Non-Gaming Ad Monetization Trends Report

2024 was a standout year for non-gaming app publishers. In fact, Sensor Tower data projects that non-gaming apps will outpace mobile game revenue share by 2026.

While increased consumer spending has monopolized the headlines, the widespread adoption of in-app advertising (IAA) plays a crucial role in driving steady revenue growth. As time spent in apps rises, more app publishers are prioritizing ad monetization as a revenue stream and seeing encouraging results.

Liftoff’s new report provides a snapshot of the growth of non-gaming ad monetization from our point of view. We believe we are at an exciting inflection point for app publishers. More time and resources devoted to developing a robust ad monetization strategy means new pathways to success, opportunities in emerging markets, and new levers for better results.

To kick off 2025, we spotlight seven key trends across different markets and publisher categories that are powering ad revenue growth for non-gaming publishers now. Along the way, we highlight new ad placement types, strategies for tackling new markets, and best practices for balancing ad revenue goals with in-app engagement and user retention.

Many apps rely exclusively on subscriptions as their primary revenue driver, but the subscription model has notable drawbacks. While total consumer spending on mobile subscriptions is growing, retention rates fell 14% in 2023 across all app categories, likely owing to a competitive market and inflationary pressures. 

Without alternative sources of revenue, an increase in churn can significantly disrupt an app’s capacity to scale. 

The solution? Monetize the time users spend engaging with apps. In-app advertising (IAA) is an easy way to diversify revenue streams beyond paywalls and subscriptions. As an added benefit, publishers can monetize their entire user base—not just users willing to pay.

*Graph measures total ad revenue including DSP charges

More non-gaming apps are monetizing with IAA, a trend which is likely to continue as consumer apps outpace mobile games in growth.

Ad revenue from app publishers on the Vungle Exchange has increased by 116% between September 2023 and October 2024, spurred by robust growth across entertainment, utilities, music, and social publisher categories.

To maximize fill rates and CPMs, publishers should prioritize finding the right partner who can help them tap into premium demand and achieve higher ARPDAU (Average Revenue Per Daily User).

Learn more from Dave and other monetization experts by watching our webinar: Busting Ad Monetization Myths in Non-Gaming Apps

What is driving this growth in ad revenue from non-gaming publishers? The simple answer is that consumers are splitting their time between more apps of different types. Outside of dominant social apps like TikTok and Facebook, consumers spend more time on entertainment apps, especially video and audio streaming and video-sharing platforms.

According to PwC, advertising is projected to account for 55% of revenue growth for the entertainment and media industry in the next five years. As more established streaming services explore ad-monetized tiers, this figure will only continue to grow. 

Sessions on productivity and utilities apps are also growing, fueled by widespread IoT integration and the increased use of mobile apps to plan and track consumers’ daily routines.

More time spent on non-gaming apps has translated into strong ad revenue growth. Ad revenue from entertainment, music, and utilities publishers grew significantly year-over-year on the Vungle Exchange. 

Entertainment publishers saw revenue from their ad inventory grow over 200% YoY. One reason could be that as regional markets become more saturated with video and audio streaming apps, ad monetization offers a reliable source of revenue as subscription income levels off.

Top Tip

Short video and video streaming apps have plenty of opportunities to monetize the attention they command. Publishers can fuel ad—and app—engagement by integrating rewarded ads with strong incentives. We find that rewarded ad placements work best when they are directly tied to improving user experience or accessing a premium offering. 

Short drama app FlexTV, for example, offers its audience a chance to earn credits to watch more videos: 

At strategic points during a session, FlexTV lets viewers spin the lotto wheel for bonus rewards. Viewers can use these rewards to watch more dramas on the app. As users engage more with the bonuses, the spins also serve as a retention trigger to keep them coming back.

The COVID-19 pandemic drastically accelerated smartphone penetration globally, and the mobile app economy is now growing across nearly every region worldwide. While different countries vary in revenue opportunities, a clear ad monetization strategy is almost always essential to sustainable growth in a new market.

New and established apps scaling in emerging markets tend to offer lower subscription fees to appeal to a wider user base. It’s a great strategy—but it requires a business model that can accommodate slower subscription revenue growth. In these cases, ad revenue is a crucial supplement.

*October 2023- October 2024 YoY growth by percentage for five emerging markets

On the Vungle Exchange, we’ve seen ad revenue from emerging markets grow significantly YoY. Mexico and the Philippines saw increases of more than 200% YoY, and Brazil grew 160%. 

Saudi Arabia and South Africa also saw increases in ad spend of over 100%.

It’s important to note that while tier-one markets like the US generally offer better eCPMs for most publisher categories, eCPMs in emerging markets can be surprisingly high. Finance publishers are perhaps the best example of this.

Finance app publishers can capitalize on competitive eCPMs outside North America and Europe

The future of fintech companies will likely be fueled by growth in emerging markets. McKinsey research projects that fintech revenue share from APAC (excluding China), LATAM, Africa, and the Middle East will increase from 15% in 2024 to 29% in 2028. North America, which currently accounts for 48% of worldwide fintech revenues, is expected to decrease its share to 41%. Many fintech publishers are already seeing their user base shift globally. 

As their audience in different markets continues to grow, fintechs can monetize more of their user base by tailoring the ad experience to local preferences and habits. For publishers who successfully localize their strategy, these markets can achieve high eCPMs. 

*Average eCPMs for finance publishers across South Africa, Brazil, Saudi Arabia, and Mexico compared to the US 

More fintech companies are shifting from a growth-at-all-costs approach to a revenue-first model that includes IAA. Over the last 12 months, finance publishers on the Vungle Exchange saw average eCPMs that were 123% higher for the Mexican market than the US.

eCPMs for Saudi Arabia were 62% higher than the US. South Africa and Brazil also saw average eCPMs that were 9% and 20% higher than the US.

As a final note, it’s important to remember that high-value services can take longer to ramp up in new markets, especially for finance businesses. Meanwhile, monetizing non-paying or low-paying can be crucial to supporting an extended timeline.

Bonus Tip

If you’re struggling to drive paying users, try granting temporary access to features that would otherwise be behind the app’s subscription.

For instance, Accuweather allows users to watch an ad to see a detailed rain map (a feature normally locked behind the subscription). It’s a great way to show off a premium feature without hurting your monetization model. And of course, if you’re relying on ad monetization, you can also offer temporary access as a reward for watching an ad.

The global retail landscape is shifting. While US-based players like Amazon and Walmart still power the global e-commerce market, Chinese retail giant Temu and Singapore-based Shein are rapidly growing in market share. 

According to eMarketer and The Information, Shein spent between $300 and $400 million in advertising in 2023. Meanwhile, Temu spent $386 million on advertising in the first four months of 2024 alone. 

It is evident that the APAC giants are making significant headway in tier-one markets. 34.6% of US shoppers make at least one purchase monthly at Shein, indicating that a robust advertising strategy is paying off and high ad spend is likely to continue. 

Notably, while social platforms like Meta and TikTok have seen boosts in ad revenue, they are not the only players benefitting from the spike in ad spend. Retailers like Shein and Shopee are spending aggressively outside walled gardens.

In 2024, we’ve seen explosive growth in retail advertiser spending on the Vungle Exchange. Ad spending has increased ~200% year-over-year.

While spending spikes occur around holidays like Black Friday, Christmas, and Singles Day, growth has proved consistent between Q2 and Q4 of 2024. 

Interestingly, interstitial and rewarded ads make up 95% of retail advertisers’ ad spend. We think publishers can successfully tap into this growing market by diversifying their ad placement mix and integrating the right placements. 

Curious about static end cards? Try triple page ad placements.

Triple page is a video ad placement available with the Vungle SDK in which two end cards are shown after the video. Three pages mean three unique opportunities for a user to engage with the ad. This includes a static end card placed at the end of the DSP’s video ad experience.

With Liftoff Monetize, we’ve seen this ad placement increase user engagement and improve campaign performance (app installs). This includes an up to a 10% improvement in app install performance in triple page ads compared to a double page, or video + end card, ad experience.

We know rewarded ads deliver high returns for game publishers. Now, they’re doing the same for non-gaming publishers. Combined with the right UX strategy, non-gaming publishers who deploy rewarded ads can see higher ad revenue, improved retention rates, and reduced dissatisfaction with ads.

*Average eCPMs by ad placement type are indexed in comparison to banner ads eCPMs

Utilities, entertainment, and music publishers all see significantly higher average eCPMs from rewarded ads than non-rewarded interstitial and banner ads. 

For entertainment publishers, eCPMs for rewarded ads are 28x that of banner ads.

Publishers that see high returns from rewarded ads tend to offer incentives that motivate users to continue a session or try a new feature. For example, a VPN app might offer temporarily expanded bandwidth, while a crypto app might provide credits for a trade. When in doubt, diversify placement types. Test different placements and stopping points in the user journey can make it easier to see the impact of rewarded ads.

Additionally, we’ve found that rewarded ads fit especially well with apps that encourage (daily) engagement and habitual use. Productivity and utilities apps, for example, can have daily streak systems that involve daily tasks and integrate rewarded ads.

Introducing Rewarded Interstitial Ads, available with the Vungle SDK

Rewarded Interstitials are placements that appear automatically during natural app transitions such as the completion of a level. 

Tip: Rewarded Interstitial ads can be a great option. But if you’re concerned about interrupting the user experience, let your users know why ads are part of their user experience. Users respond when publishers are transparent about a monetization model that supports a free or lower-cost product.

Ad placement and viewability are among the top factors impacting ad revenue. To minimize their impact on retention rates, ad placements need to be non-disruptive. They also need to be visible and capable of driving high engagement. While static native ads are a go-to option for many publishers, the placement posts lower CPMs compared to video and playable counterparts. 

To help publishers maximize ad revenue, the Vungle SDK offers two ad placement types that support video but fit within a seamless user experience while delivering high eCPMs.  

App Open is a video ad displayed as a user opens an app at launch or when a session is resumed. The experience is designed to fit seamlessly into the user journey. 

In-Line is similar to a static native ad but allows publishers to integrate video ads for high CPMs without disrupting the user experience. 

*All values indexed to banner eCPMs. 

We’ve found that In-Line and App Open, non-disruptive placements that support high-engagement video ads, deliver much higher eCPMs for non-gaming publishers than static native ads.

Average eCPMs for App Open ads are 8x that of static native ads and second only to rewarded ads.  In-line ads deliver eCPMs 2x that of native ads.  

While both In-line and App Open ads see higher ad revenue in tier-one countries, App Open ads, in particular, attract interest in emerging markets, driving more ad revenue from audiences in Brazil, Mexico, Russia, and Indonesia.

Case Study: Audiomack

Audiomack is a leading global music streaming platform. Integrating Liftoff demand into Audiomack’s App Open ad mix yielded impressive results:

Read the full case study to learn more.

Don’t assume that gaming ads and non-gaming publishers do not mix. Gamers are consumers first, and most mobile gamers engage with a variety of apps on a daily basis. 

Some of the hesitation around gaming demand stems from confusion about who gamers are. Many gamers favor casual games—games with low barriers to entry that attract all demographics. According to eMarketer, the majority of the US population plays a digital game via any device at least once per month, and according to GameRefinery data, at least 48.5% of mobile gamers are women.

Additionally, gaming demand uses the same ad networks as other advertisers—so if you trust your demand sources, you can trust that your brand will be protected. Just as importantly for publishers, many ads, designed for high engagement, consistently post competitive eCPMs. Mobile games have highly developed advertising strategies and sophisticated approaches to ad creative. Being open to gaming ads may improve ad revenue with little impact on retention.

We anticipate 2025 to be another exciting year for app publishers. Expanding your ad monetization strategy involves constant testing to gauge the impact of your ads on revenue, user experience, and user retention. 

If you’re having trouble making one or two placement types work, consider your user journey. See if there is more real estate at natural stopping points during a session or breaks in the UX where you can introduce a different placement type. If you’re struggling with ad fill and maximizing CPMs, make sure your SDK enables you to tap into the right demand sources. 

Liftoff Monetize can help you maximize returns with access to top global demand and improve returns with innovative, minimally disruptive ad placements. Contact us today to learn more.