I recently had the chance to spend a few valuable days in Hong Kong with some of our key mobile app publisher clients – many of whom are among the largest export-focused players from China, Vietnam, and Korea. These are publishers whose growth strategies rely heavily on driving and monetizing traffic outside of their home markets.
The agenda featured panel discussions, research presentations, and industry insights from across the ecosystem – including voices from demand side platforms (DSPs), agencies, and brands. While one-on-one time with our team was valuable, so was the opportunity for mobile app publishers to connect and exchange ideas with their peers.
One year on from our inaugural Mobile Leaders’ Summit in Hanoi, we set the stage in Hong Kong by looking back at what we had predicted for 2024, and we were pleased to see that we got most of it right. Brand spend on mobile app has grown significantly, the value of SDKs to both publishers and advertisers has continued to increase, and video continues to dominate as the most valuable and in-demand ad format – especially as brand budgets scale and creative becomes more sophisticated. 2024 marked the beginning of a broader shift, with new video formats such as vertical video moving beyond social platforms and into the premium mobile app space. Long dominant in short-form environments, vertical video is now gaining traction with streamers and other non-gaming app publishers looking to tap into social budgets and brand demand.
As the event progressed and I spoke with our partners, one theme came through clearly and it was echoed in the market data shared throughout the event: the mobile app publishing industry is evolving. After years of rapid expansion, we’re now seeing a shift toward more sustainable growth, with a focus on user retention, rising user acquisition costs, and greater industry consolidation.
These are all signs of a maturing ecosystem – and with that maturity comes opportunity. Consumer spend on apps is still increasing. According to Sensor Tower’s 2025 State of Mobile report, global in-app purchase (IAP) revenue across iOS and Google Play reached $150 billion in 2024 – a 13% year-over-year increase and the highest growth rate since 2021. The report forecasts that this will climb to $270 billion annually by 2025.
While IAP remains a strong indicator of app market health, many mobile app publishers are also leaning into in-app advertising (IAA) to diversify revenue – particularly as user acquisition costs rise and retention becomes more important. Publishers who adapt quickly and strategically are well positioned to capture even greater value in this next phase.
Here are a few important tactics that mobile app publishers, brands, and agencies should keep in mind as we find our stride in what’s shaping up to be an unpredictable 2025.
The Importance of Diversification
Consolidation across the industry is set to continue, and we’re already seeing the rise of a few dominant mediation platforms and DSPs. Mobile app publishers are becoming increasingly reliant on them – sometimes uncomfortably so. Relying solely on ROAS or performance-driven demand, or depending on just one or two large DSPs for brand spend, may not be the most sustainable path forward. This is where SSPs have a critical role to play; bringing demand from across the wider economy in a way that’s both transparent and cost-effective – helping mobile app publishers stay in control and keep their monetization strategies flexible.
Diversification of revenue mix was a major talking point. While in-app purchases (IAP) are still the holy grail, in-app advertising (IAA) continues to provide a vital source of revenue – particularly when it comes to moving beyond a reliance on user acquisition campaigns alone. Brand advertising is gaining strong traction, especially in sectors like ecommerce and travel, and mobile app publishers are taking notice. At PubMatic, we’ve seen strong momentum in PMP (Private Marketplace) activity across our APAC mobile app publishers, reflecting growing brand demand and increased interest from buyers. PMP spend is an effective way for mobile app publishers to capture brand dollars – PMP is almost exclusively brand demand. We expect this momentum to continue as we bring high-quality inventory to our agency partners looking to connect with engaged app audiences.
Connecting Both Sides of the Ecosystem
Bridging the gap between brand advertisers and mobile app publishers was another key theme. Mobile app publishers need to better understand what brand advertisers are looking for and how they measure success. Metrics like viewability and access to first-party data are now table stakes, yet they’re still not consistently made available to buyers.
It’s also important to recognize that brand advertising operates on a different model. CPM – not CPI – is the currency. While CPM’s may be lower when compared to an app-install campaign, they represent untapped revenue and do not compete with a publisher’s core business.
Of course, this education needs to go both ways. Agencies also need to better understand the value mobile app audiences offer – these are often high-value users engaging deeply with content. Insights from recent PubMatic research show that high-income mobile gamers report a 98% positive sentiment while playing, making them highly receptive to brand messaging. As a global technology platform with relationships across both the buy- and sell-side, PubMatic is in a unique position to help bridge that gap between publishers and media buyers.
We’ve invested in teams who are out in market advocating for our publisher partners – educating buyers on the quality and diversity of in-app audiences, as well as on emerging formats like vertical video and splash placements. As PMP’s become an increasingly critical lever for driving brand investment in mobile app, PubMatic is focused on helping publishers access these dollars through both technology and dedicated strategic support. Connecting these insights to brand buying strategies will be a key area of focus for us in 2025.
User Experience Is Paramount
As retention becomes more critical than ever, maintaining user experience is paramount. Mobile app publishers can no longer afford to accept high crash rates, bloated software development kits (SDKs), or disruptive video ads. We heard examples of publishers being pushed into aggressive templates or even triple-stacked end cards, as some partners prioritize downloads over long-term engagement.
Ad quality is also a key part of the user experience. Publishers must stay vigilant in ensuring their inventory is accurately represented to buyers by enforcing IAB Tech Lab transparency standards and by choosing resellers wisely.
Advancing Addressability
Addressability was another frequent talking point. With Apple’s App Tracking Transparency (ATT) framework now part of daily operations, mobile app publishers are increasingly concerned about potential changes to device identifiers, such as Google’s Ad ID, and how best to future-proof their businesses.
Both Unified ID 2.0 (UID2.0) and RampID – solutions designed to provide privacy-compliant alternatives to device-based identifiers – have shown early promise, with some publishers seeing increases in CPMs. However, requiring users to submit an email address can still be a barrier and many publishers are hesitant to introduce any friction at the point of sign-up. That said, there were success stories; offering users rewards like coins, lives, or bonus levels in exchange for their email, or waiting until a player has progressed further in the game before asking.
In my view, this kind of first-party data is incredibly valuable and worth A/B testing – any short-term drop-off may be offset by higher brand CPMs and the long-term value of a direct communication channel with your audience. This is particularly important for publishers focused on improving monetization on iOS, where having a privacy-compliant alternative ID signal, like UID2.0 or RampID, can make a meaningful difference in performance.
Overall, the mood was optimistic, and engagement levels were high. The value of the mobile app industry is undisputed and will continue to grow – but succeeding in this next phase will require new thinking. Education, diversification, and putting the end user first will go a long way.
PubMatic is here to support you every step of the way.
