Estimating mobile game marketing costs involves a thorough review of many factors. Because revenue comes in via app installs and in-game activity, successful mobile game marketing plans should include CPI, CPM, and revenues from in-game purchases and in-game advertising.
To help you understand more about mobile game marketing, this research guide outlines the many factors that can influence gaming cost. It details research and data on aspects such as average CPI, market trends, and potential marketing channels. With a better sense of the average mobile game development cost, you’ll be better able to drive high ROI from mobile games and lower your mobile game advertising cost.
Mobile gamers spent $107B on app store games in 2023 and global revenues are eclipsing that of traditional gaming formats. By reading this guide, you’ll stay up to date on the latest research, statistics, and data, and understand more about how much mobile gaming app marketing costs.
Key statistics
- Mobile gaming saw 88 billion global downloads in 2023.
- Over 50% of total global gaming revenue comes from mobile games.
- In-game advertising revenues reached $9.5 billion in 2023.
- Android game installs grew by 12-15%, iOS by 8-10% in 2023.
- 60-70% of all mobile app earnings come from in-app purchases.
- iOS users generated 60-65% of in-app purchase revenue in 2023.
- The global mobile gaming market is expected to grow to $315-$350 billion by 2029.
- 65-75% of mobile gamers accept ads.
- Top ad spend genre: Casual games (35-40% of total).
- Development costs: $20,000 to $500,000+; AAA games cost $500k to $5 million.
- Average CPI: $2.5 – $3.5 (iOS), $1.5 – $2.5 (Android).
- Strategy games have the highest CPM: $20 – $30+.
Mobile game marketing definition
Mobile game marketing is an app user acquisition technique. It targets high rates of mobile game app installs and drives revenue from in-game activity. It’s a specific marketing strategy to help increase gaming app market share via game app installs, in-game purchases, and in-game advertising.
Mobile gaming first emerged as an engagement technique with Nokia’s ‘Snake’ in the 1990s. Then–with the arrival of smartphones–games like Angry Birds expanded the market potential. Today, mobile gaming is the biggest app vertical with 88B global downloads last year for titles such as Candy Crush Saga, Honor of Kings, and Royal Match.
Mobile games have also become an important consideration when planning how to market your video game. Since they now offer a comparable user experience to traditional video game formats, mobile gaming revenue has surpassed that of PC and console and now makes up over 50% of total global gaming revenue.
The growth of mobile gaming is also reflected in increasing levels of investment. Studies suggest total global spending on mobile gaming advertising will grow from around $34B in 2021 to $50B by 2025.
Mobile gaming advertising spending worldwide from 2021 to 2025, $B
Source: Statista
Mobile game marketing channels
Mobile game marketing includes traditional UA channels such as Paid (think ad networks, Apple Store Search Ads, Google Ads) and Organic advertising (think App Store Optimization). But it also includes organic techniques like affiliate partnerships with gaming influencers and building communities.
Featured Mobile Game Marketing Agencies
Marketers should focus on CPI and CPM metrics when planning how to calculate a mobile game development cost. But there are other ways to generate strong ROI from mobile game marketing too like In-App Advertising (IAA) and In-App Purchases (IAP) aka in-game advertising and in-game purchases. Both approaches are vital app monetization strategies when it comes to planning a gaming cost. And they often result in huge additional revenues, like Genshin Impact which generated close to $4B in 2022.
IAA reflects the level of revenue generated from in-game advertising space. Also, IAPs can facilitate extra revenue from activities that enhance playability and engagement like in-app paywalls and offerwall ads.
In-game advertising revenue 2023 – 2027, $B
Source: Statista
According to recent research by Statista, in-game advertising revenues may reach $110B in 2024. Plus, forecasts suggest how total in-game advertising revenue will show an annual CAGR of 9.9% between 2023-2027 and reach a market value of $145.5B by 2027.
Mobile game marketing in the app stores
In 2020, the year of the global pandemic, both iOS and Android platforms saw a significant jump in app installs. Thanks to a greater popularity, especially in Asia and South America, Android saw 60% increase in mobile game installs versus iOS only 20%. In 2021, after the previous year spike, the growth slowed down to almost a halt for iOS – 2% and went into negative for Android – 10%.
According to the ‘State of Gaming 2023’ report by AppsFlyer, in 2022 Android recovered from the decline and went up 19%, while it was iOS’s turn to go negative with -1%. Financially this growth percentage manifested itself with game app makers spent a total of $27 billion on gaming app advertising. In terms of the impact that had on installs, Android game app installs experienced a growth rate of 7.9% whereas iOS installs dropped to -5%. And this lowered growth rate for Apple is a reflection of consumers’ attitudes towards the introduction of Apple’s privacy arrangements.
Year-on-year # change in overall gaming app installs 2020 to 2023
Source: AppsFlyer
Benefits of investing in mobile games
Today, mobile gaming has established itself as the biggest segment of the app industry, fueled by an increasing levels of global investment, it is now a lucrative market. With a broad choice of gaming genres on offer, game app marketers have an opportunity to appeal to a wide and diverse target audience.
To outline this further, here’s a handful of benefits worth considering.
Featured Mobile Game Marketing Agencies
Competitive market
A recent study by ReportLinker, via GlobeNewswire, suggests the market size of mobile gaming will grow from a current value of $141.7B in 2023 to a staggering $300.5B by 2028.
The report also revealed that the mobile game market in North America is especially competitive. New and established developers are grappling to take the largest market share on growth. And longstanding companies like EA, Nintendo, and Activision Blizzard – especially after its 2023 acquisition by Microsoft for $68.7B – are seizing hold of increasing accessibility and sophistication in mobile design to release more engaging games. Plus, continual improvements to mobile hardware, especially graphics and connectivity, are all stimulating a competitive market for driving high ROI and market share.
High revenues from in-app activity (IAPs and IAAs)
In the same report by ReportLinker, in-game purchases offered major revenue-generating opportunities. More convenient payment methods allow for more efficient gameplay monetization. And, by featuring in-game opportunities for players to gain points, power, or other privileges, it’s an effective engagement strategy.
Business of Apps previously reported that in-app purchases account for almost half of all mobile app earnings. But estimates also suggest 79% of game apps are using IAPs to generate revenue.
2020 and 2021 data from Statista also shows how Casino app users spent the most on In-App Purchases out of all gaming categories and came in at an average of $12.28 per in-app transaction. Plus, according to a report by IronSource over 70% of mobile gamers are happy to see ads show up in gameplay.
Average spend per in-app mobile game transaction worldwide in 2020 and 2021, by genre, $
Source: Statista
Reach a wider audience
Today mobile game players represent almost all age groups, in fact nearly one-third of mobile gamers are over the age of 45, 32% of mobile gamers are millennials. Key mobile app gaming genres include:
- Casino
- Simulation
- Role Playing Games (RPG)
- Puzzle
- Hypercasual
- Match
In the AppsFlyer report ‘State of Gaming 2023’, the top gaming genre for ad spending was Match games, accounting for almost 20% of total gaming spend.
Share of gaming app install ad spend in 2022 by genre, %
Source: AppsFlyer
Enhance brand presence
Established brands like EA or Rockstar Games can use the growing gaming app market to release new titles and reach new audiences. For instance, Konami worked with mobile game agency Famesters to attract new users from Tier 1 regions such as Germany, France, and the UK. But they also did this to increase Konami’s global brand awareness. Using influencer marketing channels like Twitch and YouTube, Famesters helped Konami generate over 30% of traffic to their new game landing page.
Lesser-known brands seeking greater exposure can also capitalize on the 88B download rate by releasing new games using gamification strategies. Mobile game marketing can also support app remarketing in the form of advertising new games via IAA.
How much does mobile gaming app marketing cost?
In this section, we’ll take an in-depth look at both the average mobile game development cost and the average mobile game advertising cost. Bear in mind that costs can vary depending on different factors. These include app monetization strategies, regions, and platforms.
To outline some general figures, what we can say is that studies suggest the average cost of building a gaming app ranges from $5,000 to $300,000.
Games with more advanced features are likely to incur higher costs. One of the most expensive games available today is Honor of Kings from Tencent, which totaled $100M in game app development cost over a decade. With the expansion in popularity and advances in technology, some commentators suggest the bigger revenue-generating AAA games may now cost around $1B to develop. And while such valuations are likely to include development across all gaming formats–such as PC, console, and gaming app–it does reflect the potential revenues from AAA mobile gaming apps too.
Whichever scale or size a developer is aiming at, getting a grip on mobile game marketing costs starts with a review of CPI rates (Cost-Per-Install) and the categories and variances they’re influenced by. So let’s take a look at them now.
Cost-Per-Install (CPI)
Mobile game advertisers can drive app installs through CPI campaigns. But investing in CPI campaigns often means paying a UA agency a fixed or flexible rate per install. CPI campaigns aim to drive high ROI, with the following calculation:
Studies show that download rates for paid-for, premium apps have declined. And with them, so have CPI rates. What’s become more popular is where users download a free app and developers drive revenues from advertising and in-app purchases. Taking the form of hyper-casual games, this is proving to drive high ROI for IAA.
CPI for casual and hyper casual gaming genre
Download rates and CPI rates vary when it comes to specific mobile gaming genres like RPG and Match. But recent years have seen increased popularity for casual or hyper casual games – two mobile game genres that today fit the best people’s busy lifestyle. And, as the market becomes more competitive, hyper casual games are likely to evolve and create deeper long-term engagement.
By collecting data from 390 billion impressions, 16.7 billion clicks, and 100 million installs, Statista showed the average global CPI for casual gaming apps as 0.98 USD. In 2020-2021 time frame, introduction of the ATT framework by Apple resulted in a significant spike in the cost per install for casual games – $1.96 / install. The same year, Facebook – that was impacted by ATT the most – managed to substitute the lost ability to track mobile app users behavior across multiple apps.
It allowed the company to significantly recover its tracking capabilities and drag down the CPI for mobile casual games to $1.1 / install. In 2022-2023 period, the cost per install continued to decline and it reached the current $0.98 / install.
CPI of casual gaming apps worldwide from 2019 to 2023
Source: Statista
While casual and hyper casual games fall into a genre of their own, in the ’2023 Casual Gaming Apps Report’ by Liftoff they list out the average CPIs by category:
- Lifestyle – $1.32
- Simulation – $0.59
- Puzzle – $0.90
CPI by genre
The ‘State of Gaming 2023’ report from AppsFlyer reveals further CPIs for specific genres, divided into each operating system. These include Match CPI: iOS – $5.74, Android – $1.45, Casino CPI: iOS – $11.45, Android – $1.14, RPG CPI: iOS – $7.7, Android – $3.04, Simulation CPI: iOS – $3.07, Android – $0.66, Puzzle CPI: iOS – $2.32, Android – $0.69.
Cost-Per-Install by game genre, $
Source: AppsFlyer’s State of Gaming 2023 report
CPI by platform
Liftoff’s report also shows how iOS users are more willing to spend on in-app purchases than Android users. And since they have less chance of deleting an app, iOS user acquisition tends to be more expensive than Android user acquisition.
- iOS – $2.23
- Android – $0.63
CPI by region
Liftoff also shows variations in regional CPI, as outlined below:
- North America average CPI – $3.59
- EMEA average CPI – $0.90
- Latin America average CPI – $0.55
Cost-Per-Mile (CPM)
CPM refers to the effective cost an advertiser pays for every thousand impressions made within a publisher’s game. Unlike CPI where marketers pay for each install as a result of an ad, CPM results in advertisers paying for wider exposure through advertising.
CPM therefore benefits in-app advertisers by giving them guaranteed revenue for sharing thousands of ads with their users. And because it gives gaming app advertisers better exposure for their app it tends to be the chosen approach for boosting brand awareness.
Ad Intelligence platform SocialPeta published its H1 2022 Mobile Game & App Marketing White Paper in 2022 which revealed average CPM rates up as high as $19.31. The USA charged the highest CPM rates followed by Australia and Japan.
The report also showed how strategy games have the highest CPM of all categories at $21.58 followed by Simulation ($19.22), Puzzle ($18.47), and at the low end of the spectrum is Board ($7.7).
Mobile games Cost-Per-Mile by category, $
Source: SocialPeta
Mobile game advertising costs
Mobile game marketers are using Meta’s Facebook Ads and Alphabet’s Google Ads to gain low CPI rates. SocialPeta’s 2022 report highlights how Meta platforms housed 135,000 game advertisers, with monthly advertisers on Facebook averaging 16,500. Alphabet-owned advertising platforms for mobile app games includes AdMob and YouTube. The casual puzzle gaming category is featured as the most advertised on Google platforms by 4,000 advertisers.
There are also a variety of ad formats to consider. According to SocialPeta 2022’s CPI rates for Playable Ads offered the best value, and particularly when marketing to Android users. The cost-per-install for that category ranged from $1.63 to $2.94. The highest CPI rates among banner, interstitial, native, video, and playable ad formats, were for native ads – from $5.15 to $5.00 / install.
Global CPIs of different mobile game ad formats in 2022, $
Source: SocialPeta
Factors that influence mobile game marketing costs
There’s a lot to consider when planning a cost-effective strategy for mobile game marketing. And especially in the noisy and highly competitive social media-dominated landscape. Today, there are multiple marketing channels and UA routes to help gain mobile game installs. And it’s important to review all of them before deciding which one is the best for game distribution.
To that end, here’s a list of the key elements to consider.
Genre, category, and target audience
Different game categories will attract different audience demographics. And this can influence marketing choices when it comes to planning UA and marketing activity. Plus, it can help to determine the investment value of mobile game marketing. For instance, data.ai’s 2023 gaming report reveals younger gamers tend to gravitate towards Party and Simulation games. However, older gamers prefer Puzzle and Match games.
User acquisition costs
As highlighted in the CPI and CPM rates, variations in the approach to User Acquisition will influence costs. Marketing agencies who take a holistic approach can help to drive down high rates of User Acquisition for game apps.This may include validating concepts through A/B or multivariate testing.
Some examples include:
- Paid Advertising: Paid advertising through such marketing channels as Facebook and Google Ads can work to increase brand awareness of a gaming title. But they can also drive installs and downloads when marketed in creative and audience-appropriate ways.
- Organic Users: Gaming app Bingo Blitz gained a 43% increase in Daily Average Organic downloads after Moburst agency ran A/B testing and keyword optimization.
- App Store Optimization: German company Popcore increased App Store conversions by 30%, from 23.8 percent to 33.09 percent, by optimizing their app icon for 3D Puzzle Game ‘Tap Away’.
- Apple Store Search Ads: Previous data showed mobile games with an Apple Search Ads conversion rate of 68%. But it’s also worth considering App Store fees attached to downloads, which could influence any budget planning.
Marketing channels and strategies
Knowing how to market your video game relies on several mobile game marketing strategies. For example, today Gen Z has a preference for online interactions, online communities, and social gaming cultures. And, with their powerful approach to influencer marketing, it’s platforms like YouTube, Twitch, and TikTok that offer some effective ways of generating app installs within any ecosystem.
Core strategies and channels to consider when marketing your app include:
- Mobile game creatives: Short visual snippets of gameplay or playable ads can drive higher numbers of app installs. Marketers have various options to bring these to life in a way that’s appropriate to their type of game, e.g. RPG, Simulation, Casino.
- Playable and Immersive Ads: Due to their non-intrusive nature when embedded in other games, playable and immersive ads can often generate higher eCPMs.
- Story Ads: Story ads appear on social media platforms like Snapchat and allow a social media user to visit a product page and install an app.
- AR Lenses: Snapchat is a popular channel for AR interactions in mobile game creatives and can capture users’ imaginations in effective ways. One example is ‘Revenge of Sultan’ which drove a 120% increase in brand awareness and higher ROI from AR lenses and Story Ads.
- Influencer marketing: As mentioned, gaming influencers offer a powerful way to promote new games. Gamer Streamer influencers have a powerful ability to influence Gen Z consumers, with individuals like Techno Gamerz gaining over 27M subscribers by streaming on YouTube.
- Community Management: Several platforms can help mobile game marketers build and manage a community of players around their game. This may include online forums and social media groups and examples include Discord, Steam, and other online platforms.
- AI Personalization: While this is a nascent approach to mobile game marketing, it’s emerging with strong potential to engage and excite gamers. Davin Miyoshi, Co-Founder and CPO at Skillprint suggests AI personalization will improve game player retention rates and may appear in playable ads as a popular method of mobile game marketing.
Game complexity
Another aspect of understanding a potential game app development cost is game complexity. Classifications of games tend to fit into different categories, which sit at different price points. We’ve outlined these below along with some descriptions of each type of game.
Mobile game development cost chart
| Type of Game | Cost to develop mobile game |
|---|---|
| Casual games | $10,000 - $50,000 |
| Mid-level complexity games | $20,000 - $100,000 |
| High-end complex games | $50,000 - $200,000 |
| AAA Games (e.g. Call of Duty) | $2,000,000 - $5,000,000 |
Source: AppWrk
- Casual Games: simple games with limited features, such as puzzles or arcade games, typically developed quickly with minimal resources.
- Mid-Level Complexity Games: feature more sophisticated mechanics, multiple levels, and enhanced graphics, requiring more time and investment.
- High-End Complex Games: advanced games with intricate gameplay, 3D graphics, and multiplayer options, demanding a significant budget and longer development time.
- AAA games: typically generate revenue through in-app purchases and ads, offering immersive and rewarding gameplay. Successful examples include titles like *The Sims*, *Call of Duty*, and *Genshin Impact*, which provide high-quality content that drives player engagement and profitability.
Game engine and testing
Another key influence in any gaming cost is the type of game engine to develop the game in. Game engines are software frameworks that can create basic game elements like visuals, sound, and animation, or even AI features.
Some popular game engines include the following:
- Unity: This technology lets developers collaborate on multiple projects at a time and supports platforms including Fire OS, Android, iOS, and Windows Phone.
- Titanium: This includes features such as modular development and a unified codebase. And it supports Android, iOS, Hybrid and HTML.
- CryEngine: Available for platforms like Android, iOS, PC, PS3, PS4, Xbox 360, Xbox One, Wii U.
A further consideration to make towards any gaming cost is pre-development costs such as the formation of a Game Design Document (GDD). This is a living, evolving briefing document for all stakeholders to refer to. While it can change over time, it should include conceptual artwork, game story, UX/UI features, genre, key features, and any accessibility requirements.
App developers can create their own GDD or hire a game producer to help. Research suggests a GDD production will cost from $2k to 8k and will vary based on the details of the concept.
Understanding the cost of mobile game development stages
When developing a gaming app, it’s important to factor in the potential for mobile game marketing and in-game monetization too. Development decisions can impact advertising and monetization opportunities. And so app developers and marketers should work together at every stage to maximize marketing and development potential.
Each of those stages will of course incur different costs. And we’ve provided further detail on these stages and some potential costs below.
Market research
Extensive market research is essential to successful game app development. Knowing which audience you’re targeting, which category your gaming app falls into, and how you’ll market your app are all key factors to plan for.
Cost estimates for gaming app market research suggest the average market research cost can be between $5,000 and $15,000. So, when carrying out this process, it’s critical to determine audience needs and design a game to meet them. Plus, it’s imperative to research your competitors to ensure your game is distinct and has unique appeal.
Development
After testing and development using feedback from potential users, well-researched gaming app ideas can move into the development stage. And costs should include high-quality UI, UX, and wireframing. Developers will also need to factor in costs for backend support and servers.
Our previous research showed how app development costs can fall into different stages:
- Basic complexity: Cost estimations for basic app development range from between $5,000 to $50,000. This could apply to simple 2D games with basic features and no need for in-app advertising or IAP features.
- Medium complexity: Gaming apps in the Small and Medium complexity categories will need a development budget of at least $50,000 to $120,000.
- High complexity: Since general app development needs a minimum budget of $120,000 or more, this category will likely apply to Large Games and AAA games.
Testing and soft launches
Most mobile gaming apps will need to move through the same stages as any other app, for instance, PoC, Prototyping, and MVP app development stages. This is important to gain funding and investment but also to test a game’s potential playability.
Mobile game testing is different from testing in standard mobile app development. Establishing high levels of game performance, presenting engaging graphics, strong playability, and multiplayer functionality are all vital considerations. And research from Prometteur Solutions app development company suggests the cost of mobile game testing support ranges from between $5,000 to $10,000.
Official launch and post-launch marketing
Launching an app requires pre-launch, launch, and post-launch marketing activity. So putting together a gaming app marketing plan will help. Within that plan, it’s important to create a separate budget focused on potential marketing channels, influencer marketing, gaming community activity, paid ads, PR, and so on.
In particular, an app launch event should focus on gaining low CPI rates during this period.
Monitoring, maintenance, and reviews
There’s a need for maintenance and ongoing review post-app launch. This will include hosting, marketing, and licensing. For most apps, the industry average maintenance cost is up to 15-25% of the original development cost.
Final thoughts
Mobile game marketing requires knowledge and expertise in multiple areas of app marketing. When it’s done well, it can lead to massive revenue generation and huge global downloads. With better playability in games across all categories–from Casino to RPG and Match–mobile app gamers expect to have rewarding experiences that encourage loyalty but also offer in-app purchases and advertising.
Since CPI rates vary across different categories, mobile gamer marketers must ensure their mobile games’ experience matches with the audiences’ needs. And, with this foundation in place, it’s easier to determine and control mobile game marketing costs.
Visuals, playability, and in-app activity will all count towards a successful gaming app, so marketers should also factor these into development costs. This foundation will also offer better indications for relevant approaches to marketing and UA strategies such as App Store Optimization and promotional partnerships with influencers.
Calculating a gaming cost is no easy task. But with these guidelines, marketers, and developers can work together to review the potential of the game idea, its level of complexity, potential revenues from downloads, and in-game activity and weigh this against CPI and development costs.
With a strong approach to mobile game marketing in place, developers can keep a gaming cost to a minimum while optimizing marketing efforts and launching a mobile gaming app with plenty of buzz and excitement.