In the rapidly changing digital landscape, especially in Indonesia, India, and China, mobile applications have become central to consumer lifestyles, transforming marketing approaches across various sectors. Recent insights from AppsFlyer’s “Top 5 App Marketing Data Trends of 2024 and Predictions for 2025” provide valuable perspectives on these changes, especially in gaming, fintech, FMCG, lifestyle, and e-commerce.
Surge in Ad Spend Reflects Market Resilience
Despite global economic uncertainties, user acquisition (UA) ad spend grew by 5% in 2024, reaching $65 billion globally (excluding China). Non-gaming apps drove this increase, experiencing an 8% rise in ad spend, demonstrating strong investment across industries such as e-commerce and fintech.
- Gaming Trends: Casual games saw modest 3% growth, expanding their market share from 61% to 64%. However, Mid-core and Casino games experienced declines of 21% and 12%, respectively. Hypercasual ad budgets remained stable.
- Geographical Trends: Non-gaming ad spend increased in markets like the UK, Germany, Canada, the US, Brazil, and India. Conversely, gaming saw global declines, with sharper drops in developed markets compared to developing ones.
Revenue Growth in Non-Gaming Sectors
Non-gaming app categories, including e-commerce and lifestyle, saw a remarkable 19% increase in in-app purchase (IAP) revenue in 2024, reflecting consumers’ growing reliance on mobile platforms for shopping and daily activities. In contrast, gaming IAP revenue remained mostly stable:
- Casino games rose by 4%, while Mid-core games declined by 2%, and Casual games by 5%.
- In-app advertising (IAA) revenue increased significantly: 26% year-over-year up in non-gaming and 7% up in gaming. This trend was fueled by hybrid monetization models that integrate both IAP and IAA.
- Looking ahead to 2025, more brands and non-gaming apps are expected to invest in gaming ad inventories. IAP is projected to grow, driven by optimized monetization strategies, enhanced loyalty programs, and evolving consumer behavior.
Paid Remarketing: The Key to Higher Conversions
While paid installs grew at a slow pace (+2%), paid remarketing conversions surged by 22%, driven largely by Shopping apps (+29%) and Finance apps, where remarketing grew three times faster than UA paid installs (22% vs. 9%).
- Travel apps followed a similar trend, with remarketing conversions increasing by 19% compared to an 8% rise in installs.
- As budgets expand in 2025, paid installs are expected to grow, but remarketing will remain a crucial strategy for maximizing user lifetime value (LTV) and reactivating dormant users.
Total App Downloads and Category-Specific Growth
Globally, app downloads rose by 7% in 2024, but the growth varied across categories:
- Generative AI apps led with an astonishing 109% year-over-year increase, particularly on Android.
- Finance apps remained a strong cross-platform performer (+26%).
- Lifestyle, Casino & Gambling, and Travel apps experienced notable growth, increasing by 43%, 107%, and 11%, respectively.
Moving forward, monitoring markets driven by “essential” needs (e.g., transportation and utilities) versus leisure activities (e.g., gaming and entertainment) will be key. The gaming sector is poised for potential revival through hybrid casual gaming models.
Creative Optimization: AI’s Role in Performance Enhancement
Artificial Intelligence (AI) is playing a critical role in creative optimization, enabling brands to refine ad creatives for improved engagement and conversions. In 2024:
- AI-driven creative production soared by 40%, with high-spending apps generating an average of 839 creative variations per month.
- The increasing volume of creative assets underscores the importance of performance measurement and analytics. This emerging field is expected to grow significantly in 2025.
Staying ahead in the evolving app marketing landscape requires deep market insights and data-driven strategies. MOCA delivers customized app marketing solutions that maximize performance, from user acquisition and engagement to monetization and retention. By leveraging AI-driven analytics and industry expertise, MOCA helps brands unlock new growth opportunities and stay competitive in dynamic markets.
Boost your app marketing success today—contact MOCA at business@moca-tech.net.