Insights for mobile gaming businesses in a changing app ecosystem
To succeed in an app ecosystem that’s often changing, mobile gaming businesses need insight into how they can maximize revenue and player retention, both now and in the future.
For an independent view of game monetization and acquisition strategies in 2022, Meta Audience Network commissioned IDC to survey more than 500 mobile game business decision-makers in 17 countries.
Here, we highlight findings and recommendations to help inform your mobile gaming monetization and growth strategy as you build for the future, starting today.
In-app ads are essential to a balanced monetization mix
The vast majority of gaming businesses see mobile ad revenue as essential to a successful monetization mix, according to the research.
93%
of developers surveyed use in-game ads as part of their games’ monetization mix¹
While the mobile app ecosystem continues to change, gaming businesses adapt. Looking at 2021, 89% of game decision-makers we surveyed saw no change, or even a slight increase, in ad revenue.²
Analysts are also optimistic about growth with in-app ads, with IDC predicting in-game ad revenue of $63 billion in 2026, a 14.8% 5-year CAGR for ad-related payouts.³
Build an IAA + IAP model into your mobile game from the start
Which monetization model performs better at game launch? And how does that impact retention?
According to 62% of developers surveyed, a combination of IAA and IAP is the best strategy to meet both ARPDAU and retention targets at game launch.¹
Prioritize rewarded video to benefit retention and revenue
Among ad formats, rewarded video continues to be popular for its unique ability to engage players and drive retention, while also improving ad revenue results for game businesses. Beyond increasing mobile ad revenue, rewarded video ads also positively impact multiple game KPIs.
47%
of survey respondents selected rewarded video ads as the most important ad format¹
74%
of gaming businesses surveyed saw the same or higher number of players¹
39%
even saw an increase in IAP revenue... with most others stating a neutral impact on IAP revenue¹
Evolve your mobile game acquisition strategy
Game businesses are unifying their user acquisition (UA) and app monetization strategies, building ads into game development, and leveraging multiple growth levers. Here’s what the research uncovered:
Unify app monetization and user acquisition
Beyond ad formats and monetization models, we see that the entire in-app ads business model tends to be more effective when it's aligned with the game from the start of development.
67% of gaming decision makers already build games with a unified user acquisition and monetization strategy, from the early stages of game development¹
83% of developers found IAA to be effective in acquiring players for other games in their portfolio, especially as part of a suite of UA solutions¹
Maximize game monetization across platforms
Top gaming businesses are maximizing monetization and growth opportunities on mobile, while also looking at the potential of emerging platforms.
Consider cloud and VR game development
While mobile is a key priority with ample revenue to realize, game developers also see the monetization potential of multiple platforms, including cloud and html5 games. Some are starting to build for VR.
In fact, half of those surveyed are building for browser, cloud, and VR games in 2022, as well as for local iOS / Android apps.²
Diversify mobile game revenue
As you diversify revenue, maximizing the revenue potential of IAA and IAP is a must. Beyond that, here’s how developers we surveyed are exploring new avenues for revenue beyond IAA and IAP:
53% are leveraging sponsorships or licensing deals²
44% are looking to gaming portals or other app stores²
42% are expanding their distribution to new partners²
And 28% are exploring organic discovery²
Meta Audience Network is here to help you diversify your revenue streams and optimize your monetization and growth plans – on mobile as well as Facebook Gaming platforms.
Ready to supercharge your game?
For more insights and recommendations to develop your growth plan, download the full report – Ads, IAP and beyond: Supercharge your game.
Sources:
¹IDC White Paper, sponsored by Meta Audience Network, Succeeding in Mobile In-Game Ads, #US49232322, (June 2022)
²IDC Resource Map Deck, Mobile Game Monetization Research by IDC, commissioned by Meta Audience Network, #US49147022, (June 2022)
³IDC Worldwide Mobile In-App and In-Game Advertising Forecast, 2022–2026, #US48931122, (March 2022)
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