ReportLiftoff
Casual Gaming Apps Report: The State of Play in 2021
1 Jan 202128 pages~10 min full read
Casual gaming user acquisition costs rose significantly between March 2020 and February 2021, with the average cost-per-install (CPI) increasing 45.2% year-over-year to $1.96.
Return-on-ad-spend (ROAS) for casual games declined by 7.5 percentage points to 29.6% by Day 30, signaling a tightening market for profitability.
Android CPIs surged 120% as marketers shifted strategies ahead of iOS privacy changes, though iOS remains more expensive with an average CPI of $4.30 compared to $1.15 on Android.
Lifestyle games command the highest acquisition costs at $2.57 per install but deliver superior engagement, achieving a Day 7 ROAS of 22.5% that outperforms Puzzle and Simulation categories.
Playable ads have become a primary mitigation strategy for rising acquisition costs, with usage of this format increasing by 113%.
North America remains the most expensive region for user acquisition, while markets in France, Germany, and South Korea offer more cost-effective opportunities with strong ROAS.
The casual gaming sector experienced significant growth and volatility between March 2020 and February 2021, driven largely by shifting consumer habits during the COVID-19 pandemic. While mobile gaming spend surged to nearly triple that of PC and console platforms, the market became increasingly competitive. Analysis of 246 million installs across 416 apps reveals that while the audience for casual titles is massive, the cost to acquire these users has risen sharply. The average cost-per-install (CPI) for casual games increased by 45.2% year-over-year to $1.96, while return-on-ad-spend (ROAS) saw a corresponding decline, dropping 7.5 percentage points to 29.6% by Day 30.
Market dynamics vary significantly by sub-genre and platform. Lifestyle games emerged as the most expensive to acquire at $2.57 per install but offered the highest engagement, yielding a Day 7 ROAS of 22.5%, which far outperforms Puzzle and Simulation categories. Platform trends indicate a strategic shift toward Android, where CPIs surged by 120% as marketers prepared for privacy changes on iOS. Despite this, iOS remains the more expensive platform, with an average CPI of $4.30 compared to $1.15 on Android.
Geographically, North America remains the most expensive region for user acquisition, while APAC and EMEA offer more cost-effective opportunities. Countries such as France, Germany, and South Korea are highlighted as high-performance markets with relatively low CPIs and strong ROAS. To combat rising costs and diminishing returns, the findings suggest a heavy reliance on creative experimentation, particularly through playable ads, which saw a 113% increase in usage. The data indicates that success in the current landscape requires balancing localized strategies with high-engagement ad formats to convert increasingly distracted global audiences.
