2025 Mobile Ad Tech Predictions
As user behaviors shift and technology evolves, 2025 is a make-or-break year for advertisers navigating this dynamic landscape. 2025 isn’t just a year of change—it’s a year to redefine the rules of mobile advertising.
From the dominance of AppLovin to the rise of alternative app stores, the landscape is evolving rapidly. This article explores the key trends shaping the future of mobile advertising, highlighting opportunities and challenges for advertisers, developers, and brands.
1. How AppLovin’s diversification is shaping the Ad landscape
AppLovin’s position as a leader in the mobile advertising space has never been stronger. Known for its advanced AI-driven ad optimisation and massive inventory, the network has been the backbone for many gaming companies for years. However, 2025 brings a notable shift as e-commerce brands enter the auctions, driving up competition.
E-commerce advertisers, traditionally focused on Google and Meta, are now tapping into mobile ad networks like AppLovin to run performance campaigns, often seeing positive ROAS.
What does it mean?
We’ll see an increased competition, and gaming advertisers will now face fiercer bidding wars as new players arrive.
Advertisers will also need to be more creative. With fresh strategies coming from e-commerce brands, and soon enough other categories, Gaming companies will have to innovate to increase engagement and staying competitive.
And after AppLovin, brand advertisers might start to explore other networks such as Moloco or Unity and ironSource, to go after more game inventory!
2. Brand x Games collaborations: the next Big revenue stream
Brands are coming for games.
And more than just showing ads, they come into the actual gameplay.
Brand partnerships is now becoming a major revenue stream for mobile games. Collaborations between brands and games are more interactive and engaging than ever, moving beyond simple ad placements.
Major brands have successfully partnered with mobile games:
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& the list goes on and on.
And while it is a great way to advertise and grow your audience, on both side, from the Brand but also the Games perspective, it’s important to do it well, not forgetting to add value to the players, and offering unique in-game experiences. As partnerships become more frequent, players may start to view them as intrusive, repetitive, or purely commercial rather than adding real value.
Once the integration is ready and almost live, it’s also important to promote it well. Having the right expert to support is primordial.
I’ve personally worked with many developers across the years that has launched collaborations at high scale, helping them create the right UA strategy. I’ve seen firsthand how collaborating with recognised Brand drives more Search Volume on the AppStore, by sometimes up to 30%, bringing valuable players to the game. Capturing the right users looking for the collaboration, new and returning, and making sure to advertise it correctly, is strategic.
Feel free to reach out if you’re seeking a User Acquisition Consultant to help you maximize the potential of your partnerships.
In 2025, expect to see even more brands launching unique in-game events or skins, creating value for both player, advertisers and gaming companies. Brand x Games collaborations are set to be a significant trend, offering creative opportunities for both sides, with Brand reaching a new untapped audience with an experience they’ll most likely enjoy, and Games diversifying their revenue streams.
3. Diversifying beyond traditional app stores
If you made it so far, you understand it’s all about efficiency. One way to become more efficient in Mobile Marketing is to diversify and reach new audiences, on potential new platforms.
The app store ecosystem is becoming more fragmented. With AppStore & Google PlayStore being one of the only viable options for developers, with limited ways to install apps on our phones, it was difficult to avoid the high fees developers had to pay. Legislation like the EU’s Digital Markets Act (DMA) is empowering developers to explore alternative app stores and their own platforms. So that’s where we’re seeing platforms like Amazon, Samsung, Huawei, and even Epic Games growing their app store footprints, providing compelling alternatives to Google Play and Apple’s App Store.
The pros?
These alternative stores often have more favorable fee structures, reducing the costs associated with in-app purchases. When you think of the 30% developers have to pay to Apple or Google everytime a user makes a purchase, it’s becoming even more difficult to make a profit in this highly competitive landscape.
Another major player taking a unique approach is Netflix. Transitioning into a proper games store, Netflix has expanded its entertainment strategy by acquiring and publishing games under its brand. This move aims to deepen user engagement on its platform by offering games alongside its streaming services. While users still download these apps via traditional stores, the way they discover them is evolving, with Netflix positioning itself as a key hub for both streaming and gaming. Netflix’s gaming engagement has tripled over the past year, indicating a significant increase in user interaction with its gaming offerings. With its rapidly growing catalog of games, it’s easy to envision Netflix eventually launching its own dedicated game store.
Talking about game stores, Apple has also announced plans for a dedicated Gaming Hub, effectively creating a standalone store just for games. According to sources, this app will feature multiple tabs, including a “Play Now” tab for editorial content and game recommendations, a personalised tab for the user’s games, and sections for friends, challenges, leaderboards, and achievements.
Expanding beyond traditional stores diversifies risk, reduces dependency on dominant platforms, and opens the door to new revenue streams and audiences.
4. Direct-to-Consumer (D2C) (r)evolution and Web-to-App strategies
Unless you’ve lived under a rock for the past few years, you must have seen the rise of Web-to-App strategies and platforms.
The rise of web stores is fueled by industry trends such as extended development timelines, rising user acquisition costs, and changes in privacy policies like Apple’s App Tracking Transparency.
Direct-to-Consumer (D2C) strategies are surging, particularly among developers looking to sidestep the 30% app store fees that we just mentioned. Web stores have emerged as a powerful tool for driving revenue while avoiding IAP taxes. According to this article on PocketGamer.biz, “On platform you lose 30%. On D2C it’ll be a lot less. So you can pass on 10% to 15% additional content/currency to players on your web shop.”
According to Upticc, some game studios like Huuuge Games, report that up to 12% of their total revenue now comes from web store transactions.
Developers are seeing substantial contributions from web stores, with predictions that 2/3 of IAP-driven games will invest further in D2C channels. We’re seeing subscriptions apps adopting a web on-boarding to avoid the high fees of the Apple & Google, games that gives users the possibility of downloading and buying the game currency, skins, or other IAPs throught the webstore, often at a lower cost to make it more incentive and interesting for them to move out of the app.
This shift demands marketers focus on directing users to their platforms while optimizing web-to-app experiences, which can be limiting and have high churn rates, so developers need to focus on building trust.
5. The power of User-Generated Content (UGC)
While we’re talking about trust, we’re also talking about authenticity, which continues to dominate in 2025, with User-Generated Content (UGC) emerging as a cornerstone of mobile advertising. Consumers trust genuine experiences shared by their peers far more than traditional ads – over 80% of people trust recommendations from other users. With the rise of generative AI tools, it’s never been easier to create them. Agencies like UGC Ninja, allow you to find the creator that is perfect for your audience have become more and more popular, and they also help you define the strategy, find the right influencer, produce the content and deliver it.
Beyond photos and reviews, UGC now includes videos, memes, and personal stories that highlight brand value. And with the rise of video content on social platforms like TikTok and Instagram, that remain central to UGC strategies, it’s the perfect environment for this kind of ads. Leveraging UGC will be critical for advertisers aiming to foster deeper connections with their audience.
But as UGC becomes more popular in marketing strategies, there’s a delicate balance to maintain: how much control is too much?
UGC thrives on authenticity. Brands must trust their communities and influencers to create content that feels real, even if it means less control over the narrative. By embracing the imperfections and diversity of user-generated content, marketers can build stronger, more genuine connections with their audiences in 2025.
And as UGC grows, so does the need for more personalized, efficient ad operations, which AI can greatly facilitate.
5. Generative AI transforming ad operations
Generative AI (GenAI) is no longer just a buzzword; it’s a foundational tool in mobile advertising. By 2025, AI will be integrated into every stage of app marketing.
From audience segmentation to dynamic creative optimization, AI is streamlining processes and delivering personalized experiences at scale. AI tools are helping marketers generate creatives tailored to specific audiences, improving click-through and conversion rates. AI is now capable of generating images, videos, music, and text for ads faster and more efficiently than ever before. This year has seen the emergence of several generative AI tools, from Meta’s announcement of its own AI-powered tools for creating images and videos with sound, to Google’s Veo for YouTube Shorts, and Symphony for TikTok.
The idea: generating AI ads automatically, removing the background or adapting the text, for each audience, to create personalized ads that are more efficient, with high engagement since they are tailored for each type of users that might be interested in the ad.
Let’s discuss how to incorporate the latest tools and strategies into your workflow.
6. AI platforms are next in becoming Ad Platforms
Perplexity was the first AI chat tool to see it and start it: but as an ad tech enthusiast, i knew it wouldn’t be long until we see ads into the AI space. And that’s it, OpenAI just announced considering having ads on their famous ChatGPT – and even if Sam Altman is not keen on it, since OpenAI is looking at becoming a for-profit company, they’d have to find ways to monetise.
The maker of ChatGPT has primarily relied on subscriptions to fund the development of its generative AI tools. However, the cost of building and running these models is astronomical, and there’s a limit to how many billions investors are willing to pour into the endeavor.
Introducing ads could be a necessary pivot to ensure long-term sustainability. But will it strike the right balance between monetization and user experience?
Perplexity has used Contextual Advertising. I’ve briefly talked about it in my previous article “The Evolution of Performance Marketing: How AI is Shaping the Future”:
AI-driven ad placements are even extending to search tools like Google AI Search Overview and Perplexity, where ads are shown based on the user’s query and context. This opens up new opportunities for marketers to reach highly engaged users with precise messaging.
Using keywords and searches from users, Perplexity is able to show them relevant ads, without the need of precise targeting. It’s the user intent that drives the relevancy of the ad. If contextual advertising on AI platforms like Perplexity takes off, it could rival traditional search engine advertising by offering intent-driven targeting.
What’s in for advertisers?
A new platform available to showcase your product, usually to an audience that is highly engaged, with high intent. Perplexity is selling an audience of early-adopters, tech enthusiasts, which tends to be of higher value for advertisers.
The road ahead for Ad Tech in 2025
As we move into 2025, the advertising landscape is evolving at an unprecedented pace. Whether you’re exploring new platforms, launching brand partnerships, or leveraging AI tools, staying ahead of the curve is critical.
With more players entering the mobile advertising space, especially e-commerce brands, maintaining a competitive edge demands both creativity and data-driven strategies. Expanding your reach—by tapping into alternative app stores, leveraging emerging platforms, and utilizing AI tools—is essential. Equally important is staying authentic and connected with your audience, whether through UGC or meaningful brand collaborations.
The key to success in 2025 is not only staying updated on trends but actively implementing them. Don’t miss out on the opportunities that are already shaping the future of advertising.
2025 is the year to innovate.
The year to adapt.
The year to thrive in a rapidly evolving Ad Tech world.
Whether you’re a gaming studio, an e-commerce brand, or a marketer exploring new channels, the opportunities are vast. And they’re waiting for you to seize them.
Reach out today for personalized, expert guidance that will help you craft innovative strategies, optimize your campaigns, and stay ahead in this fast-paced industry. Let’s work together to ensure your growth in 2025 and beyond.
