The Future of Mobile Gaming: Trends and Strategies for In-App Purchases and Ads

Creating a successful mobile game requires a well-integrated monetization strategy from the outset. To gain a deeper understanding of the current landscape, GamesIndustry.biz spoke with Michael Bertaut of Meta Audience Network about in-game advertising, player acquisition, and the future of monetization. A recent survey of over 500 mobile game businesses across 17 countries, conducted by Meta Audience Network and the IDC, aimed to uncover key insights and growth strategies for gaming companies. The survey sought to answer three primary questions: the role of in-app ads in a developer's monetization mix, effective player acquisition strategies in a changing app ecosystem, and how mobile game businesses are approaching future monetization and growth. The research revealed that despite losses in advertising due to App Tracking Transparency (ATT), 61% of developers saw an increase in average revenue per daily active user (ARPDAU) in 2021, particularly when transitioning from waterfall to in-app bidding for ad mediation. This shift highlights the revenue potential of in-app ads. The study also found that combining in-app ads (IAA) and in-app purchases (IAP) is a more effective monetization strategy than relying solely on IAP. A significant majority of respondents agreed that this combination often outperformed their targets. Furthermore, 93% of developers now use in-game ads as part of their monetization mix, indicating a decline in the number of mobile games that monetize with in-app purchases alone. For developers seeking to manage the ideal monetization mix, the IDC research suggests that adding IAA to an IAP model can lead to increased revenue and lifetime value. Rewarded video ads have proven to be a particularly effective tool, with 47% of developers considering them the most important ad format. Other ad formats, such as native ads and banner ads, are also widely used. The survey also highlighted the importance of effective IAPs in strengthening player acquisition mix. Additionally, strategies like working with social media influencers, creating social communities, and incorporating social or viral uptake features into games can be beneficial. Looking ahead, mobile game businesses are exploring new avenues for monetization and growth, including play-to-earn game models, cloud games, and VR games. To improve their business, developers can focus on maximizing monetization potential, evolving game and acquisition strategies, and building for the future. This includes testing ad placements, prioritizing rewarded video, diversifying revenue streams, and considering new growth areas such as sponsorships, gaming portals, and organic discovery.