Hybrid monetization. That’s the buzzword on everyone’s lips. But are these models truly delivering at the industry level? The answer is yes. But it’s not one-size-fits-all. Performance where it matters most — generating revenues and driving returns — varies across verticals, apps, and context.

Therefore, we’ve designed the data in this report in a way that would enable us to explore all these performance gaps, giving marketing teams and monetization managers a clear picture of where they stand in the industry.

In this first-of-its-kind report, we tackle the core questions: Is your current model fully optimized for growth, or is there room for improvement? How can marketing and monetization align smoothly, both before and after install?

This last question is crucial. UA strategies, quite naturally, aim to amplify successful channels. However, monetization managers caution that diversifying channels can occasionally lead to dispersion. It may result in undermining your impact and financial losses. This dispersal phenomenon is known as cannibalization.

In today’s landscape, “cannibalization vs. hybridization” is emerging as the new “risk vs. reward” paradigm. Looking at metrics like ARPU (Average revenue per user), ROAS (Return on ad spend) and DAU (Daily active user), this report offers an inside look at monetization strategies across gaming and non-gaming apps, and across four widespread models: in-app purchases (IAP), in-app ads (IAA), hybrid and subscriptions. Each model comes with its unique advantages and trade-offs, but one truth is clear: Knowing the industry’s standards can make all the difference.

Average Revenue Per User (ARPU) at Day 90 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, 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) 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 impossible—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 60. iOS, in particular, shines with hybrid models, breaking even by Day 1 compared with Day 30 for Android.

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. The impact of free trials on iOS subscriptions is substantial, but they come with a twist—while they reliably boost early user engagement, they often result in a period with no visible revenue.

This delay makes early trend lines harder to interpret, as many subscriptions convert after the initial trial and are billed monthly or yearly. Although early revenue patterns may look uneven, these free trials set the foundation for a more stable, long-term income stream once conversions begin.

Successful non-gaming app monetization can hinge on choosing between in-app subscriptions or ads. 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.

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.

Revenue models don’t perform the same across all markets—apps need tailored monetization strategies that adapt to each region’s unique dynamics. Emerging and high income markets show distinct trends, especially in Return on Ad Spend (ROAS) and the balance between paid and organic revenue.

In emerging markets, hybrid models tend to accelerate profitability faster, making them a smart choice for faster returns. Platform preferences also play a role: Hypercasual games using in-app ads often see more revenue from paid users in these regions, while iOS typically maintains a closer balance between paid and organic revenue.

For apps leaning on in-app subscriptions, emerging markets reveal an interesting split, almost 50/50 on Android between paid and organic revenue. But on iOS, paid revenue pulls ahead—a contrast to what’s happening in developed markets.