Organic Installs (NOIs) and ad spend. Higher ad spend and more NOIs were seen especially in Simulation and Action genres; Role Playing Games (RPG) and Strategy suffered declines on both metrics.
- Cost Per Install (CPI) jumped 48% on Android while iOS saw a 17% drop. From the first quarter of 2023 to the second quarter of 2024, iOS CPI dropped significantly, signaling increased market efficiency and improved ad targeting. iOS CPI was still 3.5 times higher than Android on average.
The State of Gaming App Marketing is available at: https://www.appsflyer.com/resources/reports/gaming-app-marketing/