As we head towards the end of 2024, sub-Saharan Africa stands poised for economic recovery after recent challenges. Growth is anticipated for the region’s largest economies like South Africa, Nigeria and Kenya, with the potential for policymakers to push through economic reform to accelerate sustainable, inclusive growth to the next level.

The International Monetary Fund projects regional growth to climb to 4.2% in 2025. Although that still represents relatively subdued levels of growth, it does provide cautious optimism against a background of lingering inflation pressures, financial exclusion and unemployment.

Those economic dynamics have at least provided fertile ground for digital transformation in sub-Saharan Africa, with digitization in the region gaining momentum throughout 2024 – particularly in the fintech sector. 

The mobile market continues to grow rapidly, with projections suggesting that mobile subscriptions in the region could breach 1 billion by 2029 – of which two-thirds will be smartphones. 4G adoption has accelerated in recent years and will be the primary driver of that mobile expansion, with half of all mobile subscriptions in sub-Saharan Africa expected to be 4G in five years’ time. A dip in the average price point of smartphone devices has also boosted adoption rates, although this still remains a barrier to entry for the many in the region still living in poverty.

As we dive deeper into this report, we will explore how these economic and technological trends are shaping sub-Saharan Africa’s future, examining the interplay between economic challenges and digital innovation, and assessing the potential for growth in the mobile market.

Overall installs grew significantly in sub-Saharan Africa through the first half of 2024, rising by 23% year-on-year. That steady upwards trend continued for Android into Q3 of this year – up by 20% on the same quarter of 2023 – but iOS took a step back, dipping by 14%.

The impact of that backward step was mitigated by the fact that Google commands a much greater user base in the region. Comparing the first three quarters of this year to the same period of 2023 reveals a sizeable 21% growth in overall installs.

Non-organic installs (NOIs) underpinned Android’s growth in sub-Saharan Africa in 2024 to date, growing 28% year-on-year. Nigeria saw particularly strong growth during the first half of this year, rising by 38% in H1 compared to the same period of 2023.

NOI performance in the other major market of South Africa was relatively subdued, albeit with some sharp acceleration in Q3 of 2024, which rose by 31% compared to the third quarter of the previous year. That could bode well for marketers heading into the holiday period and beyond.

As NOI activity grew in the region, remarketing conversions nosedived over the summer to offset a 2x growth in Q1 of 2024. That leaves remarketing down by 22% in the year-to-date when compared to the same period of 2023 – but marketers should be encouraged by the phenomenal success of Q4 2023 and Q1 of this year. Clearly, there was great success in reactivating lapsed users around the holiday period, which hopefully sets a positive precedent heading into this year’s holidays.

App install ad spend dipped by 7% overall in Q1-3 of this year compared to last, with iOS taking a 10% hit year-on-year. Q3 brought some renewed spend, with a modest 6% rise compared to the same quarter in 2023.

As we’ll see, though, rising in-app purchase numbers for the region suggests that ad spend as a whole was shifted towards full-funnel marketing – engagement and conversion – rather than pure acquisition.

Perhaps the biggest indicator of the region’s mobile and economic growth can be found in sub-Saharan Africa’s in-app purchase (IAP) revenue trend, which is up 24% in 2024 to date compared to the previous year. iOS saw an impressive 39% increase during this period. With app install ad spend declining slightly year-on-year, it appears that marketers have shifted budget towards more of a full-funnel marketing approach, with impressive results.

With extremely strong performance in Q3 compared to the same period last year – up 25% on Android and 58% on iOS – that may suggest that the region is in for a strong conclusion to 2024 in terms of revenue.

When digging into the app landscape of any region, Google Search trends provide a strong indication of purchase intent or interest – meaning that a lot of insights can be derived from what people are searching for. For this report, we’ve focussed on Financial Services as one of the most-searched categories in sub-Saharan Africa, and looked at search traffic in Nigeria and South Africa.

According to the trends report from google, Financial Services has seen overall growth from January 2023- August 2024, with March being a seasonal peak for search terms in Nigeria. Of the rising* search topics related to finance, the following businesses have shown the largest volume:

1. “Moniepint”
2. “O-Pay”
3. “UBA internet Banking”
4. “Wema Bank” and
5. “Eco Bank”

*Rising topics are Finance related topics with the biggest increase in search frequency since the last time period. 

Of the Top** search terms, “Naira” “dollar” “naira to dollar” and “loans” were the most frequently searched on Google, with Zenith Bank and GTBank the only financial institutions in the top 20 category of search trends.

** Top – The most popular topics. Scoring is on a relative scale where a value of 100 is the most commonly searched topic and a value of 50 is a topic searched half as often as the most popular term, and so on.

According to the trends report from Google, for South Africa, Finance related searches have remained relatively flat, with a spike in January 2024.

South African Social Security Agency (SASSA), the government agency responsible for social grants was the #1 rising search term in South Africa. The financial institutions in the top category were:

1.  “Nedbank”
2. “Discovery Bank”
3. “TransUnion”
4. “Wonga”
5. ABSA

The finance vertical was one of the standout categories for apps in sub-Saharan Africa in 2023 and into 2024, with impressive growth throughout – particularly in Q1. Overall installs of finance apps were up 34% when comparing the first three quarters of 2024 to the same period last year. iOS enjoyed a doubling of finance installs in Q1 of this year compared to the opening quarter of 2023.

Finance apps on Android continued their upward trend throughout the year, culminating in a 33% increase in Q3 vs the same period of 2023.

Marketers found plenty of success with paid acquisition of finance apps on Android in the region in 2024, with a 24% year-on-year increase and a continual upward trend throughout the measurement period. This was particularly prominent in South Africa, which saw a phenomenal 102% rise in Q1-3 2024 compared to the same period in 2023.

This NOI performance is all the more impressive given the trend of ad spend on finance apps in the region, as shown in the next section.

The finance vertical was one hit hardest by reduced app install ad spend budgets in 2024, with Android dipping by 27% in the first three quarters of the year compared to the previous period. Although 2025 and beyond is anticipated to be an improving time for economies in sub-Saharan Africa, this late-2024 performance may be an early sign that there could be a lag before finance ad spending recovers alongside the economy as a whole.

To that end, Q3 brought brighter news for marketers and potentially a positive outlook for Q4 and into the new year, as ad spend rose by 9% overall compared to Q3 of 2024. This includes a significant 57% rise for iOS, albeit on a platform with a relatively low market share.

IAP revenue from finance apps in sub-Saharan Africa continues to increase, with a big boost in Q3 of 46% compared to the same quarter in 2023. Taking Q1-3 of this year as a whole shows a significant 28% rise in IAP revenue among the vertical compared to the same period of the previous year.

The major market of Nigeria has seen finance apps jump in IAP revenue on iOS, up 51% compared to Q1-3 of the previous year, although Android has taken a small dip of 14% during that period.

Shopping apps have seen a remarkable rise in app install ad spend during 2024 to date, with spend skyrocketing by 80% when compared to the first three quarters of 2023. Considering that Q4 traditionally sees a bump for the shopping vertical, we could be set for a record-breaking year overall for ad spend on shopping apps.

iOS saw spend more than double during Q1-3, with Android also increasing by 59%.

After a strong 2023, IAP revenue continued to grow in the shopping vertical through the first three quarters of the year – up 15% on the same period in 2023. iOS was a particularly strong performer, rising by 26% during this period. Considering the sizeable bump enjoyed by shopping apps in Q4 of last year, the signs suggest a strong end to the year for the vertical.

In Nigeria, while IAP revenue growth was more modest than the region as a whole, there was encouragement in Q3 as revenue climbed by 15% year-on-year.

The app marketing landscape in Asia has been on a tear. The continent has seen significant changes and steady growth in its mobile user base since before 2020, continuing through 2023. Despite the disruptions of the pandemic, installs have kept climbing, especially in key markets like India. India’s share of installs in Asia is growing fast, along with its ad spending, making it a major player in the region.

With mobile usage reaching all-time highs in 2023, Asian apps are spending again. Worldwide spending bounced back in the first half of 2024 after a small dip in 2023, with costs per install (CPI) remaining a key factor in influencing spending decisions. While Indian and Indonesian apps stay focused on their massive local audiences, apps from Australia, China and Korea are starting to expand their reach beyond home markets. Not all categories saw spending growth. Finance apps have seen a phenomenal boost in investment, but e-commerce ad spend has dropped. 

On the revenue side, Asia saw a decline in in-app purchases (IAP), particularly in India and the Philippines—closely reflecting global trends. Since 2021, Asia’s share of global app revenue has dipped, reflecting broader challenges in sustaining purchase growth. But with innovation continuing and markets like Indonesia emerging, Asia’s app marketing landscape remains vibrant and full of opportunities.With smartphone adoption in Asia expected by Statista to top 90% by 2030, we see a bright future ahead for mobile apps.

We’re looking at a whole new ball game. Over the past decade, Asia’s app market has taken off like never before, with install rates skyrocketing 10x since 2017 – more than double the global average. This explosive growth highlights the region’s fast-paced digital transformation and the increasing role mobile technology plays in everyday life. What we’re seeing is not just a passing trend – it’s a strong indicator of APAC’s massive potential in the app economy.

While growth is happening across all verticals, non-gaming apps have taken the lead post-pandemic. E-commerce, Fintech and Utility apps are being adopted at record speed, reflecting shifts in consumer behavior in response to global changes. This diversification shows just how versatile and adaptable the Asian market truly is.

And there’s no signs of slowing down. In H1 2024, year-over-year growth in paid installs across APAC hit 22%, with non-gaming apps surging 31% and gaming apps growing by 8%.

Asia’s impact on the global app market is also impossible to ignore. The region now commands a huge share of paid installs worldwide, both in gaming and non-gaming. In fact, Asia’s share of paid gaming installs has jumped 27% since 2021, solidifying its position as a global gaming powerhouse. India and Indonesia are leading the charge, driving a 26% increase in gaming market share since 2021, highlighting their rapid emergence as industry powerhouses.

India and Indonesia have quickly transformed into the gaming heavy hitters of Asia. Since 2021, these two growth engines have driven a remarkable 26% increase in market share. With their massive populations and unstoppable passion for gaming, they’re also making waves globally. The rapid rise of these developing markets not only highlights their own potential but also shines a spotlight on Asia’s growing influence in the gaming world.

We see other bright spots across the region. The Philippines saw an impressive 32% boost in gaming installs, while Japan posted a solid 7% gain. On the flip side, Vietnam, considered to be a regional gaming hub, has taken a hit, with a 10% drop in paid installs.

When it comes to non-gaming apps, users are increasingly turning to e-commerce, fintech and utility apps across the region. Japan, South Korea and India all host thriving ecosystems. Japan leads the charge with a 27% rise in installs, while South Korea and India both saw a healthy 15% increase.

Overseas, the top five app-exporting countries are China, India, Japan, Vietnam, and Indonesia. China leads, driving most exports, but others are also expanding globally.

Paid installs can be categorized into three groups: installs in the app’s home country, other Asian markets, and outside Asia. Australia excels in non-Asian, English-speaking markets. Vietnam, China, and Korea export widely (though China’s local installs aren’t tracked), while Japan, the Philippines, Indonesia, and India focus more locally.

Non-gaming Asian apps dominate regional paid installs, bouncing back to 2021 levels in 2024 after a 2022 dip. Gaming companies have shifted ad spending to Asia, reducing focus on North America and Europe, investing heavily in their home region since 2021.

India’s gaming app market grew 49% since 2021. Vietnam leads non-gaming paid install growth. Non-gaming Asian apps also gained 24% in Europe and 10% in Latin America, while gaming saw only 5% growth in Latin America and a 5% decline in Europe.

Asian gaming apps are driving solid growth at home, boasting a 27% increase in non-organic installs (NOI) since 2021. However, their success hasn’t been as strong in North America, where NOI has dropped by 21%.

India has become an increasingly key market for Asian gaming apps, with a staggering 49% surge in Indian gamers since 2021. Meanwhile, Vietnam has seen the biggest boost in paid install traffic for non-gaming apps, making it a standout for that category.

At the same time, non-gaming Asian apps are making impressive gains in Europe and Latin America, with paid installs growing by 24% in Europe and 10% in Latin America. On the gaming side, Latin America saw only a modest 5% increase, while Europe’s gaming market experienced a 5% decline in paid installs.

In 2023, Android ad spend in Asia hit an impressive $9.1 billion, covering the entire market based on estimated market share. Year-over-year trends from H1 2024 compared with H1 2023 show an overall 2% dip in ad spend across Asia, with gaming taking an 8% hit. But non-gaming proved more resilient, seeing a 5% increase.

India dominated with a massive volume of paid traffic, despite a relatively low cost per install (CPI). This puts India in a category all its own when it comes to total ad investment. Keep in mind that this data excludes iOS ad spend since Apple doesn’t provide geo-specific data from SKAdnetwork. If iOS were included, countries like Japan, Australia, South Korea and Vietnam would likely have seen their shares rise significantly.

When we look at gaming versus non-gaming ad spend across Asia, gaming held steady, even outperforming the global average, which saw a drop. Non-gaming ad spend, however, was a bit more unpredictable, closely tied to CPI trends. The biggest dip came from a post-COVID drop in eCommerce investments, as companies shifted their focus toward re-engagement strategies.

On the flip side, the Finance category continues its inexorable rise, with ad spend up 45% since Q2 2023 and 15% since 2021, riding the wave of Asia’s ongoing fintech boom.

While Asian apps lead the way in ad spend within their home region, they’re also making waves globally, claiming at least 20% of the world’s total ad spend. This speaks to the ambitious growth strategies Asian apps are pursuing, not just within Asia but also in wealthier Western markets and developing regions like LATAM and Africa.

It’s no surprise that Asian apps focus primarily on their domestic markets. However, what’s interesting is that non-Asian apps make up about 35% of the ad spend in Asia, proving that localization is key to success in these diverse, complex markets.

Asian gaming apps take a more globally diversified approach. Unlike non-gaming, where more than half the ad spend stays in Asia, gaming apps reach a wider, global audience. Over time, we’ve seen ad spend for Asian gaming apps rise in North America, while it’s slightly dropped in Asia—showing just how global the gaming industry has become.

Once again, the standout is India, which continues to see explosive growth in both gaming and non-gaming categories. Investment in India’s gaming apps has skyrocketed, increasing fivefold, while non-gaming ad spend has jumped 63%. India’s role as a key player in the app market is only becoming more prominent, as its consumer base rapidly expands across a variety of app categories.

Keeping current users engaged can be just as important—if not more—than acquiring new ones. Since the pandemic surge in 2021, remarketing has been steadily on the rise alongside user acquisition (UA) efforts. As app marketers shift focus toward keeping existing users engaged, remarketing has become increasingly vital to driving growth. This trend accelerated this past year, with more apps and markets prioritizing re-engagement to keep users active.

In Asia’s non-gaming sector, remarketing has seen a consistent upward trend, while UA activity seems to have hit a plateau in 2024. While UA has slowed down, both UA and remarketing are now considered critical in the marketer’s toolkit. But remarketing truly took center stage this year, helping apps re-engage users who might have otherwise drifted away, ultimately boosting conversions.

What’s particularly notable is the surge in non-gaming apps in Asia that are running remarketing campaigns. In fact, in 2024, remarketing campaigns have actually outpaced UA campaigns in popularity for non-gaming apps. In the gaming world, however, this trend hasn’t gained as much traction. While remarketing is part of the mix, UA still dominates in the gaming space.

Hybrid monetization models are becoming the norm in Asia. This is particularly true in gaming, where mobile games are starting to blend in-app advertising (IAA) with in-app purchases (IAP). This rise in hybrid models for gaming follows global trends, growing from 36% to 43%. What’s really interesting though is how heavily non-gaming apps in Asia rely on ads. This is largely driven by the popularity of utility, entertainment and photo/video apps, which lean primarily on advertising for revenue.

Since 2023, we’ve seen some significant changes in IAP revenue. While gaming apps have followed the global decline in purchases, non-gaming apps actually saw a 60% jump in purchase revenue between Q1 2021 and Q1 2024. Even more notable is the recent uptick in IAP across both gaming and non-gaming apps since Q1, showing that users are starting to spend more again.

Ad revenue for Asian apps has stayed steady within the region even though IAA revenue jumped by 8% globally in 2024. And when it comes to regional consumer spending, Asia’s share of IAP revenue dipped slightly by 5%, but still remained stable. Meanwhile, North America and Europe apps have seen stronger growth, with their shares increasing by 7% and 16%, respectively. This shift reflects slightly stronger performance among these Western apps in Asia.

App install fraud continues to be a major issue. Yet different app categories face varying levels of risk. Gaming apps, both in Asia and globally, have done a great job keeping fraudsters out, thanks to advanced protection measures. Non-gaming apps, especially in the Finance sector, are not so lucky. With high cost-per-acquisition (CPA) and large volumes, Finance apps are a prime target for fraud.

One of the challenges in fighting fraud in non-gaming apps is that some developers simply aren’t aware of the risks. But there’s a bit of good news: fraud rates in Finance apps have actually dropped over the past year. Unfortunately, this drop in Finance fraud was countered by a significant rise in fraud hitting Food & Drink apps, as well as Entertainment. Since these spikes can happen at any time, it’s important to stay vigilant and keep protections in place.

The most common type of fraud in Asia continues to be bot attacks, which have dominated for a while. Click flooding is another concern, but a newer type of fraud, called Fake Publisher Activity, is also on the rise. This involves tactics like site blacklisting, behavioral anomalies, and install store validation issues—where fraudsters make installs look legitimate. Staying on top of these threats and maintaining strong defenses is key to keeping your app safe.

The 2024 festive season in India is shaping up to be one of the most dynamic in recent years, driven by the country’s economic recovery and evolving consumer behaviors. With the economy projected to grow by around 7.6% in Q3 and inflation easing, this year’s Diwali period holds even greater potential than the 2023 season.

E-commerce, particularly mobile-driven purchases, is expected to surge, fueled by the increasing adoption of digital payments and the growth of quick commerce.

Notably, women are expected to play a larger role in festive spending, as their financial independence continues to rise. Impulse buying is becoming a stronger trend this year, as consumers increasingly prioritize quick, gratifying purchases over meticulously planned shopping. This shift is supported by the rapid expansion of quick commerce, allowing for same-day or next-day delivery, which aligns with consumers’ growing appetite for convenience.

And the mobile user base continues to grow. India’s smartphone market saw marginal growth in 2023, with premium segment sales and 5G adoption driving an 11% boost in shipments by the latter half of the year. However, 2024 may still face challenges such as inflationary pressures and inventory constraints. Despite this, consumer optimism remains high, with households expected to spend ₹1.85 trillion during the festive season, as per HT Media’s 2024 Consumer Trends report. Categories like home decor, fashion, and electronics are poised to lead this surge, with 66% of consumers planning to buy new smartphones.Financial empowerment continues to grow, supported by festive bonuses and higher disposable incomes.

Additionally, there’s a notable shift towards premium and sustainable products, reflecting changing consumer preferences. Advertisers are keen to leverage these trends, launching targeted campaigns early in the season. With heightened economic activity across retail, travel, and electronics, Diwali 2024 is forecasted to see record-breaking sales, making it a pivotal year for both online and in-store promotions​.

Remarketing remains a strong performer during the holidays, especially on Diwali. With new user acquisition slowing down, marketers should focus on re-engaging existing users post-holidays through personalized remarketing strategies. 

Push notifications with relevant discounts or reminders about abandoned carts can entice users back, while targeted email campaigns with personalized offers can spark renewed interest. Since NOI drops significantly after Diwali, remarketing becomes crucial, particularly in the second and fourth weeks post-festival, when users are more likely to convert.

Categories like Shopping and Food & Drink saw a balanced mix between non-organic installs (NOI) and remarketing, making both strategies key during Diwali. As new installs slow post-festival, marketers in these sectors should focus on remarketing and re-engagement to keep the momentum going. Entertainment apps followed a similar trend, with NOI around 76-80%, while remarketing steadily supported conversions.

On the other hand, Finance and Gaming apps leaned more on new user acquisition, with remarketing underutilized. For Gaming marketers (with up to 91% NOI), this is a great opportunity—boosting remarketing after Diwali could help re-engage users and drive longer-term retention for the holiday season.

Unlike last year, where there was a clearer shift toward NOI pre-festival, this year saw a more stable split between organic and non-organic installs throughout the festive season. Organic installs consistently led the way, staying around 57-58% leading up to Diwali, dipping slightly to 55% during the holiday. 

Meanwhile, NOI peaked at 45% during Diwali, making it the prime time for user acquisition through paid campaigns. After the festival, organic installs reclaimed their dominance, but non-organic installs remained steady at around 42-44%, highlighting the continued importance of paid efforts even post-Diwali.

Across app categories, Shopping, Food & Drink, and Finance apps saw notable bumps in NOI during the week of Diwali, showing that paid campaigns were critical for driving installs during the festive period. However, post-Diwali, Finance and Food & Drink apps quickly returned to their organic growth patterns, with organic installs jumping back to over 60-70% in the following weeks. 

In contrast, Shopping and Gaming apps maintained a more balanced split between organic and paid installs even after the festival, reflecting the ongoing need for paid acquisition efforts. Entertainment apps, on the other hand, continued to thrive with organic installs throughout the season, indicating that user interest was largely content-driven.

Given that organic installs reign supreme, marketers should focus on re-engagement throughout the Diwali season to capitalize on returning users.

Nearly 50% of ad spend during the Diwali season takes place in the four weeks following the festival, highlighting the importance of post-Diwali marketing efforts. While brands ramp up campaigns leading into Diwali, they continue to heavily invest after the festival to capitalize on extended sales, remarketing, and consumer engagement. 

With ad spend peaking in the third week post-Diwali, it’s clear that brands are targeting shoppers who are still active after the holiday, taking advantage of post-festival offers and deals. For marketers, this post-Diwali window is crucial for maintaining momentum and driving conversions well beyond the festive week.

Most app categories see a surge after the festival. Entertainment enjoys steady engagement leading up to Diwali, peaking at 12.74%, but drops off post-holiday as users shift focus. Finance and Food & Drink see a sharp rise in ad spend after Diwali, with Finance peaking in the third post-Diwali week at 15.49% and Food & Drink hitting 16.79% by Week 4, indicating increased post-holiday spending and celebrations. 

Shopping dips slightly during Diwali but rebounds strongly afterward as post-festival deals drive engagement. Travel sees the biggest jump, with ad spend skyrocketing to 20.3% in Week 2 post-Diwali, as people book trips after the holiday. In fact, a whopping 72.58% of ad spend is in the post-Diwali period.

Paid media had a mixed year in 2023. The first quarter saw strong growth, with the share of paying users from paid media jumping by 18% compared to 2022. However, things took a dip in Q2, with a 14% decline in Android paid media share, signaling a loss in momentum. Overall, H1 2023 showed a modest 2% growth vs H1 2022, but the decline carried over into 2024, where the paid media share of paying users dropped further, hitting just 2% in May. While paid media started strong, it struggled to maintain its effectiveness.

Looking at category-specific trends, Gaming and Finance apps saw steep declines in paid media performance, especially in 2024. By May, Gaming dropped to just 0.6% share of paying users from paid media and Finance hit 2%, signaling a sharp drop in effectiveness. In contrast, Shopping and Entertainment apps performed much better, with paid media share steadily growing in 2024. Shopping peaked at 4% in June, and Entertainment hit 3%, making them standout categories for paid media campaigns. Food & Drink had a more inconsistent year, with highs in early 2024 but a decline by mid-year. Marketers will need to adjust strategies depending on the vertical to regain momentum in 2024.

We saw a steady flow of paying users during the 2023 holiday season, with a slight increase in the week leading up to and during Diwali. In the lead-up to the festival, SOPU fluctuated slightly, starting at 3.65% on October 15 and dipping to 3.52% the week before Diwali.

However, the week of Diwali itself saw a slight uptick, hitting 3.71% on November 5 and staying steady at 3.61% during the festival. Post-Diwali, the SOPU remained consistent, hovering around 3.5-3.68% through December. Overall, the holiday season brought steady engagement across categories, with users continuing to spend well into December.

Naturally, Finance and Shopping apps saw the most notable spikes during Diwali week. Finance jumped from 0.64% to 1.03%, while Shopping rose to 2.32%, as users took advantage of festival-related purchases and financial transactions. Food & Drink and Gaming apps maintained the highest SOPU throughout the holiday season, consistently hovering around 7.7-8.3%, driven by increased spending on food delivery and in-app purchases. Meanwhile, Entertainment apps saw gradual growth post-Diwali, increasing from 0.32% in mid-October to 0.48% by December.

As expected, online activity shifted to offline festivities post-Diwali as users focused on family time—following a familiar trend from 2022. In 2023, app sessions steadily rose leading up to the festival, peaking at 12.61% during Diwali week, up from 11.80% four weeks prior, driven by increased shopping and event preparations. However, post-Diwali, there was a noticeable drop, with sessions falling to 10.02% in the week after and remaining lower throughout November as users shifted away from digital activities.

This trend was consistent across categories, with users shifting from shopping and entertainment to travel and finance management as the holiday wrapped up. 

Shopping and Finance apps saw their highest engagement in the weeks leading up to Diwali, reflecting increased activity as users prepared for the festival. 

Travel apps saw the most growth after Diwali, with sessions peaking at 13.61% post-festival, suggesting increased bookings for vacations or trips home. 

Meanwhile, Entertainment apps had the opposite dynamic, with sessions surging during Diwali, reaching 16.66%, but quickly declined afterward as users returned to their routines. 
Food & Drink and Gaming apps remained steady throughout the festive season, with consistent engagement both before and after Diwali.

Most Android app categories saw impressive surges in remarketing conversions during the first half of 2023. Food & Drink apps continued to climb, with monthly conversions rising from 3.35% in January 2022 to 16.01% by June 2023, reflecting the ongoing boom in food delivery services. Gaming apps saw a major Q2 surge, jumping to 22.13% in April 2023, thanks to effective promotions, although it dipped slightly by June (14.29%).

Shopping apps also showed steady growth, reaching 11.62% in May, driven by post-Diwali deals. Finance apps maintained steady progress, increasing from 6.93% in January 2022 to 11.1% in June 2023, as users embraced digital transactions. However, Entertainment apps struggled, despite a slight recovery in Q2, with conversions still down, emphasizing the need for stronger remarketing strategies.

As user acquisition slows down after Diwali, personalized remarketing campaigns can be a game-changer for keeping users engaged and driving conversions. Remarketing conversions peaked at 12% in the third week post-Diwali. While the weeks leading up to the festival showed consistent conversion rates around 11%, the real boost came after the holiday, once again highlighting the importance of post-Diwali remarketing. 

This trend held especially true for Shopping and Entertainment apps, which saw a post-Diwali rebound in remarketing conversions. Both categories dipped during Diwali week but surged afterward, peaking at 15% in the third week post-Diwali, showing that users were eager to engage with post-festival deals and content. 

Food & Drink apps, on the other hand, enjoyed steady growth throughout the entire season, with conversions rising consistently after Diwali. Gaming and Finance conversions were stable pre-Diwali, but conversions dropped off post-festival, indicating that remarketing efforts may need a boost after the holiday.

“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.

Brands recognize the importance of first-party customer data for driving business growth — now more than ever. However, individual companies often have access to limited, non-standardized data sets. To maximize monetization, improve products, and enhance customer experiences, it’s crucial to effectively collect, analyze, and collaborate on this treasure trove of data.

Data collaboration between publishers and brands is becoming increasingly complex and risky, as it often requires sharing sensitive first-party customer data. In response to the growing demand for quality data in 2024, and amid diminishing levels of user level data in the privacy era, Data Collaboration Platforms (DCPs) have emerged as a solution. Supported by Data Clean Rooms (DCRs) and Privacy-Enhancing Technologies (PETs), DCPs are becoming one of the preferred methods for businesses to foster audience collaboration and unlock growth opportunities.

But how effective are these new technologies in transforming commerce and retail media? AppsFlyer’s latest report explores what brands and agencies need to incorporate into their retail media strategies and examines the growth they’re already experiencing from using DCPs.

DCPs play a crucial role in first-party data monetization, with 72% of all respondents viewing them as important. This sentiment varies by region, with Brazilian respondents showing the highest enthusiasm—83% rate DCPs as extremely or somewhat important. 

In contrast, United States participants expressed slightly lower enthusiasm, with 68% acknowledging the significance of DCPs. The importance of DCPs is particularly pronounced in certain industries, despite commerce media still being a growing field. 

Notably, 80% of respondents in the Financial Services and Retail sectors consider DCPs important for their first-party data strategy. This underscores the growing recognition of DCPs’ value across different markets and industries, especially in sectors heavily reliant on customer data.

Overall, 77% of participants reported an increase in Return on Ad Spend (ROAS). Regional differences are notable, with Brazil leading the way—88% of Brazilian respondents reported positive changes. The number of platforms used also appears to influence results. 

Respondents using 2-3 platforms reported a slightly higher improvement rate of 81% compared to those using only one platform. These findings suggest that both the adoption of DCPs and the use of multiple platforms can contribute to improved advertising performance.

A solid 74% of participants emphasized the importance of DCPs in their retail media strategies. When taking a closer look at specific industries, the media and entertainment sector sees the highest importance in DCPs.

DCPs have demonstrated quantifiable impacts on commerce and retail media across several key areas. Improved campaign performance leads these outcomes at 33%, while both improved customer retention and increased share of wallet follow closely at 28% each. Regional differences are apparent, with the United States placing a stronger emphasis on improved campaign performance at 35%.

Industry-specific trends are also evident, particularly in the Financial Services sector, where 30% of respondents credit DCPs for achieving higher conversion rates. These findings highlight the diverse benefits of DCPs across different metrics, regions, and industries, underscoring their growing importance in the evolving landscape of commerce and retail media.

In commerce and retail media networks, certain data collaboration use cases have emerged as winners. The most prevalent is marketing to high-Intent audiences, used by 38% of respondents. This is followed closely by targeting lookalike audiences at 34% and remarketing to high-Intent audiences at 33%. Regional preferences vary, with Brazil showing a strong preference for targeting lookalike audiences at 40%. 

Industry-specific trends are also evident, with retail entities focusing heavily on Marketing to high-intent audiences, accounting for 36% of their use cases. Notably, across all industries, marketing to high-intent audiences and targeting lookalike audiences consistently rank as the top two use cases. This uniformity underscores their critical role in driving effective marketing strategies across diverse sectors in the realm of commerce and retail media.

In the current landscape of revenue generation from DCPs within retail media activations, respondents’ insights paint a nuanced picture. Contributing to revenue streams, 37% of participants pinpoint a 5-10% revenue share, while a more substantial 58% acknowledge a higher 10-25% contribution. 

Noteworthy regional disparities emerge, with the United Kingdom leading at 46% reporting a 5-10% revenue slice. Industries, such as Media & Entertainment, showcase robust performance, with 56% recording a substantial 10-25% revenue impact.

In terms of projected growth, a majority of 52% of respondents foresee a substantial revenue increase in the range of 10-25%. Close behind, 42% expect a growth margin between 5-10%. Analyzing regional perceptions, Brazil stands out with a remarkable 71% anticipating a significant 10-25% growth spurt. Meanwhile, the United Kingdom is split with 64% projecting a moderate 5-10% growth trajectory. 

Examining industry-specific outlooks, both the Financial Services and Media & Entertainment sectors exhibit strong positivity, with around 50% envisaging a robust 10-25% revenue upsurge. Notably, agencies share similar growth forecasts, with approximately 43%, expecting promising outcomes in the foreseeable future.

A company’s most important asset is its 1st-party data, and ensuring that the company maximizes it to its fullest potential is critical to business success and growth. With retail and commerce media, marketers can continue to enjoy the fruits of 1st-party data for targeting, measurement, and optimization, while trusting that their data collaboration is safeguarded and privacy-complacent.