AppsFlyer today released the 2024 State of App Monetization report, providing a comprehensive analysis of how app revenue strategies are transforming across verticals. The report highlights the diverse approaches to monetization, revealing that collaboration between marketing and monetization teams and the diversification of revenue streams will be central to app strategies in 2025 in an increasingly competitive landscape.
The alignment between marketing and monetization teams is critical for maximizing Return on Ad Spend (ROAS) and Lifetime Value (LTV). Understanding the precise day that apps reach breakeven, whether its Day 7, 14, or later, is crucial for optimizing revenue and retention strategies. The insights allows for data-driven adjustments that enhance user experience, maximize Lifetime Value (LTV), and foster long-term engagement.
“As user acquisition costs continue to rise and privacy regulations tighten, app businesses are turning to hybrid monetization which has moved beyond being a trend to become a vital part of the app revenue landscape in 2025,” said Shani Rosenfelder, Director of Content Strategy and Market Insights, AppsFlyer. “Our findings reveal that when optimized for the app type and audience, hybrid models are producing breakthrough results across platforms. For continued success, marketing and monetization teams should utilize ROAS and ARPU to fine-tune their strategies and ensure that their campaigns are align both before and after the install for the best results.”
Key Findings: Gaming Apps
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Hybrid Models Deliver Superior Returns: For Android Mid-Core games, hybrid monetization (a combination of in-app advertising (IAA) and in-app purchases (IAP)) generated a 146% ROAS by Day 90, compared to 93% for IAP-only models and 58% for IAA-only models. Hypercasual games adopting hybrid models saw a 28% increase in Day 90 ARPU ($0.60) compared to IAA-only models ($0.47), highlighting the effectiveness of diversification in a challenging low-margin genre.
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Engagement and Spending Don’t Always Align: Daily active users (DAU) and paying user (PU) activity don’t always sync. For example, Android Casual games showed DAU spikes on weekends without corresponding increases in paying user activity, emphasizing the need for distinct engagement and monetization strategies.
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Paid Campaigns Dominate Revenue Generation: 73% of revenue in Casual and Hypercasual games comes from paid user acquisition channels. In contrast, Mid-Core games rely more on organic traffic, supported by strong brand recognition and user loyalty.
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Platform-Specific Dynamics in ROAS: Android Mid-Core games saw higher ROAS with hybrid models (146%) compared to IAP-only, while iOS Mid-Core games achieved 215% ROAS on IAP models versus 73% on hybrid models, underscoring the importance of platform-specific strategies.
Key Findings: Non-Gaming Apps
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Subscriptions Drive iOS Revenue Dominance: Subscription apps on iOS generated 5x higher ARPU ($8.39) than Android ($1.54) by Day 90, driven by a combination of higher spending power and organic growth from well-known brands. Organic users accounted for 65% of revenue in subscription apps, reflecting the importance of brand recognition in driving sustainable growth.
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Ad-Supported Models Provide Quick Revenue: Non-gaming apps using IAA achieved a 95% ROAS on Android by Day 90, compared to 80% on iOS, while iOS still led in ARPU ($0.77 vs. $0.35 on Android). Most revenue for IAA apps was generated within the first 30 days, making ads an effective short-term strategy.
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Hybrid Models Gain Momentum: A growing number of non-gaming apps are adopting hybrid monetization strategies, inspired by gaming industry success. These models provide faster revenue capture via ads while offering higher ARPU through subscriptions.
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Free Trials, from early challenges to long-term ROAS: Free trials for subscription apps result in 50% of Day 90 revenue being generated by converted trial users, with subsequent renewals at Day 30 and Day 60 driving significant long-term growth.
Methodology
AppsFlyer’s State of App Monetization 2024 is a first-of-its-kind analysis, combining data from high-income markets to explore app performance across monetization models. The report is based on an anonymous aggregate of proprietary global data from $130 Million verified in-app purchase revenue, $40 Million verified subscription revenue, and $900 Million in-app advertising revenue in high income markets from Q3 2024.
