New to in-game mobile advertising?
There’s a lot to learn, and we’re here to help you grasp the basics. In this article, we’ll go over the concept of in-game advertising, common mobile game ad formats, and the most effective strategies for monetizing games in today’s mobile game market.
What is In-Game Mobile Advertising?
In-game mobile advertising is a popular mobile game monetization strategy.
Typically, developers sell ad space to advertisers through mobile ad networks to serve ads in their games. As users watch and engage with in-game ads, the developer makes ad revenue.
The main purpose of in-game mobile advertising?
Making money off non-paying players and keeping games free-to-play.
Developers can monetize their games exclusively with in-game mobile ads or combine them with other monetization models like in-app purchases and subscriptions (aka hybrid monetization).
Mobile Game Ad Formats
It’s difficult to discuss in-game mobile advertising as a whole because it includes various methods and ad formats with significant differences.
Some of the key differences between ad formats are how much money they can generate and how intrusive they are for players.
Different ad types can generate different amounts of revenue. The main metric for measuring this is eCPM (effective cost per mille). The higher the eCPM, the more profitable the ad format.
As for intrusiveness, certain ad formats interrupt the gameplay experience, while others are designed to be non-intrusive and user-friendly.
With this in mind, let’s go over the most common in-game ad formats and their main characteristics.
Interstitial Ads
Interstitial ads take up the players’ entire screens. They are usually dynamic (video ads), but can also come in a static form (image or text ads). When players see an interstitial ad in a game, they can either engage with it or wait a few seconds to close it.
Due to their full-screen nature, these ads are generally considered intrusive for players.
To make interstitial ads less intrusive for players, developers usually serve them during natural gameplay breaks (e.g. upon completing levels or missions).
It’s also important to carefully optimize their frequency, otherwise, players can get frustrated and games end up getting negative app store reviews. With that being said, implemented properly, interstitial ads can be a profitable format for game developers.
Average eCPM: $13.23 (US, Android, Appodeal)
Intrusiveness: High
Banner Ads
Banner ads are rectangular ads that typically appear on the top of the bottom of users’ screens, and they can also be static and dynamic.
They only take up a small part of the screen, so players usually don’t find them too intrusive.
The problem with banner ads?
Not many players engage with them.
Banners are an old-school ad format that has been used for a long time. Due to their unintrusive nature and common use, many users unconsciously ignore them, resulting in a phenomenon called banner blindness.
Banners aren’t exceptionally profitable for developers either, but the industry consensus is — it’s a good idea to include them in the mix. In combination with other ad formats, banners bring developers some extra revenue to the table without overwhelming players.
Average eCPM: $0.87 (US, Android, Appodeal)
Intrusiveness: Low to medium
Rewarded Video Ads
Rewarded video ads are an opt-in ad format where users agree to watch video ads in exchange for in-game rewards (e.g. extra currency, boosters).
This ad format is popular among everyone involved — users, developers, and advertisers. Users like them because they get a chance to win rewards, developers for their high eCPMs, and advertisers for their high engagement rates.
Rewarded video ads can appear in different placements.
For example, the developer can offer them to players after passing or failing a level, among daily rewards, in the in-game store, etc. The key to success with rewarded video ads is to offer them in situations when players are most likely to engage.
They are generally seen as non-intrusive, but if they appear too often, they can become a bit annoying for players.
Average eCPM: $17.2 (US, Android, Appodeal)
Intrusiveness: Low to medium
Offerwall Ads
Just like rewarded video ads, offerwalls fall into the category of rewarded ads.
Offerwall ads in games appear as walls listing different offers (action + reward for completion). Players can then choose to complete actions from the list to earn generous in-game rewards.
Let’s say players want to earn more coins in a game they are playing.
The developer can integrate an in-game offerwall, highlighting it as a place where players can earn “free coins”.
Players can then decide which offers from the wall they want to engage with. For example, downloading another game might bring them 100 coins, while reaching level 10 in an advertised game can bring them 1500 coins.
Offerwall ads have been underutilized for years, but have recently experienced a popularity boom among both advertisers and developers. Some reasons? Their quality has significantly evolved, and they are the most profitable out of all in-game mobile advertising formats.
Average eCPM: $530 (US, Android, IronSource)
Intrusiveness: Low
Playable Ads
Playable ads allow users to play a mini version of the advertised game before deciding to install it.
Like interstitial ads, playable ads are full-screen ads.
But, due to their fun and interactive nature, players are more likely to engage with playable ads than with interstitial ads. Thanks to this, this ad format traditionally yields high engagement rates, also leading to higher eCPMs for the developer.
Average eCPM: $17.24 (Game Developer)
Intrusiveness: High to moderate
Native Ads
Native ads are designed to seamlessly blend into the game environment without disrupting gameplay. To achieve this, developers integrate native ads as in-game elements that match the user experience in the game.
They are most suitable for genres that simulate real-world experiences, such as sports, racing, and simulation games. For example, players might see a native roadside billboard ad in a racing game, or branded clothes on in-game characters in a simulation game.
Advertisers mainly use this type of in-game mobile advertising to build brand awareness, and developers usually make revenue through sponsorship agreements.
Average eCPM: N/A
Intrusiveness: Low
Best Practices of Modern In-Game Mobile Advertising
There are a lot of in-game mobile advertising guides out there, but many of them bring outdated practices.
The mobile game industry has changed a lot in the last few years, and so have monetization practices. Here are some strategies that developers find effective in today’s mobile game market.
Combining In-Game Ads and In-App Purchases
A few years ago, it was common for a game to monetize either through in-game mobile advertising or IAPs.
Today, this either has turned into and.
Most game developers today use hybrid monetization — a combination of monetization models. On top of in-game ads, they include in-app purchases or subscription options in their games.
With this strategy, developers monetize a broad range of players, including those who are likely and unlikely to spend money on a game.
Combining Ad Formats
Speaking of combining things, another best practice of modern in-game mobile advertising is to mix different ad formats.
If you take a look at the top casual, hybrid-casual, and hyper-casual games, you’ll have trouble finding a game that serves only one ad format.
For example, a common combination includes interstitial ads, banner ads, and rewarded video ad placements.
The main benefit of this approach?
Creating ad experiences that aren’t too intrusive for players. For instance, developers often show banner and rewarded video ads first to let new players enjoy the game without interruptions. Later, they typically increase the frequency of interstitial ads.
Developers can even tailor ad experiences based on how players engage with ads. For example, if they notice that some players engage frequently with rewarded ads, they can show them fewer interstitial ads.
Prioritizing User Experience Over Quick Revenue
Mobile gamers are becoming less and less tolerant of aggressive in-game advertising.
Excessive in-game advertising might bring you short-term results, but in the long run, it’s a formula for disaster.
Aggressive ad strategies can frustrate users, and this frustration can lead to numerous negative reviews and high uninstall rates.
More and more developers are becoming aware of this, so they are carefully optimizing their ad placements based on gameplay and other ad formats. Over time, this strategy should lead to higher revenues, more loyal users, and higher engagement rates.
Leveraging User-Initiated Ads
Modern mobile gamers not only dislike intrusive in-game ads but also crave to have more control over their gameplay experiences. One way to give players what they want is through user-initiated ad formats.
Rewarded ad formats like offerwalls allow users to choose when and how they want to engage with ads.
Plus, they grant generous rewards to players – and who doesn’t like rewards?
Previously, some developers feared that giving out offerwall rewards might jeopardize their in-app purchases. However, time has shown that offerwalls actually help boost user retention and IAP revenue. According to Kongregate, offerwall users are 10-14x more likely to make IAPs than non-offerwall users.
In-Game Mobile Advertising: Closing Thoughts
That’s it, we’ve covered the basics of in-game mobile advertising and some effective strategies.
If you’re feeling overwhelmed by unfamiliar terms – check out our mobile gaming glossary. If you’re ready to learn more about mobile game monetization, make sure to check out some of our in-depth monetization articles and analyses of popular mobile games!
