Performance Marketing
What were the biggest trends across mobile gaming and user acquisition (UA) in 2024? Daniel Tchernahovsky, Global VP of Business Development at AppLovin, sat down with Deconstructor of Fun’s Michail Katkoff to unpack that question and share his insights on how the world’s top mobile apps – both gaming and consumer – are finding the competitive edge that is redefining their success in 2025.
Here are a few of the key takeaways from their conversation.
Despite the perception of a slowdown, the mobile gaming industry continues to grow, fueled by new entrants and innovations that are attracting a surge of new players. The market and advertising tech have reached a point where both established studios and startups can find success if they build a great app.
What’s interesting is the amount of newcomers in the industry—looking at the top 20 accounts versus a year ago, there’s much more change than there used to be—which indicates that new creative ideas can still yield success. The reality is if you build an awesome product, you’re going to have a lot of success. That is now truer than ever, I think.
Daniel Tchernahovsky
The lines between what defines IAP-heavy and hyper-casual games are blurring and these genres are now merging to become hybrid games. Combining IAP-driven, immersive experiences with the simplicity and accessibility of casual titles is broadening the appeal to wider audiences. Hybridization doesn’t just apply to game mechanics; there is also a growing trend of games leveraging hybrid monetization to deepen engagement and increase overall revenue per player.
On one hand, you see a ‘casualization’ of the IAP world. On the other hand, you see all of these hyper-casual businesses trying to create more IAP loops. Hybrid, as a notion, is pretty big and can come from both ways, right? You see games like Candy Crush integrating reward ads to monetize non-payers and games like Screw Jam, which is very much a casual game becoming majority IAP driven.
Daniel Tchernahovsky
Consumer apps have grown significantly in recent years, especially in areas like health, wellness, and productivity. These apps are breaking away from the industry’s reliance on social media for growth, leveraging advertising tactics from the mobile gaming playbook, and streamlining conversion pathways. This is helping apps connect with diverse audiences and improve user retention.
You have channels […like AppDiscovery] that have improved a lot on the algorithm side and are now a very viable way of growing app businesses. You also have new approaches such as app-to-web-to-app, the advantage of which is that those publishers don’t have to pay app store fees, […lowering acquisition costs].
Daniel Tchernahovsky
Developers are redefining how players engage with games by introducing simpler, more accessible mechanics that gradually evolve into more complex and engaging loops. This engagement can begin before the user even downloads the game: For instance, playable ads are being used to create onboarding experiences or mini-games, hooking players early on. Mechanics like tile matching and town-building are gaining traction, offering fresh takes that captivate players.
Games are becoming more casual in nature. ‘Last War’ is a great example of that. The game effectively started using the creative that was running well and they built a game around it. [Many of these successful games] create easier loops that then, as a user is engaged, become more addictive.
Daniel Tchernahovsky
AI and automation have fundamentally changed user acquisition (UA) and monetization in the gaming industry. In the past, companies with advanced UA capabilities could gain an edge, even with games that had lower lifetime values (LTVs). Today, algorithms handle much of the heavy lifting such as targeting, bidding, and optimizing campaign performance. As advanced algorithms increasingly replace manual growth hacking, developers and marketers can focus on building great products, engaging creatives, and deeper user segmentation.
As smart as any of us might be, an algorithm processing a gazillion data points today will undoubtedly be better suited to assess what the CPI for every single user should be. From that perspective, developers can focus on choices such as: ‘What’s my creative strategy?’ ‘How good is our data and BI world?’ and ‘How capable are we at predicting long-term growth rates?’
Daniel Tchernahovsky
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Mobile gaming is becoming more democratized and innovative, creating new opportunities for growth. From hybridization to user-centric design, apps are redefining what engagement and retention look like. We’re excited to see how these trends shape what’s next for the app industry. To hear the full conversation between Daniel and Mikhail, click here.
