AppsFlyer launched its 2024 State of App Monetization report at the moment, which gives cellular builders perception into completely different monetization fashions and their returns over time for each gaming and non-gaming apps. In line with the corporate’s findings, apps can profit from hybrid or diversified income streams, and a collaborative strategy between advertising and marketing and monetization groups might be essential to competing within the 2025 market.
The report exhibits that, of the a number of approaches to monetization, sure sorts of video games profit most from a hybrid mannequin — a mixture of in-app buying (IAP) and in-app promoting (IAA). For mid-core cellular video games on Android, hybrid fashions generated 146% return-on-ad-spend (ROAS) by their ninetieth day, in contrast with IAP-only (93%) and IAA-only fashions (58%).
Hypercasual titles on each platforms additionally noticed a slight improve in common income per consumer (ARPU) for hybrid fashions in contrast with IAA-only. Income on such video games may be very skinny — the distinction on Android amounted to $0.60 ARPU (for hybrid) vs $0.47 ARPU (for IAA-only). That stated, the report additionally exhibits that hybrid doesn’t all the time work, and one income stream can cannibalize the opposite; informal titles on each platforms present larger ARPU for IAP-only fashions than for hybrid.
The professionals and cons of hybrid fashions
Shani Rosenfelder, AppsFlyer’s director of content material technique and market insights, stated in a press release, “Our findings reveal that when optimized for the app kind and viewers, hybrid fashions are producing breakthrough outcomes throughout platforms. For continued success, advertising and marketing and monetization groups ought to make the most of ROAS and ARPU to fine-tune their methods and make sure that their campaigns are align each earlier than and after the set up for the very best outcomes.”
A part of customizing this collaborative strategy, in keeping with the AppsFlyer report, is for builders to find out their profitability timeline and measure ROAS, as balancing acquisition, monetization, and retention may be tough. Engagement and spending metrics additionally don’t all the time align, and the every day energetic customers and the paying customers don’t all the time reply to the identical issues.
Different findings within the report present that completely different sorts of video games profit from completely different consumer acquisition channels. For instance, 73% of income in hypercasual and informal video games comes from paid UA channels, whereas mid-core titles profit from natural site visitors and model recognition. That stated, AppsFlyer’s information exhibits that even mid-core titles can profit from paid campaigns to maximise earnings by retaining gamers engaged over sure durations.
