Advertising reports and market data
Documents
two & a half gamers session #33 - The UA (r)evolution, from fake ads to fake core gameplay in games
The mobile gaming industry is currently defined by a strategic shift toward the use of misleading advertisements and deceptive core gameplay mechanics to drive user acquisition.
- Fake ads—creative that depicts gameplay not present in the actual app—are used to drastically lower Cost Per Install (CPI), even though they often result in lower user retention.
- The math behind fake ads relies on volume: acquiring 100 players at a low CPI via misleading creative can yield more total conversions than acquiring 10 players at a high CPI through accurate gameplay footage.
- A current industry trend involves integrating the 'fake' gameplay into the actual game as a secondary feature, such as using hyper-casual mini-games to occupy players while waiting for timers in 4X strategy games.
two & a half gamers session #26 - Unpacking Google ads "disaster", ASA Today's new ad, Google ＜3 MAX
Google’s recent implementation of stricter ad guidelines, which limit intrusive full-screen interstitials and specific app-open formats, represents a strategic shift toward rewarded advertising rather than a systemic threat to the hyper-casual gaming sector.
- Google is enforcing stricter ad placement policies, specifically targeting full-screen interstitial ads that appear before app loading screens and those that remain unclosable for 15 seconds, leading to increased app rejections.
- Apple has expanded its search ad inventory by adding two new placements in the Search tab and the Search results page, a move expected to significantly increase Apple's advertising revenue following the implementation of the ATT privacy framework.
- AdMob has historically used its mediation platform to incentivize developers, with reports of the company throttling ad traffic by 90-95% for developers who exceeded a three-placement limit, effectively forcing them toward Google's own mediation tools.
two & a half gamers session #24 - 1 year after IDFA Apocalypse. State of the UA, Admon & retargeting
The mobile gaming industry has successfully navigated the initial disruption caused by Apple’s App Tracking Transparency (ATT) framework, moving beyond the narrative of an industry apocalypse toward a more sophisticated, privacy-centric operational model.
- Optimizing pre-prompt messaging and timing is critical for iOS user acquisition; effective implementation can increase opt-in rates from a baseline of 15–20% to as high as 40–54%.
- Retargeting remains a vital performance channel, with sophisticated studios now hiring dedicated specialists and using verifiable incrementality studies—often involving control groups—to justify spend and measure true ROI.
- The industry has shifted toward a more fluid budget allocation strategy between iOS and Android, moving away from the initial post-IDFA panic that caused a mass migration of spend toward Android.
two & a half gamers session #21 - How to run efficient UA on TikTok? TikTok's explosive growth
TikTok has established itself as a dominant force in the mobile gaming user acquisition landscape, driven by an interest-based algorithm that consistently outperforms legacy platforms like Facebook.
- TikTok’s interest-based algorithm is currently outperforming legacy platforms like Facebook in mobile gaming user acquisition by delivering lower purchase-based cost-per-install metrics.
- Successful TikTok UA campaigns require a creative-first strategy that involves rotating three to five creative variations on a weekly basis.
- TikTok’s revenue is projected to triple, positioning the platform as a primary competitor to major tech incumbents in the digital advertising space.
two & a half gamers session #16 - 7 Ad monetisation secrets how to make more revenue
Maximizing mobile game revenue requires a rigorous, hands-on approach to ad monetization that prioritizes direct negotiation and technical optimization.
- Maximize revenue by treating ad networks as leverageable partnerships, insisting on dedicated account management to secure superior price points and performance support.
- Maintain technical hygiene by removing unused placements in mediation platforms like Unity to reduce latency and stabilizing eCPMs during AdMob’s data-ramping periods.
- Protect user experience and ad delivery control by disabling unauthorized end cards that artificially extend ad duration without providing additional value.
two & a half gamers session #15 - Can UA save your game? Does your game need UA? UA for beginners
The mobile gaming industry is currently undergoing a significant market correction following the unsustainable growth observed during the COVID-19 pandemic.
- User acquisition (UA) cannot fix poor game performance; product teams must prioritize retention and lifetime value optimization before scaling budgets, as UA is only effective when the core game economy is sustainable.
- The mobile gaming market is undergoing a correction, evidenced by a six percent year-over-year decline in revenue as of early 2022 and a cooling in major merger and acquisition activity.
- Capital investment has shifted significantly toward blockchain-based projects, which now account for 50% of all funding in the sector.
two & a half gamers session #9 - How to increase AdARPDAU? How Adnetworks make money? Admonetisat...
The gaming industry is currently navigating a complex transition period characterized by aggressive investment in blockchain technology and the strategic repurposing of established mobile intellectual property.
- Hiring a dedicated ad monetization manager is only financially viable once a game reaches $20,000 to $30,000 in daily ad revenue, as the role typically yields a 20% revenue improvement that must justify the salary.
- Games with high ad reliance, particularly in the idle genre, should aim for more than five impressions per daily active user (DAU) to effectively scale campaigns and ensure ad revenue accounts for at least 40% of total income.
- The blockchain gaming sector saw significant investment growth in 2022, reaching $2 billion by mid-March, following a trend of increasing quarterly funding from $430 million in Q1 2021 to $1.6 billion in Q4 2021.
two & a half gamers session #6 - Supercell rant, why do fake ads work? UA fundamentals Q&A
Supercell’s recent financial performance, characterized by a 45 percent revenue increase to 2.24 billion dollars in 2021, masks underlying structural challenges.
- Supercell reported a 45 percent revenue increase to 2.24 billion dollars in 2021, yet the company faces structural stagnation due to a lack of new global title launches since Brawl Stars.
- Supercell is pivoting toward PC and console markets to modernize monetization and user acquisition strategies that previously prioritized brand purity over aggressive performance marketing.
- The mobile gaming industry is facing significant disruption from privacy changes, specifically the impending phase-out of advertising IDs on Google platforms.
TWIG #283 Anime correction, Applovin speculations, Ad creative trends and Ubisoft’s xDefiant
The gaming industry is currently undergoing a structural transition from the era of blitz scaling toward a model defined by operational efficiency, profitability, and strategic consolidation.
- The gaming industry is shifting from blitz scaling to a model of operational efficiency and profitability, evidenced by major workforce reductions at companies like Ubisoft and Pixar.
- Private equity firms have become the primary exit strategy for established studios, highlighted by the $2.8 billion acquisition talks involving Keywords Studios.
- Hyper-casual games currently lead the mobile marketing sector with an IPM (installs per mille) of 48, driving a trend toward 'mashup' creative techniques that blend gameplay, animation, and user-generated content.
Braving the Backlash: A Guide to Handling Hate on Your Brand's Social Channels
Online hate speech has become a pervasive challenge for brands, particularly as inclusive marketing initiatives frequently trigger organized backlash.
- 89% of brands currently rely on reactive moderation tactics like silently deleting or hiding comments, a strategy that fails to address root hostility and risks appearing complicit.
- Brands should transition to the 'Report-Reply-Remain' model, a structured framework designed to categorize and challenge hateful content rather than simply removing it.
- Relying solely on platform-level automated and human moderation is insufficient, as these tools frequently fail to identify nuanced or subtle forms of harassment.
CTV Special: Connected TV Ads examples Unpacked with Arthur from Vibe.co. Ideal customer for CTV?
Connected TV advertising has transitioned from a traditional branding medium into a sophisticated performance-based channel.
- Connected TV (CTV) has evolved into a performance-based channel that uses household IP-based device graphs to link TV impressions to specific mobile installs and revenue events.
- To generate sufficient data for meaningful campaign optimization, a daily budget of $500 to $1,000 is recommended.
- Gaming titles, specifically midcore, hardcore, and social casino, are the primary audience for CTV advertising due to the platform's ability to track return on ad spend (ROAS) through mobile measurement partners.
Privacy vs. Ad Monetization with Google's Ross Brockman and Kwalee's John Wright
The mobile advertising industry is undergoing a fundamental structural transition, moving away from legacy waterfall ad-buying models toward real-time bidding (RTB) systems.
- The mobile advertising industry is shifting from legacy waterfall models to real-time bidding (RTB) systems to reduce latency and increase market efficiency.
- Developers should anticipate a manageable 10% to 20% decline in ad revenue throughout 2024 as the ecosystem adjusts to ongoing privacy-centric mandates.
- To maintain access to personalized ad demand, developers must implement standardized consent management platforms in response to EU and UK regulatory pressures and Apple’s App Tracking Transparency.