Is the Shift to Non-Gaming Apps Dominating Mobile Ad Spending?

January 3, 2025

A fascinating surge in mobile app installs and ad spending has been unveiled in the latest AppsFlyer Performance Index, showcasing an 18% year-over-year increase predominantly driven by non-gaming sectors. This notable growth revelation underscores the swift and significant shift in mobile advertising trends. The report meticulously evaluates the top media sources across five regions and six app categories, conclusively indicating a burgeoning investment in non-gaming applications. Interestingly, 80% of the top five and nearly 60% of the top 20 media sources reported increased investments, revealing transformative changes in the mobile ad landscape.

Shani Rosenfelder, AppsFlyer’s Director of Content Strategy and Market Insights, highlighted that the divide between gaming and non-gaming sectors is becoming more pronounced. While casual gaming still exhibits growth, hypercasual and mid-core gaming are on a decline. This trend points to an imperative for marketers to spotlight non-gaming sectors while cautiously maneuvering investments in gaming categories. The increasing investment in non-gaming apps showcases a paradigm shift, with advertisers seeking new opportunities outside the gaming sphere.

The Ascendancy of Google Ads and Meta in Non-Gaming

In the burgeoning field of non-gaming apps, Google Ads emerged as the unparalleled leader within the Android ecosystem. Excelling in power, organic remarketing, and revenue per user across various segments, Google Ads has firmly established its dominance. On a global scale, Meta, although maintaining its second-place position, encountered a dip in segment share. However, Meta displayed notable growth in regions like India and Eastern Europe, emphasizing its stronghold in diverse markets. Adding to the competitive dynamics, Xiaomi ascended to third place in power rankings, driven by a remarkable 22% increase in retention rates in key markets.

Apple Search Ads (ASA) continues to dominate the iOS non-gaming sector, retaining its top position with noteworthy growth, particularly in North America and Western Europe. ASA’s power and volume rankings have increased, bolstered by higher wallet shares and improved retention scores. Meanwhile, Meta secured the second ranking globally in the non-gaming sector. While it gained traction in the utility segment, Meta faced a decrease in wallet share within non-gaming, presenting multifaceted challenges for the tech giant’s ad strategies. These patterns underscore a dynamic shift where non-gaming apps consistently gain ground, reshaping the ad spend allocation.

Trends in Gaming App Advertising

The latest AppsFlyer Performance Index reveals a significant surge in mobile app installs and ad spending, demonstrating an 18% year-over-year increase primarily driven by non-gaming sectors. This growth highlights the dynamic changes in mobile advertising trends. The report thoroughly assesses the leading media sources across five regions and six app categories, clearly showing a rise in investments in non-gaming apps. Notably, 80% of the top five and nearly 60% of the top 20 media sources reported higher investments, which indicates substantial shifts in the mobile ad landscape.

Shani Rosenfelder, AppsFlyer’s Director of Content Strategy and Market Insights, emphasized that the gap between gaming and non-gaming sectors is widening. While casual gaming continues to grow, hypercasual and mid-core gaming are declining. This trend suggests that marketers need to focus more on non-gaming sectors while carefully managing investments in gaming categories. The rising investment in non-gaming apps signifies a major shift, with advertisers exploring new opportunities outside the gaming market.

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