iOS dominates mobile ad strategy with 55% share of in-app purchase revenue in 2024: Report
After years of post-pandemic correction, the mobile gaming industry is entering a new era marked by strategic refinement and long-term growth. According to the newly released 2025 State of Mobile Gaming report by Moloco, overall in-app purchase (IAP) revenue rose by 4% in 2024, while hybrid monetisation strategies (combining IAP and in-app ads) experienced a 20% increase. These developments come amid a global mobile gaming audience projected to exceed 2.3 billion players by 2028.
Despite a nearly flat global install volume (down just 0.2% year-over-year), top-performing games achieved significant gains through improved conversion and retention strategies. Install-to-payer conversion rates rose by 6%, with average revenue per paying user (ARPPU) growing by 3% at day 30 and 6% at day 90.
iOS Leads revenue surge
The report identifies iOS as the primary driver of payer and revenue growth, accounting for 55% of global IAP revenue in 2024. In the U.S., the top 5% of iOS payers, who represent a mere 0.02% of global installs, are now responsible for 20% of total gaming revenue across both iOS and Android.
iOS payer numbers grew 14% year-over-year, contributing to a 10% revenue increase. Notably, growth in iOS monetisation is no longer confined to mature markets; the Rest of World (ROW) and Emerging Markets witnessed respective IAP revenue gains of 19% and 31%, pointing to a broader global shift.
Casual games and hybrid monetisation dominate
Casual and hybrid casual games, especially those in Strategy, Puzzle, Simulation, and Social Casino genres, are fuelling the current momentum. These titles blend accessible gameplay with deeper IAP mechanics, resulting in a 6% annual growth in IAP revenue for these segments.
Established titles continue to maintain strong performance, with games older than six years now accounting for 50% of total IAP revenue, up from 23% in 2020. However, new releases like Last War: Survival and Whiteout Survival also posted exceptional revenue gains, underscoring ongoing market dynamism.
High-value user acquisition costs climb
Competition for high-value users is intensifying. The top 5% of paying users now generate 48% of total gaming revenue, a trend increasingly visible in Emerging and ROW markets. Reflecting this, the 99th percentile of winning ad bid prices on iOS in the U.S. spiked by 137% in 2024, indicating fierce advertiser competition.
Amid rising acquisition costs, advertisers are shifting strategies, prioritising broader user cohorts and cost-effective growth regions like Poland, Hong Kong, and South Africa, where user value outpaces cost-per-payer.
Top advertisers lean on global, full-funnel strategies
The report highlights the distinct approach of the top 5 mobile gaming advertisers, who outperform peers through aggressive diversification. These leaders spend 20% more outside the U.S., favour interactive and playable ad creatives (5x higher usage), and allocate 19% more of their budget to ROAS-driven campaigns. Their re-engagement efforts, focused on app opens, are three times more robust than the industry average.
Looking ahead
The mobile gaming sector is expected to see continued innovation in monetisation. Hybrid models, personalised offers, and live-ops events will be crucial to deepening engagement and driving lifetime value. As competition for premium users escalates, app marketers are advised to look beyond mature markets and invest in strategies that unlock value across all user cohorts, including non-paying players through selective ad monetisation.
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