AppsFlyer launched its 2024 State of App Monetization report immediately, which gives cellular builders perception into totally different monetization fashions and their returns over time for each gaming and non-gaming apps. Based on the corporate’s findings, apps can profit from hybrid or diversified income streams, and a collaborative strategy between advertising and monetization groups might be essential to competing within the 2025 market.
The report reveals that, of the a number of approaches to monetization, sure sorts of video games profit most from a hybrid mannequin — a mix of in-app buying (IAP) and in-app promoting (IAA). For mid-core cellular video games on Android, hybrid fashions generated 146% return-on-ad-spend (ROAS) by their ninetieth day, in contrast with IAP-only (93%) and IAA-only fashions (58%).
Hypercasual titles on each platforms additionally noticed a slight improve in common income per person (ARPU) for hybrid fashions in contrast with IAA-only. Income on such video games might be very skinny — the distinction on Android amounted to $0.60 ARPU (for hybrid) vs $0.47 ARPU (for IAA-only). That stated, the report additionally reveals that hybrid doesn’t all the time work, and one income stream can cannibalize the opposite; informal titles on each platforms present larger ARPU for IAP-only fashions than for hybrid.
The professionals and cons of hybrid fashions
Shani Rosenfelder, AppsFlyer’s director of content material technique and market insights, stated in an announcement, “Our findings reveal that when optimized for the app type and audience, hybrid models are producing breakthrough results across platforms. For continued success, marketing and monetization teams should utilize ROAS and ARPU to fine-tune their strategies and ensure that their campaigns are align both before and after the install for the best results.”
A part of customizing this collaborative strategy, in accordance with the AppsFlyer report, is for builders to find out their profitability timeline and measure ROAS, as balancing acquisition, monetization, and retention might be tough. Engagement and spending metrics additionally don’t all the time align, and the every day energetic customers and the paying customers don’t all the time reply to the identical issues.
Different findings within the report present that totally different sorts of video games profit from totally different person acquisition channels. For instance, 73% of income in hypercasual and informal video games comes from paid UA channels, whereas mid-core titles profit from natural visitors and model recognition. That stated, AppsFlyer’s information reveals that even mid-core titles can profit from paid campaigns to maximise earnings by preserving gamers engaged over sure intervals.
