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April 29, 2025
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For the last several years, the mobile game industry has optimized (and nearly perfected) two main monetization models – in-app advertising (IAA) and in-app purchases (IAP) – to generate revenue that can be invested back into developing innovative, engaging experiences for players.
While these traditional methods have worked well in the past, mobile game publishers today face significant hurdles, such as hefty platform fees, rising UA costs and competition, and constant changes in privacy regulations. All these factors combine to ultimately choke the profitability of mobile games.
Stepping into this complex landscape, Direct-to-Consumer (DTC) web shops are emerging as a new approach to game monetization. By bypassing the platform monopoly middlemen, these online stores are already transforming how games generate revenue, promising a more direct and profitable relationship between publishers and their player base – but they’re not without their own challenges.
In this article, we explore the world of direct-to-consumer shops in mobile gaming, diving into how mobile publishers are racing to the web to reinvent their revenue strategies and retain their margins in an increasingly competitive landscape.
👀 Related reading: The 2024 Mobile Gaming Growth Report
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Since the launch of the Apple App Store in 2008, the way mobile app publishers generate revenue and monetize their users has come a long way. In the early days of the app store, premium apps were the predominant monetization model, which Apple claimed in revenue every day.
After a year of increasing competition driving down paid app costs, in 2009,2 adding a new way for the popular “free” games to generate revenue while staying competitive. Freemium games with IAP monetization quickly grew to dominate the scene, with games like Candy Crush raking in worldwide through IAP.
However, the IAP model came with its own challenges, such as the Pareto principle-based reality, where 20% of users generated 80% of the revenue. In actuality, it was even more dire than that, as a 2014 report from found that only 2.2% of free-to-play players ever spent money at all. Shortly after, in 2016, Apple introduced subscription functionality in the App Store for publishers to generate a recurring revenue stream from users.
Parallel to the challenges being combatted with IAP, another segment of the industry was exploring IAA, constantly innovating on placements and triggers to strike a balance between generating revenue and providing an engaging user experience. The early 2010s also marked a turning point in mobile with a rise in advanced data and analytics availability to personalize ads and optimize targeting.
Fast-forward to today, and while great strides have been made in evolving both IAA and IAP monetization models, other industry players and factors have evolved alongside that are beginning to limit the potential of these existing models. High platform fees like Apple and Google’s 30% fee cut into IAP-based app revenue, while privacy changes affected access to targeting data which in turn impacted ad-based revenue.
Now, the industry is turning in a new direction and experimenting with direct-to-consumer shops as a new avenue to monetize users without impacting margins.
👀 Related reading: Forecasting monetization trends on the rise in mobile gaming
The concept of Direct-to-Consumer (DTC) web shops in mobile gaming refers to platforms where players can make purchases from a mobile game’s website rather than through the app itself. Publishers can set up their shops with a variety of in-game goods or items such as skins, power-ups, or even branded merch for the game. As these transactions bypass the traditional Google and Apple App Stores, this game monetization strategy allows publishers to avoid the standard app store fees, ultimately providing a more profitable avenue for monetizing the app.
By providing exclusive offers or special in-game items that are not usually available through the standard in-app purchases on the app stores, you can further incentivize players to invest through the web shop rather than within the app, making it a win-win for both players and publishers.
👀 Related reading: From models to metrics: A publisher’s guide to mobile game monetization
Direct-to-consumer web shops are becoming a key strategy for mobile game publishers looking to boost player lifetime value (LTV) while improving profitability. By selling in-game items, exclusive content, and special offers directly to players – bypassing app store fees – publishers can unlock a higher-margin revenue stream.
According to our 2024 Mobile Gaming Growth Report, there is already growing interest and openness among players regarding these shops, as 26% of players say they are open to visiting a publisher’s DTC website, and an impressive 14% have already made the leap, exploring exclusive IAP for the game on the online store.
As Oxana Fomina, Founder of Gradient Universe Games Analytics Consultancy, pointed out, "Right now, many publishers are trying to introduce different streams of revenue to reduce dependence on Apple and Google. The main thing I see on the market right now is promising emerging alternatives, like an increasing interest in DTC web shops that will continue to rise."
Furthermore, these DTC web shops not only give publishers increased control over pricing and offers but also serve as a driver for high-margin LTV. By providing exclusive content and a more direct customer relationship, DTC web shops can boost player engagement and retention, driving up the value derived from each individual player over the lifetime of their relationship with the game.
“Historically, it’s largely been casino developers who have implemented loyalty programs and VIP player experiences - but with the rise of direct-to-consumer and web shops, we can expect more and more genres to do the same in 2025. These programs not only give your most committed players more ways to enjoy and interact with your game, they also significantly boost your bottom line.” – Archie Stonehill, Head of product at Stash (5)
But with every new strategy, there are cons alongside the pros. While DTC web shops offer new revenue potential, they also come with unique hurdles:
However, none of these challenges are non-starters for publishers, as the potential high-profit revenue generation outweighs the operational demands of introducing the new platform. And that’s why we’re already seeing so many publishers making the move to the web to unlock this high-margin revenue stream for their games and build deeper, loyal player bases.
👀 Related reading: Mobile gaming trends: 3 data-backed predictions for growth in 2025
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Since its 2016 launch, Pokémon GO has redefined mobile gaming with its real-world exploration mechanics, and its direct-to-consumer shop perfectly complements this vision. Beyond selling exclusive in-game items and PokeCoins supplemented by their loyalty program, Niantic’s web store also offers real-world event tickets – tying digital purchases directly to the game’s core experience of outdoor exploration and social interaction. This strategic alignment ensures that every transaction reinforces the game’s brand identity while driving additional, high-margin revenue.
The success of Pokémon GO’s DTC monetization model demonstrates how purpose-built web shops can deepen engagement beyond typical in-app purchases. By curating offers that resonate with their gameplay – from event tickets that get players outside to exclusive avatar items that celebrate community achievements – Niantic creates an extension of the Pokémon GO experience which works to attract users to the shop and deepen loyalty with the game. With approximately 50% of players returning daily and a global reach across 190+ countries,8 this approach proves that DTC stores work best when they enhance, rather than just supplement, the core game.
💡 Takeaway: A DTC web shop thrives when it aligns with your game’s unique experience – whether that’s real-world event tickets, community-driven rewards, or exclusive items that deepen immersion.
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Social casino games have always thrived on tiered VIP programs, where high-value players are rewarded with exclusive perks, bigger bonuses, and personalized offers. This makes them an ideal fit for DTC shops, which can amplify these game monetization strategies by delivering even more premium-level value – and higher margins – outside of the app.
Huuuge Games, a leader in the Social Casino space, has proven this model works. Their DTC revenue tripled in 2023 ($16.6M) and grew another 92% in 2024, now accounting for 10.8% of total revenue,
Here’s how they’re finding success:
DTC web stores are perfect for Social Casino games, as their players are more likely to spend in more games, more frequently than the average mobile game IAP spender, according to our 2024 Mobile Gaming Spender Report. In fact, the “Lucky Lucy” persona – those who play Social Casino games – are the most likely to make at least three in-app purchases per month.
💡 Takeaway: The most effective publishers with DTC stores don't reinvent the wheel – they build on what already works within their games. For Social Casino publishers, that means building on VIP programs, while for other genres, it might mean exclusive skins for competitive players or event tickets for community-driven titles. Know what motivates your audience, then design your DTC strategy to deliver even more of it.
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Electronic Arts' Star Wars: Galaxy of Heroes demonstrates the power of a franchise-aligned direct-to-consumer approach, generating consistent revenue while deepening player engagement with the Star Wars universe. Unlike generic mobile stores, its web shop turns every purchase into an extension of the galactic conflict between Rebels and Empire.
The game's DTC success stems from understanding what Star Wars fans truly want: to declare their allegiance and collect iconic characters. Rather than offering standard bundles, they sell currency bundles such as the Large Galactic Enhancement Kit and item bundles like the Hyperdrive Bundle pack, which contains various beloved characters and in-game resources.
What makes this model work is how it mirrors the Star Wars experience. Limited-time character unlocks turn spending into strategic roster-building rather than simple transactions, and every item is designed to reinforce the fantasy of being part of this beloved universe.
💡 Takeaway: Franchise games like Star Wars excel at DTC by selling fandom, but any game can replicate this success. The secret? Align your web store with player passions – through pop-culture collaborations, influencer bundles, or thematic events. When purchases feel like participation rather than transactions, you transform spending into self-expression.
👀 Related reading: Where worlds collide: The LTV-driving power of brand and IP collaborations in mobile gaming
DTC web shops are transforming mobile game monetization from a platform-dependent model to a player-first economy. While direct-to-consumer shops already dominate the mobile gaming industry, when we look ahead, the most successful publishers will treat their DTC store as a strategic asset rather than just a checkout page. The winners won't simply sell items – they'll create immersive buying experiences that make players feel like valued insiders.
“What we’re seeing is when developers get involved actively with their own digital experience and own that branded experience, they’re starting to see growth.” – Berkley Egenes, chief marketing and growth officer at Xsolla (11)
As platform fees and UA costs continue to pressure profitability, the ability to build direct, high-value relationships through web stores – alongside the exploration of alternative distribution platforms – may become the defining competitive advantage in mobile gaming's next chapter.
What other trends are on the horizon for mobile gaming in 2025? Check out our predictions for growth and subscribe to our newsletter to get new insights and updates on the industry straight to your inbox.
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