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The popular augmented reality (AR) app has generated astounding results, surpassing $1 billion in revenue after launching just this past July, according to SensorTower.

For comparison, Clash Royale, another app that is closing in on $1 billion in revenue, grossed $550 million in its first seven months.

And although daily revenue on Pokémon Go has fallen in the six or so months since its launch, the game is still pulling in up to $2.5 million every day globally.

The continued success of Pokémon Go could be the result of three factors and can serve as an example for how publishers and marketers should approach mobile apps moving forward:

Strong franchise recognition. The Pokémon phenomenon began as a successful Game Boy game, before becoming a popular TV show and splitting into the other markets. This instant recognition gave the company the ability to generate massive interest in its launch. It could also have leaned on nostalgia from older users that played the game when they were younger.

Utilizing smartphone capabilities. There is nothing particularly innovative about Pokémon Go’s gameplay, however, the app does cleverly utilize everyday smartphone capabilities, namely mapping technology and the phone camera, to create an AR-esque novelty that users found highly engaging.

Leveraging national events. Pokémon Go reinvigorates usage and user spending by offering limited-time events tied to national holidays, such as its successful Halloween offer. The in-game event boosted revenue 133% between October 25 and 29 , to reach $23.3 million globally. For context, the app generated $10 million from October 18 to 22 .

Over the past eight years, developers have flocked to create mobile games as smartphones became a mainstream consumer device. Technological evolutions including faster processors, larger screens, more input points, and better overall graphics capabilities, combined with dropping prices, brought the ability for gaming via smartphone to audiences larger than ever before.

In that growth and through that transition, smartphones as a gaming arena experienced its own evolution. More developers flocked to this medium, and the gaming sections of app stores became saturated. While mobile gaming apps using an up-front paid downloading model, wherein consumers paid a typically nominal fee to download an app, flourished in the early days of mobile gaming, the deluge of apps led to a change in monetization strategy.

More apps started using the free-to-play (F2P) model, wherein a consumer can download an app for free, and is then later monetized either via in-app purchases or in-app advertising. Since that transition, most consumers have been conditioned to expect quality mobile gaming apps for little or no cost.

Jessica Smith, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on mobile gaming that examines how the mobile gaming market has been affected by the transition to F2P monetization.

It also takes a close look at how saturation in the mobile gaming category, combined with the standard F2P model, has led to numerous issues for developers, including spiking marketing costs, the premium on acquiring users who will spend heavily within a game (called whales), and the impact that it's having on mobile gamers who do not spend in-app. The report then identifies innovations in mobile app marketing and engagement that seek to alleviate the issues of F2P and inadequate monetization in the fact of mounting marketing costs.

Here are some key takeaways from the report:

The mobile gaming app market is so big it makes other app categories seem small by comparison. Mobile gaming apps accounted for 20% of active apps in Apple's App Store in March 2016, according to AppsFlyer. That’s more than double the second most popular category, business apps.

It's only going to keep growing as quality smartphones become more accessible and more consumers look to their smartphones for gaming. In the US alone, 180.4 million consumers will play games on their mobile phones in 2016, representing 56% of the population and a whopping 70% of all mobile phone users, according to estimates from eMarketer.

This quick growth is resulting in numerous growing pains. Saturation in the market has led to the dominance of the free-to-play (F2P) monetization model, which in turn has led to sky-high marketing costs.

As marketing costs for mobile gaming apps has skyrocketed, so has the tendency for apps to focus on the very small segment of players who spend money in-app. This has resulted in game mechanics that optimize the amount of money being spent by this small user group, which can often alienate the large swath of users who do not spend money in-app.

There are numerous new solutions coming to market that offer developers and publishing houses a diverse selection of monetization models which combine in-app purchases with other methods.

In full, the report:

Sizes up the current mobile gaming app market and its future growth trajectory.

Examines the role of free-to-play (F2P) games in the greater mobile gaming ecosystem.

Identifies the major threats and opportunities inherent in the current mobile gaming market and in peripheral markets such as marketing.

Explains the current monetization conundrum wherein the vast majority of revenue comes abysmally small segments of mobile gamers.

Presents new approaches and solutions that can help mobile gaming apps monetize without alienating swaths of mobile gamers.

To get your copy of this invaluable guide, choose one of these options:

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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the world of mobile gaming.