The State of Creative Optimization – 2025 Edition

AI is revolutionizing the creative process — that much is clear. But to truly harness its power, we need to understand where it adds value across the creative journey, bringing together what are often siloed efforts between performance and creative teams.

On the production side, AI has democratized creativity. Marketers can now generate a high volume of ad variations quickly and efficiently — a critical capability in today’s fast-paced, test-and-learn environment. In what has become a relentless numbers game, marketers scramble to find creative winners among dozens or even hundreds of options. And with everyone competing for the same eyeballs across the same platforms, speed and scale are no longer optional, they’re essential for all businesses whether small or large.

But scale alone isn’t enough. Without intelligent measurement and optimization, more creatives simply create more noise. In other words, the bottleneck has moved from production to measurement and optimization. 

True creative optimization goes beyond surface-level tweaks like placement, color, or copy. It dives into the emotional and psychological triggers that drive action: hooks, narratives, and motivators embedded within the creative. Advanced AI can now decode these signals at scale, offering marketers unprecedented insights to guide their strategy.

And perhaps most importantly, this (r)evolution doesn’t replace creativity — it enhances it. While the digital era emphasized data and performance metrics, AI is now reconnecting marketers with the heart of their craft: understanding people. It helps uncover not just what performs, but why — translating patterns into human insights that fuel better storytelling.

In this 2nd edition of our State of Creative Optimization report, AppsFlyer’s AI-driven Creative Optimization solution was used to analyze 1.1 million creative variations to uncover the patterns, emotional triggers, and user motivations that separate standout ads from the rest.

The data presented in the following sections is framed by three key metrics that together provide a multidimensional view of creative performance:

1. Share of cost reflects the proportion of ad spend allocated to a specific creative. When a creative performs well, media sources typically increase investment — a sign of strong audience engagement.
2. IPM (Installs per Mille) measures how many impressions are needed to generate an install, offering insight into how effectively the creative converts interest into action.
3. Day 7 retention evaluates the quality of users acquired by that creative — showing whether the app delivered on expectations and offered enough value to keep users engaged.

While each metric is valuable on its own, their interplay often reveals deeper insights.

For example, a creative with low share of cost may still show high IPM and strong retention if it resonates with a niche, high-value audience. In that case, the creative isn’t underperforming — just targeting a smaller, more relevant segment.

Conversely, a creative with high share of cost might deliver lower IPM and retention if it casts too wide a net, attracting less-qualified users.

High IPM paired with low retention can also signal a disconnect — where the ad and app store page drive installs, but the app experience fails to meet expectations, leading to early churn.

Ultimately, the goal is to strike a balance: maximize reach and installs while ensuring long-term engagement and sustainable growth.

In addition, we chose to present the data at a global level, since we found that while creative trends varied significantly between categories, they were surprisingly consistent across GEOs — an interesting insight on its own!

Lastly, here’s how we defined the various hooks, user motivations, gaming outcomes, and UGC types for the AI.

In Q1 2025, the top 2% of creatives — the creative winners — still dominate ad spend but slightly less so than in Q1 2024. While the change is modest (3-4 percentage point drop), it’s consistent across both Gaming and Non-Gaming, signaling a shift toward broader creative distribution.

In Gaming, the top 2% of creatives drive 53% of spend (down from 56%); in Non-Gaming, it’s 43% (down from 47%). This 10-point gap highlights differing creative strategies.

Gaming marketers tend to scale winning creatives fast, concentrating spend on top performers to maximize short-term impact. It’s a high-intensity, performance-first mindset.

Non-gaming advertisers, in contrast, often diversify their creative mix. Spend is spread more evenly—whether to appeal to broader audiences, maintain brand consistency, or reduce risk. This approach reflects a more cautious, iterative strategy that prioritizes long-term engagement over rapid spikes.

What does this mean for 2025? Marketers are not abandoning their top performers, but they are diversifying. Whether it’s to fight fatigue, feed algorithms, or uncover new winners, the trend is clear: creative variety is inching forward.

As mentioned above, creative strategy is a numbers game and marketers are responding. After a 40% YoY rise in output from 2023 to 2024, growth continues in 2025, but not evenly.

In Gaming, production is still concentrated at the top: apps spending $7M+ per quarter now produce an average of 2,743 video creative variations per quarter — nearly 3x more than those in the $4–$7M tier, and 5–6x more than the $1–$4M range. Recent data shows top Gaming spenders ($1M+ per quarter) grew creative volume by just 8% YoY, while lower-spending Gaming apps actually shrank by 3%.

Non-Gaming apps show a different trend. Creative growth is not only stronger but more widely distributed. Top Non-Gaming advertisers ($1M+ per quarter) increased creative output by 22% YoY, and even lower spenders saw modest gains (+2%). Among $7M+ Non-Gaming apps, the average volume reached 2,365 variations, reflecting an impressive 18% YoY growth.

This suggests a fundamental difference in approach. While top Gaming apps continue to scale, mid-tier players may be hitting operational ceilings or focusing on optimization over expansion. But that may no longer be enough.

With non-gaming ad spend growing significantly in the past couple of years, its advertisers are ramping up production — and competing on the same social platforms — mid-tier Gaming teams can’t afford to sit still. Competing for attention means rethinking scale not just as a resource issue, but as a core component of strategy.

Casual game marketers are all-in on Excitement and Completion, with most of the budget split between the two. But while both drive installs at similar rates, the story shifts post-install: Excitement consistently outperforms Completion in Day 7 retention. It appears that satisfying progress might keep players around longer than pure adrenaline.

When it comes to hooks, it’s no surprise that gameplay dominates in gaming apps: it’s simple to produce, often just a screen recording. On social platforms, Bold statements drive high spend but yield low IPM, possibly indicating that users are becoming indifferent to bold claims constantly appearing in their feeds, making them less effective at capturing attention. Also, the high IPM of Humorous Skits (especially in ad networks and DSPs) indicates their standout appeal, despite modest investment.

Looking at gameplay outcomes, media sources behavior varies between platforms. On ad networks, Pure Success endings deliver a 33% higher IPM; but on Social & Search, it’s Pure Failure that wins big with a 65% higher rate, flipping the expected narrative. 

Within UGC, Testimonials completely dominate the share of cost across all media. However, Gameplay Reviews outperform on both IPM and retention, particularly on ad networks, where they deliver the highest D7 rate (22%) despite accounting for less than 5% of spend.

Motivational analysis reveals key dynamics in hypercasual performance. Challenge motivation outperforms in retention, with Day 7 rates 2.2x higher than Excitement on Ad Networks (13% vs. 6%) and 2.5x higher on Social & Search (10% vs. 4%).

This highlights Challenge’s role in sustaining gameplay even if it doesn’t always win on IPM. While Excitement drives the highest IPM across all media, it also delivers much lower retention, demonstrating that thrilling content grabs attention, but Challenge supports longer-term engagement.

Hook strategies reveal a mismatch between investment and impact. Immediate Gameplay Showcase dominates spend with 72% on Social & Search, but trails Humorous Skits and Problem-Solution Scenarios in IPM by 12–15 points on Ad Networks. Shifting even 10–15% of spend to these high performers could drive install gains without increasing budget.

In UGC, over 80% of Ad Network spend goes to Testimonials, but Gameplay Reviews drive 88% higher IPM (45 vs. 24). Conversely, Testimonials yield 63% higher D7 retention (15% vs. 9%), underscoring a key tradeoff: one format acquires more users, the other keeps them longer. A smarter blend could optimize both ends of the funnel.

Failure-to-Success narratives drive standout IPM — over 4x higher than Pure Success on Ad networks and nearly 2x higher on Social & Search — yet they receive far less budget. But when it comes to retention, Pure Success leads across the board, with nearly double the Day 7 rates of Failure-to-Success on Ad networks. In hypercasual, the creative tradeoff is clear: dramatic arcs win attention, but simple success stories keep users around.

Social casino creatives are heavily driven by Completion motivation, but performance varies significantly across channels. On Ad Networks, where Completion represents over 80% of spend, it delivers the highest Day 7 retention (11.5%), supporting the allocation. In contrast, on Social & Search, Completion still accounts for around 70% of spend but ranks lowest in retention (12.5%) among all motivations. 

This reveals an opportunity: while Completion performs well on certain platforms, shifting some budget toward higher-retention motivations like Excitement and Competition on Social & Search could help improve post-install engagement.

When it comes to creative hooks, Gameplay remains dominant (55%-78%), reflecting the need to quickly demonstrate value. Bold Statement also stands out, with consistent share across media types (±10%). However, 60% higher retention on Social & Search and DSPs shows its strength in scroll-heavy environments. These insights highlight untapped potential in underused but high-performing hooks.

In terms of gameplay outcomes, Social Casino ads lean into Pure Fantasy. Almost all creatives end in big wins showcasing jackpots, progress, and reward. Not a single one ends in failure without recovery, which aligns with the escapist, feel-good DNA of the genre. Still, introducing more varied story arcs like Failure to Success could diversify content and build tension, without breaking tone.

Celebrity-led creative in gaming apps shows notable performance gaps between spend and outcomes. Budgets are overwhelmingly skewed toward Movie Stars, which attract over 80–90% of spend across all channels. Yet on Ad Networks, TV Personalities outperform with an IPM of 7.2 — 2x higher than Movie Stars and 7x higher than DSP averages. Social Media Influencers also drive higher IPM than Movie Stars across all channels, with a particularly strong retention lead on DSPs (28% D7 vs. 18%).

Retention trends echo this mismatch. Music Artists, who receive minimal budget, drive the highest D7 retention on Social & Search at 21%, outperforming Movie Stars by over 50%. Similarly, on Ad Networks, Social Media Influencers and TV Personalities outperform on both IPM and retention, indicating a strong resonance with users that isn’t reflected in budget allocation.

Looking at gender, spend tilts toward Male celebrities (especially on Social & Search, where they account for 75%), but Female celebrities achieve slightly higher retention on Social & Search and comparable IPMs. The gap suggests an opportunity to rebalance toward more inclusive representation without sacrificing performance.

Role type reveals another major blind spot. Brief Appearances drive the highest IPM by far on Ad Networks at nearly 10, 4x that of Main Focus roles but receive less than 10% of spend. On DSPs and Social, Main Focus roles shine in retention (18%+), but the highest IPM performers remain underused.

The latest data shows that there is no single dominant Hook among dating app creatives, indicating a sophisticated approach by advertisers striving to reach diverse audience segments. Problem-Solution hooks command the largest share of budget at 28%, yet their IPM (0.83) and Day 7 retention (13.6%) remain average. While this format, which promises to “Break the ice in three easy steps” or “Meet the right match without endless swiping”, clearly addresses immediate user needs, it may require a creative overhaul to drive consistent engagement.

Meanwhile, both Curiosity & Mystery hooks (8% cost share) and Sensory & Visual hooks (5.8%) boast the highest IPM on Social & Search (1.05). Prompts like “Guess Who Swiped Right?” or immersive visuals showcasing real-life date experiences succeed in hooking users, suggesting an opportunity to scale these hooks. 

From a motivational perspective, Casual Dating and New Experiences dominates spend and achieves the strongest IPM overall, thanks to slogans like “Swipe for fun, meet new people tonight.” However, its moderate retention highlights the potential of deeper motivations such as Finding a Serious Relationship, which boosts long-term loyalty through messages like “Ready for something real?”

Given that many dating apps rely on mixed monetization models, subscriptions and in-app purchases, retaining engaged users becomes even more crucial to ensure recurring revenue.

Finally, UGC remains pivotal, but while Testimonials account for 94% of UGC spend, truly valuable users are more likely to appear when they engage with Tutorials. This discrepancy underscores the importance of continuously testing and optimizing creative formats rather than relying on a single, popular approach. 

Finance apps have seen major growth in recent years, prompting developers to explore more innovative creative strategies to acquire high-quality users.

The category’s creatives are driven by a user motivation of Simplification which shows strong growth potential. This is a common theme in crypto and stock apps since consumers are concerned about making mistakes. While they currently receive only average spend, their high IPM and solid retention signal strong engagement and untapped opportunity for scale.

Social Proof hooks, which feature trending content, testimonials, or community participation, make up just 5% of spend in Social & Search, yet drive the highest Day 7 retention at 21%. These creatives tap into FOMO with lines like “90% of Users Hit Their Goal in 30 Days — Can You?” or “The $1,000 Challenge Everyone’s Talking About.” Despite their strong performance, the niche audience limits scalability, though continued investment is clearly justified.

Instant Gratification hooks promise fast results, such as “See your savings grow instantly” or “Get cashback the moment you spend.” They receive double the spend in DSPs compared to Social & Search, even though DSPs deliver 17% better Day 7 retention. This suggests that while these creatives drive scale, they may not lead to long-term loyalty.

In the UGC category, testimonials dominate with 88% of spend. However, users who engage with tutorial-style content show 37% better retention, highlighting an opportunity to shift budget toward more educational formats.

Storytelling hooks, characterized by narrative arcs and emotional twists, remain underutilized in Social & Search media, capturing only about 6% of the total budget but yield the highest Day 7 retention at 8.4%, suggesting that users attracted by compelling stories are more likely to stick around. 

Meanwhile, Social Proof hooks, which emphasize viral trends or user achievements, tend to produce a good balance of IPM and retention. By carefully scaling them, marketers could build a highly engaged community that leverages users’ fear of missing out (FOMO).

What motivates Social Media users? The Entertainment, Discovery, and Inspiration motivation offers an engaging angle that captivates audiences seeking fun, creativity, and the latest trends. Slogans such as “Be the first to discover viral content” or “Watch trending videos from your favorite creators” help draw users in, and their relatively modest IPM indicates advertisers are paying a higher price for installs. However, the payoff is a solid 7.1% retention rate (highest among motivations) thanks to the ongoing entertainment value.

UGC in the form of Tutorials or App Reviews emerges as a highly effective creative format. Despite having a 60% lower share of cost than Testimonials, it generates 45% higher IPM and a 17% boost in Day 7 retention. Examples like “Here’s how to schedule your posts in seconds” or “Check out these tips for a perfect profile” help clarify the app’s practical benefits, attracting more committed users who are likely to remain active over time.

Celebrities remain a powerful yet nuanced tool for Non-Gaming app advertisers. Despite holding the highest share of spend, campaigns featuring popular musicians show weaker install efficiency and Day 7 retention. For example, “Stream the latest tracks from [Famous Pop Star]” may grab attention initially, but it doesn’t always spark sustained engagement.

In contrast, social media influencer-led ads yield a notably low IPM yet excel at retention. “[Influencer] shares real-time budgeting tips” resonates with fans who trust their lifestyle. 

Meanwhile, TV personalities, backed by a smaller budget, achieve the best IPM, which could indicate a solid cost-per-install ratio. Ads like “Join [TV Host] for weekly cooking tutorials” combine familiar faces with consistent programming, resulting in high retention and a promising return on investment.

Beyond celebrity categories, female-focused ads, though underfunded compared to those targeting men, deliver 60% stronger IPM and slightly better Day 7 retention, highlighting the importance of messaging with a female celebrity.

Additionally, when celebrities serve in a supporting role rather than as the main star, IPM drops, but retention peaks at 12.1%. Campaigns such as “Watch [Celebrity Name] and friends explore our newest features” weave a more comprehensive narrative that can foster deeper user investment. 

Although the lower install volume might be a challenge, those who do convert tend to remain active, potentially driving higher lifetime value. In the end, marketers should balance budget allocations, celebrity appeal, and creative execution to sustain both rapid acquisition and meaningful user engagement.