Mobile gaming and advertising predictions 2024/2025

AdInMo’s co-founder and CEO scored an average of B+ for his 2024 predictions. What does 2025 have in store for mobile gaming and adtech?

2024 Scorecard

Player First: games bring back the fun: B+

While there has been a noticeable shift towards prioritizing player delight, driven by both consumer demand and developer recognition that happy players lead to long-term value, the games industry hasn’t fully relinquished  its reliance on the monetization-heavy strategies. Games including Squad Busters and Call of Duty: Warzone have succeeded by focusing on gameplay and player satisfaction to underpin better monetization metrics. However, many mainstream games continue to overindex on aggressive ad integrations and the requirements of IAPs for progression. The movement towards player-centric design in free to play gaming is happening, but there’s still plenty of room for optimization..

Real World + AR Wins Against Metaverse: B-

The Metaverse buzz has (thankfully!) cooled significantly, while Augmented Reality (AR) continues to gain momentum, especially with groundbreaking technologies like Apple’s Vision Pro and Meta’s Quest 3. albeit the most compelling use cases have been in enterprise vs. my forecast consumer markets. The metaverse didn’t disappear entirely; it evolved into more niche applications, catering to specific use cases and enthusiast communities. Events such as virtual concerts and interactive brand activations showcase how AR can deliver the social and immersive experiences people crave, all while avoiding the friction and skepticism that have plagued the broader metaverse concept. Directionally this prediction was  correct, but my timing of 2024 was off.  

AI + Adtech moves past peak hype to BAU: A

Throughout 2024 AI integration in adtech rapidly moved from a buzzword to become fully embedded in daily operations. Automated ad placements, rapid automated creative creation, personalized targeting, and predictive analytics became standard features for many platforms, enhancing efficiency and effectiveness. While AI in adtech is now definitely business as usual, there’s still more work to do. Challenges such as data privacy concerns, algorithmic biases, and the need for human oversight means AI-driven adtech isn’t yet a “set it and forget it” solution. 

The Cookiepocalypse will be 2024’s IDFApocalypse for advertisers, but this will be a good thing: B-

The phasing out of third-party cookies coincided with significant changes to Apple’s Identifier for Advertisers (IDFA) policies and Google’s continued flirtation with implementing a full Privacy Sandbox. Advertisers continue to face substantial challenges in tracking and targeting, but my prediction that the industry would innovate and adopt more privacy-centric approaches such as contextual targeting and first-party data strategies hasn’t yet been fully realized. The transition continues to be rocky and will require considerable adjustment by programmatic advertisers, but the long-term benefits of enhanced user privacy and trust for all stakeholders will eventually validate this prediction, with privacy-first advertising becoming a positive force in the industry.

Evolving reward-based in-game advertising: C

In 2024 the  industry did not materially evolve from the nearly decade-old rewarded video (RV) format and fell short of the transformative impact I had anticipated; the. Sure, developers and advertisers dabbled with evolutions such as rewarded interstitial ads, but overall the promise of rewarded advertising experiences did not fully materialize. The industry’s continued reliance on stale and interruptive ad formats is an anchor against significant innovation creating truly engaging and advertising experiences that benefit all stakeholders.

The Year Ahead

Zero- and first-party data drives hyper-personalized ad experiences in mobile games

In 2025, privacy-respecting data will move from a trend to the fundamental requirement for transforming mobile advertising experiences for advertisers, developers, and players. The trend for game developers and publishers to leverage their own treasure troves of player data will accelerate, and even indie developers  will have the tools and knowledge to unlock value from their players. Imagine ads that know a player’s in-game preferences, favorite genres, and even their playtime habits, seamlessly delivering campaigns that feel truly relevant. Hyper-personalization will boost engagement and enhance player metrics such as LTV and churn reduction.

Of course, the real challenge lies in maintaining player trust while navigating the delicate balance between personalization and privacy. Those who master this dance will set the bar for future ad experiences in mobile gaming.

Every (OK – almost every!) game will deploy Hybrid Monetization

Publishers including Kwalee, SayGames, and Scopely have all announced their targets for increasing the mix of paying vs purely ad-monetized players in their games. Hybrid Monetization is the “breakfast buffet” of monetization offering a compelling monetization experience for all players, through optional ads, tiered subscription plans, useful IAPs and off-store microtransactions all in one package. This approach not only maximizes revenue potential but also provides players with flexibility and choice, enhancing their overall gaming experience. The real test will be f the optimum mix that keeps players happy and their monetary and attention wallets open without tipping the scales too far in one direction.

Rewarded Videos become Rewarded Behaviours

Doubling-down on my 2024 prediction, I continue to believe that rewarded videos will evolve from simple watch-for-rewards mechanics to sophisticated behavior incentivization. Players and games have advanced, but the reward mechanics have not evolved. Rewarding behaviours will no longer be just about watching an ad to earn extra lives or in-game currency; rather players will be incentivized for engaging in specific actions that benefit both the game and the advertiser. Picture this: completing a mini-challenge, exploring a hidden game area, seeking out specific brands and advertisers within an open world, or even sharing a moment from the game on social media; all rewarded with meaningful in-game perks to drive deeper engagement for advertisers and create a more interactive and rewarding experience for players. AdInMo’s Rewarded InGamePlay format is leading the charge, proving that when rewards align with player actions, everyone wins. The challenge? Ensuring these behaviors feel natural and genuinely designed into the gameplay rather than bolted on for additional monetization.

Retail Media Comes to mobile gaming

Like player 2 entering the game, retail media will make an explosive entrance into mobile gaming in 2025. Retail media is already blending commerce with entertainment, and in the mobile gaming arena it will create new revenue streams for developers (hello Hybrid Monetization!) and provide players with integrated shopping shopping experiences where players can purchase real-world products without leaving their game. Branded in-game storefronts that  enable seamless checkout processes and feature ad formats that directly link retailers to players will all be part of this new channel. The key to success or failure? The need for the ecosystem to cooperate in crafting these experiences so that they enhance rather than interrupt the gaming flow, turning casual players into loyal customers without compromising player delight.

Cross-platform gaming experiences expand audience reach and engagement

The industry has predicted cross-platform as “the next big thing” for a couple of decades, but I do believe 2025 will finally be the year of cross-platform gaming. Platform convergence will break down barriers, allowing players to enjoy their favourite games anytime, anywhere, and on any device. The result? A vastly expanded audience reach and heightened engagement for advertisers and publishers, as gamers switch effortlessly between platforms without losing progress, connectivity, or immersive state. The ambitions of this integrated world are massive, hence the continued delays in cross-platform gaming’s arrival. Challenges are not limited to ensuring consistent performance and managing cross-platform hybrid monetization economies, but the unlock will be players themselves driven by loyalty and engagement, setting the stage for the next wave of in-game advertising innovations.

In summary, I’m excited about 2025 which will be another amazing year for in-game advertising and monetization, . where the ecosystem, creativity and technology will align to elevate player  experiences like never before.

We’ll see what the 2025 scorecard has to say. As Pliny the Elder: “in vino veritas” or – “the truth comes out in wine”!

More…