Key Mobile Gaming Trends and Ad Strategies for 2024

After a few challenging years in the mobile gaming industry, during which the economy dipped after the engagement and revenue highs of the pandemic years, this year, mobile games have made notable gains. In this article, we explore current trends that are shaping mobile gaming and offer insights on crafting compelling mobile game ads that resonate in this revitalized market.

2024 Global Gaming Market Trends

From strategic mergers and acquisitions to the emergence of alternative app stores challenging the traditional marketplace, the gaming industry is witnessing significant shifts.

Mergers and Acquisitions are on the Rise

According to Drake Star’s Global Gaming Report Q1 2024, mergers and acquisitions have increased in the mobile gaming industry this year. This uptick in investment has reversed a downward trend in gaming M&A since mid- 2022. This includes 188 funding rounds raising $2.4 billion in Q1. Included in this investment was Disney’s $1.5 billion investment into Epic Games for equity. As for mobile-gaming specific M&As, they totalled 10 in Q1 2024. This matched the amount of investment raised in PC and console M&As combined, highlighting the value of advertising PC/Console games in-app. According to Drake Star, based on the strong investment start to the year, M&A will continue to increase throughout the rest of the year. They noted players to watch as active buyers are Savvy/Scopely, Tencent, Take-Two and Playtika.

Alternative App Stores Will Change the Ecosystem

As we recently wrote on LinkedIn, alternative players such as Microsoft and Epic Games are set to open their own app stores in 2024. This is in response to app store fees and policies set by “Walled Gardens” Apple and Google. In particular, Microsoft’s move to launch its own app store comes after previous efforts to grab a stake of the highly lucrative mobile gaming market. In 2022, Microsoft acquired Candy Crush parent company Activision Blizzard for $68.7 billion. Epic Games, on the other hand, has committed to launching its own app store in response to legal battles with both Google and Apple over their policies and fees. How will the rise of alternative app stores affect the mobile ecosystem at large? For one, it could democratize app distribution, offering developers new avenues to reach users and bypass the app store fees and restrictions of established players. Other questions also abound; for example, whether alternative app stores will support iOS and Android operating systems.

Mobile Games Continue to Drive the Majority of Gaming Revenue

According to Newzoo’s annual Global Games Market Report, the global games market reached $184 billion in revenue in 2023. This accounted for +0.6% growth year-over-year. Again, this was a positive course correction following the -5.5% dip in global gaming growth from 2021 to 2022. Mobile game revenues accounted for 49% of the global market, the greatest share held by a single game platform type. This represented a year-over-year dip of -1.6%. On the other hand, downloaded and boxed PC games saw the highest growth of +5.3% year over year. In total, downloaded and boxed PC games generated $38.4 billion, amounting to 21% of total revenues. Looking forward, global game revenues are projected to reach $205.4 billion in 2026. This will amount to a +1.3% CAGR from 2021-2026.

Source: Newzoo

Mobile Game Ad Recommendations

As the mobile gaming industry evolves, so does the approach to advertising within it. Based on the latest trends and data, here are five strategic recommendations for creating more effective mobile game ads in 2024.

Focus on High-Quality Creative Assets

Quality matters. To capitalize on user preferences, invest in high-quality creative assets for your ads. This includes leveraging dynamic ad formats such as video and playables. High quality creative assets can not only enhance user engagement and conversion rates but can also significantly boost app store ratings . High-quality visuals and engaging content can be the difference between a user downloading your game or scrolling past it.

Diversify Monetization Strategies

According to CrazyLabs, the market is seeing a shift in monetization strategies, especially within the hybrid-casual games category. Specifically, many hybrid-casual games are leaning more towards in-app purchases (IAP), rather than depending solely on monetizing through ad revenue, as has been the case in the past in the industry. Historically, hybrid-casual games have been leaders of innovation in the marketplace as one of the most popular and successful game app categories. With this in mind, we recommend mobile game developers look to diversify to offering IAP alongside in-app advertising as this can provide a richer gameplay experience and also unlock new avenues for creative ad integrations that do not disrupt the user experience.

Implement Cross-Channel User Acquisition Strategies

Diversify your user acquisition strategies across multiple channels to optimize ROAS. Utilize a combination of in-app ads, social media campaigns, and even influencer partnerships to create a holistic marketing approach. This ensures a wider reach and taps into varying demographics effectively. 

As mentioned above, mobile games continue to drive the highest revenue across gaming platforms. This indicates the lucrativeness of in-app advertising strategies, where gamers are likely to engage and make purchases.

Optimize Ad Placements and Formats

To keep your monetization strategy effective without compromising on user experience, optimize ad placements and formats. Consider user-initiated formats like reward videos and offerwalls, which allow players to choose to interact with ads in exchange for in-game rewards, enhancing user engagement and satisfaction.

Incorporate AI for Targeting and Personalization

Utilize AI technologies to refine your targeting strategies and personalize ad experiences. AI can help analyze user data to predict purchasing behaviors and preferences, enabling you to tailor your ads to resonate with the interests of specific user segments.

Takeaways 

The mobile gaming landscape is continually shifting, with an increasing focus on quality, innovative monetization strategies, and enhanced user experiences. By adopting these advertising recommendations, you can stay ahead of the curve in the lucrative mobile gaming market.

• Rise in Mergers and Acquisitions: Increased investment activities in the mobile gaming sector signal a healthy rebound and strategic consolidations.
• Emergence of Alternative App Stores: Players like Microsoft and Epic Games are challenging established marketplaces, potentially democratizing app distribution.
• Mobile Dominance: Despite slight fluctuations, mobile gaming continues to account for the largest share of the global games market revenue.

Ready to elevate your mobile game advertising strategies with cutting-edge creative approaches? Contact CRAFTSMAN+ today to discover how our expert team can help you implement these tactics effectively and drive your game’s success in the dynamic 2024 market.