Placing ads in mobile games has created value for app developers since the birth of mobile devices. In-app ads are said to boost player retention by up to 4 times over. Monetizing with in-app advertising allows users to play for free while the app developers earn revenue. However, it is essential to strike a balance between ads and the gameplay experience to ensure that players are not overwhelmed or frustrated by excessive or intrusive advertising.
To make sure that advertisers aren’t overwhelming their players, it’s imperative to know which types of ads work in different mobile games and how specific user groups may react. Here we break down the basics of mobile game advertising and the technical step-by-step of how to leverage mobile ads monetization.
Why In-App Ads?
In-app ads may seem like they only benefit the app developers, but they also benefit users. Placing ads in mobile games drives revenue and engagement within the app while simultaneously reducing costs for the players.
Revenue Generation
One of the primary reasons for placing ads in mobile games is to generate revenue. By incorporating ads into their games, developers can earn money through ad impressions, clicks, or conversions. The $226 billion of total app revenue generated by games is roughly evenly split between ad revenue ($116 billion) and app store revenue ($110 billion). Foregoing in-app advertising can lead mobile app developers to leave over 50% of their potential profits on the table. This money could be used to help support ongoing game development, cover operational costs, and accelerate conversions.
Cost Reduction for Players
Many mobile games are available for free or at a low cost to players. Integrating ads allows developers to offer their games without charging a high upfront price, making them accessible to a wider audience. In fact, over 80% of mobile gamers say they are more engaged by free mobile games that contain ads than paid games with no in-app advertising. With free to play games, there may be the option to make in-game purchases or seek rewards in exchange for tokens, etc. This is in contrast to traditional gaming where users would have to make an upfront investment when purchasing a game in order to enjoy it without any further investments. Ads can subsidize development costs, reducing the financial burden on players.
Increased User Engagement
Well-implemented in-app ads can enhance the overall user experience by offering rewards, bonuses, or additional content. For example, players might choose to watch a short video ad in exchange for in-game currency, power-ups, or extra lives. This can increase user engagement and encourage longer play sessions. Ads in mobile games can also serve as a platform for promoting other games or apps (aka cross promotion). Developers can cross-promote their own titles or partner with other game studios to reach new audiences. This can help with user acquisition and expand the player base for their already popular games.
Step by Step for Placing Advertisements in Mobile Games
Having ads in mobile gaming apps is clearly a win-win for the player and the developer. To get started, here is a step-by-step guide on how app developers typically put advertisements in mobile games.
1. Define Monetization Strategy: Before integrating ads, app developers need to determine their monetization strategy. This includes deciding on the types of ads they want to display (e.g., banner ads, interstitial ads, rewarded video ads), the frequency of ads, and the desired user experience.
For example, rewarded video ads are one of the most popular ad formats for mobile games. Around 70% of users prefer this type of advertisement to other forms of in-app advertising. On the other hand, playable ads are extremely popular and highly compatible with mobile games. With playable ads, users can interact with and get a sample of an app before installing it. These ads give gamers a taste of what another game looks and feels like and provides a more interactive experience than watching a video ad. Choosing what type of ad to serve is the first step in successfully monetizing a gaming app.
2. Pick a Retargeting Partner: The next step in the mobile gaming ad process is selecting a retargeting partner. A retargeting partner brings specialized expertise in reaching and reconnecting with users who have previously interacted with the app. By leveraging advanced retargeting technologies and tactics, retargeting partners such as YouAppi can help mobile apps re-engage users who may have lapsed or abandoned the app, as well as target users who have shown interest but haven't converted yet.
By being proactive in this approach to user retention and re-engagement, mobile gaming apps can significantly improve performance metrics such as retention rate, session duration, and in-app conversions. Retargeting partners also possess deep knowledge of mobile advertising platforms and audience segmentation, allowing them to optimize ad campaigns and deliver relevant, targeted content to users. By collaborating with a retargeting partner, mobile apps can amplify their marketing efforts, drive user loyalty, and ultimately increase their user base and revenue.
3. Select Ad Networks or Mediation Platforms: Developers need to choose ad networks or mediation platforms that will serve as the intermediaries between the game and advertisers. An ad mediation platform allows app developers to manage and optimize in-app ads from different ad networks to maximize ad monetization. Popular options include Google AdMob, Facebook Audience Network, Unity Ads, and MoPub. It’s important to research and compare different platforms to find the one that best suits the app's needs.
4. Set Up Developer Accounts: Create developer accounts with the chosen ad networks or mediation platforms. This typically involves signing up, providing necessary information, and agreeing to the terms and conditions.
5. Integrate SDKs: Software Development Kits (SDKs) provided by the ad networks or mediation platforms need to be integrated into the game's codebase. Developers usually download the SDKs and follow the provided documentation or guidelines to incorporate them correctly. This integration allows the game to communicate with the ad networks and display ads.
6. Configure Ad Placement: Determine where and when ads should be displayed in the game. This can include selecting specific screens, levels, or moments where ads will appear. Different types of games will warrant different ad placements. Some ad networks or mediation platforms provide tools or interfaces to configure ad placement, allowing developers to set rules and preferences for ad delivery.
For example, marketers can choose to serve an ad during a natural break in the game. An ad could be placed during the progression to a new level or challenge, which is helpful for gamers who may need extra rewards or tokens to get to the next part of the game. However, making sure that ads are placed at actual breaks in the game rather than disrupting the gamer is a crucial part of the user experience. This type of placement would not be ideal for hard-core gamers who want to complete a challenge first before seeing any sort of ad.
7. Ad Unit Creation: Create ad units within the ad network or mediation platform. Ad units define the specific types and formats of ads to be displayed. For example, you might create separate ad units for banner ads, interstitial ads, and rewarded video ads.
8. Implement Ad Calls: Insert code snippets or function calls within the game's codebase to request and display ads when appropriate. Ad networks and mediation platforms provide documentation and guidelines on how to use their APIs to fetch and show ads.
9. Test Ads: It's crucial to thoroughly test the ad integration within the game to ensure proper functionality. Test different ad formats, placements, and scenarios to verify that ads are displayed correctly, and the user experience remains smooth.
10. Release and Monitoring: Once the ad integration is complete and the game is approved, release the updated version of the game to the relevant app stores. Monitor the performance of ads, track metrics such as impressions, clicks, and revenue, and iterate on the ad placement and strategy based on user feedback and analytics.
Takeaways of In-App Advertising for Mobile Games
In-app ads are said to boost player retention by up to 4 times over. In this blog, we break down the basics of mobile game advertising and the technical step-by-step of how to leverage mobile ads monetization.
Why In-App Ads? In-app ads may seem like they only benefit the app developers, but they also benefit users. Placing ads in mobile games drives revenue and engagement within the app while simultaneously reducing costs for the players.
The Three Most Important Steps for In-App Advertising:
- Define Monetization Strategy: Before integrating ads, app developers need to determine their monetization strategy. This includes deciding on the types of ads they want to display (e.g., banner ads, interstitial ads, rewarded video ads), the frequency of ads, and the desired user experience.
- Pick a Retargeting Partner: A retargeting partner brings specialized expertise in reaching and reconnecting with users who have previously interacted with the app. By leveraging advanced retargeting technologies and tactics, retargeting partners such as YouAppi can help mobile apps re-engage users who may have lapsed or abandoned the app, as well as target users who have shown interest but haven't converted yet.
- Test Test Test: It's crucial to thoroughly test the ad integration within the game to ensure proper functionality.
