What defines a game’s success post-launch today? Sure, the product still reigns, but as Daniel Tchernahovsky, VP, of Global BD at AppLovin, sees it, today’s game success hinges on two strategic questions. First: what’s your creative edge—what’s going to make your game stand out in an endless market of competitors? Second: how robust is your BI system in supporting long-term growth confidently? As development cycles get longer and break-even points extend, the question isn’t just about how fast you can scale but rather how reliably you can predict when that investment will pay off.

In a recent episode of the Deconstructor of Fun podcast, Daniel and Mishka share a wealth of fresh insights and tactical strategies for sustainable growth, diving into the key trends shaping gaming and apps in 2024. Here’s a snapshot of the notable shifts in the industry right now.

Seven Trends Redefining 2024

1. Market Growth Defies Stagnation

While some predict a slowdown in mobile gaming, the numbers tell a different story. Contrary to these expectations, mobile gaming is still expanding, driven by a mix of fresh ideas and a steady influx of new players. Daniel highlights that while established giants maintain strongholds, the industry remains dynamic enough to welcome new players and approaches, making now a particularly exciting time for both startups and established players looking to innovate.

2. The Hybridization of Games: Blending Casual, Complex, and Monetization Strategies

The days of clear divisions between high-quality, IP-driven titles and hyper-casual games are fading. Instead, we see hybrid games merging the depth of IP-heavy products with the accessibility of casual titles. AppLovin is seeing high-IP games use ad-based monetization from the hyper-casual world, while casual titles layer in complex mechanics.

3. Expanding Casual Appeal for High-IP Games

High-IP games are no longer laser-focused on specific demographics. Developers are increasingly redesigning traditional genres—like 4X strategy—to be approachable to a wider audience, sometimes even incorporating casual elements. For example, Last War initially catered to a core audience but, thanks to inclusive ad campaigns, gradually broadened its appeal. This flexibility highlights how a strong creative approach can directly influence product design to capture new demographics.

4. Revamping Mechanics to Match User Expectations

Mechanics like tile placement have surged in popularity as they blend accessibility with high engagement. Titles like Match 3D provide a simple yet addictive experience that continues to draw users back. With increasing competition, the challenge for developers is to layer in fresh twists to classic mechanics, keeping games engaging without overwhelming new users.

5. AI and Automation Reshape UA and Monetization

AI and automation are now changing how games are marketed, putting product quality at the center of user acquisition. As Daniel notes, today’s AI tools level the playing field by optimizing ad spend, targeting, and bidding automatically. This evolution underscores a new reality: sustained growth relies not just on marketing strategy but on the quality and engagement level of the game itself.

6. Apps and Games: Not Competing—Growing Together

Despite concerns, app growth in sectors like health, wellness, and productivity complements gaming rather than competing with it. Daniel points out that many apps are adopting game-like features, from retention mechanics to targeted ad strategies, to capture diverse user interests. The synergy means that as apps expand in scope, they bolster the gaming ecosystem, each contributing to the other’s growth.

7. A New Frontier for Subscription-Based Apps

Subscription-based apps, particularly in areas like AI chat, represent the latest wave of hyper-casual-like products in the app space. These apps have low development costs, quick payback periods, and rely on subscriptions for consistent returns. The gamification of the app world is now driving aggressive app marketing strategies. This trend underscores how apps and games increasingly share DNA, each borrowing effective strategies to enhance user engagement and profitability.

Why Hybrid Monetization Is the Name of the Game

Out of all the trends, hybrid monetization is the one that’s fundamentally shifting the gaming business model. As the hyper-casual market matured, margins got tight. What was once a high-margin genre quickly became one of the most competitive spaces. To stay profitable, studios had to move from simple mechanics to deeper gameplay, driving engagement and retention.

This shift came from years of trial, and error, and a growing body of data on what drives long-term player value. Hybrid monetization—combining ads with in-app purchases—became the model to beat. And it’s not just small studios. Even giants like Supercell, King, and Zynga have embraced ads as a value exchange, giving players options to engage without spending. Advances in UA and targeting tech have allowed for more strategic growth, as studios now segment players by behavior to deliver tailored experiences for both ad viewers and spenders.

AppLovin’s AppDiscovery is a prime example, enabling developers to run targeted campaigns that optimize IAP and IAA, treating each revenue stream as a complementary, but distinct path. LiveOps platforms add another layer, letting studios make real-time adjustments based on data, and ensuring alignment between revenue goals and player expectations.

Or as Daniel puts it:

“You’ve got games where players both spend money and watch ads—think classic idle games. But hybrid games split into two routes: one for in-app ads (IAA), one for in-app purchases (IAP). IAP campaigns run with $50 CPI, while IAA might be closer to $1, and each path caters to different user behaviors. It’s almost like running two games within a single title.”

In a nutshell, hybrid monetization is not just a trend – it’s a response to the evolving gaming ecosystem, allowing studios to adapt and thrive in a competitive market by leveraging both ad revenue and in-app purchases.

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The gaming and app industries are evolving rapidly, with hybrid monetization, AI-driven marketing, and cross-genre blending driving sustainable growth strategies. In this landscape, success requires a deeper understanding of player behavior and a willingness to adapt. As studios find new ways to balance monetization with engagement, the future of gaming will be defined by flexibility, innovative design, and a robust, data-backed approach to both development and UA. For developers, the message is clear: leverage these tools and trends to create experiences that captivate players and maximize value at every stage.