ReportAdQuantum
The State of Mobile Game and App Markets
1 Jan 202243 pages~49 min full read
Mobile advertising experienced a significant contraction in H1 2022, marked by a 6.24% year-over-year decline in app advertisers and a 27.83% drop in creative volume.
See it on page 13The industry is shifting from high-volume output to quality-focused, data-driven campaigns, evidenced by a flat advertiser base of 45,000 despite the sharp reduction in creative assets.
See it on page 13Apple Search Ads are projected to reach $20 billion in revenue by 2025 as publishers increasingly prioritize search-driven installs and integrated ASO strategies.
See it on page 41Tier-1 markets, led by the US with peak CPMs of approximately $27, remain the primary drivers of spend and revenue, while Turkey and India offer high lifetime value opportunities during seasonal CPM spikes.
See it on page 24Predictive analytics and SKAdNetwork 4.0 have become essential for optimizing campaign effectiveness, return on ad spend, and cost-per-install metrics.
See it on page 8Major networks like Unity Ads and AppLovin are gaining influence through experimentation with incentive-based offerwalls, while Meta maintains dominance in paid-social traffic outside the gaming sector.
See it on page 21Rising subscription prices and a focus on blended event optimization are becoming standard responses to increased user acquisition costs following the iOS 14.5 update.
See it on page 36The analysis demonstrates that mobile app and game advertising in the first half of 2022 experienced a notable contraction, with a 6.24 % year‑over‑year decline in app advertisers and a 27.83 % drop in creative volume, yet the sector is pivoting toward higher‑quality, data‑driven campaigns. Predictive analytics and Apple’s SKAdNetwork 4.0 are emerging as essential tools for optimizing cost‑per‑install, in‑app purchase return on ad spend, and overall campaign effectiveness.
Advertisers are concentrating on impactful creative mechanics and event‑based optimisations, particularly within casual gaming, fitness, and finance verticals. The number of game creatives fell 27.8 % while the advertiser base remained flat at roughly 45,000, indicating a shift from quantity to quality. Major networks such as Unity Ads and AppLovin are leading the charge, with experimentation on offerwall formats that demand precise attribution windows. Meta continues to dominate paid‑social traffic outside the gaming sphere, underscoring its broader reach.
Geographically, tier‑1 markets—US, Australia, Germany, South Korea, UK, and France—dominate spend and revenue, with CPMs peaking in the United States at approximately $27. Lower‑cost regions such as Turkey and India present attractive lifetime value opportunities, especially during seasonal CPM spikes in fall and winter holidays. Android creatives have gained prominence post‑IDFA, while incentive‑based offerwalls are becoming more prevalent.
Publishers increasingly rely on search‑driven installs and coordinated ASO/paid‑social strategies, with Apple Search Ads projected to reach $20 billion by 2025. The focus on higher‑quality ad creatives, blended event optimisation (trial plus subscription), and rising subscription prices—driven by A/B testing and post‑iOS‑14.5 user acquisition costs—highlights a tightening competitive landscape, particularly in Android and tier‑2/3 markets.
