Rewarded ads and in-app purchases (IAP) do not cannibalize each other, allowing for a hybrid monetization strategy that maximizes revenue without sacrificing user experience.
See it on page 4The percentage of users making occasional IAPs has grown significantly to approximately one-third of the total user base, up from 2-3% five years ago.
See it on page 8Free apps with IAP are the dominant model, accounting for 52% of all gaming app downloads.
See it on page 8Consumer spending on IAPs has increased, with 15-17% of users reporting higher expenditure compared to five years ago.
See it on page 8While preferences are split between IAP and ad-supported models, 24% of Gen Z users are specifically willing to pay a one-time fee to remove advertisements.
See it on page 4Generation X demonstrates a unique preference profile, favoring occasional or frequent IAP while still preferring an overall ad-supported experience.
See it on page 4The 2022 study, conducted between April and May, utilized a sample of 30,457 participants across the ironSource network to validate these monetization trends.
See it on page 6The report examines how modern mobile consumers interact with app monetization, revealing that rewarded ads and in‑app purchases (IAP) coexist without cannibalizing revenue. Surveying 30,457 participants—18,894 from gaming apps and 11,563 from non‑gaming apps on the ironSource network, plus a 500‑person control group outside MobileVoice®—the study covers North America and global markets from April to May 2022. Respondents were verified as adults and opted in for virtual rewards, ensuring engagement accuracy.
Key findings show an almost even split between IAP and ad‑supported preferences across both gaming and non‑gaming audiences. Generation X favors occasional or frequent IAP yet prefers ad support overall, while 24% of Gen Z would pay a one‑time fee to remove ads. Approximately one third of users make occasional IAPs, a significant rise from the 2‑3% noted five years earlier. Free apps with IAP dominate downloads (52% of gaming users), and 15‑17% of consumers now spend more on IAPs than five years ago.
Methodologically, the study combined custom MobileVoice® surveys with third‑party polling (Pollfish) to mitigate bias. Data were analyzed using ironSource’s Offerwall and native survey offers, with age verification and global reach.
The report concludes that diversified monetization strategies—balancing ads, IAPs, and optional removal fees—are essential to meet evolving consumer expectations. It recommends audience‑specific research, price optimization, and value bundle offerings to maximize revenue while preserving user experience.