Game App Marketers Invest $27B in Ads Despite Economic Slump

The latest State of Gaming App Marketing report by AppsFlyer claimed that game developers and marketers spent nearly $27 billion on advertising in 2022.

The report revealed that Android game installations surged 8% in 2022 while iOS dropped 5%. Marketers and developers poured an eye-popping $27 billion into ad spending during this period, demonstrating their confidence in the industry's continued success despite challenging times.

In 2022, as people started living before the Covid epidemic, interest in gaming started to wane. Despite this decline in in-game app installs on iOS compared to 2021, Android saw growth, rising 8% year over year. It is good to see that mobile gaming is still a well-liked source of entertainment worldwide, despite the downturns in many industries brought on by Covid and other international events.

As more people turn towards mobile gaming for entertainment during economic downturns, developers must focus on creating engaging experiences to capture user attention and make their apps stand out amongst competitors. With its strong performance throughout 2020 and into 2021, this industry may continue its upward trajectory even amid tough times ahead.

The US continues to be the most important market for gaming app marketers, with an outstanding 19% increase in Android installs predicted for 2022. It contrasts sharply with iOS app installs, which saw a 1% minor decline. It was demonstrated last year that its popularity is still growing.

Consumers are still interested in making in-app purchases despite the difficult economic environment. Despite some decreases in user engagement overall, the Role Playing & Casino genres saw especially sharp drops of 14% between H2 2022 and H1. It exacerbated a noticeable 7% decrease across platforms - Android was down 4%, while iOS dropped 9%.

It is likely due to the economic downturn changing consumer behavior toward these higher IAP activities. Though in-app advertising revenue fell among most genres at year's end, it still proved an important source for hypercasual, match, and simulation game developers during this period.

Mobile advertising campaigns are also becoming more important as part of the increasing trend in gaming activity. App marketers should consider investing in paid ads such as videos to reach consumers. App promotion and advertising can help drive more downloads overall, with a particular focus on high-value users.

Many businesses have moved their attention to cost-effective owned media channels like push notifications or cross-promotional campaigns to offset the decline in investment while still meeting marketing objectives in the face of higher CPI from iOS of $3.75 per install! The good news is that mobile gaming is still a popular area for investment despite these challenges!

The gaming industry continues to face an uphill battle as iOS privacy restrictions limit marketers' abilities that previously relied on user-level data. Despite these challenges, app developers remain committed to capturing quality players through iOS despite higher media costs and difficulty with measurement - creating a greater need for improved technological tools or 'data clean rooms' in 2023 and beyond.

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