How ad-supported game monetization can be a win-win-win for publishers and gamers

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It’s no secret: Around the globe, mobile gaming is established as a key part of people’s daily lives. Gamers continue to be satisfied with the ad-funded model. And more and more developers rely on in-app ads and hybrid monetization as a dependable game revenue channel.

But here’s what is new from our latest research — Why The Ad-Supported Model Of In-game Advertising Is A Win-Win: integrating in-app ads in games has led to over half (51%) of gamers playing longer sessions[1]. And this is true across most genres and regions.

In addition to increasing session length and engagement, in-game ads revenue continues on an upward trajectory. By the end of 2019, in-game ads accounted for 17% of total worldwide smartphone gaming revenue ($82.6B), a percentage that is expected to triple by 20242.

In existing and new markets, the growing mobile gaming community has been fuelling in-app ads revenue growth over the last three years. Since the 2017 research, we’ve seen a 7% increase in the number of active gamers across Western and Asian countries and Brazil, Russia and Turkey. Now, roughly two-thirds of people globally are playing mobile games every day.

From player sentiment to preferred ad formats, we’ve summarized what you need to know from this new report, to help maximize the revenue potential of ads in your games.

Players are happy to watch ads, but they expect fair treatment.
While gamers understand why ads are necessary, the relationship they have with in-game ads is transactional – they enter into it willingly but expect to be treated fairly.

One way to respect this sentiment is to make players feel that they are in control of how and when they see ads. 71% want to be able to choose whether or not to click or view an ad. As such, opt-in formats like rewarded video and playables that deliver an in-game reward are preferred.

As publishers seek to leverage monetisation trends, they should also note what could turn players off from gaming. Players can become frustrated with ads that interrupt the game and create a “loss of momentum” in the game experience. To steer clear of this, publishers should keep an eye on how ad format, frequency, and placement affects player engagement.

That said, there is little evidence in-game ads lead to a high level of churn. Nine in ten players stated that ads had not impacted their desire to keep playing mobile games on more than one occasion.

What does this mean for publishers? Creatively integrate ads to maximize engagement.
In addition to determining the right ad frequency, publishers also need to find creative ways to integrate ads into the game to maximize player engagement and avoid gameplay disruption.

What is the sweet spot number of ads to serve in a session? The report found that positive perceptions of ads increase when players see between 0-9 and 10-25 ads. But there is no further increase in positivity when players see 26 or more ads in a session; in fact 75% of players said that this was “too many” ads. Based on that data, 10-25 ads per session is the sweet spot, where perceptions are highest but before the feeling of ad overload.

Players want to see useful, interesting and relevant ads
When asking players from key markets to rank the most important ad attributes, useful (44%) and interesting (40%) were followed closely by relevant to me (38%). All are in agreement that ads that are not well-targeted can be a frustration. Additionally, some markets are more sensitive than others to lack of localization or ad relevance.

What does this mean for publishers? Consider how ads reflect on the perception of your game.
In general, publishers should feature useful, interesting and relevant ads. But also to be aware that these variables are ranked a bit differently in every market (more about that in the full report).

Additionally, publishers should avoid and/or remedy poorly localized, low-quality ad visuals or jarring music, as it can reflect less favourably on both the ad and the game.

In-game ads encourage players to play for longer and more frequently.
Understanding how and when to integrate the right ad formats in your game can help increase the amount of time and level of engagement.

A survey respondent shared, “If you watch a 30-second video and get an extra life or some currency for the game, it gives me an extra boost to keep playing, especially if I was low on lives in the first place!”.

Respondents surveyed shared the following positive comments on why their in-game ad experience motivated them to play longer:

  • 53% “I got rewards from the ads”
  • 38% “Ads helped me unlock gameplay/levels”
  • 31% “I liked what the ads were showing”
  • 30% “They didn’t interrupt my gameplay”
What does this mean for publishers? Leverage player-preferred ad types.
Publishers who are looking to maximize engagement and session length, and minimize churn should leverage player-preferred ad types like rewarded video and playables.

In our research, rewarded video stands apart from all other ad formats as the most useful because it gives gamers something to use immediately to progress in their game. One player shared: “The best kind of ads are where you can earn some in-game currency or reward. The developers get the ad revenue, and you get rewarded in the game. It’s a win-win.”

Playable ads offer players an opportunity to discover, play and test games during a game session, without having to commit to downloading them. When creating playables, publishers should craft them to represent the final game as much as possible to ensure expectations are met.

The in-game ad format that best delivers on the players’ need for “interesting” content is playable ads. Considered the most “enjoyable” ad type available, this perception is replicated in all markets tested.

In short, mobile gaming is embedded in people’s lives and showing no signs of decline. Gamers are happy and engaging with ad-funded games, and game businesses are growing accordingly. In-app monetization models are a win-win-win for players and publishers.
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AnotherPleb said:
What gamer wants ads on top of a game that costs damn near $120 after DLC?
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The article is talking about mobile games, which are often free to install.

Anyway, in my opinion, while ads sound better than your regular pay-to-win or free-to-wait monetization, they can also be easily exploited. E.g: design a level in such a way, that while it looks playable, it actually cannot be completed without a certain item, that the player doesn't have, and when he fails, suggest him to watch an ad to get the item in question. How is that different from a free-to-wait game?

I prefer games that are either completely free, or cost money and have completely no hidden monetization. And while I like free-to-play games with lootboxes(cause that means that I get to enjoy them for free), I don't approve of this monetization scheme, since it preys on people with gambling addiction.
 
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Ad's in general are an annoyance no matter where they are. It's gotten to the point where if you have a Roku, you need to jump through hoops inside your router to permanently block the ad addresses so you're not bombarded with 5 to 6 ads about SweetTarts and SuperCuts on YouTube in the middle of the video you are watching. The reason why shit like TiVo and streaming services became popular in the first place was because nobody wanted to deal with that shit. This is all the fault of companies and corporations sticking their dick into everything all for that sweet green dough, especially since old media has been dying a slow painful death for quite some time.

Gamers already know how fucking horrible ads can be, even if they are small ones built into the game like Street Fighter V, where the fighters' outfits have company logos all over them. I would give publishers the benefit of the doubt and say they would be smarter than that to fuck over gamers, but this is the same industry that milked the ever-loving shit out of lootboxes.
 
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This article just made me realize how much I don't give a single solitary shit about the video game industry anymore..especially when considering current year bullshit.

It's oddly cathartic, really.
 
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What was the last mobile game anyone here seriously played? Because for me it was that port of Symphony of the Night. Otherwise, mobile gaming doesn't interest me.
 
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ProfDongs said:
This reads like one of the most corporate shill authored article, nobody likes ads and anyone that says they do have brain problems.
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Fucking amen.
Marketing was one of the classes in my HS, and let me tell you the closer you look into the people in marketing the more intense your hatred of them grows. Their brains may be okay, but they're not human brains. Demons, they're fucking demons, and not the cool kind.
 
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BrunoMattei said:
What was the last mobile game anyone here seriously played?
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Girls X Battle
Sengoku Asuka Zero
Double Jump Ringo
Unity-chan's Action Shooting
Groove Coaster
Lara Croft Go
10 Billion Wives Deluxe

The first two I still play all the time, while the others once in a while (except for Groove Coaster, which flat-out doesn't work on my phone but it did when I used to have a Samsung). I don't spend HOURS on them like I do with actual video games, their just quick time wasters, specially since the first two are the "grindy" kind of games.
 
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BrunoMattei said:
What was the last mobile game anyone here seriously played? Because for me it was that port of Symphony of the Night. Otherwise, mobile gaming doesn't interest me.
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Some adventure game, in the traditional sense. Dice rolls and decision making. I don't want to play games when I'm out and about so I never got into portable games of any kind.

The article is bullshit and is probably there to say "See, you're ok with ads! They're not that bad guys!"
 
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