After a pandemic-fueled boom and a period of market correction, mobile gaming is seeing a new phase of growth, and it’s not about chasing downloads. According to Moloco’s newly released report 2025 State of Mobile Gaming: In-App Purchase Trends of Leading Apps, mobile game developers are focusing on long-term value by turning casual gamers into paying users and boosting revenue per user through smarter acquisition and monetization strategies.
Based on data from 100 top gaming advertisers across 24 months, the study offers a snapshot of how gaming publishers—who represent 40-50% of global IAP revenue—are adapting to a market where user growth is flattening but payer behaviour is intensifying.
Installs are flat. Revenue is not.
Total installs declined marginally—down just 0.2%—but that hasn’t stopped the money from coming in. The install-to-payer conversion rate rose 6% in 2024, and Average Revenue Per Paying User (ARPPU) increased by 3% on Day 30 and 6% on Day 90. Games that successfully blend casual gameplay with deep in-app purchase mechanics (especially in Strategy, Puzzle, Simulation, and Social Casino genres) saw a 6% YoY jump in revenue.
iOS is leading the charge
Apple’s iOS has overtaken Android in IAP revenue, generating 55% of global totals in 2024. In the U.S. market alone, the top 5% of iOS payers—accounting for just 0.02% of global installs—are now responsible for 20% of total global gaming revenue across both platforms.
The battle for these high-value users is heating up. While industry-wide median winning bid prices remain stable, the top 1% of iOS bid prices jumped 140% last year, reflecting fierce competition among marketers targeting top-tier users.
Global expansion to offset rising costs
The most successful gaming advertisers are looking beyond traditional strongholds. The top 5 advertisers spend 20% more outside the U.S. compared to their peers in the top 100. These companies are investing heavily in less saturated markets to acquire valuable users at lower costs.
These top performers also rely more on interactive and playable creatives (5x more usage), prioritize ROAS (Return on Ad Spend) optimization (+19%), and implement reengagement strategies that emphasize app opens (3x more frequently).
Diversified monetization is driving LTV
Hybrid monetization models—combining in-app purchases with ads—are gaining traction. According to AppsFlyer, these models grew by 20% in 2024. The most effective games today are not only monetizing better but also retaining players longer by delivering a mix of accessibility and depth.
Live in-game promotions and events are playing a bigger role in this retention effort, helping to sustain engagement beyond initial installs.
Emerging markets: Large base, untapped value
Emerging markets such as India, Brazil, Mexico, and Indonesia currently represent only 3% of global IAP revenue. However, with their large install base and rising digital adoption, they remain prime targets for future growth.
The numbers behind the trend
- $2 billion in IAP revenue tracked
- 4 billion installs analyzed
- 65 million IAP events recorded
- 60 billion bid requests examined
- Top 5% of U.S. iOS payers contribute 20% of total global gaming revenue
- iOS accounts for 55% of global IAP revenue in 2024
- Top 5 advertisers spend 20% more outside the U.S.
- Top 1% of iOS winning bid prices rose 140% in a year
What it means
The growth in mobile gaming is no longer about volume—it’s about value. As user acquisition becomes more expensive and install growth levels off, successful publishers are focusing on optimizing every stage of the funnel—from creative strategy to monetization mix to global market reach. With mobile gaming audiences projected to exceed 2.3 billion by 2028, those who invest in smarter, long-term strategies today are likely to dominate the next phase of growth.
Statista estimates the mobile gaming industry will hit $126 billion in revenue in 2025. For advertisers, the question isn’t how many users they can attract. It’s how many will pay—and stay.