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In 2023, the global economy underwent significant shifts that affected various sectors, including the mobile gaming industry. Despite the challenges, mobile gaming still experienced year-over-year growth of 0.6%. However, consumer spending on in-app purchases declined, and total downloads saw a slight dip, according to data from scrollreads.com. Nevertheless, there was a surge in demand for games, indicating that those who downloaded and engaged with mobile games did so with enthusiasm and frequency.
As we look ahead to 2024, the mobile gaming industry is poised for another eventful year. Developers and publishers must consider various trends and strategies to maximize monetization, optimize in-game ads, and explore new genres. Here are some of the top trends to keep in mind when building your 2024 strategy for mobile gaming apps.
1. Tech’s Starring Role
Tech will continue to play a central role in the mobile gaming industry in 2024. Developers and publishers will increasingly use software to implement in-app bidding, test game marketability before release, and run campaigns through connected TV (CTV). Artificial intelligence (AI) will also become more prevalent, aiding developers in enhancing their creativity, from ideation to design.
On the business side, AI will serve as a communication tool to assist smaller or indie game developers in tracking their business operations and providing tech support. For instance, Unity utilizes a chatbot to offer additional support to developers, including assistance with integrating software development kits (SDKs).
2. Optimizing the Ad Experience
Improving user experience (UX) in ad monetization strategies will be a key focus for developers in 2024. Developers will pay greater attention to the quality and placement of in-game ads to strike a better balance between ad performance and a positive user experience.
This entails reevaluating the timing and frequency of interstitial ads and the placement of rewarded videos to address user frustration. Google’s interstitial ad guidelines will also influence developers to refine their ad experience further. Ad quality will become a data-centric approach to achieve a better balance between performance and churn. Developers will rely heavily on data to assess the quality of their ads, both in terms of format composition and content. Tools like Ad Quality by Unity will be instrumental in this process.
3. Evolution of Hyper-Casual Games and Hybridization
While hyper-casual games continue to thrive, launching a successful hyper-casual hit over the long term is becoming increasingly challenging. Developers must focus on evolving gameplay, adding depth and progression to optimize their games.
In 2023, larger hyper-casual developers began launching hybrid-casual games, and this trend will continue in 2024. The entire mobile gaming market is embracing hybridization, with more hyper-casual developers exploring ways to hybridize their existing games. This involves incorporating richer gameplay and a deeper economy that incorporates a wider variety of ad formats and in-app purchases (IAPs).
4. Puzzles as Profitable Games
Puzzle games had a strong year in 2023 and are expected to continue their profitability in 2024. These games are known for their solid retention rates, leading to high ad revenue generation. Developers and advertisers will increasingly focus their monetization and user acquisition (UA) strategies on puzzle games.
5. User-Initiated Ad Formats and IAPs
To succeed in the current market, game developers will need to step outside their comfort zones and explore new ways to optimize growth. One of the top trends in mobile gaming apps is the adoption of user-initiated ad formats to monetize non-paying users.
Implementing user-initiated ad formats like Offerwall not only monetizes non-paying users but also increases the likelihood of converting them into paying users. This approach can enhance retention and user engagement while complementing IAPs. Developers will find that this strategy dispels the myth that ads cannibalize IAP revenue.
6. Anticipated Market Rebound
In 2023, the gaming industry experienced a slowdown in acquisitions and initial public offerings (IPOs). However, as we enter 2024, the future of mobile gaming looks promising. The second half of the year is expected to see considerable growth, with new studios launching and increased investment in UA.
The industry is hopeful that this period will mark the beginning of a resurgence, which will continue into 2025. This resurgence will be characterized by growth opportunities, including acquisitions, IPOs, and increased UA investment.
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