ReportTenjin
Hyper to Hybrid: Mobile Gaming Market Trends 2023
1 Jan 202327 pages~1 min full read
Mobile developers are shifting from hyper-casual to hybrid-casual models to counter declining ad revenue profitability caused by Apple’s App Tracking Transparency and post-pandemic behavioral shifts.
In-app purchase volume grew across both Android and iOS in 2022, signaling a successful industry-wide pivot toward diversified revenue streams beyond traditional advertising.
Ad-centric monetization models faced a cooling market in 2022, characterized by a downward trend in both ad impressions and effective cost per mille (eCPM) on all platforms.
Apple Search Ads is the top-performing channel for iOS installs, retention, and lifetime value, while AppLovin and ironSource lead the Android market.
AppLovin currently serves as the leading monetization channel by total ad revenue across both Android and iOS platforms.
The United States remains the primary global market for both ad revenue and in-app purchase value, while India leads in total Android install volume.
The mobile gaming landscape is undergoing a fundamental shift as developers transition from hyper-casual to hybrid-casual business models. This evolution is driven by a significant downward trend in ad revenue profitability, influenced by Apple’s App Tracking Transparency framework, shifting post-pandemic user behaviors, and increased selectivity from major publishers. To maintain sustainability, developers are increasingly adopting self-publishing strategies and integrating sophisticated meta-gameplay components alongside in-app purchases to diversify revenue streams beyond traditional advertising.
Data from the 2022 calendar year reveals a cooling market for ad-centric models, characterized by declining ad impressions and effective cost per mille (eCPM) across both Android and iOS platforms. Conversely, the volume of in-app purchases grew on both operating systems, signaling a successful pivot toward hybrid monetization. Geographically, India emerged as the leader for Android installs, while the United States maintained its position as the primary market for both ad revenue and in-app purchase value across all devices.
The competitive landscape for ad networks and monetization channels shows distinct platform preferences. Apple Search Ads dominates iOS rankings for installs, retention, and lifetime value, while AppLovin and ironSource lead the Android market. AppLovin currently stands as the top monetization channel by total ad revenue on both platforms. These findings are based on anonymized data from the full 2022 period, utilizing a weighted average methodology for performance metrics and focusing on networks and regions that exceeded a threshold of 25 million installs. The analysis underscores a broader industry movement toward deeper player engagement and more complex economic structures in mobile gaming.
