The coronavirus pandemic and changes set to be implemented in the forthcoming iOS 14 are the latest shocks to an evolving app economy. This report will look at how these changes have altered developer monetization strategies and advertiser options.

With gaming shifting to mobile, developers increasingly turn to ads, while marketers realize that games can reach a wide array of people.

As more verticals compete for mobile time, app install advertising is more competitive than ever. In order to acquire engaged users, developers need a combination of paid and organic strategies.

As more games hit the market, it becomes harder for publishers to get noticed, which has made proactive user acquisition strategies more important. That’s true of casual games, which have found a huge following on mobile, and more complex games that have found ways to integrate advertising that doesn’t detract from gameplay.

The pandemic has caused reduced advertiser spending overall, leading to lower growth of in-app ad spending despite significantly higher numbers of ad placements. While in-app purchases (IAPs) never stopped growing amid the pandemic, publisher revenues have recently been shifting from in-app advertising to purchases.

According to a March 2019 survey from mobile ad and app monetization company Tapjoy, 69% of US consumers said they would rather give up social media apps or TV than lose their favorite mobile games.

The dreaded load-time delays should be reduced for heavier advertising formats like these, making them more practical and effective. “I would argue that 5G won't do a damn thing for reach and frequency because we have those already, but it may move AR and VR,” Mobile Posse’s Wester said. Playable ads, for instance, have already become more prevalent, but they will become even more so in a 5G world.

Like other social properties, TikTok also intends to offer advertisers a third-party ad network. The TikTok Audience Network was launched in July 2019 in Japan and will eventually be available in other countries. In Japan, the network offers three ad formats: rewarded video ads, interstitial video ads and playable ads, which can be bought on a CPC, CPM or oCPC basis, according to TikTok.

Gaming publishers have pursued aggressive monetization through engagement driven ad-units, keeping players in the game and driving strong performance for advertisers. As a result, engaging units such as rewarded video and playables have become essential to both the in-game player experience and monetization.