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The State of OTT Advertising in the U.S.: An Analysis of OTT Ad Spending Trends and Top Advertisers
Over the course of late 2021 through 2022, the United States Over-the-Top (OTT) advertising market solidified its position as a critical component of the digital landscape, averaging $3.26 billion in quarterly expenditures. This investment represents nearly 15% of all digital advertising spend, signaling a maturation of the sector. While Financial Services previously led the market, Consumer Packaged Goods emerged as the primary spending category by mid-2022. Simultaneously, the automotive industry demonstrated aggressive expansion with a 74% year-over-year increase in ad spend, reflecting a broader trend of traditional industries pivoting toward streaming platforms to capture shifting consumer attention.
Platform dynamics reveal a competitive environment where established services and rising challengers cater to distinct demographics. Hulu and Peacock maintain a strong foothold among viewers under the age of 35, while Tubi has distinguished itself as the fastest-growing publisher, recording a 37% increase in ad revenue. This growth is mirrored by specific service sectors, particularly travel and food delivery, which utilized OTT to drive direct consumer actions. For instance, strategic campaigns from brands like Booking.com and UberEats resulted in measurable performance gains, such as significant spikes in mobile app installations following targeted high-spend periods.
The transportation and grocery sectors further illustrate the shift toward OTT-centric digital strategies. Companies like Turo now allocate more than half of their total digital budgets to streaming advertisements, while grocery delivery services saw a 14% year-over-year increase in investment. These trends underscore a broader industry conclusion: OTT has evolved from a secondary experimental channel into a primary driver for brand visibility and user acquisition across the American economy. As brands like United Airlines and Instacart dominate their respective niches, the ability to track creative impressions and seasonal spikes remains essential for navigating this high-growth advertising vertical.
- The U.S. OTT advertising market reached a mature state between late 2021 and 2022, averaging $3.26 billion in quarterly spend and accounting for nearly 15% of total digital advertising investment.
- Consumer Packaged Goods replaced Financial Services as the leading spending category by mid-2022, while the automotive industry increased its OTT ad spend by 74% year-over-year.
- Tubi emerged as the fastest-growing publisher with a 37% increase in ad revenue, while Hulu and Peacock remain the dominant platforms for reaching viewers under the age of 35.
- OTT has transitioned from an experimental channel to a primary driver for user acquisition, evidenced by brands like Turo allocating over 50% of their total digital budgets to streaming ads.
- Grocery delivery services increased their OTT investment by 14% year-over-year, contributing to a broader trend where sectors like food delivery and travel use streaming to drive measurable mobile app installations.
Mobile Ad Creative Index
The mobile advertising landscape in 2023 is defined by a strategic shift toward high-performing creative formats as advertisers navigate macroeconomic pressures and evolving privacy regulations. Despite these challenges, mobile ad revenue continues to grow, driven by the efficiency of specific ad types tailored to distinct industry verticals. Native ads emerge as the most cost-effective format overall, boasting a $1.01 cost-per-install and delivering a leading 18% Day 7 return on ad spend within the gaming sector. Meanwhile, playable ads have established themselves as the premier tool for driving gaming installs, while banner ads remain the dominant force in e-commerce due to their low cost-per-action and high conversion rates.
Performance metrics across finance, entertainment, and social applications further underscore the importance of format selection. Native and banner ads provide the lowest entry costs for social and dating apps, yet interstitial and video formats yield significantly higher short-term returns, reaching up to 44% Day 7 return on ad spend. Creative strategies are increasingly moving away from lifestyle imagery in favor of clean, user-interface-focused designs. Implementing multi-page ad experiences has proven particularly effective, resulting in a 20% increase in installs per mille.
Optimization now relies on a sophisticated blend of interactivity and narrative depth. Interactive playable ads serve a dual purpose by engaging users and gathering valuable audience data, while longer video segments of 31 to 60 seconds drive 50% higher conversions by showcasing complex mechanics and storytelling. Furthermore, the integration of authentic user-generated content that focuses on problem-solving builds necessary trust with modern consumers. By aligning creative content with specific psychological motivations—such as competition or exploration—advertisers can maximize engagement and emotional connection across global mobile markets.
- Native ads are the most cost-effective format for gaming, achieving a $1.01 cost-per-install and an 18% Day 7 return on ad spend.
- Interstitial and video formats drive superior short-term performance for social and dating apps, yielding up to 44% Day 7 return on ad spend.
- Video ad segments ranging from 31 to 60 seconds drive 50% higher conversions compared to shorter formats by effectively showcasing complex mechanics.
- Multi-page ad experiences increase installs per mille by 20% compared to single-page designs.
- Playable ads are the primary driver for gaming installs, while banner ads remain the most efficient format for e-commerce due to low cost-per-action.
In-Game Advertising Report 2023
This analysis examines the efficacy of intrinsic in-game advertising as a high-engagement medium compared to traditional digital channels. Partnering with Lumen Research, the study utilizes eye-tracking technology and machine learning to analyze data from 25 specific brand campaigns and over 90 broader industry studies. The research focuses on global cross-platform environments, including mobile, PC, and console, comparing in-game performance against 42 standard digital advertising formats such as social media feeds and video platforms.
The findings indicate that gaming environments significantly outperform traditional digital media in viewability and attention. In-game ads achieved a 98% viewability rate, compared to a 78% average for other digital formats. Crucially, 85% of in-game impressions were actually viewed by players, surpassing the digital norm of 65%. In terms of duration, 80% of the studied in-game ads exceeded the critical two-second viewing threshold required for memory encoding, averaging 3.1 seconds of attention. This translates to 2,795 attentive seconds per 1,000 impressions, which is 22% higher than the average across all other digital formats and outperforms 76% of individual digital advertising categories, including most social media display and video.
The data concludes that high attention levels in gaming lead to measurable brand impact. Participants exposed to in-game ads showed a 9% point uplift in prompted brand awareness and a 7% point increase in purchase intent compared to control groups. For challenger brands, the impact was even more pronounced, with top campaigns seeing a 14% uplift in purchase intent. These results suggest that the immersive, "lean-forward" nature of gaming prevents the ad avoidance common in "distracted" media like TV or social scrolling, positioning in-game advertising as a superior tool for driving both brand recall and lower-funnel conversions.
- In-game advertising achieves a 98% viewability rate, significantly outperforming the 78% average observed across standard digital advertising formats.
- Gaming environments generate 2,795 attentive seconds per 1,000 impressions, representing a 22% higher attention level than the average for other digital media.
- 85% of in-game ad impressions are actively viewed by players, compared to a 65% norm for traditional digital channels.
- 80% of in-game ads surpass the two-second threshold required for memory encoding, with an average viewing duration of 3.1 seconds.
- Exposure to in-game ads results in a 9% point uplift in prompted brand awareness and a 7% point increase in purchase intent.
Q1 2023 Insights into Global Mobile Game Marketing Trends
The global mobile game marketing landscape in early 2023 is characterized by a strategic pivot toward high-quality video content and localized engagement strategies. While the number of monthly active advertisers grew by 15% to over 160,000, the volume of new creative assets declined by 16%, signaling an industry-wide shift from quantity to quality. Android remains the primary platform for advertising, accounting for nearly 70% of total ad volume. Casual games continue to lead the market in both advertiser density and creative volume, though strategy and simulation genres are experiencing the most significant growth in advertiser participation.
Marketing tactics have become increasingly sophisticated to combat rising acquisition costs and shifting consumer habits. Video content now comprises over 80% of all ad creatives, frequently utilizing "mini-game" mechanics, playable ads, and "deliberate failure" tropes to drive engagement. In the strategy sector, which is projected to see a 6.42% compound annual growth rate through 2027, developers are increasingly integrating casual gameplay elements into their marketing to broaden appeal. Conversely, the RPG market has cooled, experiencing its first revenue decline of 16% in 2022, leading advertisers in this space to rely more heavily on celebrity endorsements and gacha-related incentives.
Geographic trends reveal a stark contrast in regional preferences and growth trajectories. North America maintains the highest advertiser density, while Southeast Asia and the Middle East are emerging as high-growth hubs, with Southeast Asian revenue projected to nearly double between 2020 and 2023. Regional success depends heavily on localization, such as TikTok-driven tournament content in Southeast Asia and social-integrated voice features in the Middle East. While puzzle games offer the most cost-effective advertising in the United States, the casino and simulation sectors are finding success in South America and global markets through relaxing creative themes and slots-focused advertising.
- Mobile game advertisers are shifting from quantity to quality, evidenced by a 15% increase in active advertisers to over 160,000 alongside a 16% decline in new creative asset volume.
- Video content now dominates the advertising landscape, accounting for over 80% of all ad creatives and frequently utilizing playable mechanics or 'deliberate failure' tropes to improve engagement.
- Android remains the dominant advertising platform, capturing nearly 70% of total global ad volume.
- The strategy game genre is a key growth area with a projected 6.42% compound annual growth rate through 2027, driven by the integration of casual gameplay elements into marketing.
- The RPG sector is cooling, having experienced a 16% revenue decline in 2022, forcing developers to pivot toward celebrity endorsements and gacha-based incentives.
Insights into Marketing Trends of Global Mobile Apps
The global mobile app marketing landscape in the first half of 2023 was defined by intense competition and a decisive shift toward dynamic content. Over 93% of the approximately 170,000 active advertisers launched new creatives during this period, with emerging markets in Africa and South Asia exhibiting the highest creative density. Android emerged as the primary platform for this activity, accounting for over 70% of total creatives. Video content has solidified its dominance, representing 45% of total ad impressions globally and reaching as high as 72% in the Middle East, while traditional static image performance continues to decline.
Sector-specific trends highlight a massive AI-driven boom in tool apps, which saw year-over-year advertiser growth exceeding 100% across all tracked regions. While entertainment and social apps continue to lead in revenue and downloads across North America and Southeast Asia, the Middle East has surfaced as a high-potential market characterized by a young demographic and high digital engagement. In contrast, the reading app sector has reached a stage of maturity, relying on high creative refresh rates and established intellectual properties to sustain market share in an increasingly crowded environment.
Technological innovation, particularly in Artificial Intelligence and Augmented Reality, is fundamentally altering user engagement. AI-integrated tools and "Social+" entertainment platforms are attracting heavy investment in Tier-1 markets, while AR is transitioning from a novelty to a core marketing medium. With over 300 million daily AR users already active on major social platforms, projections suggest that nearly 75% of the global population will be regular AR users by 2025. This shift is driven by the high visual attention and trust associated with immersive formats, which offer significantly higher receptivity compared to traditional digital advertising methods.
- Video content now accounts for 45% of global ad impressions, reaching up to 72% in the Middle East, as traditional static image performance continues to decline.
- AI-integrated tool apps experienced over 100% year-over-year advertiser growth across all tracked regions in the first half of 2023.
- Android remains the dominant marketing platform, accounting for over 70% of the total creatives launched by the 170,000 active advertisers.
- Augmented Reality is shifting from a novelty to a core medium, with projections indicating that 75% of the global population will be regular AR users by 2025.
- Over 93% of active mobile advertisers launched new creatives in the first half of 2023, with the highest creative density occurring in Africa and South Asia.
Mobile Game Marketing: Insights & Trends of Popular Game Genres Q3 2022
The analysis examines mobile‑game marketing dynamics during the third quarter of 2022, concentrating on the performance of leading genres and the geographic distribution of traffic and revenue. By comparing download activity, user engagement, and monetisation across regions, it identifies where growth opportunities are emerging and which markets continue to dominate the ecosystem.
Casual games recorded only modest increases in downloads, adding roughly five million installs versus the previous quarter and less than one percent year‑on‑year growth. Despite the limited acquisition surge, daily‑active‑user and monthly‑active‑user ratios remained stable, while revenue climbed seven percent year‑on‑year, an uplift of about thirty million dollars. The United States accounted for the largest share of earnings, generating more than $250 million—46 percent of total casual‑game revenue—and posted an eleven‑percent increase over the prior year. Meanwhile, less‑developed markets showed accelerating expansion, signalling untapped monetisation potential.
Regionally, North America retained its position as the primary source of mobile‑game traffic, delivering a five‑percent year‑on‑year rise in downloads and a modest one‑percent quarter‑on‑quarter gain. Southeast Asia emerged as the fastest‑growing market, with download growth of eleven percent year‑on‑year and twelve percent quarter‑on‑quarter, underscoring its role as a catalyst for user‑base expansion. The contrast between the mature, revenue‑rich U.S. market and the rapidly scaling Southeast Asian audience highlights divergent strategic imperatives for acquisition versus monetisation.
Overall, the findings suggest that while casual‑game revenue remains anchored by the United States, future growth will be driven by intensified marketing efforts in emerging regions, particularly Southeast Asia. Companies that balance retention‑focused tactics in established markets with aggressive user‑acquisition campaigns in high‑growth territories are likely to optimise both short‑term earnings and long‑term audience development.
- The United States remains the dominant revenue driver for casual games, generating over $250 million in Q3 2022, which represents 46% of total revenue and an 11% year-on-year increase.
- Southeast Asia is the fastest-growing market for mobile game downloads, recording 11% year-on-year and 12% quarter-on-quarter growth.
- Casual games experienced stagnant download growth of less than 1% year-on-year, yet generated a 7% year-on-year revenue increase, totaling approximately $30 million in additional earnings.
- North America continues to lead in total mobile game traffic, posting a 5% year-on-year increase in downloads and a 1% quarter-on-quarter gain.
- While casual game download growth is limited, user engagement metrics—specifically daily and monthly active user ratios—remained stable throughout Q3 2022.
2022 Israeli Mobile Game Market Report
The 2022 Israeli mobile‑game market is portrayed as a rapidly expanding sector that now commands a global presence, with the analysis aiming to quantify its economic weight, identify the drivers behind its growth, and assess its competitive standing worldwide. In 2022 the market generated roughly nine billion dollars in revenue, supported by about two hundred development studios employing fourteen thousand people. Social and casual titles dominate both investment flows and install numbers, while action, strategy and hyper‑casual games lead in downloads and earnings, exemplified by hits such as Coin Master, PUBG Mobile and Fill the Fridge!.
The surge was accelerated by the COVID‑19 pandemic, which deepened user engagement and boosted in‑app purchases, turning mobile gaming into a habitual pastime for a broad audience. Leading Israeli publishers—Playtika, Plarium, Moon Active and Crazy Labs—have leveraged this momentum to become global players, delivering diversified portfolios that span social, casino, RPG and simulation genres and consistently ranking among the world’s top‑performing titles.
Beyond domestic performance, the study highlights divergent creative advertising formats across key international markets. U.S. campaigns favor live‑action influencer videos, Japanese ads emphasize character artwork, voice acting and gacha‑driven narratives, while South Korean promotions adopt their own distinct stylistic approaches. These regional preferences underscore the importance of tailored marketing strategies for Israeli developers seeking to expand beyond their home market.
- The Israeli mobile game market generated approximately $9 billion in revenue in 2022, supported by 200 development studios and a workforce of 14,000 employees.
- Major Israeli publishers including Playtika, Plarium, Moon Active, and Crazy Labs have established themselves as global leaders by maintaining diversified portfolios across social, casino, RPG, and simulation genres.
- While social and casual titles attract the highest investment and install volumes, action, strategy, and hyper-casual games—exemplified by titles like Coin Master, PUBG Mobile, and Fill the Fridge!—lead in total downloads and earnings.
- The COVID-19 pandemic served as a primary growth catalyst, significantly increasing user engagement and in-app purchase frequency to solidify mobile gaming as a habitual consumer activity.
- Successful international expansion requires region-specific marketing strategies, such as utilizing live-action influencer content in the U.S. versus character-driven, gacha-focused narratives in Japan.
Mobile Advertising Benchmark Report Q2 2022
The analysis evaluates how the universal rollout of Apple’s AppTrackingTransparency framework reshaped media‑mix decisions for performance‑driven mobile‑app advertisers between the second quarters of 2021 and 2022. By comparing adoption rates and share‑of‑wallet across the principal acquisition channels, it demonstrates that Apple Search Ads (ASA) has moved from a peripheral position to a core component of the duopoly with Google, overtaking Facebook in advertiser adoption while narrowing the gap in spend allocation.
ASA’s adoption climbed to 94.8 %—a four‑point year‑over‑year increase—and its share‑of‑wallet rose five points to 15 %. In contrast, Facebook’s adoption slipped to 82.8 % (down three points) and its share‑of‑wallet fell four points to 28 %, though a modest rebound from Q4 2021 to Q2 2022 hints at recovery. Google remained stable, with roughly 95 % adoption and a 34 % share‑of‑wallet, reflecting its dominance on Android. Among lower‑tier channels, TikTok’s adoption fell to 43.2 % (down seven points) while its spend share held steady at 3 %; Snap’s adoption edged up to 32.7 % after a dip, yet its share‑of‑wallet halved to 2 %. Top‑five DSPs and ad networks grew to 27 % adoption, indicating a shift toward non‑self‑attributing solutions
- Apple Search Ads (ASA) has emerged as a core duopoly partner alongside Google, with advertiser adoption reaching 94.8% and share-of-wallet increasing by five points to 15%.
- Facebook’s market position declined between Q2 2021 and Q2 2022, with adoption dropping to 82.8% and share-of-wallet falling four points to 28%.
- Google remains the dominant advertising channel with 95% adoption and a 34% share-of-wallet, largely driven by its stability on the Android platform.
- Advertisers are increasingly diversifying into non-self-attributing solutions, as evidenced by the top-five DSPs and ad networks growing to 27% adoption.
- TikTok experienced a seven-point decline in adoption to 43.2%, while its share-of-wallet remained stagnant at 3%.
1Q FY2022 Presentation Material: October to December 2021
CyberAgent demonstrated significant financial growth during the first quarter of fiscal year 2022, with consolidated sales reaching 171 billion yen and operating profit increasing nearly threefold to 19.8 billion yen. This performance was primarily catalyzed by the Game business, where sales nearly doubled to 58.3 billion yen. The massive success of Uma Musume Pretty Derby, which surpassed 12 million downloads, drove a 15.1-fold year-over-year increase in operating profit for the segment. Despite this momentum, the inherent volatility of the gaming market led to a cautious approach regarding full-year forecasts.
The Media segment, led by the streaming platform ABEMA, achieved 24.9 billion yen in sales but reported an operating loss of 3.8 billion yen. This deficit reflects aggressive reinvestment into the online betting platform WINTICKET and content expansion, including the acquisition of Babel Label and integration with the Nintendo Switch. ABEMA continues to scale its reach, recording over 76 million downloads and 18 million weekly active users. Meanwhile, the Internet Advertisement business achieved record sales, supported by the launch of three new subsidiaries focused on digital transformation.
The long-term strategic framework involves utilizing high-margin profits from the Advertising and Game segments to fund the evolution of Media into a primary growth pillar and essential social infrastructure. This vision is underpinned by a corporate purpose focused on overcoming economic stagnation through digital innovation and global expansion. Future growth in the gaming sector is anticipated through a robust pipeline of high-profile intellectual properties, including titles based on Final Fantasy VII and Jujutsu Kaisen, while broader corporate sustainability is managed through integrated ESG initiatives.
- CyberAgent’s consolidated sales reached 171 billion yen in 1Q FY2022, with operating profit nearly tripling to 19.8 billion yen.
- The Game business segment saw sales nearly double to 58.3 billion yen, driven by the success of 'Uma Musume Pretty Derby' which exceeded 12 million downloads.
- Operating profit for the Game segment grew 15.1-fold year-over-year, though management remains cautious about full-year forecasts due to gaming market volatility.
- The Media segment, anchored by ABEMA, recorded 24.9 billion yen in sales but incurred an operating loss of 3.8 billion yen due to heavy reinvestment in WINTICKET and content expansion.
- ABEMA reached 76 million total downloads and 18 million weekly active users as of the end of 2021.
Türkiye Game Market 2022 Report
The 2022 Turkish gaming market represents a landscape of significant resilience and structural transition. Despite facing substantial economic headwinds, including currency depreciation and a contraction in total revenue to $625 million, the industry solidified its position as a major global hub for mobile development and esports. The primary thesis of the market’s evolution is a strategic pivot away from the rapid, volume-based "gold rush" of hyper-casual gaming toward sustainable, high-quality production, intellectual property creation, and diversification into PC, console, and hybrid-casual projects.
The sector’s maturity is evidenced by record-breaking investment activity, with over $424 million raised across 23 deals, positioning Istanbul as a top-tier global city for gaming capital. This financial influx supports a robust ecosystem of nearly 6,000 publishers and a growing network of entrepreneurship centers and academic programs. While the number of new startups declined by 48% compared to the previous year, the remaining entities are increasingly focused on long-term viability through technological integration, including AI and gamification, as well as a professionalized esports infrastructure that saw the Turkish Esports Federation gain official status.
Geographically and demographically, the market remains highly engaged, with 44 million players and a notable shift toward high-income consumer segments. While traditional physical venues like internet cafes have contracted due to rising operational costs, the digital infrastructure remains strong, supported by widespread social media penetration and a sophisticated network of payment institutions. Moving forward, the industry’s trajectory is defined by a need for better alignment between academic curricula and commercial requirements, alongside a continued focus on global expansion and the development of specialized talent to maintain Türkiye’s competitive edge in the international gaming arena.
- The Turkish gaming market generated $625 million in 2022, reflecting a structural pivot from hyper-casual volume toward sustainable, high-quality PC, console, and hybrid-casual intellectual property.
- Investment activity reached a record $424 million across 23 deals, establishing Istanbul as a premier global hub for gaming capital.
- While the number of new gaming startups fell by 48% year-over-year, the remaining 6,000 publishers are increasingly prioritizing long-term viability through AI integration and professionalized operations.
- The Turkish gaming ecosystem serves a highly engaged base of 44 million players, characterized by a growing shift toward high-income consumer segments.
- The Turkish Esports Federation achieved official status in 2022, signaling the professionalization of the country's esports infrastructure despite the decline of traditional physical venues like internet cafes.
2022 The Israeli Mobile Game Market Report
The Israeli mobile gaming sector has solidified its position as a premier global hub, characterized by a robust ecosystem of approximately 200 companies and 14,000 employees. Generating $9 billion in annual revenue, the industry has experienced extraordinary growth, with total earnings increasing by 760% since 2016. This expansion, accelerated by pandemic-era shifts in consumer behavior, is anchored by major developers such as Playtika, Plarium, and Moon Active, who maintain a strategic focus on the social, casual, and hyper-casual genres.
Despite this financial success, the advertising landscape underwent significant volatility in 2022. Total ad creatives declined by 17.8% year-over-year, even as the number of active advertisers grew by 4.2%. This contraction was most pronounced within the RPG segment, while casual and puzzle titles maintained dominance. A pivotal shift in platform strategy has emerged, with Android now capturing 70% of all mobile game advertising, a trend largely attributed to Apple’s IDFA privacy changes. Video content remains the industry standard, accounting for over 86% of all creative output.
Global marketing strategies have become increasingly localized to meet regional preferences, ranging from live-action influencer content in the United States to character-centric assets in Japan and high-fidelity technology showcases in South Korea. Furthermore, creative trends are evolving away from traditional failure-based hyper-casual tropes toward more positive, success-oriented gameplay. While the Israeli market continues to demonstrate immense scale and innovation, the industry faces ongoing structural challenges, specifically regarding the availability of venture funding and the persistent shortage of skilled human resources required to sustain long-term growth.
- The Israeli mobile gaming industry has grown by 760% since 2016, reaching $9 billion in annual revenue across a ecosystem of 200 companies and 14,000 employees.
- Android now accounts for 70% of all mobile game advertising, a shift driven by Apple’s IDFA privacy changes.
- Despite a 4.2% increase in the number of active advertisers, total ad creative volume declined by 17.8% in 2022, with the sharpest contraction occurring in the RPG segment.
- Video content remains the dominant advertising format, representing over 86% of all creative output in the industry.
- Major developers like Playtika, Plarium, and Moon Active continue to anchor the market by focusing on social, casual, and hyper-casual genres.
The State of Mobile Game and App Markets: H1 2022
The mobile app and gaming landscape underwent a significant strategic pivot during the first half of 2022, characterized by a transition from high-volume advertising to a quality-focused, data-driven methodology. Faced with rising user acquisition costs and the restrictive post-ATT environment, marketers reduced the total volume of mobile game creatives by nearly 30% year-over-year. This contraction reflects a broader industry shift 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 of success.
Geographically, the United States remains the dominant market, commanding the highest share of traffic and the most expensive advertising costs. CPMs surged significantly during this period, rising 18% for mobile games and 64% for non-gaming applications. In response to these economic headwinds and privacy-related tracking limitations, advertisers have increasingly pivoted toward the Android ecosystem, which now hosts approximately 70% of mobile game creatives. Simultaneously, growth is being sought in emerging Tier-2 and Tier-3 markets to offset the saturation and high costs found in traditional Western strongholds.
To maintain performance, publishers are diversifying their acquisition channels, moving beyond traditional social media giants to include incentive-based traffic sources and search-driven discovery. App Store Optimization and Apple Search Ads have become critical components of visibility strategies, while the adoption of predictive analytics and first-party data collection allows developers to navigate the loss of IDFA-based targeting. By prioritizing user-generated content styles and optimizing opt-in prompts, which have reached success rates as high as 51% in certain hyper-casual segments, the industry is successfully recalibrating its approach to sustain long-term growth despite a challenging macroeconomic climate.
- Marketers reduced mobile game creative volume by nearly 30% year-over-year in H1 2022, shifting focus from raw install volume to performance metrics like Cost Per Purchase and In-App Purchase Return on Ad Spend.
- Advertising costs rose significantly, with CPMs increasing 18% for mobile games and 64% for non-gaming applications.
- Advertisers are increasingly prioritizing the Android ecosystem, which now accounts for approximately 70% of all mobile game creatives.
- To mitigate high costs and market saturation in the U.S., publishers are expanding into emerging Tier-2 and Tier-3 geographic markets.
- Publishers are diversifying beyond traditional social media channels, placing greater strategic emphasis on App Store Optimization, Apple Search Ads, and search-driven discovery.