72% of Mobile Games Makers Adopting Hybrid Monetization Model
Industry survey on in-game monetization looks at how free to play publishers and developers are adapting to changing marketing conditions
We’ve just published the results of its industry survey* carried out in partnership with Gamesforum to look at hybrid monetization trends in free to play mobile games.
The study charts the continued growth of hybrid monetization (defined in the study as the mix of revenue generation through in-app purchases (IAP) and in-app advertising (IAA)). Bucking the trend of an IAP downturn in the last 12 months (AppFlyer’s 2024 State of Gaming Report), the study found that over twice as many games makers questioned were able to grow their IAP revenue share (45%) this past year vs. IAA (17%). This mixed model looks set to continue, with the study identifying that in the next six months:
- 72% of game makers are planning to implement or advance their hybrid monetization strategy
- 63% of respondents are prioritising how to increase IAP conversions
- 49% of respondents are planning to integrate immersive in-game ads
On the operational challenges of a hybrid approach, the survey found that planning against monetization metrics by geo; player segmentation strategies and cannibalization trade-offs between purchases and ad revenue were the top three pain points for the industry to master.
Monetization expert and author of the report, Tiffany Keller, said: “Gamesforum’s survey shows publishers and developers are split when it comes to predicting the future, both the IAA and IAP majority camps each forecast a larger share of revenue next year (approx. 38% each).
My prediction based on the study analysis is that intrusive ads have a limited lease on life, with developers moving towards immersive ad formats combined with personalized IAP conversion. Today’s gaming marketing landscape demands game makers master LTV unit economics by selecting strong monetization platform partners to mix and match IAA and IAP best practices regardless of game genre.”
Kristan Rivers, AdInMo Co-Founder and CEO, added:
“This report shows that IAA and IAP models are not an either-or scenario. The shake-up of monetization models is a positive shift driven by innovation, cross-team collaboration and most importantly putting emphasis on a better player experience. It’s great to see half of the industry respondents already see immersive in-game ads as part of the hybrid evolution.”
Kristan explains more:
“Gamesforum’s study clearly identifies the need for quality and unobtrusive ad placements as part of a hybrid strategy. Our latest InGamePlay 3.0 SDK introduces IAPBoost™ and CrossPromo which enable game makers to integrate in-game advertising into their user acquisition and IAP conversion strategies.
These new products, along with clickable ad units and the InGamePlay Magnifier, keep the player in the game experience and are already delivering above industry benchmark install rates, driving hybrid monetization innovation.”
More…
Vulcron and AdInMo partner to monetize mobile multiplayer game
Developers of hit first person shooter Pixel Strike 3D release Android and IOS updates featuring InGamePlay brand ads. AdInMo, the mobile InGamePlay™ brand advertising platform, today announced a deal with Vulcron to integrate InGamePlay brand ads in its hit...
Fireside Chat @Pocketgamer Digital 6: AdInMo and Impact Unified
Join us on 19th April at Pocket Gamer Connects Digital #6 when our CTO, Chris Wright and Hannes Hultgren, CSO from Impact Unified, will be chatting to Dave Bradley from Steel Media to discuss the potential of InGamePlay brand advertising. What is InGamePlay brand...
Mobile Games in a Data Democracy
As technology advances, the role that data plays in game development, particularly for mobile games, has grown to the point where it cannot be ignored; It’s as integral to success in the current climate as any other aspect of development. It’s unsurprising, then, that...