Tenjin
App Tracking Transparency on iOS, shifting post-pandemic user behaviors, and increased selectivity from major publishers. To maintain sustainability, developers are increasingly integrating in-app purchases and meta
Tenjin
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
Moloco
Sensor Tower estimates spanning 24 months, the analysis tracks the evolution of In-App Purchase (IAP) trends across 2.3 billion projected players. The findings indicate that while global
Brutally Honest
games that derive the majority of their revenue from in-app advertising (IAA) rather than in-app purchases (IAP). Traditional acquisition models, which prioritize purchase-based optimization, often
Matej Lancaric
tailored to different monetization models, such as splitting focus between in-app advertising and in-app purchases. For Android, the use of Value Optimization and Ad Return
SocialPeta
monetization depth of mid-core titles, utilizing a mix of in-app advertising and in-app purchases to stabilize revenue. Marketing efforts were defined by a nearly
Matej Lancaric
diversifying across geographic regions and monetization models—such as hybridizing in-app advertising and in-app purchases—developers can better navigate the signal loss inherent in modern mobile
MoEngage
from MoEngage, AppTweak, and AppsFlyer, incorporating normalized trends in installs, In-App Advertising (IAA), and In-App Purchases (IAP). The conclusions emphasize that technical optimization and personalized engagement
Brutally Honest
title is generating approximately $850,000 daily from in-app purchases and an estimated $150,000 from in-app ads. Geographically, the game has seen its strongest performance
AppLift
landscape is characterized by a winner-take-all dynamic where 95% of in-app purchase revenue is driven by a mere 2% to 6% of users, often referred
Unity
pronounced in the Americas and EMEA regions, driven by a combination of in-app purchases and robust advertising revenue. Hypercasual and casual genres emerged as the primary catalysts
Matej Lancaric
behind rapid monetization and the tactical shifts necessary to achieve significant daily in-app purchase revenue. A notable case study involves the title Yarn Flow, developed by Spyke
Liftoff
demonstrate superior efficacy in securing high-value, deep-funnel actions such as in-app purchases. Native ads, in particular, achieve conversion rates as high as 52.8%, signaling their
Brutally Honest
strategic pivot toward deep player engagement and sophisticated live operations. Global in-app purchase revenue returned to growth, rising 4% to approximately $82 billion. This financial recovery
Lumikai, Lumikai Investment Advisors
real money gaming (RMG) segments, specifically casual and midcore games, as in-app purchases and advertising revenues rise. While the RMG sector grew 33% in FY23, future growth
Two & a Half Gamers
from traditional hypercasual titles to a hybrid-casual model designed to maximize in-app purchase revenue. This evolution is driven by the necessity of overcoming rising cost
GameDev Reports
performance. While mobile game downloads are experiencing a global decline, in-app purchase revenue has demonstrated resilience, climbing 1.3% to $81.75 billion. This growth is increasingly fueled
AdQuantum, SocialPeta
toward precise traffic optimization, where performance metrics like Cost Per Purchase and In-App Purchase Return on Ad Spend have superseded raw install volume as the primary indicators
SitePoint
The primary objective of this analysis is to highlight the strategic advantages of utilizing alternative
Medium
period following the app's release on March 12, 2013. During this timeframe, the app recorded 760 downloads and 110 in-app purchases, resulting in a 14.5% conversion
GameDiscoverCo
trend moving away from one-off premium purchases toward subscription-based and in-app purchase models. Furthermore, legal exemptions for specialized gaming consoles in current legislation provide Microsoft
GameDiscoverCo
links and calls to action for purchasing mechanisms outside of Apple’s In-App Purchasing system, effective 90 days from the ruling. The scope of the analysis focuses
Coda
minimize friction for casual players. Because out-of-app flows inherently introduce more steps than native in-app purchases, publishers must provide a tangible incentive, such as bonus
AppsFlyer
trend extended to monetization, as in-app advertising revenue surged by 167% between Q2 2020 and Q1 2021. Furthermore, in-app purchasing revenue peaked in Q3 2020, accounting
Newzoo, Pangle
show a higher tolerance for in-app advertising (IAA). Conversely, Eastern markets, particularly Japan, demonstrate a higher propensity for in-app purchases (IAP) and deeper engagement with character
Mistplay
cost purchase options and transparent, fair-play mechanics. By prioritizing loyalty-driven in-app purchase strategies, publishers can maintain stability despite a more cautious spending environment
GameDiscoverCo
dispute centers on whether Apple’s 15% to 30% commission on in-app purchases and its exclusive control over iOS app distribution constitute anticompetitive behavior. While Epic seeks
Sensor Tower
freemium model, which now accounts for 99% of App Store revenue through a combination of in-app purchases, subscriptions, and advertising. Looking forward, the industry is projected
Adjust
models that combine in-app purchases with advertising revenue. Although global effective cost per install nearly doubled to $0.99 in 2023, in-app revenue grew
Newzoo
in-app advertising (IAA) and simple economies, whereas Eastern titles—particularly in Japan—integrate deep character collection, progression, and gacha mechanics, leading to higher in-app purchase
The mobile gaming landscape is undergoing a significant structural shift as developers transition from hyper-casual models toward hybrid-casual strategies. This evolution is driven by a marked decline in ad revenue profitability, influenced by the implementation of App Tracking Transparency on iOS, shifting post-pandemic user behaviors, and increased selectivity from major publishers. To maintain sustainability, developers are increasingly integrating in-app purchases and meta-gameplay components into their titles while opting for self-publishing models to retain greater control over their assets.
Data from 2022 reveals a downward trend in ad impressions and eCPMs across both Android and iOS platforms. Conversely, the volume of in-app purchases grew on both operating systems, signaling a successful pivot toward diversified monetization. Geographically, the United States remains the dominant market, ranking first for both ad revenue and in-app purchases across platforms. India emerged as the leading territory for total installs on Android, highlighting the importance of emerging markets for scale, even as monetization remains concentrated in Tier 1 regions.
The competitive landscape for ad networks and monetization channels shows distinct leaders. Apple Search Ads dominates the iOS ecosystem, securing the top position in multiple categories including retention and lifetime value. On Android, AppLovin and ironSource lead the market. AppLovin specifically stands out as the top monetization channel by total ad revenue on both operating systems. For eCPM performance, Meta Audience Network and ironSource lead on Android and iOS respectively.
These findings are based on anonymized data collected throughout the 2022 calendar year, utilizing a weighted average methodology. The analysis focuses on high-scale performance, only including countries and ad networks that exceeded a threshold of 25 million installs. This comprehensive view underscores a broader industry movement where the traditional reliance on pure advertising is being replaced by a more balanced, hybrid approach to game design and revenue generation.
This image displays a line graph, likely from a game industry report, showing a trend over time. The green line with circular markers, each containing a small "tenjin" logo, indicates fluctuations in a particular metric, possibly user engagement, revenue, or downloads, with notable peaks and valleys throughout the observed period.

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