AppsFlyer’s latest State of Gaming App Marketing report claims that game developers and marketers spent nearly $27 billion on advertising in 2022.
The report revealed that Android game installs increased by 8% in 2022, while iOS fell by 5%. Marketers and developers committed a staggering $27 billion in ad spend during that period, showing their confidence in the industry’s continued prosperity despite tough times.
In 2022, as people began to live before the Covid epidemic, interest in gaming began to wane. Despite this drop in in-game app installs on iOS compared to 2021, Android saw growth, up 8% year over year. It’s good to see that mobile gaming is still a popular source of entertainment around the world, despite the downturns in many industries caused by Covid and other international events.
As more and more people turn to mobile games for entertainment during economic downturns, developers must focus on creating engaging experiences to capture users’ attention and differentiate their apps from the competition. With its strong performance in 2020 and into 2021, this industry can continue its upward trend even in difficult times.
The US remains the top market for gaming app marketers, with a projected stellar 19% increase in Android installs in 2022. This is in sharp contrast to iOS app installs, which saw a modest 1% drop. It has been shown over the past year that its popularity is still growing.
Despite the difficult economic environment, consumers remain interested in in-app purchases. Despite some declines in overall user engagement, the role-playing and casino genres saw a particularly sharp drop of 14% between H2 2022 and H1. It compounded a noticeable 7% decline across all platforms — Android was down 4% while iOS was down 9%.
This is likely due to the economic downturn shifting consumer behavior towards these higher IAP activities. Although in-app advertising revenue declined for most genres towards the end of the year, it still proved to be an important source for developers of hypercasual, match and simulation games during this period.
Mobile advertising campaigns are also becoming increasingly important as gaming activity increases. App marketers should consider investing in paid ads like video to reach consumers. App promotion and advertising can help drive more downloads overall, with a special focus on high-value users.
Many companies have turned their attention to low-cost proprietary media channels such as push notifications or cross-promotion campaigns to offset the drop in investment while still meeting marketing goals given iOS’ higher CPI of $3.75 per install! The good news is that despite these challenges, mobile gaming is still a popular area for investment!
The gaming industry continues to face an uphill battle as iOS privacy restrictions limit the abilities of marketers who previously relied on user-level data. Despite these challenges, app developers remain committed to attracting quality gamers via iOS despite higher media costs and measurement challenges – creating a greater need for enhanced technological tools or “data cleanrooms” in 2023 and beyond.
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