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Those increased processing abilities are also enabling more advanced mobile games, indicating an open door for highly-advanced phone apps and offerings. Our take: SlimLM could be the start of a new chapter for AI, where models aren鈥檛 reliant on remote data centers or strong internet connections.

The smartphone remains Gen Z鈥檚 favorite device, as it鈥檚 the quickest way to access digital video and social media. But adoption of CTV and VR continues to rise.

Mobile game publishers will reap the benefits. King Mobile is amid a strong stretch of ad revenue growth, and Take-Two Mobile (including Zynga) is set for a rebound in 2024 after a difficult 2023. We do not yet have an official projection for mobile gaming giant Unity, but Unity鈥檚 direct ad revenues and ad partner revenues reportedly saw massive growth in 2023, and we expect another boom in 2024.

Companies specializing in mobile gaming could observe a reduction in user engagement and in-app purchases.

鈥淢obile game advertising has grown at a pretty nice clip, and it鈥檚 going to continue,鈥� said Wurmser. Another factor that has helped is the wider array of games now available on mobile. More complex casual games with a variety of monetization strategies and rich media ad formats are available, as developers rely less on hypercasual games. This was originally featured in the 蘑菇AV Daily newsletter.

Mobile games remain underutilized. Mobile game advertising will account for only 3.9% of mobile ad spending in 2024, far less than the 10.9% of mobile time spent on gaming. Brand advertisers remain cautious, which is keeping the digital ad growth rate steady. Consumers are lingering longer in their favorite apps. Nine of 10 (91.4%) mobile minutes are spent in apps.

Nintendo鈥檚 Switch 2 faces fierce competition as Sony, Microsoft, and PC challengers vie for dominance in a $27.97 billion market fueled by young players.

Virtual goods sales, such as in-game currency, special characters, or premium features, are the dominant form of monetization for mobile games. Not only do they make up 96.0% of gaming IAPs, but the $22.18 billion they鈥檒l generate in 2023 will account for 52.3% of all IAPs. Those virtual goods sales in gaming are also over three times the volume of US mobile gaming ad revenues in 2023.

While they benefit mobile games, they dramatically improve gamers鈥� experiences in larger virtual world games. These types of games are also where monetization could grow significantly, thanks to microtransaction opportunities like in-game commerce and virtual events. 5G will improve mobile gaming. After a slower-than-expected rollout, 5G is finally seeing large-scale implementation.

Messaging restrictions and content labels aim to tackle predator risks while building a family-friendly platform for brands

Sixty-three percent of US adult Gen Z gamers play games on their console or PC at least once per week, while 71% play mobile games that often, according to the Kagan survey. Teen Gen Zers (ages 13 to 17), however, are more likely to game on a console than a mobile device or PC, per an April 2023 survey from Giraffe Insights and Precise TV.

Mobile games dominate in total users, but less so in time spent. In the US, there are nearly two smartphone game players for every PC, tablet, or console player. The difference in time spent is much narrower, though. We estimate that the average US adult plays mobile games 24.4 minutes per day, or 40.2% of their total time spent on video games. Mobile games rely less on advertising than in the past.

Optimize: Feature play ads in places users are already using their hands, such as within mobile games or on social media platforms like Facebook or Instagram, and not music and podcast platforms. This was originally featured in the 蘑菇AV Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.

US mobile gaming ad revenues will reach $6.67 billion this year, growing 12.0% over last year. Mobile games still rely on advertising for revenues, but in-app purchases will generate much more money and, by our estimates, exceed $20 billion in the US this year. Hypercasual games like Candy Crush are particularly effective at driving ad revenues. Use this chart:. Evaluate mobile ad spend strategy.