Kongregate

Monetisation from the trenches – Lessons from the fight to maximise ad revenue

This panel discussion, held at Pocket Gamer Connects San Francisco 2018, features monetization experts from Zenjoy, Kongregate, and Sega Networks discussing strategies for maximizing mobile game ad revenue.

• Integrate advertising into the core game loop during the early development phase rather than treating it as an afterthought to ensure a balanced, data-driven monetization strategy.
• Prioritize rewarded video as the primary ad format due to its superior completion rates and positive user reception compared to other formats.
• Maintain a diversified ad strategy by utilizing interstitials and banners for non-paying users or specific game contexts to supplement rewarded video revenue.

MTG Q1 2018 Financial Results

MTG’s financial results for the first quarter of 2018 demonstrate robust growth and a strategic pivot toward a structural split of the organization.

• MTG plans to split into two separate publicly listed entities on the Nasdaq Stockholm in the second half of 2018, separating its digital entertainment assets from its traditional Nordic media business.
• The company achieved 9% organic sales growth and a 73% increase in profit in Q1 2018, marking the seventh consecutive quarter of at least 5% organic growth.
• Digital segment sales surged by 88% during the quarter, growing to represent 35% of total group revenue.

Annual Report 2018: Shaping the Future of Entertainment

In 2018 MTG delivered a robust financial rebound while executing a decisive strategic shift toward esports and digital-video assets.

• MTG executed a major strategic pivot toward esports and digital video in 2018, highlighted by the acquisition of ESL, DreamHack, InnoGames, and Kongregate alongside the divestment of non-core assets like Trace Partners.
• The company completed the separation of Nordic Entertainment Group (NENT) in 2018, which subsequently listed on Nasdaq Stockholm in March 2019.
• Financial performance showed growth with net sales rising 12–13% to SEK 19.7 billion and operating income increasing 24% to SEK 1.57 billion.

Organic high-value user acquisition

This analysis examines strategies for identifying, acquiring, and retaining high-value users—often referred to as power users—within the mobile gaming industry.

• Power users constitute less than 0.1% of the total player base but generate a disproportionate share of revenue, frequently spending over $200 per month.
• High-value users typically concentrate their spending within only two specific game titles, demonstrating extreme loyalty rather than broad-market engagement.
• Developers should shift monetization strategies away from addictive mechanics toward identity and social status, offering elite items that allow players to signal achievement.

MTG Q3 2017 Financial Results

Modern Times Group (MTG) demonstrated significant financial momentum during the third quarter of 2017, characterized by a strategic pivot from a traditional national broadcaster toward a global digital entertainment provider.

GameStop Form 10-Q: Q2 FY2018

GameStop’s financial performance for the first half of fiscal year 2018 reflects a period of revenue growth tempered by significant margin compression and rising operational costs.

• As of July 29, 2017, GameStop operated 7,480 stores globally, maintaining a diversified business model across five segments: four geographic video game segments and a Technology Brands segment.
• Total net sales for the 13 weeks ended July 29, 2017, reached $1.687 billion, a slight increase from $1.631 billion in the same period of the prior year.
• Gross profit margin decreased to 37.0% for the 13-week period, down from 37.9% in the prior year quarter, driven by margin compression in new hardware, software, accessories, and collectibles.

The Flash Games Postmortem

Flash technology served as the primary catalyst for the modern independent game industry, offering a low-barrier, cross-platform environment that enabled rapid prototyping and global distribution.

• Flash served as the primary catalyst for the modern independent game industry between 2006 and 2011 by providing a low-barrier, cross-platform environment for rapid prototyping and global distribution.
• The professionalization of the Flash ecosystem was driven by platforms like Mochi Media and Kongregate, which introduced revenue-sharing models, transparent bidding, and analytics that enabled developers to pursue full-time careers.
• The industry hit a critical turning point in 2010 when Apple rejected Flash on mobile platforms due to performance and security concerns, triggering a shift toward social gaming and mobile-native development.

Modern Times Group Q2 2017 Financial Results

Modern Times Group’s Q2 2017 financial results demonstrate a successful strategic pivot toward becoming a global digital video entertainment provider.

Modern Times Group Q2 2017 Interim Report

Modern Times Group demonstrated strong financial momentum during the second quarter of 2017, characterized by a 5% organic sales growth and a 9% increase in operating profit for continuing operations.

Annual Report 2017: Shaping the Future of Entertainment

Modern Times Group delivered its strongest results to date in 2017, posting net sales of SEK 17.5 billion—a rise of 8% on an organic basis and 16.9% reported—while operating income before items affecting comparability increased 19% to SEK 1.264 billion.

• Modern Times Group achieved record financial results in 2017 with net sales of SEK 17.5 billion, representing an 8% organic growth rate and a 19% increase in operating income before items affecting comparability to SEK 1.264 billion.
• The MTGx gaming division doubled its revenue to SEK 2.96 billion, achieving 37% organic growth driven by the strategic acquisitions of a 51% stake in InnoGames for SEK 801 million and 100% of Kongregate for SEK 463 million.
• Shareholders received a total return of 33% and a record cash dividend of SEK 12.50 per share, which accounted for approximately 95% of the company's net income.

GotW: BattleHand

BattleHand, a card-battling RPG developed by the London-based startup Another Place and published by Kongregate, serves as a notable entry in the mobile gaming market.

• BattleHand is a mobile card-battling RPG developed by London-based startup Another Place and published by Kongregate, targeting the mid-core Western market.
• The combat system utilizes a turn-based, team-oriented structure that incorporates elemental affinities—such as earth, water, and fire—to dictate tactical advantages.
• The game differentiates itself from competitors through a steeper difficulty curve and a design philosophy that prioritizes core gameplay mechanics over metagame-driven progression.

IAP Inspector: BattleHand

BattleHand, a fantasy-themed card battler developed by Another Place Productions and published by Kongregate, utilizes a monetization model that blends standard industry practices with unique narrative-driven engagement strategies.

• BattleHand prioritizes manual gameplay by requiring players to complete dungeons before unlocking auto-battle features, contrasting with the automated progression models of competitors like Star Wars: Galaxy of Heroes.
• The game utilizes a multi-currency system comprising keys for energy, gold as soft currency, and gems as hard currency.
• A daily gem subscription service is offered for approximately $13.99, a price point that may hinder its effectiveness as an entry-level conversion tool compared to lower-priced market alternatives.