MOBILE MONETIZATION: WHY WATCHING ADS?

Dec
28

What thing do people hate most of all about digital space, TV, web, games, etc.?
Ads! Yes... and no.
Over the last few years since introduction of the incentivized advertising into games the state of things changed radically, as rewarded video ads began to generate more revenue and convert more users than IAPs.


Mobile games monetization is quite challenging, as few gamers are willing to spend real money on mobile games these days. But recent report by Unity suggests that rewarded video ads have become a key to monetizing audience, as 71% of players surveyed stated they prefer watching a short video ad as way to pay for game content.

On top of the reward, which usually comes in the form of in-game currency (coins, gems, etc.) or premium content (new levels, power-ups, character upgrades), users like that viewing is optional. That’s not good old TV commercial you’re forced to watch, while playing you can skip an ad and continue playing without reward. Weapon of choice is what makes the difference.

A lot of game developers and publishers stake on incentivized advertising, because their players choose to make a 30-second break and watch ads in return for longer gameplay or accelerated in-game progress. What developers get in return is:

1. Better retention. Less than 1 in 10 developers witnessed drop in retention after introduction of incentivized ads. Videos promote longer sessions and, eventually, more engaged and loyal players.

2. Better conversion and seamless syncing with other monetization tools. A study by FusePowered showed that six times more players made an IAP after watching a rewarded video than those who did not. So you don’t have to choose between IAPs and video ads, use them both.

3. Increased revenue. Over a half of game developers surveyed called rewarded videos the highest revenue generator compared to any other type of advertising they use in games.

In order to use the incentivized ads’ monetization potential to the fullest, you need to adjust it for your particular game.

One of the most common situations for offering a video ad incentive is after level loss: player can watch video and replenish lives or add some extra moves to get another chance. However, it might also be useful to include the ad option to the store/bank, so player can benefit from the option at any point in game.

TIP 1: Refer to Sprague study for main reasons why players are after virtual incentives to work out a strategy for placing video ads. ‘Faster level-up’ is in the lead, ‘more fun’ and ‘getting past a difficult level’ share second place, the ‘sale’ reason closes up the top 3. Read Chartboost’s psychology-based article on 3 successful moments for placing rewarded video ad (rescue moment vs. achievement moment vs. break moment).

TIP 2: Step off the beaten path and join developers that innovated on the ordinary monetization model. The title AdVenture Capitalist, for example, offers an option of stacking ads -- player can watch several videos in a row and get a bigger incentive at once. Creators of NonStop Knight went further building their successful dungeon battler around ads, which throw random reward once every 3 hours setting the pace of a whole game. Take care of WHAT is shown in videos -- try to offer ads covering various subjects, from luxury cars and cosmetics to charity events and low-cost stuff for sale.

Want to share your thoughts on video ads as monetization tool? Leave comments!
Posted by Renatus on December 28, 2016