AppsFlyer today released its State of App Monetization 2024 report, which provides mobile developers with insights into different monetization models and their performance over time for both game and mobile apps which they are not According to the company’s findings, apps can benefit from hybrid or diversified revenue streams, and a collaborative approach between marketing and monetization teams will be crucial to compete in the 2025 market.
The report shows that of the multiple approaches to monetization, certain types of games benefit most from a hybrid model: a combination of in-app purchases (IAP) and in-app advertising (IAA). For mid-core mobile games on Android, hybrid models generated 146% return on advertising investment (ROAS) at day 90, compared to IAP-only (93%) and IAA-only models (58 %).
Hypercasual titles on both platforms also saw a slight increase in average revenue per user (ARPU) for hybrid models compared to IAA alone. The profits for these games can be very small: the difference on Android amounted to $0.60 ARPU (for hybrids) versus $0.47 ARPU (for IAA only). That said, the report also shows that the hybrid doesn’t always work and that one revenue stream can cannibalize the other; casual titles on both platforms show higher ARPU for IAP-only models than hybrids.
The pros and cons of hybrid models
Shani Rosenfelder, director of content strategy and market insights at AppsFlyer, said in a statement: “Our findings reveal that when optimized for app type and audience, hybrid models are producing breakthrough results across platforms.For continued success, marketing and monetization teams should use ROAS and ARPU to fine-tune their strategies and ensure that their campaigns are aligned both pre- and post-install. lation to get the best results.”
Part of customizing this collaborative approach, the AppsFlyer report says, is for developers to determine their ROAS timeline and measure ROAS, as balancing acquisition, monetization and retention can be tricky. Engagement and spend metrics also don’t always align, and daily active users and paying users don’t always respond to the same things.
Other findings in the report show that different types of games benefit from different user acquisition channels. For example, 73% of hypercasual and casual game revenue comes from UA paid channels, while mid-core titles benefit from organic traffic and brand recognition. That said, AppsFlyer data shows that even mid-core titles can benefit from paid campaigns to maximize earnings by keeping players engaged for certain periods.
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