Hybrid monetization is the future...

Hybrid monetization has moved beyond a mere trend. It is now a fundamental necessity for developers seeking to remain competitive in a landscape that grows more crowded each day.

In the shifting terrain of free-to-play gaming, success often hinges on balancing two distinct revenue streams: the player willing to make purchases and the one content to consume ads. Hybrid monetization allows game makers to cater to both, achieving immediate profits while ensuring the long-term growth of their titles. A staggering 72% of developers and 79% of publishers plan to implement or refine their hybrid strategies in the coming months—a clear indicator of its rising prominence.

On the report, Kristan Rivers, AdInMo Co-Founder and CEO, said:

“This report shows that IAA and IAP models are not an either-or scenario. The shake-up of monetization models is a positive shift driven by innovation, cross-team collaboration and most importantly putting emphasis on a better player experience. It’s great to see half of the industry respondents already see immersive in-game ads as part of the hybrid evolution.” 

“In line with monetization trends that dictate high quality and unobtrusive ad placements, our new clickable ad units feature the InGamePlay Magnifier which keeps the player in the game experience and delivers above industry benchmark install rates, helping developers innovate across user acquisition and monetization.” 

Equally compelling is the growing emphasis on improving IAP monetization. Developers and publishers are working to refine their approaches: segmenting players with greater precision, navigating the trade-offs between IAP and ad-based revenues, and zeroing in on IAP conversions, especially as the challenges of ad fatigue mount. In embracing hybrid monetization, the industry is not only adapting its revenue models but also enhancing the player’s journey, ensuring that games remain both engaging and financially viable well into the future.

Methodology 

The Hybrid Monetization Trends survey, distributed by Gamesforum from June to August 2024, gathered over 120 responses through email, social media, and direct outreach. Analyzed by industry expert Tiffany Keller, the survey primarily drew respondents from EMEA. While not globally representative, the 50/50 split between IAP and IAA-driven businesses reflects the 2023 distribution of the $226B mobile gaming revenue market.

Nearly 15% of respondents came from top publishers generating over $100M annually, while smaller game businesses were more prominent among developers. The ads industry was represented by platforms, demand sources, tools, and creative services.

To minimize bias, "I don’t know" responses were removed from revenue-related questions, ensuring accurate performance estimates. However, all responses were considered when discussing key metrics, challenges, and future initiatives. Analysis based on IAA/IAP reliance or growth provided the most valuable insights, while regional or sector-based data offered direction but lacked sufficient sample size for definitive conclusions.

To read the report in full, click here.