In the dynamic realm of gaming, the spotlight has often shone on AAA titles, with their high production values and immersive experiences. However, as the gaming landscape evolves within the context of web3, the focus is shifting towards casual games. Known for their cost-effectiveness and broad appeal, casual games are gaining traction, prompting the industry to explore the potential of blockchain gaming.

Casual games are relatively inexpensive to create, can be distributed on any platform, and have a promising future with $19B in revenue forecasted by 2027. The average session length for casual games is 5-7 minutes, and the demographic skews older, with social casino games being primarily played by middle-aged women. Despite these advantages, casual games face challenges in monetization, with low ARPPUs (average revenue per paying user) and a conversion rate amongst the lowest of all game categories at ~1%. Web3 could increase the LTV (life time value) for those that convert but there is still 99% of gamers who won't convert. That's mostly the reason why most casual and hyper-casual games monetize via ads.

Web3 game onboarding has undergone significant improvements, making it more accessible for casual gamers. The initial complexities of navigating crypto transactions have been streamlined, with innovations like account abstraction and fiat on-ramps. This streamlined onboarding process not only caters to the tech-savvy but also opens the door for a broader audience of crypto-naive players, potentially tapping into an untapped market.

In-game advertising, a traditionally challenging aspect for developers, has undergone a transformation in recent years. Recognizing the value of gaming's massive player base, brands are investing heavily in the space. Platforms like Anzu are making in-game ads more native, seamlessly integrating them into the gaming experience. Casual games, with their short session lengths and wide device accessibility, are well-suited for such integrated ads, leading to improved engagement and ad revenue.

The global In-game Advertising market is poised for substantial revenue growth, projected to reach an impressive US$109.60 billion by 2024. Moreover, a consistent annual growth rate (CAGR 2024-2027) of 9.91% is anticipated, resulting in a market volume projection of US$145.50 billion by 2027.

China is expected to lead the global market, projecting the highest revenue of US$46,610.00 million in 2024, underscoring the nation's dominance in this market segment.

The average revenue per user (ARPU) is projected to reach US$9.04 in 2024, serving as a crucial metric indicating the market's potential profitability on a per-user basis. The growth of In-game Advertising is evident globally, with the United States, Japan, and China spearheading market adoption and revenue generation.

As the future of in-game advertising remains promising, the integration of seamless ads in casual web3 games becomes a significant opportunity for developers. This not only enhances the gaming experience but also drives revenue, creating a symbiotic relationship between developers and players. These findings underscore the relevance and potential of web3 gaming in shaping the future landscape of the industry.

Several examples showcase the potential of casual web3 games:

• Pixels: An open-world game combining farming, exploration, and blockchain ownership.
• Sunflower Land: A farm simulation game teaching business principles through resource management.
• Dragons Strike (by Gala Games): A free-to-play NFT game blending city-building and puzzle RPG elements.
• Paradise Tycoon: Build your paradise on an uninhabited island, crafting items and exploring the metaverse.
• Meta Toy City: Dive into an enchanting realm where humans and toys coexist in harmony, offering hack-and-slash adventures and collaborative raids.
• Axie Infinity (Axie Origins): A turn-based RPG where players collect NFTs representing digital pets known as Axies.
• Thetan Arena: A game seamlessly blending MOBA gameplay with diverse heroes and intense battles.

In conclusion, the exploration of casual web3 games brings forth a paradigm shift in the gaming industry, showcasing a landscape rich with opportunities and challenges. The findings regarding streamlined onboarding, improved in-game advertising, and the nuanced monetization strategies are particularly pertinent to the web3 gaming sphere.

As blockchain technology continues to shape the future of gaming, these insights underscore the importance of adapting to the evolving needs of both developers and players. The seamless integration of web3 features not only enhances user experiences but also establishes a sustainable and engaging ecosystem. With the potential to tap into untapped markets and create novel revenue streams, the relevance of these findings in the realm of web3 gaming is undeniable, paving the way for a more inclusive and dynamic gaming landscape.