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Game developers, martech platforms, and agencies are increasingly trying to convince advertisers that consumers playing mobile games are worth reaching.

The news: Ad quality has a big impact on whether gamers will stay in the game or walk away from a session. Over half (52%) of gamers in the US, the UK, Germany, and Japan would quit playing if they encountered multiple disruptive ad features, per Deloitte鈥檚 Quality Drives Value: A Look into Mobile Gaming Ads survey. Our take: Prioritizing features like rewards and skip options can help players feel in control and properly compensated for their time, helping mobile gamers to stay engaged, click through, and return. Poorly timed or deceptive ads, on the other hand, risk alienating gamers and increasing churn.

Digital gaming has become one of the most popular activities in the world, thanks mainly to the proliferation of smartphones and free mobile games. Here is our worldwide forecast for total gamers, with breakouts by region and for 13 countries.

Scopely鈥檚 $3.5 billion acquisition of Niantic鈥檚 games division strengthens its position in mobile gaming. Pok茅mon Go鈥檚 live-service model opens new revenue streams through in-game advertising, branded integrations, and sponsorships.

Mobile-first gaming leads the charge into 2025: Smartphones and portable consoles are reshaping gaming as enhanced hardware makes premium mobile games a competitive force.

The move could improve mobile gaming appeal but risks confusing users with fragmented offerings.

Advertising in games boost brand recall significantly鈥攁 PepsiCo study found that advertising in mobile games boosts recall to 21.9% compared with the average 5.5%, while Overwolf Ads found that PC gamers show 50% higher brand recall for integrated gaming ads.

Up until that point, the company owned over 200 free-to-play mobile games that served as valuable data sources for AppLovin鈥檚 ad tech ecosystem. (We forecast US mobile game ad revenues will reach $7.96 billion by the end of this year.) By analyzing in-game behavior, the company offers advertisers precise user segmentation and targeting鈥攕omething that consumers increasingly see as less obtrusive.

That could alter how studios design games, shifting toward shorter, modular, pick-up-and-play formats optimized for mobile gaming hardware. The Xbox鈥檚 key advantages are deep integration with Windows 11, which enables its  handheld consoles to work as personal computers, and Microsoft鈥檚 cloud gaming ecosystem.

The news: Gamers prefer mobile gaming, prioritize cross-platform gaming, and have mixed attitudes toward in-game ads. 73% of US and UK gamers primarily play video games on smartphones or tablets, per Attest鈥檚 2025 Gaming Consumer Insights report. Half (51%) said cross-platform play is important. 32% actively ignore in-game ads, 31% find them intrusive, and 32% think they鈥檙e helpful.

The momentum follows Microsoft鈥檚 Activision Blizzard acquisition, which has started to pay dividends in recurring gamer engagement and mobile gaming revenue. While the growth isn鈥檛 flashy, it鈥檚 a welcome change from prior quarters where the gaming business plateaued. Gaming also is getting its own Copilot, described as a personalized assistant providing in-game support and coaching.

Microsoft is taking advantage of Google鈥檚 antitrust ruling, enhancing its own mobile gaming strategy while increasing options for consumers.

Additionally, seeing as how casual/mobile games are the least impacted by ads, marketers can adjust their expectations or strategies for that channel. Related 蘑菇AV reports:. Worldwide Digital Gamers Forecast 2025 (蘑菇AV subscription required). US Teen Digital Habits 2025 (蘑菇AV subscription required).

Mobile game marketing platform Admazing shared key insights on how it helped PepsiCo brands transform their advertising. A PepsiCo study found that advertising within mobile games boosted ad awareness/recall to 21.9%, compared to the average 5.5%. PC games also hold notable potential.

Gen Z and millennials are particularly likely to discover brands through mobile game advertising compared with older generations, and 45% of consumers from these demographics are interested in buying products while gaming.