The mobile gaming industry finds itself at a pivotal juncture, transitioning through phases of explosive growth and subsequent corrections. What lies ahead is a promise of sustainable long-term success driven by substantive strategic shifts. A recent study titled “2025 State of Mobile Gaming: In-App Purchase Trends of Leading Apps” offers crucial insights into this evolving landscape. Conducted by Moloco, a recognized leader in operational machine learning and performance advertising, this study underscores the industry’s focus on achieving long-term value.
Key Findings from Industry Research
Projected Revenue and User Growth
According to Moloco’s extensive research, the global mobile gaming market is expected to generate unprecedented revenue by the end of this year, topping $126 billion. Additionally, the number of mobile gamers is projected to reach a staggering 2.4 billion by 2029. While install volumes have remained relatively stable over recent years, the revenue generated from existing users has markedly increased. This growth is attributed to improved install-to-payer conversion rates and a strategic focus on user acquisition.
The study also highlights the important role of in-game events, promotions, and an overall enhanced app experience in driving this revenue surge. By refining these aspects, top gaming apps are able to secure greater lifetime value (LTV), with some achieving up to a 6 percent year-over-year increase. The emphasis is squarely on delighting and retaining existing users rather than merely expanding the user base.
High-Value User Dynamics
Essential to the industry’s revenue structure is the small yet powerful demographic of high-value users. Specifically, the top 5 percent of U.S. iOS users alone generate around 20 percent of the global gaming revenue. Despite representing 0.02 percent of worldwide installs, these influential users dominate in both iOS and Android platforms. Notably, iOS takes the lead in in-app purchase (IAP) revenue, accounting for 55 percent of the total IAP income.
The mounting costs of user acquisition, particularly among top spenders, further highlight the significance of targeting these high-value users. In just this year, the bid prices for user acquisition on iOS have surged by 140 percent. Emerging markets provide considerable opportunities in this context, offering access to high-value users at significantly lower costs compared to more saturated markets like the U.S. These insights suggest that identifying and engaging high-value users effectively can yield substantial dividends.
Methodological Insights and Growth Strategies
Data Science and Analysis
Moloco’s empirical study draws upon data from 100 leading global mobile gaming advertisers who employ hybrid monetization models. The expansive dataset encompasses a period from January 2023 through December 2024, including 60 billion bid requests, 4 billion installs, 65 million in-app purchase events, and $2 billion worth of IAP revenue. Representing an astonishing 40-50 percent of the global IAP revenue, this snapshot provides a deeply informed perspective on the industry’s trajectory.
Through an intricate analysis of IAP revenue and user trends, data scientists were able to ascertain pivotal patterns and predictions crucial for stakeholders in the gaming sector. Understanding these dynamics enables companies to optimize their business strategies and enhance user engagement, which in turn, drives financial performance.
Success Stories and Best Practices
The industry’s top five gaming companies offer a blueprint for sustainable growth by employing strategies centered around re-engagement, creative optimization, and broadening their global market reach. These entities exude a methodical approach to retaining and engaging users, ensuring practical and meaningful gaming experiences.
MobilityWare, for example, represented by Director of User Acquisition Corvin Ampleev, emphasizes the significance of creating and maintaining long-term connections with players. By providing lasting joy, these companies are fostering a loyal user base, which underpins their sustainable growth. Their strategy also includes continuous creative optimization to keep the content fresh and engaging for players.
Path Forward
Long-Term Vision and Emerging Markets
As the mobile gaming industry continues to evolve, the emphasis on long-term value creation is more pronounced than ever. With rising acquisition costs, the focus is shifting towards sustaining and enhancing the experiences of existing users. High-value user acquisition remains a vital component, particularly in burgeoning markets that offer significant growth potential at lower costs.
As companies venture into these new markets, they must adapt their strategies to cater to diverse user preferences and behaviors. This adaptability will be critical in capturing the loyalty and engagement of high-value users in these regions. The potential for growth in these markets, coupled with the insights gained from comprehensive data analysis, is leading the industry into a phase of strategic and sustainable expansion.
Industry Implications
The mobile gaming industry is currently at a crucial stage, moving through periods of explosive growth followed by necessary adjustments. This trajectory is setting the stage for a future marked by sustainable long-term success, spurred by meaningful strategic shifts. A recent study, “2025 State of Mobile Gaming: In-App Purchase Trends of Leading Apps,” sheds light on this dynamic landscape. Carried out by Moloco, a leader in operational machine learning and performance advertising, the study highlights the industry’s focus on establishing lasting value. It shows how mobile gaming is evolving and adapting to changes in consumer behavior and technological advancements. This involves not just capitalizing on current trends but also strategic planning to ensure enduring success. The study emphasizes the importance of in-app purchases, which are increasingly becoming a significant revenue driver. By focusing on this area, developers are looking to create an engaging user experience that promotes long-term user retention. This approach not only boosts immediate revenue but also builds a loyal and lasting customer base.
