Turning an asset of intelligence into money is not a piece of cake. The whole process of mobile game monetization is the same. Monetization is the key to not only bringing you the source of income you need, but it’s also can be a tool to increase your user engagement if implemented right. Ad monetization is an important part of the success of any mobile app or game. Publishers need to understand how to maximize your monetization opportunities in order to generate the most revenue. In this blog post, we’ll provide you with steps to get started with ad monetization. From understanding different types of ads to utilizing optimization strategies, these tips will help you monetize your app or game more efficiently.
The harmony between UA and monetization of a mobile game
The first simple matter of a successful game lies within the User Acquisition strategy as well as the product design and UX. A loyal and active file of users will get your monetization strategy an initial success. To be practical, there must be viewers to see the ads you show, hence, no one starts monetizing their games unless they reach a number of DAU. Users that are more likely to engage with your game are your target audience, whom you monetize and bring higher revenue with lifetime value.
There are many monetization methods that Publishers apply to which that fit your games. One or two (also known as hybrid) monetization methods are common.
- Paid app: users pay upfront to install games or apps. This way, Publishers get the money before the users even open the game.
- Freemium: users can install games or apps with no fee but only have access to a part of the game/app. They need to pay or subscribe to make the whole game available.
- In-app purchases: the game itself is free to play, but Publishers will sell in-game assets/items. This often targets a loyal group of users.
- In-app advertising: the easiest to implement and does not rely on users’ purchase decisions.
There are some criteria one Publisher should consider to choose which method to integrate.
- Audience niche
- Purchase volume: to decide whether you should focus on in-app purchases or cut that down.
- Users – number, session length, and value: the more, the higher, the better ad revenue you can receive.
Other than methods that require users to put money on the table, in-app advertising is the most widespread and profitable than others.
In-app ad monetization
Free games tend to be more welcomed by users, which makes the user acquisition process smoother. Moreover, free app users are also more open to watching ads. Publishers should collect first-party data, which gets advertisers more reach to users and will facilitate later when third-party data is eradicated.
In-app advertising as a monetization method is not only preferred because of its easy implementation, but it has also proven to be
In-app ad placements and formats
The first step to app ad monetization is to decide which ad formats to implement. There are several common ad formats:
- Banner ad: This is a cost-effective static ad unit inside mobile and tablet apps. They come in sizes of 320×100; 320×50; 300×250; 468×60 and stay at the bottom or top of the screen. However, to integrate banner ads correctly, Publishers must not let them block any of the game content.
- Interstitial ad: Ads that naturally blend into the app flow, including both videos and images. This ad usually covers the whole screen, so it needs proper installation not to be intrusive to the user experience.
- Rewarded ad: This format is initiated by users when they want to see ads and get rewards in return. It is welcomed by the majority of users and yields higher revenue.
- Native ad: This type of ad matches the look and feel of the app and provides better user experiences.
See how PremiumAds recommend placements for these ad formats HERE.
Publishers need to place ads where users spend most of their time in your game to get your ad higher visibility. Another tip is to find out where they may drop off from the game, probably a little too-hard level, place a rewarded ad there and give them a booster, or an extra life in return. This will decrease churn and keep user engagement.
Many publishers make the mistake of bombarding users with a lot of ads, which eventually kills their games because of high churn. Ads should be tailored seamlessly to the game flow, and Publishers should always prioritize your users, whom you have traded much money to acquire.
How and where should you sell your inventory?
A Publisher can work with various partners to help them monetize their games with programmatic ad. These partners can amplify your monetization script and take care of your AdOps matters.
- Supply-side platform: an aggregator of Publishers with inventory for sale, these platforms sell Publishers’ inventory to ad networks, ad exchanges, and other DSPs (demand-side platform).
- Ad network: a platform that connects advertisers and publishers in order to facilitate the buying and selling of advertising space. Ad networks typically provide services such as ad targeting, ad serving, analytics, and reporting.
- Ad exchange: a digital marketplace that connects buyers and sellers of online advertising inventory. It facilitates real-time bidding between advertisers and publishers, allowing them to buy and sell ad impressions with greater efficiency and transparency.
- Mediation platform: a system that allows mobile game developers to integrate multiple ad networks and manage them from a single dashboard.
For how to choose your monetization, refer to this part of our blog here.
What monetization metrics to keep track of your performance?
- The number of ads: the more ads, the higher revenue. But Publishers need to keep in mind not to flood your users with too many ads. Therefore, frequent testing to see what ad density can make your user content and increase your revenue.
- Fill rate: the density of the number of impressions sold on the number of sent ad requests. The more answered ad requests, the higher the fill rate. This means Publishers should work with monetization partners/DSPs that have a target audience that matches your user profiles.
- Response latency: if the ad server answers too slowly, this may cause low fill rates and empty ad slots. The waterfall auction model can also cause latency in response since it takes time to send and receive bids from one-by-one bidders.
- Frequency capping: the frequency of an ad that a user sees in a period of time. The right frequency capping is all about the balance between user experience and ad revenue.
- eCPM: this metric decides the average amount of money a Publisher earns out of the total impressions sold. This can be affected by the user quality, ad frequency,…
- ARPDAU, ARPU – average revenue per daily active user, average revenue per user: Find out this to calculate your ROI and adjust your monetization strategy.
Ad monetization is a proven effective way for Publishers to generate income. With the right strategies and techniques in place, Publishers can maximize your profits through the use of ads and other monetization strategies. It is important to remember to get it right with all the ad formats you implement, monetize partners you integrate, and keep track of the important metrics. By following these suggestions, game developers can begin to reap the rewards of successful mobile game advertising monetization.