- Ad revenue saw a 4% increase in Q2 2024, with a 12% rise on Android and a 10% dip on iOS
- 22.99% of iOS paying users and 21.11% on Android make a purchase on day one
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Mobile games companies spent $29 billion on marketing last year, with the U.S. leading at $6.6 billion on iOS and $5.5 billion on Android.
These numbers are from AppsFlyer’s Mobile Gaming Market in 2024 report, revealing Japan as the second-largest market after investing $1.8 billion on iOS and $1.2 billion on Android, with South Korea following in third place.
The top European markets for marketing spending are the U.K., Germany, and France.
AppsFlyer’s report emphasizes how games are integrating multiple monetization strategies to diversify revenue streams. The share of hybrid monetization games increased from 36% in Q2 2023 to 43% in Q1 2024, with ad-only and IAP-only games declining.
Casual games are on the rise, particularly in match and simulation genres, while mid-core and hypercasual games are declining.
Ad revenue went up by 4% in Q2 2024, driven by a 12% boost on Android, while iOS experienced a 10% decrease. Additionally, IAP revenue fell by 15% on Android and 35% on iOS.
Impact of Early Purchases on Long-term Monetization
The first week of an app is crucial for assessing its monetization potential. The report reveals that 22.99% of iOS paying users and 21.11% on Android make a purchase on day one. Revenue from top-paying users in North America decreased from 34% in Q1 2023 to 27% in Q1 2024, with slight growth on Android.
The top 5% of paying users on both platforms contribute about 50% of total revenue. Android saw a 3% rise in instals in H1 2024, while iOS had a 9% overall decline and a 2% drop in non-organic instals.
iOS saw significant drops in instals for RPGs and strategy games, with RPGs down by 36% overall and 25% in paid traffic, and strategy games falling by 15% overall and 48% in paid traffic.
On iOS, non-organic instals rose notably in sports, racing, and merge games, with casino and bingo games also seeing growth. Puzzles led in non-organic install growth on Android, with Sudoku showing the highest increase among subcategories.
You can access the full report here.