As games move more towards a hybrid-casual model, the potential for new avenues of revenue opens up. As your retention rises, so too do the opportunities. Let’s look at six ways you can increase your profits.

1. Incorporate native advertising

Native advertising is where adverts are embedded in the very fabric of the game. They’re far less intrusive than traditional advertising, allowing you to place ads in your game that don’t disrupt how the gameplay flows. They feel natural; in places where players would expect to see them in the real world.

For example, a native advert might be on an in-game billboard, the banners alongside race tracks, superimposed over the field of a tennis match, posters on the wall, or holograms in the street.

These adverts can either be static sponsored content or dynamic ad space that brands can purchase in real time. The key is that you don’t pause the game to show the ad.

2. Add audio adverts to your game

Did you know, 73% of mobile players have their volume at or above 10%? It might not be loud, but it’s enough to catch people’s attention. This makes them a useful addition to your monetization strategy.

They also have similar benefits to native advertising. Audio adverts are far less disruptive than traditional methods: they play in the background, allowing the gameplay to continue unhindered.

Due to the nature of audio, it’s a relatively simple approach to insert into your game. Pause the music, play the ad, and return to normal once it’s finished. They are also suitable for rewarded ads, allowing players to gain power-ups or in-game currency far quicker than needing to watch a video. Which makes them an effective method to increase your advertising revenue without hurting your retention.

3. Make IP deals with brands

Partner up with a brand to offer in-game cosmetics or extra content using their brand assets. These could be characters, items, or even entire levels. Not only does this give you additional content to keep your game active, but it can also bring in new fans.

Another method is to wrap your game entirely in the brand’s IP. For example, you could approach a brand with your match-3 game and use the same mechanics and gameplay loop, while using their characters and universe.

4. Sell merchandise using your own brand

Once your hybrid-casual game has a following and community, it’s inevitable that certain characters or phrases will become popular. These are perfect for turning into merchandise. T-shirts, mugs, plushies – these can all feature your game’s art. Manufacturers like Alibaba make this even easier. You can buy products and have your own logo and designs printed on them.

You can even create unlockable content for your players, which they only gain access to by achieving certain milestones in your game. For example, every achievement in your game could have its own baseball cap. Players would need to unlock the achievement before they could purchase the cap in real life.

This gives your achievements more value and encourages players to seek out the hardest ones for the prestige of owning the real-world item.

5. Encourage fan-made content

Reach out to your community and run competitions to have their creations enter the game, such as levels, items, or cosmetics. This fan-created content can keep your game active and fresh while also giving you an opportunity to engage with your community.

Ideally, you would also offer an incentive to the creators, such as a cut of the purchase price. This makes it worth the player’s time and makes it far more likely you’ll get quality submissions. It also encourages the player to spread the word about their creations, which could bring even more players to your game.

6. Port your game to another platform

Expanding onto PC or console can help you open your game up to a new market, extends your game’s life, increases your return on investment, and leads to longer session lengths.

It’s a useful way of making the most out of your most successful games. You can read more about the process in our article on porting.

Data is key to any new approach

Whatever route you choose, make sure you keep track of which avenues are successful and bring in the most revenue. You want to make sure that you’re spending your time efficiently. The most effective way to do that is to bring data in from multiple sources and study the trends together. That’s where DataSuite comes in – it allows you to create your own player warehouse and track trends across platforms and different data sources.

With any transaction, there’s an exchange of goods and services. It used to be black and white in gaming – you pay money upfront, and you have that game. Done and dusted.

But it’s not quite that simple anymore. With more types of games, devices, and models entering the market, that exchange of goods is becoming a blur. Today’s big topic is people complaining about the price of games for what they’re getting. But why is that? Are studios becoming too greedy? Or are business models evolving so quickly that players can’t keep up with the trends? And what can you do to keep your games equitable and your audience happy?

Games have always been expensive

The first console to hit the stores was the Magnavox Odyssey. It was $99. That equates to just under $700 in today’s market, and it came with twelve games. Seems fairly pricey. But you can see their reasoning for something that was a completely new piece of technology.

Let’s fast forward to the 90s. The PlayStation 1 was released in 1994 and cost around $299. Today that would equate to over $700. Once again, publishers could charge that much because it was new technology with mind-blowing graphics.

Back then, there was no downloadable content, campaigns, battle passes, liveops. There was only one transaction. And it was clear what you were getting. Yes, you can argue that even that’s expensive. But it was transparent; then the price can’t be an issue, right? Players have been spending hundreds of dollars on their games for years. And with inflation, games aren’t that expensive compared to a few decades ago(at least, games that are one-off payments).

Gaming is much more complicated now

The gaming world has evolved. Let’s break it down:

• We have different device types: Mobile, PC, console, VR, Switch, and more.
• We have more sub-genres and game types: We can find all types of different genres in the stores. Take role-playing games as an example; we have ARPG, MMORPG, Strategy RPG, Tactical RPGs, and a range of hybrid genres.
• We have different audiences and preferences: We only thought of a gamer as a teenager on the PlayStation. But with the increase of genres and technology, almost anyone could be considered a gamer.
• Games are now a service: Not many studios end development when they launch their game now. Many, if not most, pump time and resources into regular new content to keep their players engaged. And that needs to be funded.

All of this meant we needed new monetization models. It didn’t make sense to always pay upfront for a game. There had to be a different exchange. Free-to-play games gave birth to the ads monetization model 10 to 15 years ago, and players accepted that exchange (to an extent – too many ads and the exchange starts to feel unfair).

“Each customer is an individual, not a generalized demographic.” – Peggy Ann Salz.

Options are a good thing. We don’t deny that, especially in today’s market. What we’re talking about is a fair exchange. Are developers losing sight of that? Are they focusing more on money than the experience?

What do we consider to be a ‘fair exchange’?

You can argue that a fair exchange comes down to the individual. Their taste and preferences, their income, and how much they value art. A $70 game for a ten-hour campaign could be expensive to most gamers – but to the lifelong fan, it could be nothing.

But there’s definitely a benchmark in the industry. When paying that much for a premium game, you can expect the campaign to be at least 30 hours or so, with some extra side quests. If your game is any less than that, it could be considered a rip-off. The key here is setting expectations. What is the other value you’re offering? And does your player know that?

There are three primary areas to consider:

• Gameplay Length
• Overall price
• Quality (this could be the graphics, story, mechanics, etc).

You want to try and hit two out of three. AAA games have a longer overall playtime and are higher in quality. But they’re not cheap. That seems fair. “Okay, I’m getting a really cool game with lots of gameplay and mechanics and graphics. I don’t mind spending more money on this.” There’s a value to the exchange. The same applies to casual games. They’re lower quality with simple gameplay, have loads of replayability, and are either free (or with ads) or very cheap (around a couple of dollars).

There’s a problem in our industry

Whether we call it corporate greed or just a lack of critical thinking, we’re seeing more developers push the boundaries for pricing, and underdelivering in gameplay. Let’s have a look at some examples and ask ourselves: “Does this feel like a fair exchange?” 

Overwatch 2 locks content behind battle passes

There was a lot of hype over the last few years for Overwatch 2. We were promised story-led campaigns, skill trees, customizable character abilities, and more. When they released the title, they made it free-to-play, with battle pass options (similar to games like Fortnite and PUBG). In theory, this all sounds good. But we found three issues:

1. They shut down Overwatch 1

Players could no longer play the original game, which was a paid title. Sure, they got Overwatch 2 for free, but so did other players who didn’t have the previous game. It’s easy for those legacy players to feel shortchanged.

Rather than rewarding their loyal players, they instead punished new players to Overwatch 2. For completely new players who don’t pay, they have to play to unlock certain characters – even ones from the original game. From what we can see from this interview, a new player has to go through 150 matches to unlock Echo from Overwatch 1.

2. They’ve locked new characters behind their battle pass

In Overwatch 2, you can unlock characters in one of two ways: pay for the battle pass or grind to unlock them. The latest character unlocks after reaching level 55 (around 60 hours of gameplay). Yes, players who couldn’t afford to pay could get the character. But Blizzard sure didn’t make it easy for them, putting those people at a disadvantage. And their players weren’t happy about this.

3. They didn’t deliver on what they promised

Unfortunately, a lot of the content and features they promised weren’t in the game during launch. Aside from new characters, maps, and a cleaner user interface, there wasn’t much difference between the two games. Which frustrated a lot of players.

Is this a fair exchange? No. From what we can see, the approach they’ve taken has annoyed their players into spending their money or pushed them away entirely.

Diablo IV charges one-off payment and offers battle passes

When we heard that Blizzard decided to release Diablo IV as a full AAA game, but with a battle pass option on top, we definitely raised an eyebrow. Usually, games are either free with battle passes or have a one-off payment but no battle passes (as we can see with Overwatch 2 and similar games).

Diablo IV, recently released on all major platforms and goes for around $70. And they have just released their first battle pass. From what we can see, it has three tiers:

• Free to play: With 27 tier rewards and 20 smoldering ashes.
• Premium: With 63 tier rewards (costs around $10 a month), an armour set and two mounts.
• Accelerated: Same as premium, but also provides 20-tier skips and a special cosmetic item.

Is this a fair exchange? We reckon so. They haven’t locked the free players from anything too important. But we’ll know more when we see more of their reviews.

And if they release content for the paid players as well, then it could work. For example, if they release new classes or core mechanics to everyone, but leave purely cosmetic stuff to the subscribers – that could be fair.

Cyberpunk launched with too many problems

We’ve heard this story all too often now. When CD ProjekT Red launched Cyberpunk 2077, it was a bit of a disaster. The amount of bugs and broken promises inside the title was laughable.

But what was the real problem here? Aside from launching far too early, the biggest problem was the price. If you’re charging someone for a premium game, you’d expect a premium experience.

Is this a fair exchange? No. Maybe if they released it as early access to iron out bugs, postponed the launch until the issues were fixed, or reduced the price, then it would have been fairer. But players around the world were rightfully annoyed and felt ripped off.

Grand Theft Auto: Definitive Edition costing $60

When Rockstar Games announced that they would be remaking their classic trilogy, players were thrilled. Unfortunately, when they released the remake (Definitive Edition), we saw a lot of backlash online. The titles were marred with poor graphics and bugs.

Since the launch, the studio has released a lot of updates and fixes. But the biggest issue we can see is that they just didn’t meet players’ expectations and charged a high amount for a quick facelift (ranging from $59.99 to $69.99, depending on the console).

Was this a fair exchange? No. Players were left disappointed with the poor graphics and overall price. So much so, a player remastered San Andreas themselves, quoting “Rockstar didn’t do a very good job.”

If Rockstar had set more realistic expectations, delivered what they promised, or even lowered the price, then the exchange would have been much fairer.

How can you keep your game fair?

There’s no right or wrong answer here. It really does depend on what feels fair for your players and your studio. But to give you some direction, you can follow these rules as a guide:

1. Don’t lock important content behind passes

You want to make sure there’s value in your battle passes, otherwise why would someone buy it? But don’t screw over any of your other players. As we can see with Overwatch, it can create a negative experience for a large chunk of your audience, which can harm your studio in the long run. Instead, think up creative ways to reward your paying customers. Collectables, skins, and emotes are a good place to start.

2. Don’t release half-baked games at full price

We’re used to seeing the odd bug here and there. But if your game has some serious performance issues, then don’t launch it. The creators behind Baldur’s Gate 3 actually handled this quite gracefully. They perfected the first part of their game, released it as early access, and kept their community informed about the full release. It was a great way to create hype for their game, while also gathering crucial feedback, and keeping their audience happy.

3. Set realistic expectations

Too much hype for your game can be your downfall. Cyberpunk’s marketing campaign was so good, players were excited for years. Only to be disappointed when the game was released with only half of the promised features. As for Grand Theft Auto, if they were a bit more honest or open with what they were creating, perhaps players wouldn’t have reacted so negatively.

4. Be transparent with what you’re charging

With more complex models, it’s easy for players to get lost or confused. Nintendo is under fire at the moment and has been accused of using “dark patterns” to encourage players to spend money without them realizing it. So make sure your players know what they’re doing and buying. Diablo Immortal is also currently feeling the heat for their microtransactions. Their community were left shocked and frustrated with the game’s legendary gem upgrades and how unclear the game’s monetization model has been. Someone did the math and reported that it can cost up to $110,000 to fully upgrade a character in Diablo Immortal, all due to their new gem system. If that’s the case, it doesn’t feel particularly worth it.

5. Don’t punish your players

If Blizzard changed their approach to rewarding existing and new players, then Overwatch 2 could be a much more positive and enjoyable experience. Let’s look at rewarded ads: you watch a video to earn more coins or another life. But you can take it a step further. Homa Games have actually made item upgrades unlockable in their game Aqualand by watching ads. Suddenly making those ads a lot more desirable and fair.

Similarly, Tennis Clash actually uses ads to mitigate losses and amplify wins. If a player loses a match, they can watch an ad to recoup their lost coins. But if they win a match, they can watch an ad to double their winnings.

Test to see what works

We’ve shown a lot of AAA and premium game examples, and we appreciate that mobile games can be more complicated when combining so many monetization techniques. So data is crucial for understanding and perfecting your models. Maybe you can charge $1.99 for your game and still show ads. Or perhaps you can rely solely on subscriptions and charge $20 a month. Without testing the waters, looking at your data, and listening to your players, it can be tricky to figure out what your game is worth and what will make for a fair exchange.

If you want to get more out of your game’s data, sign up to our tool today (for free!).

In the ever-evolving landscape of mobile gaming, advertising has become a crucial revenue stream for developers while also providing players with engaging content and rewarding experiences. Mobile game ad formats have come a long way, offering a variety of options for both developers and advertisers to reach their target audiences effectively.

In this article, we’ll explore five popular mobile game ad formats that have gained traction in recent years and that will help you reach the top!

Interstitial Ads

Interstitial ads are full-screen advertisements that appear at natural breaks in gameplay, such as between levels or when transitioning from one screen to another. These ads are typically displayed for a few seconds and can include images, videos, or interactive elements. Interstitial ads are known for their high visibility and effectiveness in capturing players’ attention.

Key Features:

• Full-screen ads.
• Appear during natural breaks in gameplay.
• Highly effective at grabbing players’ attention.
• Suitable for various ad content types, including videos and interactive experiences.

Benefits:

• High visibility and engagement.
• Excellent for promoting other mobile games or products.
• Can be used to increase ad revenue without disrupting gameplay flow.

Rewarded Video Ads

Rewarded video ads offer an exceptional win-win scenario for both players and developers. In this ad format, players willingly opt to watch a brief video advertisement in exchange for valuable in-game rewards. What sets rewarded video ads apart is their remarkable feature of a 100% viewing rate. Players must watch the entire ad to unlock their coveted rewards, making this format exceptionally valuable.

Key Features:

• Players willingly choose to watch ads for in-game rewards.
• Typically, these ads are short, spanning 15 to 30 seconds.
• Encourage extended playtime and enhance player retention.
• Highly effective for driving user actions, such as app installs or purchases.

Benefits:

• Provides a positive user experience as players receive tangible rewards.
• Achieves a 100% viewing rate, ensuring advertisers’ content is seen in full.
• Highly engaging, with industry-leading conversion rates.
• Particularly appealing to advertisers seeking guaranteed viewership and conversions.

Rewarded video ads shine in the mobile advertising landscape due to their inherent value proposition – a guaranteed viewing rate. This characteristic sets them apart from other ad formats like interstitials, making them a powerful choice for developers and advertisers alike.

Playable Ads

Playable ads take interactivity to the next level. Instead of passively watching a video or image, players get to experience a mini-version of the advertised game before deciding to download it. These ads are highly engaging and can give players a taste of the gameplay, mechanics, and overall experience, increasing the likelihood of conversion.

Key Features:

• Interactive ad format where players can sample the game.
• Provides a preview of the gameplay.
• Engaging and immersive.
• Effective for showcasing the unique features of a game.

Benefits:

• Increased user engagement and conversion rates.
• Higher-quality installs as users have a better understanding of the game.
• Appeals to gamers looking for new experiences.

Banner Ads

Banner video ads, one of the earliest mobile ad formats, are compact advertisements that can appear at different locations on the screen, such as the top or bottom, depending on the game’s design. Notably, the size and placement of these banners can vary significantly based on the specific requirements of each game. Additionally, some advertising networks offer adaptive banners that adjust in real-time to fit the game’s layout seamlessly.

Key Features:

• Compact and non-intrusive ads that occupy a portion of the screen.
• Continuous visibility during gameplay.
• Banner size and placement flexibility to suit diverse game layouts.
• Availability of adaptive banners that dynamically adjust to the game’s design.

Benefits:

• Non-disruptive to gameplay, allowing for uninterrupted user experiences.
• Adaptability to different game layouts, ensuring a harmonious appearance.
• Versatile and easy to implement, catering to various ad sizes and positions.
• Adaptive banner options offer real-time optimization for improved engagement.

Banner video ads, with their adaptability and varying sizes, accommodate the unique characteristics of each game, making them a versatile choice for developers and advertisers aiming to strike the right balance between monetization and user experience.

Native Ads

Native ads seamlessly blend into the game’s user interface, mimicking the look and feel of the game itself. These ads are often integrated into menus, loading screens, or other non-intrusive elements. Native ads aim to provide a more organic and less disruptive advertising experience. When done right, they can enhance the overall immersion of the game and contribute to player retention.

Key Features:

• Ads that harmonize with the game’s aesthetics.
• Often integrated into game menus, loading screens, or story elements.
• Designed to feel like a natural part of the game.
• Can include sponsored content, product placements, or in-game events.

Benefits:

• Enhances player immersion and retention.
• Provides a less intrusive advertising experience.
• Effective for promoting products or services in a contextually relevant way.

Audio Ads (Immersive Sound Advertising)

Audio ads represent a unique and immersive form of advertising within mobile games. Instead of relying solely on visuals, audio ads harness the power of sound to engage players. These ads typically play in the background while the game is running, offering a non-intrusive yet highly effective way to convey brand messages or promote products to players.

Key Features:

• Auditory advertising experience.
• Non-disruptive to gameplay.
• Suitable for conveying brand messages and promotions.

Benefits:

• Diversifies ad formats and engages players through sound.
• Allows for creative storytelling and branding opportunities.
• Enhances the overall gaming experience without interrupting gameplay.

In-Game Ads (Billboard)

In-game ads, specifically billboard ads, take advantage of virtual billboards or advertising spaces within the game environment. These billboards showcase brand messages, imagery, or video content in a contextually relevant manner. By integrating these ads into the game’s world, developers can create a more realistic and immersive experience for players.

Key Features:

• Integration of brand messages or content within the game environment.
• Contextually relevant placement of ads within the game’s world.
• Realistic and immersive advertising experience.
• Opportunity for dynamic ad updates and changes.

Benefits:

• Creates a more immersive and engaging game world.
• Offers a contextually relevant advertising experience.
• Allows for dynamic ad updates, keeping the game environment fresh.
• Provides opportunities for long-term partnerships with brands.

Direct Brand Deal Ads Integration

Direct brand deal ads integration involves collaborating directly with brands for in-game advertising. Developers integrate brand content, products, or promotions seamlessly into their games. These deals often result in unique, contextually relevant ad experiences tailored to the game’s theme. However, we take a comprehensive approach by combining all these ad formats – including audio, in-game, and rewarded video ads, among others – with specialized integrations to create immersive and contextually relevant ad experiences.

Key Features:

• Collaboration with brands for in-game advertising.
• Integration of brand content or promotions.
• Contextually relevant ad experiences.
• Tailored to the game’s theme and audience.

Benefits:

• Enables customized and unique ad experiences.
• Allows developers to monetize their games while enhancing player engagement.
• Offers opportunities for long-term partnerships with brands.

Conclusion: A Dynamic Era of Mobile Game Advertising

The world of mobile game advertising has evolved into a dynamic landscape that offers diverse opportunities for developers, advertisers, and players. From high-impact interstitials to the immersive soundscapes of audio ads, the guaranteed engagement of rewarded video ads, and seamless integrations of native ads, each format brings unique strengths to the table. Direct brand deals and in-game ads (billboard) further enrich the experience, fostering partnerships and creating immersive game worlds.

As the mobile gaming industry continues to expand, these ad formats contribute to a thriving ecosystem, emphasizing the importance of a delicate balance between monetization and user satisfaction while promising continued innovation and engaging experiences for all stakeholders.

–

This article was originally published on Tap Nation.

In this episode, Allison provides an in-depth look into the essential principles of tracking key success metrics in the gaming industry. She lays out a comprehensive understanding of the three core pillars: Acquisition, Engagement, and Monetization.

By watching this video, you’ll gain a clearer understanding of how to optimize important metrics like New Users, Retention, and Lifetime Value (LTV) – key aspects that can considerably impact your app’s performance.

This episode is packed with insights, practical tips, and strategies, making it a must-watch for all game developers, regardless of the stage of your game development journey.

Happy viewing!

In January, industry expert Eric Seufert predicted that brand spend would reach at least 10% of in-game ad monetization. It’s a prediction that we couldn’t resist looking into. When we look back on 2023, will it really be the year we see brands spending far more of their budget on in-game ads?

Brands are definitely seeing the value, but it seems like there are a few barriers still in the way. For one example they want brand-safe slots and better measurement, so it could take a little longer than just 12 months – especially in the the current economic climate. Brands are generally tightening their advertising budgets, and this will likely be reflected in the gaming industry as well. According to reports, 30% of advertisers cut their 2023 budgets.

This belt-tightening impacts the predicted growth rate of ad spend in gaming, potentially delaying the moment when brands commit more of their budgets to in-game ads. Still, the value and potential that gaming presents are undeniable. It’s just that the path to full realization of this potential might be a bit rockier than we’d hoped.

Brands are spending, albeit slowly

Statista predicts that the advertising expenditure in gaming will rise from $46 billion in 2021 to $130 billion in 2025, a considerable increase over just five years.

Most of this expenditure is channelled into mobile gaming. Statista reported in 2022 that mobile gaming would constitute half of all gaming revenue. Consoles came in second, accounting for 28%.

Source: Statista

Evidently, mobile gaming is the preferred advertising platform for brands. This is understandable, as console and PC games typically require one-off payments. Free-to-play games on other platforms much less frequently rely on advertisements for revenue; they tend to use subscriptions and in-app purchases for funding their development.

Brands spend far less than they should

Big brands tend to have big budgets. But the amount that brands are putting aside for gaming is far less than you’d expect. Gaming accounts for less than 6% of total digital ad spend in the US, according to the IAB.

That’s a very low figure, considering the potential audience. People spend far more time playing games than they do with any other media.

According to Ernst & Young, one of the big four accounting firms, brands spend nearly $60 billion on TV ads and $1.5 billion on gaming. But people only spend 8% of their time on TV content, but 37% of their time gaming. It’s all backwards.

According to EY, brands spend far less on gaming, but it grabs far more of people’s attention.

This data suggests that brands would reap more value by investing their budgets in gaming rather than television ads. However, common misconceptions about gaming deter them. EY further explains that brands hesitate to invest because they often adhere to outdated stereotypes about gamers, viewing them as unemployed young males.

But that’s just not true. Almost half of gamers are women, and the average player is 35. The gaming market is huge and varied. It’s just that brands haven’t realized it yet.

What is true is that the younger generation cares more about gaming than any other entertainment. A Newzoo report found that younger customers spend nearly 15 hours a week engaging with gaming content. Almost half of that time is playing, the rest is reading, creating and watching others play.

Irrespective of their target demographic, brands need to rethink their stance on gaming. It’s an opportunity waiting to be seized.

Brands want to advertise in a safe space

One of the key concerns for companies is whether the game they’re advertising in is suitable for their brand. They don’t want their brand associated with controversial opinions or a bad game. They only want to advertise in high-quality titles, with respectable content.

The shift in the industry from hyper-casual to hybrid-casual helps developers here. Hyper-casual games are typically lower-budget and have a quick turnaround. While they’re fun, they’re not very deep.

On the other hand, hybrid-casual games are – by definition – deeper. They focus more on retaining players with meta-features and are less reliant on spamming ads at the beginning of the game. Their players stick around for longer and are less frustrated. So there’s not the same level of concern for brands to be affiliated with an annoying game, and targeting unhappy players.

It works both ways, too. Because developers are focusing more on deeper gameplay, longer playtime, and a hybrid-monetization approach, they’re much less likely to want to advertise other games. All that does is encourage players to leave their own titles and play other games, instead of their own. Instead, developers want brands to advertise in their games. So brand advertising is a win-win for both.

Brands want to spend more

The brands themselves know this. According to The Drum in 2022, 81% of media buyers plan to increase their spending. And 93% intend to run in-game advertising by 2025.

In fact, we’re seeing this shift already. Brands are already teaming up with game developers. Ralph Lauren is releasing content in Fortnite. McDonalds got together with Overwatch 2. Kraft, Hershey, Frito-Lay, M&Ms – they’ve all launched campaigns that appeared on gaming platforms.

We’re seeing more and more stories of partnerships like these. And it’s likely that we’ll keep seeing big brands working directly with developers to share their IPs.

But brands don’t have the usual channels to advertise and partner up with game developers. We’re a new industry. And a large reason that brands aren’t running campaigns is that there’s a barrier to entry. They don’t know how.

According to that earlier EY report, developers need to do three things to help brands:

1. Make good games. Brands don’t want to be associated with spammy games. So you need to seamlessly blend ads into the core gameplay loop.
2. Help brands measure. Brands are concerned that they can’t get the data they need. So offer ways to integrate measurement SDKs into your games to help them track their ads.
3. Help educate brands. Work with agencies and mediation platforms to teach brands about the value of advertising in games.

It’ll take a while for brands to shift

As you can see, there’s definitely a trend for brands shifting their budgets towards gaming. They’re realizing the benefits, seeing that their preconceptions are wrong, and slowly moving over.

But it’s likely to take them a little while for them to get the results and spread the word. As an industry, we need to show brands that they can measure the data they need, that ads aren’t breaking the gameplay experience, and explain the value of advertising in games. If we do that, we’ll definitely see more brands spending on in-game advertising and partnerships.

Will we hit that 10% figure? Hopefully. It seems ambitious, but possible. And we’ll definitely get far closer. But if we work together to help ease brands into the process and show them how they can measure their results, we can speed up the change.

The answer to this question depends on which metric you are taking into account. Based on our data in 2022, the ad networks with the highest average LTV were ironSource on Android, and Apple Search Ads on iOS. We delve into detail on the best ad networks to advertise hyper and hybrid casual games based on different metrics such as Ad LTV, IAP LTV, total installs, D1 and D7 retention in this blog post.

In this blog post, we expand on some of the highlights from our video interview with Korhan Cabalar – Founder of Voyager Growth.

Which hyper-casual industry trends from our report have been the most surprising?

“I am actually surprised that the number of IAPs increased by 34%. Due to the recession in the US, I would have expected to see a decrease in IAPs. I also think that this is a strong indicator that mobile gaming companies should switch to hybrid-casual games. I would expect IAPs to continue increasing in 2023.”

The illustration above depicts the trend of IAPs based on Tenjin’s 2022 data set. See the full report here.

Tenjin’s 2022 data set not only indicates a rise in in-app purchases (IAPs), but it also highlights a declining trend in eCPMs. This reinforces the need for gaming companies to transition from hyper-casual to hybrid-casual games in 2023.

The illustration above depicts the trend of eCPMs based on Tenjin’s 2022 data set. See the full report here.

What advantages does increasing your IAP share offer in your monetization strategy?

“Increasing your IAP share in your monetization strategy would mean you should go for blended ROAS campaigns, which account for both ad revenue and IAP revenue. This would allow you to scale more in terms of your ad spend – which is a really good indicator for mobile games. ”

Which channels should hyper-casual studios utilize in 2023 to expand the reach of their mobile apps?

“If you have a really low CPI, I suggest that in the first stage you should go for TikTok. This would help you scale a lot. Meta could sometimes also be a good option for this stage, but TikTok works better. You should also support this UA spend with SDK networks such as Applovin, ironSource, Unity, Mintegral, and so on. In my experience, TikTok and Applovin are the best combination. But it depends on your metrics.”

Would there be significant changes in the user acquisition (UA) channels for those transitioning from hyper-casual to hybrid-casual games?

“In my opinion, the first thing you should do when transitioning from hyper-casual to hybrid-casual games is to change your campaign structure. As I mentioned earlier, if you have revenue from advertising and IAP, you should start with ad ROAS campaigns in the first stage. If you are generating a lot of revenue from IAPs, you should go for blended ROAS campaigns that focus on both IAPs and ad revenue. There are many channels in the market that you can advertise on. As long as you have a positive ROI, you can launch these games on any platform. One big difference between the two genres is that with hyper-casual games, it is less likely for people to spend on Apple Search Ads (ASA). However, with hybrid-casual games you can find an opportunity to spend on ASA as well.”

What are the most common mistakes developers make when they transition from hyper to hybrid-casual games?

1. Focusing only on CPI numbers

   “Previously, with hyper-casual games and their low CPI, money could be recouped within 4 days, sometimes even within 2 days. However, the landscape has changed. Now, it typically takes 15 to 45 days to regain the investment. When transitioning, it’s crucial to shift focus from CPI alone and prioritize retention metrics. Rather than making a hasty decision to abandon a game based on slightly higher CPI, developers should examine retention metrics such as D7, D10, D14, and D30. If these metrics show strong retention, the higher CPI can be offset. Multiple factors, including Retention, Play time, the difference between Ad revenue and IAP revenue, among others, should be carefully considered before deciding whether to discontinue a game.”

2. Putting too many interstitial ads within a game

   “Another mistake is to put too many interstitial ads within a game. The aim is to have a good retention to sustain strong growth over time. This means you need to adjust the time between interstitials. Rather than putting too many interstitials in the first few days, people should focus on the long term return.”

3. Underestimating the power of creatives

   “I also see that many mobile gaming companies also underestimate the power of having a creative strategy. I think creatives are one of the most crucial aspects in the mobile gaming industry. Hiring an experienced creative professional can do wonders to your mobile games profitability.”

Which genres should be explored beyond hyper-casual games?

“I believe hyper-casual games are not dying, but evolving. You just need to adjust your focus strategically. If I was a publisher, I would definitely go for hybrid puzzle games. A good hybrid puzzle game can sustain growth and income for more than 3 years.”

Nowadays, if you start talking about NFTs, you’ll get a lot of backlash. They’ve developed a bit of a negative reputation. But this is largely because some NFT companies are selling NFTs without really adding any value.

From what we can see, it’s a different story when it comes to gaming. Being able to earn and own cards, items or characters is much more tangible than just buying an image. And people understand the purpose.

Has the hype died, though? Have NFTs run their course? We’re not so sure. It seems to us that there’s still potential. Here’s what we found.

Awareness of NFTs is growing

Research shows that while the majority of people may not currently be considering purchasing NFTs, there is a growing awareness and curiosity surrounding them. According to a survey conducted by Security.org, a significant number of people (19%) expressed interest in purchasing an NFT in the next twelve months.

The NFT market has also experienced significant growth, with sales increasing from $13.7 million in 2017 to $2.5 billion in the first half of 2021. Although they might not be actively purchasing NFTs at present, the growing awareness signifies the potential for future interest and exploration. It’s encouraging to witness an increasing number of individuals becoming familiar with NFTs and engaging in conversations about them.

Source: Security.org

While some may currently hold reservations about the value and purpose of NFTs, it is essential to recognize the evolving nature of this emerging technology. As more people become informed and gain a deeper understanding of NFTs, their perspectives and inclinations may shift positively, leading to potential engagement and participation in the NFT market.

Some people are buying them

Despite not being a mainstream purchase as of yet, people are slowly buying NFTs. The number of people who have bought one has doubled – from 2% to 4%. It’s not many people, sure. But that’s a significant increase.

Right-click and Save As guy

Artwork by @XCOPYART
Sold to @CozomoMedici for 1600.0 ETH ($7,022,000.00)https://t.co/Lxbn5pev9K$RARE #CryptoArt #NFT pic.twitter.com/ZQf2qxYHdo

— SuperRare Bot (@SuperRareBot) December 9, 2021

Snoop Dogg (Cozomo de Medici) bought an NFT for over $7 million back in 2021.

And this coincides with how many people are actually aware of NFTs as a concept. Two thirds of people had never heard of NFTs in 2021. In 2022, it was only 6%.

Despite awareness skyrocketing, people didn’t necessarily understand them. But they’re getting there. The number of people who were ‘somewhat’ familiar rose from 18% to 61%.

This suggests that – as people move along in their understanding – they’re more likely to buy an NFT. In fact, Mordor Intelligence believes that NFT purchases will grow 32% each year.

Most success has come from play to earn

Gaming has a rather different relationship with NFTs. It seems that it’s here – in our industry – that we’re seeing progress.

The major roadblock has been value. Why get an NFT in the first place? When you buy an item in a game, it’s a bit pointless if all it’s doing is paying the developer. What’s the difference between that and a usual in-app purchase?

But when players can start to trade and earn money off these NFTs, the story changes. Mordor found that the biggest successes were Axie Infinity, Bored Ape Yacht Club, CryptoPunks, Gods Unchained, and The Sandbox. All these games give the player value for their NFT.

As the player goes through the game, they earn the NFTs – which they can then sell. A lucrative and exciting prospect. In fact, Mordor Intelligence found that one individual managed to make three times more than they would’ve at their usual job – playing a Pokemon-like game.

AI could normalize NFTs in gaming

AI has made a lot of progress in recent years, especially in the last 12 months. There are now AI tools like ChatGPT, PicFinder, Google Bard, and Chatsonic that can help build games and write code.

It’s possible that developers might start using tools like ChatGPT to come up with ideas for NFTs and save time developing them. This could be a useful way to keep players interested in their games – increasing engagement and retention.

With that in mind, we could see a huge boost in the number of NFT games as developers get inspired by AI.

We’re still in the early days

We’re at the beginning of the curve for NFTs. It’s mostly early adopters, rather than mainstream popularity. The technology isn’t particularly easy to understand, there aren’t many developers working on games that actually use NFTs, and the metaverse angle won’t kick off until the metaverse itself is ubiquitous.

But for gaming, it still has potential. We’ve not heard the last of NFTs. Right now, there’s some reputation baggage that it’ll carry for some time. But, in a couple of years, when the technology is more polished and easy to use – we might see a sudden resurgence. And we’re definitely going to see more game developers using NFTs in the future.

Editors note: This article was written by Matej Lancaric, user acquisition specialist and mobile games consultant. You can read his original version here.

A city-building simulation game set in an ice and snow apocalypse. As the chief of the last town on Earth, you have to gather resources and rebuild society. Collect resources, assign workers, explore the wilderness, conquer tough surroundings, and use various methods in order to survive.

Let’s start with introducing the company Century Games. They have over 1,000 employees in 8 countries across four continents. Century Games is a global game developer and publisher. Actually pretty interesting case. From $1 million/month in 2020 to $20 million/month now. Holy shit! What a ride!

Is this even possible in the post IDFA world? But UA is dead?! I must be dreaming..

Since 2010, they have released numerous popular online and mobile games ranging from casual to mid-core genres. You can see a few of these in the picture below. How did I find this company? I was doing some fake ads research and one of their games Valor Legends was using the Save the dog icon.

We already recorded a podcast about the global launch of Frozen City a while ago:

I also like to look into the numbers post-global launch, and it seems now its a good time. In the middle of writing this, I received an exciting message from Jesper Gustavsson about a new game that was just global launched, and it looks very similar to Frozen City – Whiteout Survival. Let’s talk about both games!

 two & a half gamers

• two & a half gamers session #56 – Frozen City vs Whiteout Survival, admon potential, UA & GD review 20. marca 2023
• two & a half gamers session #55 – Deep & actionable SKAN 4.0 breakdown with Eran from Singular 13. marca 2023
• two & a half gamers session #54 & Eric Kress – Everything is dead & new frontier of game development 6. marca 2023
• two & a half gamers session #53 – Eversoul, a trending waifu game with full GD, UA, Admon review 27. februára 2023
• two & a half gamers session #52 – Admon gossip corner, Unity expensive bug, APS, Google 3 placements 20. februára 2023

Frozen City overview

It is a pretty good & fun game!

Frozen city consists of character well-being, town/city/settlement development, and the ability to create and own settlements. As soon as the player enters the game, they are introduced to the game through a conversation between survivors. The players see the conversation about how they need to set up a fire and survive.

When the player enters the game, they see a conversation between survivors. The player has to assign and use the survivors and assign tasks to them to help them survive and sustain life in their newly built community.

As soon as the player enters the game, their first task is to find wood and use it to ignite the fire. Then the players will move on to other tasks while they make sure to keep the fire burning, while they build their community to fulfill their various needs.

The player has to do the tasks while taking care of the well-being of the survivors. Each survivor needs rest, food, and warmth. When any of the survivor’s need for necessities is on the lower side of the bar, the player can revive them using the facilities built in the community.

As the player keeps playing and improving the community, it will reach a maximum level. The player can move onto another city/town on the map to search for new resources and enhance their lifestyle differently. Once the player reaches the maximum level of a community, the help of that place will become an unlimited source.

USER ACQUISITION & NUMBERS

When we discussed the Top 10 revenue countries on the podcast, the United Kingdom and Germany earned more than South Korea. But that changed in the last few weeks. Revenue per download is looking pretty good in US & in KR.

When global launching a game, it’s important to have full team on the UA, analytics and creative side. If you don’t have it, you either work with publisher/partner or an agency/consultant. Let’s get to the actual UA operation:

Channel mix

Applovin is the most extensive channel in terms of spending on both iOS and Android.

• Not surprising at all. I remember talking to Mr. Felix about Idle games scaling exceptionally well on Applovin on AdROAS campaigns both on iOS and Android! This is what is happening here!
• We can see both videos and playables in their creative mix. But 50% of their overall spend goes to playable on Applovin!

Facebook

• What is surprising is the fact that I have downloaded the game immediately after our podcast and I still see Frozen City creatives! As Mr. Jonathan Winters mentioned, this could be a global launch tactic to get more eyeballs and remind players about the game.
• I don’t know. Feels like such a waste of resources. In my world, it’s called excluding existing players.

Google

• They started scaling on Youtube quite heavily in the last few weeks.
• Using mainly 30 second videos + some static images.

 Unity

• Started relatively big, but now scaling back

We can see they are utilizing all big UA channels: Facebook, Ironsource, Google, Applovin, Vungle, and Unity, and started running some tests on TikTok!

Diversifying the UA portfolio efficiently is not an easy job. Here, we can see a good baseline of plenty of channels and looks like they are optimized. I did some publisher-level analysis again, and they seem to be in excellent shape.

They are showing their ads in games like Idle coffee shop tycoon, Tiny island survival, Bitlife life simulator, earth, and some hypercasual stuff. Not bad!

Also, in February, they already made $5 million in revenues—a pretty exciting story since they global launched the game at the end of December.

If there’s only one road into town, everything comes to a standstill when a tree blocks the way. The same is true of business. With only one source of revenue, the whole company comes to a halt if that source dries up.

Many game studios have relied solely on a single strategy – typically advertising – to make their money. But as times change, we’ve seen a shift in the market. More and more studios have realized that they need more than one road into their village.

It’s called hybrid monetization. It’s not new, and it’s now become necessary. But why? And what can we expect to change in 2023 because of it? Here are our predictions for the year to come.

What is hybrid monetization?

Hybrid monetization is where a game studio finds multiple ways to make money – getting more value from each individual player. Typically, studios use the holy trinity:

• In-app purchases.
• In-app ads.
• Subscriptions.

These three tactics help level out the highs and lows when using any single strategy. If their in-game ads don’t perform so well, their subscriptions can pick up the slack. And vice versa.

1. Hybrid monetization will become the norm

As Google drills down on intrusive ads, and Apple’s updates their privacy policy, developers have realized that they can’t rely on any single source forever.

Lootboxes, for example, have been under a lot of scrutiny for a long time now. Many countries deem lootboxes as gambling, enforcing similar restrictions on them. Others, like Japan, have banned them outright. Likewise, Google and Apple have been adding more restrictions to their policies around how and when studios can show their players ads.

The only way studios will survive in the shifting market is to branch out. So it’ll be no surprise that in 2023, we predict that the majority of gaming studios will be using a hybrid monetization strategy.

2. New models and revenue streams will emerge

We’ve already spoken about the holy trinity. But we believe that we’ll see different models begin to emerge, too.

Audio advertising is one such revenue stream – playing the equivalent of a radio ad during the game, which lets the player continue without interrupting the experience. We’ve also seen more and more sponsored content entering into games – from ads on in-game billboards to branded buildings and vehicles.

Another approach has been with rewarded ads. In the past, we mainly saw studios use rewarded ads to give an extra life or more coins. But we’re now seeing games use them to unlock extra content. For example, Homa Games uses a rewarded ad in Aqualand to let players upgrade their vehicles. While Voodoo, in their delivery game, Deliver It 3D, lets players upgrade their bike.

3. Studios will offer different tiers to players

That holy trinity is also changing. For example, we’ve seen that studios offer players different tiers of subscription for different benefits. There are four main tiers of subscription that studios can offer:

• Ad-less. The most basic level. The player pays to stop any ads, but doesn’t typically get any other benefits.
• Queue-skip. Coins, energy, gems. Those mechanics that slow the player down, so they have to play a certain amount before they can continue. Queue-skipping lets players jump to where they always have enough coins or energy to keep playing.
• Battlepass. As the player levels up, they get more and more rewards. Which encourages them to keep playing.
• VIP. The tier that brings a level of prestige. Players get everything from the other tiers, but also added benefits like having your name enter the game, a bigger inventory, or free tokens to enter PvP contests.

Quite a few of these tiers overlap with in-app purchases. But the key to their success – whether it’s a one-off purchase or a subscription – is that it shouldn’t give a player a distinct advantage.

Marvel Snap balances this well, for example. While it’s beneficial for players to spend money to unlock cards faster, it’s perfectly possible to unlock all the cards by just playing matches. It just takes longer. (They also matchmaker based on three distinct pools, based on how many cards the player owns. Players from pool one don’t get matched with players from pool three.)

4. Umbrella subscriptions will emerge

With ad campaigns becoming less lucrative, publishers and studios have been turning to mergers and acquisitions instead – looking to build a bigger portfolio of games.

But it’s counter-productive to have a subscription for every single game. People can only pay so much a month, so it’s important for developers to keep that player within their own ecosystem.

Once publishers have enough games, it makes sense to offer an umbrella subscription – which gives benefits across their games. This encourages players to stay within your game and not hop over to a competitor. But it also adds more value to the subscription itself, making it a more enticing prospect.

5. Studios will need data warehouses to keep track

The more complicated and varied a studio’s monetization model becomes, the more powerful their tools will need to become. Different players prefer different models – some will watch ads, others will subscribe.

So you’ll end up with different groups of players. And if you have one group of players who only watch ads and another group that only ever uses subscriptions, you need to know how your changes affect both groups. If you’re building an ecosystem, you need to know how changes in one game effects your entire portfolio.

Data is gold here. And the only way to bring all that data together and understand how it all relates is by using a data warehouse for games. So we’ll likely see a surge in demand for advanced analytics and testing.

Use data to stay ahead

The only consistent trend is that things always change. What we see today – the models that work and the strategies that bring in the most money – could be entirely different tomorrow.

If you’re looking for more flexible ways to access and process your raw gameplay data then this is all possible with our range of DataSuite tools. And we recently announced Private Instance – where you can bring our technology into your own setup.

Get in touch with us if you have any questions, or want to learn more about how we can help you.

Editor’s note: This article was written and published by Tenjin. You can find their original version here. 

New year, new insights into the most innovative segment of the mobile gaming market: hyper-casual games!

The much awaited “Hyper-Casual Benchmark Report” for Q4 2022 is here to provide you with up-to-date data on key performance indicators, user behavior, and trends in the hyper-casual gaming industry.

This benchmark report consists of anonymized data collected by Tenjin and GameAnalytics for hyper-casual games in the date range of 01.10.2022 – 31.12.2022.

So let’s dive in and explore what this report has to offer! Here’s a summary of the topics we cover:

• Ad Spend % by platform
• Median CPI by platform
• Top 10 countries & ad networks by ad spend on Android and iOS
• Median CPI for the top 10 countries & ad networks by ad spend on iOS and Android
• Day 1 and Day 7 Retention Benchmark by platform for hyper-casual games (by GameAnalytics)

Our findings reveal that cost per install (CPI) on iOS has increased by $0.17 since the last quarter (Q3 2022)! Download the report below to learn more.

Download the report

What has been the most surprising statistic from the report? Let us know!

We hope this report will help you with your ad monetization and user-acquisition efforts in 2023!

Editors note: This article was originally written and published by Mindworks, a leading self-service creatives platform from Mintegral. You can find their original version here.

Mindworks is giving GameAnalytics users exclusive trial access to create countless playables and advertise them for free with Mintegral. Hurry, this amazing offer is for a limited time only.

Activate your free Playturbo trial

How powerful can a premium playable ad be when it comes to user acquisition? Quite powerful, actually. Here is an example: a single playable ad created by Mindworks generated the lion’s share of downloads for ITI Studio’s game ‘On Ice!’.

ITI: top hyper-casual developer with high quality standards for its ad creatives

ITI is a well-known hyper-casual mobile gaming developer in the Japan market. Its hit title Rescue Cut, released in 2019, was named one of the best games of the year at the App Store Awards, which catapulted the company to global fame. As of today, ITI has amassed a whopping 350 million downloads with its portfolio of games, making it a veritable industry veteran.

As an experienced hyper-casual games developer, ITI is well aware of the playable ads’ built-in advantages: good user experience, outstanding ROI performance, and premium users acquired.

But on top of those, ITI wanted to further boost the playable ads’ UA results by leveraging the expertise of a leading creative team.

After many successful partnerships, ITI once again chose Mindworks as its playable creative partner for its newly released game On Ice!, with the aim to acquire high-quality users worldwide.

Creative strategy: gameplay-focused approach designed to attract users

As part of the effort to design effective ad creatives for On Ice!, we developed a comprehensive creative strategy based on an in-depth analysis of the game’s core gameplay, in order to better get players’ attention and bring out their competitiveness, thereby driving conversions.

1. Carefully selected levels and simplified trial to better highlight gameplay

On Ice! is an easy-to-play hyper-casual game with a competitive aspect that combines elements such as parkour and item collection, with a progressive difficulty curve for its levels. After a deep dive into its gameplay and an in-depth round of research to better understand target players’ preferences, we discovered that “gameplay experience” is one of the key aspects that players care most about.

Therefore, to improve player engagement and increase conversions, we came up with a two-step advertising strategy that focused primarily on the core gameplay while simplifying other aspects of the game:

Step 1: easy trial run to maintain retention rate for interested users

To improve users’ willingness to play the game, we selected low-difficulty levels for the playable creative and added clear visual guides, making it easier for them to understand the game.

Step 2: simplified design to highlight the smooth gameplay

Too many details will only blur the focus. To give players a clear idea of how the game is played, we did away with many of the effects and features throughout the original levels, such as coins and “guiding cakes”, to present a simple, clean and clear playable that focused on gameplay experience.

2. Innovative game rules to stimulate players’ urge to win

With the playable ad creatives in place, we decided to further boost downloads by working on ways to stimulate players’ competitive side, the urge to win:

• We replaced the original “points system” with a “score system,” set the maximum score to 95/100, and paired it with creative copy designed to challenge and taunt players.
• We set the endcard to display various skin rewards along with a call to action, “Next Round,” to encourage taps and drive conversions.

Mindworks designed the playable ad for On Ice! based on a deep dive into player preferences and it turned out to be a smashing success: the ad alone contributed 95% of the game’s downloads, and helped increase IVR on both operating systems by 77%, while also lowering CPI by 56%.

Those stellar results encouraged ITI to take things further and use 96% of its advertising budget on playable ads, helping the company continue to acquire users more easily and efficiently than before.

“The playable ad Mindworks designed for On Ice! has been incredible. We’re genuinely amazed,” said ITI’s Chief Brand Officer Masaki Otomo. “We’ve worked with the Mindworks team many times and they have always provided us with effective, relevant, product-centered ad strategies and suggestions. They are truly a reliable partner.”

What are you waiting for? Setup your free playables today

If you would like to try the Playable Ad Editor and Playable Templates from Mindworks, then make sure you register your interest and our team will get in touch with you as soon as possible. And if you want to learn more about Playable Ads, have a read through how MondayOFF increased IPM by 57% with playable ads.

Activate your free Playturbo trial

Editor’s note: This article was written and published by Tenjin. You can find their original version here. 

We have released our “Hyper-Casual Benchmark Report” for Q3 2022. In this report, you’ll gain exclusive insights on ad spend and CPI on a country and platform level. Additionally, we have partnered with GameAnalytics to bring you a Day 1 and Day 7 retention benchmark.

Here is a full list of what you will find in the report:

• Top countries by ad spend and CPI
• Top ad networks by ad spend and CPI
• Day 1 and Day 7 retention for the top 2% of games by platform (by GameAnalytics)

Here is a sneak peak from the report…

Tenjin data from Q3 2022 shows that Brazil is the biggest outlier in the report with very low CPI (0.06 on Android, and 0.14 on iOS) relative to ad spend (#3 on Android and #10 on iOS).

Download the report below and get the full story.

But, the journey doesn’t end there…

We have a couple of add-ons to this report coming up soon.  With the add-on you’ll receive the data on the Top 5 Ad Networks by CPI in each market.

If you’ve already signed up to this report, you don’t need to do anything at all. We will send it to your inbox directly.

Download the report

And for more resources, tips, and insights on how to make successful hyper-casual games, check out our library here.