The mobile advertising ecosystem is shifting fast, and app publishers are scrambling to stay ahead. From emerging ad formats to AI, it’s been a year full of highs, lows, and hype. Based on a survey of leading app publishers, our App Publisher Halftime Report breaks down the biggest wins, disappointments, and so much more as we head into the second half of the year. Here’s a small sample of what you’ll find inside.
A look back at the first half
The hype that didn’t deliver
When it comes to the biggest disappointment of the year, the Alternative App Stores are the clear losers. Despite all the buzz, these stores have failed to live up to expectations. The idea was that independent app stores would disrupt the dominance of Google and Apple, but in reality, publishers are saying that it’s been nothing more than a flash in the pan. While there was hope that different app stores could provide an alternative avenue for publishers, the lack of real growth or engagement means that many are moving on.
The roadblocks holding us back
Rising customer acquisition costs (CAC) continue to be a major challenge for the entire industry. The cost of acquiring new users is steadily increasing, and with it comes the struggle to justify ad spend. The problem is not just about the cost of ads, but also about creative fatigue. Engagement is under pressure, and the industry needs to rethink how to re-engage users without burning through the budget. The old methods just aren’t enough anymore, and new strategies are required to meet the challenge head-on.
Overrated… but maybe heating up?
AI has taken the crown as the most overused buzzword in the industry. It’s been brought up in every conversation, but what has it really delivered? While AI’s potential is clear, the truth is that it’s still not living up to the hype. Publishers are tired of hearing about it, but they know that AI’s role in the future of mobile advertising is undeniable. The real challenge is not about overusing the word; it’s about harnessing its power. The industry must stop waiting for perfection and start putting AI to work in ways that drive real results. AI is here to stay, but it needs to start delivering on its promises.
What to expect in the second half of 2025
Overhyped, yet essential
Looking ahead, AI remains the next big thing in mobile advertising. While it’s been overhyped to the point of exhaustion, the truth is that AI’s potential is just waiting to be fully unlocked. It’s a paradox: we’re tired of hearing about it, but at the same time, we know how powerful it can be. AI will continue to play a critical role in personalization, targeting, and optimization, but it’s time for the industry to stop waiting for perfection and start making real strides with the tools already available. AI agents, in particular, are set to be a game-changer for publishers looking to automate and optimize their strategies.
One key to success
As we move into the second half of 2025, the industry is going to demand more transparency and control. Publishers can no longer afford to rely on black-box systems that offer little insight into what’s driving performance. Data ownership and real-time insights are going to be non-negotiable for partners that want to succeed. Premium networks will need to offer actionable recommendations and real insights, not just provide a pipe for ads. Publishers are smarter now. They’re asking for more transparency, and if they’re not getting it, they’re going to look elsewhere. The future of mobile advertising will be all about control and collaboration.
Predicting the winning plays
The ad formats that will win in the second half of 2025 are clear: shoppable ads, rewarded video, and immersive ads. These formats provide interactive, engaging experiences for users that go beyond traditional ads. They turn ads into experiences that consumers want to engage with, and that publishers can monetize effectively. But there’s also room for audio ads to come in and surprise us. Audio might just be the dark horse in this race, if publishers are willing to experiment with it.
Closing thoughts
The second half of 2025 is shaping up to be a year where AI, transparency, and innovative formats will define success. If you want to stay ahead of the curve, download the App Publisher Halftime Report to get all the insights and strategies for succeeding in the second half of 2025.
