The mobile gaming industry experienced yet another transformative year in 2024, with the continuation of key trends and the emergence of new opportunities for growth in 2025. As Sensor Tower highlights in the industry perspectives part of this blog series, the mobile gaming industry is on the rise.
According to Sensor Tower data, consumer revenue from the Apple App Store and Google Play Store exceeded 80 billion USD, representing a 4% increase from 2023. In 2024, apps surpassed games in install numbers, prompting developers to adopt monetization and user acquisition strategies similar to those used in mobile gaming while exploring new ad formats. Building on the success of past years, 2024 also saw exponential growth in the rewarded space, with even more growth anticipated in the year ahead. Ad quality was another big focus this past year, and we expect it to continue to be a key area in 2025 as developers implement new strategies for improving user experience.
What else is in store for 2025? From strategic shifts in ad monetization to a resurgence of midmarket titles and the APAC market’s projected growth trajectory, Unity experts weigh in with predictions for the mobile gaming industry in 2025.
Rewarded marketplaces will expand beyond games and mobile
In the last couple of years, the rewarded space has seen significant yet fragmented growth. More apps and networks are providing a rewards experience to developers and the users they serve. On the other side of this marketplace, more advertisers are recognizing the value of this channel and allocating more of their budget to this growing trend, creating a win-win for all stakeholders.
As the market continues to mature in the year ahead, major players will solidify their positions and improve their offerings. Will this accelerated growth continue? As with most maturing markets, continued growth is likely, though it may be at a slower pace than before. As we approach 2025, expansion of the rewards space could shift further, with rewarded channels making a stronger move into non-gaming app segments. Additionally, while most opportunities today are largely app-based, we see growing interest around extending these opportunities to the web. As a result, the growth trajectory of rewarded marketplaces may extend into web assets in the coming year.
More subscription apps will adopt ad-supported models
In 2025, several key factors will drive more subscription apps to incorporate ads as an additional revenue stream. Last year, market saturation and consumer price sensitivity contributed to diminishing returns on subscription models. At the same time, the potential for diverse and scalable income from ad monetization attracted more subscription-apps to integrate ads.
Advances in ad personalization and better ad visibility make ad monetization even more appealing. Consumer preferences are also evolving. We’re seeing more consumers interact with ads in exchange for reduced subscription costs or extra features. Additionally, we expect to see more subscription apps adopt hybrid and freemium business models, both of which present greater opportunities for sustainable growth. As more apps integrate ads in the year ahead, consideration should be given to how best to preserve a positive user experience, ensure non-disruptive ads, and implement strong data protection.
The resurgence of midmarket titles will bring an abundance of high-quality content
In 2024, we’ve witnessed a notable resurgence in the development of “midmarket” PC and console titles, bridging the gap between prominent AAA blockbusters and minimalist indie releases. These mid-tier games often emerge from smaller studios who focus on delivering shorter, more streamlined experiences.
Within a market that features both expansive franchises and retro-inspired indie hits, we’ve seen that this midmarket space encourages greater experimentation by focusing on niche genres or franchises. Many of these developers are prioritizing quality over sheer scale, knowing that gamers respond strongly to thoughtfully designed worlds and well-crafted content. I’m genuinely excited for 2025, when many of these titles are set to mature and release.
Hybrid-casual game growth will reshape ad strategies
In 2025, hybrid-casual games are expected to dominate the mobile gaming ad landscape with their unique mix of scale, quality, and diversity. Because of their ability to balance volume with attracting high-quality audiences, we’ll see hybrid-casual games solidify their position as a core advertising channel in the coming year.
Continued hybrid-casual growth will reshape ad strategies. Advertisers will lean more heavily on rewarded video (RV) ads, which allow for longer, more engaging creative stories that perform better. Additionally, the variety of hybrid sub-genres, like puzzles, simulation, and action, will encourage advertisers to diversify their creative approaches, tailoring campaigns to the preferences of these high-value user bases. Looking ahead, hybrid-casual’s rise signals scalable, sustainable user acquisition opportunities for 2025 and beyond, driving innovation across the industry.
Game developers in the APAC region will expand their global reach
Developers in the APAC mobile gaming market are poised for remarkable growth and global influence in 2025. Currently, developers from China, Japan, and Korea are not only dominating their local markets, but they’re also capturing a significant share of the global mobile gaming landscape - a trend that will continue to gain momentum throughout the year ahead.
Their innovative approaches, including cutting-edge game mechanics, immersive storytelling, and advancements in AI-driven gameplay, will continue to set new industry standards. We truly believe more and more developers will succeed in the global market in 2025.
Implementing long-format playables to scale
In 2025, long-format creatives could hold the secret to scaling, particularly in puzzle games. Videos of up to 60 seconds, or up to 120 seconds in some networks, are known to boost engagement. Standalone playables with more than 20 interactions, or 1-2 minutes of playtime, are also effective at increasing engagement.
These long formats give users sufficient time to interact with the ads and become emotionally invested. Additionally, long standalone playables provide users with a clear goal, challenging gameplay, and enough time to experience core mechanics. Unlike shorter formats where users are directed to the store after a few clicks, long playables send users to download mid-game, after they're fully immersed in gameplay and are on the verge of completing a challenge or level. Re-engagement via level progression, a combination of mechanics, or a display of diverse game features is key to sustaining user interaction with these creatives. AI’s capability to generate a wide range of concepts can help ensure the experience remains engaging throughout the long format’s full timeline.
Interested in more 2025 insights? Check out what industry leaders have to say in the first part of our blog series here:
2025 Mobile gaming trends: Industry perspectives
