The global mobile gaming market showed diverging monetization trends during the first half of 2026, with in-app purchase (IAP) revenue declining while advertising investment continued to grow, according to Sensor Tower’s H1 2026 Digital Gaming Market Index.
Sensor Tower estimates that mobile games generated $40 billion in player spending during H1 2026, a 2% year-over-year decline, while downloads remained relatively stable at 24 billion. At the same time, advertisers increased investment in mobile gaming, with global ad spend reaching $7 billion, up 7% compared with the same period last year.
The report points to advertising as an increasingly important revenue stream for publishers, particularly as player spending softens. According to Sensor Tower, developers are relying more heavily on hybrid monetization strategies that combine in-app purchases with advertising to offset slower consumer spending.
Strategy titles remained among the strongest-performing genres by revenue, while puzzle games continued to attract the largest share of downloads. Sensor Tower highlighted that puzzle titles generated 16% of all mobile game downloads during the period, reinforcing the genre’s broad appeal despite slower spending growth.
Regional performance remained concentrated in a handful of major markets. The United States continued to lead global player spending, followed by China and Japan, while download activity was driven primarily by emerging markets, with India remaining the largest source of installs.
The report also identified several games that shaped the first half of the year. MONOPOLY GO! maintained its position as the top-grossing mobile game globally, while Honor of Kings continued to perform strongly by revenue. Roblox remained one of the leading titles for installs, and Block Blast! sustained its rapid growth in both downloads and advertising presence.
One of the period’s standout events came during Pokémon Go’s 10th anniversary celebrations. According to Sensor Tower, the game generated more than $48.5 million in in-app purchase revenue during July 6–12, 2026, driven by the Road to Legends event. Weekly revenue increased 5.9 times compared with the previous week, setting a new all-time weekly record for the title and making Pokémon Go the world’s fourth highest-grossing mobile app during that period.
Advertising continued to play a larger role in mobile game monetization during H1 2026. Sensor Tower estimates that gaming ad revenue reached $7 billion in the first half of the year, with publishers in mature markets increasingly relying on advertising to complement in-app purchases. The report notes that ad revenue represented more than 70% of total mobile game revenue in several countries, including the United States, while IAP remained the dominant monetization model in markets such as Japan, South Korea, and China.
The mobile gaming ad ecosystem also became more concentrated. AppLovin and Google AdMob together accounted for roughly two-thirds of global mobile gaming ad revenue, with their combined market share increasing from 61% to 65% between January and May 2026. Sensor Tower attributes AppLovin’s growth to its AI-driven advertising platform, while AdMob continued to benefit from Google’s broader advertising ecosystem.
On the advertiser side, TikTok ranked as the largest buyer of mobile gaming advertising globally during the first five months of 2026. Facebook placed second, followed by Genshin Impact, Arrows Puzzle Escape, Kingshot, Temu, Pixel Flow!, Block Blast!, Royal Kingdom, and SHEIN. Sensor Tower noted that TikTok led spending in the hypercasual category, while Facebook dominated casual games.
Among game advertisers, Block Blast! generated the highest advertising revenue between January and May 2026, reaching $129 million. Vita Mahjong followed with $69.8 million, ahead of Candy Crush Saga ($61.1 million), Solitaire Association: Joint ($57.3 million), and Wordscapes ($42.4 million). The report highlights that Block Blast!’s rapid growth was supported by its strong presence in the hypercasual advertising segment.
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