Mobile Gaming Revenue to Hit $126B by 2025: Focus Shifts to Loyal Users, Emerging Markets
April 15, 2025
Mobile gaming is entering a transformative growth phase that prioritizes long-term value over mere download numbers, as highlighted in the recent report, '2025 State of Mobile Gaming: In-App Purchase Trends of Leading Apps.'
Statista projects that the mobile gaming industry will generate $126 billion in revenue by the end of 2025, underscoring the importance for advertisers to focus on acquiring paying and loyal users.
Despite a slight decline in total installs, revenue is on the rise, driven by a 6% increase in the install-to-payer conversion rate and a 3-6% boost in Average Revenue Per Paying User (ARPPU) over 30 and 90 days.
Emerging markets such as India, Brazil, Mexico, and Indonesia are identified as key growth areas, currently accounting for only 3% of global in-app purchase revenue, yet poised for significant expansion due to their large install bases and increasing digital adoption.
As competition for high-value users intensifies, bid prices for the top 1% of iOS advertisers have surged by 140% in the past year, while overall median bid prices have remained stable.
Top gaming advertisers are increasingly targeting less saturated international markets, boosting their spending by 20% to acquire valuable users at lower costs.
In 2024, Apple's iOS platform surpassed Android in in-app purchase revenue, generating 55% of global totals, with the top 5% of iOS payers—representing just 0.02% of installs—accounting for 20% of total global gaming revenue.
Successful companies are leveraging interactive and playable ad creatives significantly more than their competitors, achieving a 19% increase in Return on Ad Spend (ROAS) and tripling the frequency of reengagement strategies.
Hybrid monetization models that blend in-app purchases with advertisements have seen a 20% growth in 2024, enhancing monetization and player retention through engaging content and live events.
The report tracked $2 billion in in-app purchase revenue, analyzed 4 billion installs, and examined 60 billion bid requests, showcasing the vast scale and revenue potential of the mobile gaming industry.
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Financial Express • Apr 15, 2025
As mobile game downloads dip, 0.02% of players drive 20% of revenue: Moloco report