Member-only story
2024 was a landmark year for non-gaming app publishers, and the trend is set to continue into 2025. As in-app advertising (IAA) becomes a crucial revenue stream, it’s time for app publishers to take note of the key trends shaping the market. This post will highlight key findings from Liftoff’s recent report on non-gaming ad monetization.
Why the Shift to Ad Monetization?
Many apps rely on subscriptions, but retention rates for subscriptions fell 14% in 2023. This decline, coupled with a competitive market, emphasizes the need for diverse revenue streams. In-app advertising is an effective solution, allowing publishers to monetize their entire user base, not just those who pay for subscriptions. As a result, ad revenue from app publishers has increased by 116% between September 2023 and October 2024.
Key Trends Powering Ad Revenue Growth
Liftoff’s report highlights seven key trends driving ad revenue growth for non-gaming publishers:
- Double-Digit Ad Revenue Growth: App publishers are seeing substantial ad revenue growth, with non-gaming apps projected to outpace mobile game revenue share by 2026.
- Skyrocketing Revenue in Entertainment, Utilities, and Music: These categories have seen…
