The State of App Monetization – 2024 Edition

“Hybrid monetization”. The buzzword on everyone’s lips. But does this model of monetization truly deliver? The answer is yes, assuming it’s the right fit for your business. In some cases, adding a revenue stream drives incremental rises; in others, it could jeopardize revenue generation. “Cannibalization vs. hybridization” is emerging as the new “risk vs. reward” paradigm.

To make sense of it all, AppsFlyer offers, in this first-of-its-kind report, an inside look at monetization strategies across four common models, also known as revenue streams: in-app purchases (IAP), in-app advertising (IAA), hybrid (IAA & IAP), and subscriptions.

The diversification of revenue streams highlights the importance of an often overlooked yet crucial “partnership” between marketing and monetization. Whereas marketers are focused on driving profitable growth for a cohort of newly-acquired users, monetization managers are tasked with generating and optimizing revenue for the app from all users, at any given time frame.

But only a strong marketing-monetization alignment can help ensure that your app’s strategy is perfectly tailored to your current model, or to the model of monetization you aspire to adopt.

Looking at metrics like ARPU (Average revenue per user), ROAS (Return on ad spend) and DAU (Daily active user), this report provides marketing teams and monetization managers a clear picture of where they stand in the industry, and how they can work together to achieve better results.

Average Revenue Per User (ARPU) at Day 90 since install reveals important insights into long-term app growth, making it a go-to metric for shaping monetization strategy. Shifting from an IAP-only model to a hybrid approach with ads might look appealing for added revenue, but there’s a catch—ads could cannibalize IAP earnings, especially for games with rewarded ads. Aligning these choices with your profitability timeline—whether one month, 90 days, or a year—helps manage that risk smartly.

In 2024’s ARPU data, we can see that iOS Mid-Core games take the lead in Day 90 revenue across monetization types, with hybrid models reaching $9.69, while IAP follows at $7.31 in high income markets — the data sample used throughout this report except in the specific section on emerging markets further ahead.

The dominance of Mid-Core underscores the power of iOS, especially in high income markets where the high purchasing power of their top users (AKA whales) drives strong results across models.

Still, Android holds its own in some Casual games with IAP models and in Hypercasual titles using IAA, where the gap with iOS is notably reduced, as tight synergy between marketing and monetization teams helps narrow the gap with iOS.

For Casual games, IAP sits on top but has hybrid models close behind. In Hypercasual, iOS hybrid models slightly edge out IAA ($0.82 vs. $0.71)—a meaningful difference given this genre’s need for high user volume and low margins. But it’s key to remember: what works best isn’t universal; each app’s user base brings unique results.

ARPPU (Average Revenue Per Paying User) further underscores iOS’s value, capturing around 60% of revenue in both Mid-Core and Casual games. This consistent lead across genres and monetization models highlights iOS’s strong cross-genre advantage over Android.

Marketing and monetization strategies work best when they’re in sync, and that starts by knowing exactly when a user hits profitability. Return on Ad Spend (ROAS) and Lifetime Value (LTV) are your essential guides—ROAS measures profit over time, while LTV forecasts the true long-term value of each user.

Our ROAS data highlights a key insight: trying to optimize acquisition, monetization, and retention all at once is difficult—it’s all about balance between those three parameters. Each monetization model has its own rhythm and logic.

Hypercasual games using ads bring fast wins, with revenue peaking early but capping just shy of 100% breakeven ROAS around Day 60. On IAP models, iOS Mid-core games hit breakeven between Days 7 and 14, while Casual Android games on hybrid models reach it closer to Day 30. Interestingly, Android Mid-core displays higher ROAS on Hybrids than on IAP (146% vs. 93% Day 90), while iOS Mid-core on IAP models hits 215% (vs. 73% only on Hybrid models).

In any case, ROAS acts as the bridge between marketing and monetization teams. For marketers, it’s the ultimate KPI—a tangible marker of revenue generation and ad spend efficiency. For monetization managers, however, ROAS is just the starting point. Knowing exactly when profitability hits—whether Day 7, 14, or beyond—enables strategic adjustments to improve user experience, Lifetime Value (LTV), and retention.

This is where the first-time user experience (FTUE) becomes critical; fine-tuning FTUE around breakeven points can significantly impact long-term engagement and revenue. Predictive ROAS and LTV (pLTV) calculations provide further insight into planning enhancements at the right time.

Measuring when revenue flows in (revenue split by day) over the first 90 days can help shape effective monetization strategies. Casual games on iOS, for instance, can see faster returns with hybrid models, reaching 55% of total revenue by Day 7. In contrast, apps relying solely on in-app purchases (IAP) often take until Day 30 to hit 66%, making hybrid models an ideal choice for quicker returns—a trend that holds for Midcore games as well.

On Android, Hypercasual games using ads-only models show even faster revenue accumulation, typically reaching 64% by Day 3. This reveals that for high-volume engagement games, ad-based models can potentially be more effective for early revenue capture.

By studying these trends across platforms and genres, you can shape a monetization plan that’s fine-tuned to your app’s unique style and audience, driving smarter, data-backed decisions and a fast path to revenue growth.

Remember, trends aren’t just about spikes—steady curves are just as revealing. Ultimately, the optimal strategy depends on balancing user acquisition, monetization, and retention, each with its own-trade-offs and occasionally competing goals.

Casual and Hypercasual games rake in a lion’s share of their revenue through paid campaigns, and it makes sense: with tons of games competing for attention, paid ads help them stand out. Mid-core games, on the other hand, take a different route. With fewer Mid-core games on the market—including well-known brands—most of their revenue comes from organic traffic. Players already know these games and seek them out directly.

But there’s an interesting twist with Mid-core games: the revenue split between paid and organic channels isn’t always static. If we look at our cohorted data, we see a bump in paid revenue as monetization managers ramp up efforts to keep players engaged over a set period. Those efforts pay off, literally. By keeping users active and coming back, they’re boosting revenue in ways that organic alone can’t achieve.

So, while organic remains strong for these familiar Mid-core brands, paid campaigns still play a key role in maximizing earnings—especially when targeted effort is put into re-engaging players.

Sometimes monetization metrics won’t sync up—especially when we look into user activity patterns. For Android casual games, we often see daily active users (DAU) spike on weekends, but here’s the catch—this doesn’t automatically mean an uptick in paying users (PU).

In fact, while DAU might soar, activity from paying users often follows its own rhythm, showing that engagement and spending don’t always sync up. Just because more users are active doesn’t mean more are paying, so relying on DAU alone might miss the mark for revenue.

The takeaway? Start by treating DAU and PU as separate metrics with their own patterns. For Android casual games, those weekend DAU peaks might be ideal for rolling out new content to boost engagement, while PU data from iOS subscriptions shows the value of converting trial users.

By analyzing each metric individually, monetization managers can identify moments when DAU and PU might align and shape a targeted strategy that enhances engagement and secures revenue over time.

iOS stands out as a powerhouse for subscription-based apps, with users spending more than five times on average compared to Android. This is particularly true in industries like gaming and e-commerce. Geos also play as a factor. The gap in ARPU is smaller in high incomes countries, larger in regions like Latin America or Southeast Asia.

Strategy-wise, a high ARPU on iOS enables apps to justify higher UA spending, as iOS, albeit in limited numbers, are still more likely to become paying subscribers. In parallel, scaling on Android is constrained by monetization challenges, which may require different strategies, such as focusing on lower-cost acquisition or alternative revenue models.

Free trials are a cornerstone of subscription-based apps, but they present measurement challenges at an early stage. In a post SKAN environment, leveraging IDFA data from double-opted-in users is helpful to unlock full cohort insights—measuring every stage from trial to renewal. This allows smarter ad network optimization, ensuring your campaigns target high-value users instead of trial-only audiences.

A large share of subscriptions begins with free trials (from Day 3 to Day 30), resulting in minimal Day 1 revenue. However, revenue often increase by Day 3 – 7 as trial users convert, reaching at least 50% of Day 90 revenue. Beyond this, renewals at Day 30+ and 60+ continue driving growth, making retention a real revenue multiplier.

This means that for marketers as well as monetization managers, the delayed revenue curve demands a refined approach. Over-optimizing for trial starts rather than long-term revenue can skew results. Younger audiences, for example, often convert to trials at high rates but fail to become paying subscribers. Balancing early signals with lifetime value is key.

On the pre-installation front, the relatively strong organic share of paid campaigns is attributed, among other variables, to the positive impact of brand awareness. But LTV-wise, monetization only starts. In that perspective, free trials offer a significant post-installation advantage, both for organic and paid users: they allow apps to build their own first-party data.

This valuable asset can be leveraged at a lower cost through owned channels and can effectively target users who have installed the app but haven’t yet made a purchase, driving them toward conversion.

Successful non-gaming app monetization can hinge on choosing between in-app subscriptions or ads…or both. A growing minority of non-gaming apps are beginning to adopt hybrid models, drawing inspiration from successful gaming strategies that more effectively optimize the demand curve, and the variety of user behaviors.

But for non-gaming apps using the IAA model, the approach is all about faster revenue capture. Non-gaming apps that rely on ads typically see high revenue right from the start, with nearly 90% of total revenue for the first three months coming in after just 30 days. This rapid revenue flow makes IAA a great choice for apps that attract high traffic and want to generate income fast.

We also note that non-gaming apps monetized through in-app advertising (IAA) have a more balanced revenue distribution between Android and iOS.

The takeaway? While subscriptions thrive on iOS by creating loyal users through trial-based engagement, the IAA model offers a quick, impactful revenue boost across platforms. Aligning your model with your app can boost tailored revenue flow, while hybrid models can provide higher ARPU, both on iOS and Android.