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, 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.

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 reversed a downward trend since mid-2022, featuring 188 funding rounds raising $2.4 billion in Q1 alone. Notable investments include Disney’s $1.5 billion stake in Epic Games.

Alternative App Stores Will Change the Ecosystem

Alternative players such as Microsoft and Epic Games are set to open their own app stores in 2024 in response to "Walled Garden" fees set by Apple and Google. Microsoft’s move follows its $68.7 billion acquisition of Activision Blizzard. This shift could democratize app distribution, offering developers new avenues to reach users while bypassing traditional restrictions.

Mobile Games Continue to Drive the Majority of Gaming Revenue

According to Newzoo, the global games market reached $184 billion in revenue in 2023. Mobile game revenues accounted for 49% of the global market—the greatest share held by any single platform type. While PC games saw the highest growth (+5.3%), mobile remains the lucrative leader for in-app advertising strategies.

[Image: Newzoo Global Games Market Report Chart showing revenue share by platform]

Mobile Game Ad Recommendations

As the industry evolves, so does the approach to advertising. Here are five strategic recommendations for creating more effective mobile game ads in 2024.

1. Focus on High-Quality Creative Assets

Quality matters. Invest in dynamic ad formats such as high-quality video and playables. Engaging visuals are often the deciding factor in whether a user downloads your game or scrolls past it.

2. Diversify Monetization Strategies

Many hybrid-casual games are leaning more towards in-app purchases (IAP) rather than depending solely on ad revenue. We recommend offering IAP alongside in-app advertising to provide a richer gameplay experience and unlock new creative ad integrations.

3. Implement Cross-Channel User Acquisition

Diversify your UA strategies across multiple channels to optimize ROAS. Utilize a combination of in-app ads, social media campaigns, and influencer partnerships to create a holistic marketing approach that taps into varying demographics.

4. Optimize Ad Placements and Formats

To keep monetization effective without compromising UX, consider user-initiated formats like rewarded videos and offerwalls. These allow players to choose to interact with ads in exchange for in-game rewards, enhancing satisfaction.

5. Incorporate AI for Targeting and Personalization

Utilize AI technologies to refine targeting and personalize experiences. AI can analyze user data to predict purchasing behaviors, enabling you to tailor ads to resonate with specific user segments.

Takeaways

• Investment Rebound: The rise in gaming M&A signals a healthy market recovery.

• Market Democratization: Alternative app stores from Microsoft and Epic are challenging the status quo.

• Mobile Dominance: Mobile gaming continues to hold the largest share of global revenue.

Ready to elevate your mobile game advertising with cutting-edge creative? Contact CRAFTSMAN+ today to discover how our expert team can drive your game’s success.