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Omdia Analyst: In-app ad revenue is growing faster than in-app user spending

Analyst Guillermo Escofet examines how much revenue comes from in-app advertising versus in-app spending.

Datapoint of the Week is a recurring Game Developer series made possible by our sibling company and global research leader Omdia.

To what extent could, or should, mobile games developers rely on advertising? We can tell you where that figure is now, and how it’s expected to change.

Increasing numbers of mobile game genres are turning to advertising as a supplementary or even primary source of revenue. Although in-app ad revenue will account for the smaller share of mobile games revenue throughout Omdia’s forecast, its rise will be rapid, from 17.6% in 2016, to 42.2% in 2025. In-app ad revenue is growing faster than user spend, especially for genres such as cards, casino, puzzle, and sports.

adrevenuechart.png

You can find more info on the future of in-app revenue here.

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