AppLovin (APP) continues to dominate the mobile game advertising industry while Unity Software (U) is going through a successful turnaround, Wedbush Securities said in a note Wednesday.

AppLovin's e-commerce push, which contributed an incremental 2% to 3% to annual spending, is also driving mobile game eCPM, or effective cost per mile, which is growing at a faster rate of 10% heading into the holiday season, compared with the usual 5% year-over-year growth, Wedbush analysts, including Alicia Reese, said, citing Naveen Mewani of Homa Games in an advisor call.

The company also has the advantage of collecting real-time market data through its MAX mediation platform, which feeds its AXON algorithm, creating a cycle of continuous model optimization, according to the note.

For Unity, analysts said the advisor noted Vector's growth as it performs well on Android and in in-app purchase-focused applications. However, the platform takes 10 to 12 weeks to optimize campaigns and show real return on investment, which can be a drawback in a fast-moving market, the note said.

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