Hybrid-Casual Mobile Gaming to Take Over as In-App-Purchases Soar 37% on Android

Hyper-casual gaming has seen a 37% increase in in-app purchases (IAPs) across Android devices despite a drop in ad impressions.

According to a recent report by mobile marketing data platform Tenjin, hyper-casual gaming, which was once all the rage, has seen a decline in profitability due to a downward trend in ad revenue.

This can be attributed to several factors, including the impact of the COVID-19 pandemic and the implementation of App Tracking Transparency (ATT) on iOS.

The report reveals that in 2022, the mobile advertising industry experienced significant changes among different operating systems.

iOS suffered a sharp 20% decline in ad impressions, while Android platforms experienced a decrease in eCPM by 28%.

Despite this, Android saw a rise in in-app purchases (IAPs), with the number of such purchases increasing by 37% over the year. The rise in IAPs was heavily influenced by India, which emerged as the leader in terms of Android app installs.

These shifts highlight the dynamic nature of the industry.

Hyper-casual game developers are now opting for hybrid models that blend casual and mid-core gameplay to create a unique gaming experience that appeals to a wider audience.

Hybrid-Casual Mobile Gaming Sees a Rise in Popularity

The popularity of hybrid-casual mobile gaming is on the rise, giving developers more of an opportunity to monetize their games through IAPs.

The report indicates that by integrating rewarded video ads, developers can increase their revenue from IAPs even further.

These ads provide players with an incentive to watch in exchange for in-game currency or other rewards, thereby increasing engagement while generating revenue for the developer.

“If you ask industry experts to define hybrid-casual, you’ll likely get a range of different answers. With no clear consensus on the new “hottest genre” or business model,” said Roman Garbar, Marketing Director at Tenjin.

“What is clear, however, is that a hybrid storm is coming. Casual developers are integrating hyper-casual components and rewarded videos into their games, while hyper-casual developers are adding more in-app purchases and improving retention.”

However, he noted that as advertising and monetization continue to pose challenges for developers in 2023, it is crucial for them to adopt a strategic approach. “We hope that these industry rankings and trends will help guide developers through this hybrid shift.”

Asia-Pacific Countries Dominate Digital Gaming Market

The gaming industry has been on a continuous rise, with consumers relying more on the entertainment sector during and after the pandemic.

The use of advanced technology in gaming and the emergence of trends such as the use of augmented and virtual reality, as well as blockchain gaming, have brought major changes to the market, according to a recent report by Research And Markets.

The Asia-Pacific region has dominated the gaming landscape generating the highest share of revenue, accounting for nearly half of total global gaming revenue.

Within the region, China has been leading the digital gaming industry, with mobile gaming witnessing an increasing trend in the country.

Furthermore, the mobile gaming market in China is expected to reach millions of euros by 2024, with self-developed games experiencing growth in international markets.

Japan and the USA followed China in generating the largest share of mobile gaming revenue in 2022.

In Japan, close to two-thirds of surveyed respondents claimed to play mobile games in the last year, with the majority of gaming revenue coming from Apple app store downloads in the first half of 2022.

At the same time, countries such as South Korea, India, and Indonesia are catching up in terms of gaming revenue growth.

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