In-Game Advertising reports and market data
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Facebook on mobile gaming's next wave
The mobile gaming industry is currently defined by explosive growth, driven primarily by the global adoption of smartphones and the prevalence of free-to-play business models.
- Mobile gaming is projected to reach 2.5 billion players by 2019, with two-thirds of industry growth currently originating from emerging markets in Asia and South America.
- Mobile platforms have surpassed console gaming in popularity, functioning as the primary entry point for new players who lack access to dedicated hardware.
- The transition from 4G to 5G technology is enabling more complex, synchronous, and competitive gameplay by significantly reducing latency.
Mobile game monetisation tips
This analysis explores mobile game monetization strategies, focusing on the balance between ad-based revenue and in-app purchases (IAP).
- Monetization must be treated as a core design element rather than an afterthought, prioritizing user-centric 'opt-in' experiences like rewarded video ads to drive revenue without harming retention.
- User segmentation is essential for maximizing revenue, allowing developers to tailor ad exposure and in-app purchase offers based on the specific behaviors of high-value spenders versus non-spenders.
- To maintain technical efficiency and avoid excessive waterfall complexity, developers should limit their ad network partnerships to a range of three to five providers.
Hidden ways to double your rewarded video ads revenue
Optimizing rewarded video ad revenue requires a strategic approach during the soft launch and post-production phases of mobile game development.
- Top-performing mobile games achieve a rewarded video engagement rate of 50% or higher, with users watching an average of 3.5 to 4.5 ads per day.
- Developers should treat ad integration as a core game mechanic, ensuring it is designed as an opt-in feature rather than an afterthought to maximize monetization without harming retention.
- Using unique placement IDs for every ad integration point is essential for isolating performance data and identifying which specific areas of the game drive revenue or create friction.
A clear view into making in-app advertising work through a fair unified auction
The mobile in-app advertising ecosystem currently relies on a fragmented mediation model that often creates conflicts of interest, as mediation providers frequently prioritize their own demand sources over others.
- The mobile advertising industry is shifting from the traditional waterfall model to a unified auction to eliminate conflicts of interest where mediation providers prioritize their own demand sources.
- Unified auctions allow all demand partners to compete simultaneously in a single environment, ensuring the highest bidder consistently wins and maximizing publisher revenue.
- The waterfall method suppresses publisher earnings by restricting bidder access based on arbitrary hierarchies, whereas unified auctions foster competitive pricing pressure.
What you need to know about the future of mobile monetisation
The mobile gaming industry is currently navigating a transition from a period of rapid user acquisition to a more mature, saturated market.
- Publishers should transition from manual, waterfall-based mediation to real-time and programmatic header bidding to increase eCPMs and fill rates through competitive demand-side platform bidding.
- Vertical video ad formats should be prioritized over landscape alternatives, as they consistently deliver 10% to 20% higher conversion rates.
- Interactive playable ads are now an industry standard that effectively increase both install rates and long-term player retention by allowing users to sample mechanics before downloading.
Is this really all there is? More ways to monetise mobile games
Mobile game developers frequently struggle to achieve financial sustainability, with industry data indicating that between 40% and 60% of independent studios fail to generate enough revenue to fund their subsequent projects.
- Between 40% and 60% of independent mobile game studios fail to generate sufficient revenue to fund their subsequent projects, highlighting the limitations of traditional premium, freemium, and advertising models.
- Developers can diversify revenue and increase player retention by selling physical merchandise through e-commerce platforms that manage printing, logistics, and returns, eliminating upfront inventory costs.
- Integrating streaming platform tools allows spectators to influence live gameplay through chat commands or paid interactions, effectively converting passive viewers into a new revenue stream.
Publishers on their dream monetisation platform
Game developers and publishers currently face a fragmented monetization landscape characterized by high technical overhead and the burdensome management of multiple ad networks.
- Publishers prioritize low-friction, stable monetization SDKs over unproven yield increases to avoid technical debt and administrative overhead.
- Developers frequently encounter performance degradation in ad networks after the initial onboarding phase, necessitating scalable and reliable long-term solutions.
- The industry faces a persistent tension between the need for granular eCPM data and the requirement to maintain a high-quality, seamless player experience.
Monetisation masterminds
This discussion features monetization experts from Pocket Gems, Linekong, and Glu Mobile, focusing on the strategic integration of in-app purchases (IAP) and advertising within mobile games.
- Successful mobile monetization requires integrating five to nine ad networks to drive competition and maximize fill rates, despite the technical complexity of managing multiple SDKs.
- Rewarded video ads are now essential for all players, including those who already make in-app purchases, as they increase overall engagement and provide incremental value.
- Developers should move beyond basic payer versus non-payer segmentation by incorporating geographic and behavioral data to optimize both pricing and ad delivery.
Advanced ad strategies that drive revenue and boost engagement
Mobile game developers often fail to maximize ad revenue due to overly conservative monetization strategies and a lack of granular player segmentation.
- Implementing a dynamic, behavior-based ad strategy can increase daily revenue for an app with 200,000 daily active users from $2,000 to over $7,800, yielding an incremental annual gain of more than $2 million.
- Developers should aim for at least 40% of the daily active user base to engage with rewarded video ads to maximize monetization potential.
- Ad opportunities should be integrated directly into the core game loop rather than hidden in menus, and developers should remove arbitrary restrictions like level-gating or wait times to boost engagement.
Mobile monetisation – Are all $ made equal?
Mobile monetization strategies often focus exclusively on revenue generation, frequently overlooking the significant financial losses caused by poor-quality or inappropriate advertisements.
- Ad networks frequently fail to honor publisher blacklists, with approximately 70% of requested restrictions being violated.
- Poor-quality ad experiences, such as non-functional exit buttons and broken web links, create a 'leaky bucket' scenario that directly causes user churn and reputational damage.
- Developers must shift their monetization focus from raw gross revenue to net value, ensuring ad delivery does not undermine long-term player retention.
Rapid response to mobile ad fraud
Mobile advertising has surpassed web-based advertising in scale, leading to increased investment and sophistication among marketers.
- Attribution providers can mitigate fraud by leveraging massive datasets, such as those analyzing over half a trillion interactions per month, to identify and block malicious activity across entire client bases.
- Fraudsters frequently target organic installs to force marketers to pay for users who would have downloaded the application without paid intervention, creating a prisoner’s dilemma that complicates accountability among ad networks.
- Effective fraud mitigation requires a layered approach that combines real-time prevention with post-mortem detection, as simple blacklists of IP addresses or devices are easily bypassed by sophisticated actors.
How to harness the power of playable ads
Playable ads represent a significant evolution in mobile user acquisition and monetization strategies, offering a high-engagement alternative to traditional static banners, interstitials, and video ads.
- Playable ads function as HTML5-based mini-games that allow users to experience gameplay before installation, resulting in higher retention rates and increased lifetime value (LTV) for the advertised product.
- Simplifying ad interfaces and highlighting primary interaction points can significantly boost performance; one case study showed engagement rates rising from 42% to 70%, which nearly doubled the ad's eCPM.
- Playable ads provide granular data analytics that exceed static or video formats, enabling developers to track user behavior through every stage of the ad funnel.