AppsFlyer report: hybrid monetisation reshapes app revenue

AppsFlyer has released its 2024 State of App Monetisation report, highlighting significant changes in app revenue strategies across various sectors.

The report indicates a major shift towards hybrid monetisation models in the app industry. In 2025, continued collaboration between marketing and monetisation teams will become crucial to app strategies. Aligning these teams is essential for maximising Return on Ad Spend (ROAS) and Lifetime Value (LTV) as businesses seek to optimise revenue and retention strategies.

Shani Rosenfelder, Director of Content Strategy and Market Insights at AppsFlyer, said, "As user acquisition costs continue to rise and privacy regulations tighten, app businesses are turning to hybrid monetisation which has moved beyond being a trend to become a vital part of the app revenue landscape in 2025."

"Our findings reveal that hybrid models produce breakthrough results across platforms when optimised for the app type and audience. For continued success, marketing and monetisation teams should utilise ROAS and ARPU to fine-tune their strategies and ensure that their campaigns are aligned both before and after the installation for the best results."

Key findings on gaming apps show that hybrid models deliver superior returns compared to singular revenue models. Android Mid-Core games using a combination of in-app advertising (IAA) and in-app purchases (IAP) achieved a 146% ROAS by Day 90, compared to 93% for IAP-only models and 58% for IAA-only models. Additionally, Hypercasual games saw a 28% increase in Day 90 ARPU with hybrid models compared to IAA-only models, which points to the effectiveness of diversification.

The report also highlights that daily active users do not always correspond to increased paying user activity. Examples include Android Casual games, where DAU spikes on weekends without corresponding rises in paying user activity, underscoring the need for distinct engagement and monetisation strategies.

Paid campaigns dominate revenue generation in Casual and Hypercasual games, with 73% of revenue sourced from paid user acquisition channels. Mid-core games rely more on organic traffic, bolstered by brand recognition and user loyalty.

Regarding platform-specific dynamics, Android Mid-Core games see higher ROAS with hybrid models (146%). In comparison, iOS Mid-Core games achieve a 215% ROAS with IAP models as opposed to 73% with hybrid models, highlighting the importance of platform-specific strategies.

For non-gaming apps, the report reveals that subscription models are driving iOS revenue dominance. Subscription apps on iOS demonstrate a fivefold higher average revenue per user (ARPU) than Android by Day 90, driven by well-known brands and higher spending power among users. Organic users represent 65% of revenue in subscription apps, indicating that brand recognition is integral to sustainable growth.

Ad-supported models are proving effective for quick revenue generation. Non-gaming apps use IAA to achieve a 95% ROAS on Android by Day 90, compared to 80% on iOS, although iOS still leads in ARPU at Day 90. Most IAA app revenue is generated in the first 30 days, positioning ads as a compelling short-term strategy.

There is also a notable trend of non-gaming apps adopting hybrid monetisation strategies. Inspired by the gaming industry's success, these hybrids enable faster revenue capture through ads while offering higher ARPU via subscriptions.

Free trials continue to show long-term potential for increasing ROAS. Users who convert from trials generate 50% of Day 90 revenue, sustained by renewals on Day 30 and Day 60.