Whether you run an IT support company or develop mobile games, revenue matters! It’s the only way to sustain a business. Mobile game monetization has picked up a lot of traction lately. It is a popular way of making money from mobile games. There are various strategies game developers use to generate revenue from games they have made by putting a large investment in form of resources, time, and/or money.
Like any other app developer, mobile game creators need profitable revenue to cover up the development expenses and gain some profit as well. The most effective strategy to accomplish this goal is in-game or in-app mobile advertisements. In-app advertising enables players to play free games while the developer makes money off it by integrating ads.
What Is In-Game Mobile Advertising?
As mentioned earlier, in-game mobile advertising is a monetization model that generates money for millions of free-to-play mobile games. The in-app advertisements are displayed within mobile games. These ads are served through a mobile ad network. These ads now come in different formats.
There is a symbiotic relationship between the three parties; the player enjoys unlimited free-to-play games, the developers get a chance to generate money from these ads, and the advertisers use this as a medium to acquire new consumers for whatever product they are advertising.
To include in-game advertisements, there are two important factors that should be carefully considered; namely, ad network and ad formats.
What Are the Benefits of Monetizing a Mobile Game with In-App Advertisements?
There are still many people who believe that integrating ads in gaming apps will result in agitation among players, loss of IAP revenue, reduced ratings, etc. However, there is much more to gain than to lose if you opt for in-game mobile advertisements. The list is given below to nullify all such concerns.
#1. Makes a Large Amount of Money
Undoubtedly, free-to-play games are dominating the marketplace, and integrating ad displays generates lots of revenue since the majority of players prefer free games. It doesn’t bother them to watch ads until they’re allowed to enjoy free, high-quality games.
#2. Enhances User Engagement and Retention
If everything is created suitably, for example, the ad placement, frequency of ads, as well as ad network and format, advertisement monetization can have a positive impact on user engagement, retention, and player LTV. The players are encouraged to keep playing because of ad rewards and bonuses.
#3. Boosts In-Game Purchases
Although a very small percentage of players make in-game purchases, an in-game advertisement can push them to make online purchases at some point. This is possible if you have a hybrid monetization model, ads can also generate the IAPs. Data says that game players who interact more with rewarded ads are 6 times more likely to complete an in-game purchase.
#4. Reward Video Ads
Players love to win rewards, incentives, and bonuses by watching a video. It is the simplest and easiest way for them to get a sense of achievement. Almost 53% of gamers prolong the game just because they gain such benefits from video ads.
#5. Opt-In Nature
The choice of opting to view an ad is a great feature that can increase your number of consumers. Although there is a choice, the majority of players get attracted to the ads (only if it is relevant) and click on the button to view rewarded ads and offer walls. The motivation to watch comes from three things:
- The ad is for free
- Getting rewards or incentives
- Discovering new games
#6. Unlock Levels
Unlocking the next level by watching an ad is another way users like to proceed further with the game. Players prefer going through a short ad to move to the next level or unlock the higher level of the game.
#7. Fitting User Interests
Ad networks use the interests and preferences of the target to entice them to click on certain ads. This is a strategy to discover user relevance.
In-app ad revenue is totally your call and how you make use of it to the maximum. Sadly, there is no global formula that can optimize your chances of in-game monetization. This article is created with the purpose to help game developers know about different strategies to make revenue from their game products. However, data shows that from 2019 to 2020, the peak of the pandemic era, a 45% increase in game installations was recorded. As a result, in-game advertisement picked its pace and has become the most advanced revenue channel for game developers.