[Post-Event Report] Comprehensive Analysis of Monetization Strategies in the Japanese Market Based on Latest Trends in the Game App Market and Overseas Case Studies! Introduction of Prospective Growth Measures!
Exclusive Release of a Portion of the Talk Session Conducted at “Surviving a Drastically Changing Market! 2025 Game App Growth Strategy”
Skyfall Inc. (Headquarters: Minato-ku, Tokyo; CEO: Tomokazu Hasegawa; hereinafter “Skyfall”), operator of the user-experience-focused reward marketing platform “SKYFLAG,” held a talk session on the latest trends in the game app market and growth strategies for 2025 at Roppongi Hills on Thursday, July 3, 2025. This event was conducted in collaboration with FourM Co., Ltd. (Headquarters: Minato-ku, Tokyo; CEO: Kazuma Watamoto; hereinafter “FourM”), which runs a media partner business for web media operating companies and app developers, and Sensor Tower (Headquarters: San Francisco; CEO: Oliver Yeh; Japan Country Manager: Kurando Matsuo; hereinafter “Sensor Tower”).
On the day of the event, Mr. Ikeda, Director of the Account Department at Skyfall, took the stage to conduct a talk session based on specific data and case studies regarding recent game app market trends over the past year, monetization strategies in Japan and overseas, and high-focus measures geared toward app growth. This release delivers the contents of that session in a report format.
Recent Trends in the Game App Industry Over the Past Year
First, the speakers discussed changes in the game app market over the past year.
Mr. Akimoto from Sensor Tower mentioned the current reality where the profitability of newly released titles is increasing while that of existing titles is facing a decline. He utilized data to explain that the average consumer spend per game title in 2024 for newly released titles grew to a level closely rivaling that of existing titles, with strategy games performing exceptionally well.
Furthermore, he noted a strengthening trend where users aggressively spend on titles in which they recognize high value. He pointed out that the overall quality of services has improved significantly in recent years, which has heightened users’ expectations. Delivering high-quality services that meet these expectations fosters user satisfaction and trust, which consequently drives a stronger willingness to make in-app purchases.
Mr. Ikeda from Skyfall addressed monetization trends, noting that the implementation of IAA (In-App Advertising) has been accelerating across social games as a whole in recent years. He introduced the current status of “SKYFLAG,” highlighting its expanding adoption within the social game sector—a domain that has traditionally been hesitant to engage in ad monetization.
He explained that reward monetization via “SKYFLAG” not only establishes a fresh revenue stream but also leads to enhanced satisfaction among existing users. It contributes to increases in DAU (Daily Active Users) and IAP (In-App Purchases), generating a synergistic effect that elevates both revenue growth and user engagement.
Ms. Hagiwara from FourM emphasized the importance of monetizing casual user segments who play for long durations without making purchases, introducing IAA (In-App Advertising) as an effective methodology for this.
Given this background, she explained that an increasing number of publishers are advancing game development with IAA as a prerequisite. Consequently, it has become crucial to design frameworks that display ads exclusively at timings where users perceive a clear benefit, or that allow users to choose whether to watch an advertisement.
Challenges in the Japanese Market and Growth Strategies in Overseas Markets
Next, the speakers introduced the challenges faced by the Japanese gaming market and the strategic differences required when expanding overseas, touching upon variations in monetization methodologies and marketing structures in South Korea and other international markets.
Mr. Ikeda from Skyfall discussed the characteristics of the monetization environment in the South Korean market. Comparing the game app markets of South Korea and Japan, he explained that major differences include South Korea’s lower ARPU (Average Revenue Per User), Android’s dominant market share of approximately 80%, and the active utilization of third-party external payment systems. Notably, the implementation of external payments expands user options while contributing to a shift of increasing overall profit margins independent of IAP (In-App Purchases).
He also addressed differences in mindset and organizational structures between Japanese and overseas marketers. In international markets, marketer organizations are highly segmented, place a strong emphasis on data analysis, and heavily lean toward in-house operations. Furthermore, he noted a heightened awareness regarding ad fraud countermeasures, with a stronger stance toward risk management through the active utilization of fraud detection tools compared to Japan.
According to Ms. Hagiwara from FourM, it is vital to deploy monetization strategies optimized for local markets during global expansion. Specifically, while the revenue ratio of IAA (In-App Advertising) is high overseas, accounting for roughly 40% of the total, it currently remains at only about 10% in the Japanese market. This indicates substantial room for future ad revenue expansion within Japan.
Furthermore, she touched upon differences in ad unit prices by country, explaining that because CPM (Cost Per Mille) in North America can be approximately 1.5 to 1.7 times higher than in Japan, using identical ad configurations risks missing out on significant revenue opportunities. She concluded that separating mediation groups by country and executing ad designs optimized for regional trends leads to maximized revenue.
Growth Strategies and Methodologies for the Future Game App Market
At the conclusion of the talk session, the speakers exchanged views on future growth strategies and initiatives for the game app market.
Mr. Akimoto from Sensor Tower highlighted the importance of multi-platform deployment. He explained that deploying across multiple devices, rather than restricting focus to mobile, allows publishers to expand their potential player base, and that even previously released titles can project massive growth through multi-platform expansion.
Mr. Ikeda from Skyfall explained that ahead of the scheduled enforcement of the “Act on Promotion of Competition for Specified Smartphone Software” (Smartphone New Act) in December 2025, many publishers are aggressively advancing the implementation of external payment systems, leading to the preparation of payment funnels outside of the app. In particular, the utilization of external payments driven by incentive initiatives, such as point-back rewards for users, is accelerating. He stated that preparing for these initiatives will become increasingly vital.
Ms. Hagiwara from FourM addressed new possibilities in IP utilization, suggesting that in addition to anime characters traditionally used in game apps, leveraging “real-world” IP, such as musical artists, is highly effective. She indicated that real-world IP can also be expected to drive exceptionally high user engagement.
About “Sensor Tower”
・Company Name: Sensor Tower
・Representatives: Oliver Yeh, CEO / Kurando Matsuo, Japan Country Manager
・Address (Tokyo Office): 45-1 Kanda Konya-cho, Chiyoda-ku, Tokyo 101-0035
・Core Business: Provision of the mobile market analysis platform “Sensor Tower”
・Website: https://sensortower.com/ja
About “FourM Inc.”
・Company Name: FourM Inc.
・Representative: Kazuma Watamoto, Representative Director
・Address: Roppongi Hills Mori Tower 31F, 6-10-1 Roppongi, Minato-ku, Tokyo
・Core Business: Media Product Business / Media Partner Business / Technology Support Business
・Website: https://corp.fourm.jp/
About “SKYFLAG”
“SKYFLAG” is a reward marketing platform that prioritizes user experience.
It has established a unique model leveraging rewards and provides comprehensive marketing support across monetization, promotion, and research.
・Service Site: https://skyflag.info/
About “Skyfall”
Skyfall operates a reward marketing platform “SKYFLAG” with the mission of “creating a world where good things spread,” while also putting focus on the user experience.
The company also manages an authentic Texas Hold’em poker game “Poker Chase” and “Pocket Play,” an app where users can earn rewards by playing games.
| Company Name | :Skyfall Inc. |
| CEO | :Tomokazu Hasegawa |
| Address | :(Tokyo Head Office) 19F Midtown Tower, 9-7-1 Akasaka, Minato-ku, Tokyo :(Niigata Office) Nippon Life Insurance Niigata Building 7F, 2-4-10 Higashiodori, Chuo-ku, Niigata-shi, Niigata |
| Business Description | :Reward Marketing Platform Business and App Media Business |
| Number of employees | :190 (As of the end of March 2025) |
| Established | :October 2017 |
| Capital | :79,393,750 yen |
| Website | :https://skyfall.co.jp/ |
