Let’s talk about something exciting today! Ad revenue in mobile gaming. Have you ever wondered how those little addictive games on your phone make money? Then you are a marketer trying to figure out the best ways to cash in.
What is Mobile Game Advertising Revenue?
You know those ads that pop up in games, like between levels or when you’re waiting for an extra life? Yeah! That’s mobile game ad revenue. It’s one of the biggest ways through which a marketer or game developers make money.
Wondering how?
Look! Players see the ad, the app gets paid. Easy, Right?
But, here’s a twist- ads in games are not just about banners anymore. From rewarded videos to native ads, there’s a whole science behind what works.
But, hey you need an expert mobile app development company to create and monetize a gaming app. ap
How Much Money Do Mobile Games Make Per Ad?
This is where things get interesting. The amount depends on the type of ad and the platform. For example:
- Rewarded video ads: Players earn coins or bonuses for watching, and they tend to pay more.
- Banner ads: These are the classics but usually bring in less per view.
On average, mobile game ad revenue can range from a few cents to a couple of dollars per user. Want to get specific? Tools like a mobile game ad revenue calculator can help.
What Are the Types of Mobile Game Advertising?
When it comes to mobile game advertising, there are different ad types, each with its pros and cons. Let’s look deeply into the details so you can figure out what works best for your game.
Rewarded Ads:
Rewarded ads are the fan favorites. Players watch a short video or engage with an ad in exchange for in-game rewards, like extra lives, coins, or special items. The big pro here is that players want to watch these ads because they get something out of it. They’re less intrusive, and players don’t mind them as much since they’re in control.
The downside? They work best for games that have in-game currency or rewards to offer, so they might not be as effective in other types of games.
Pros:
- High user engagement and satisfaction as players voluntarily watch ads for in-game rewards.
- Enhances players’ satisfaction by offering valuable in-game rewards.
- They are non-intrusive as they only appear when players opt in.
- Boost retention and session length as users stay to earn rewards.
Cons:
- Requires in-game rewards to work well.
- It can feel repetitive if rewards are limited or ads are overused.
- Dependence on ad inventory quality for revenue consistency.
Interstitial Ads
Interstitial ads are full-screen ads that pop up between game levels or moments of transition. They’re effective because they catch the player’s attention but can be frustrating if they appear too often or at the wrong times. When placed strategically, they provide a great way to generate revenue without interfering with gameplay too much. However, if users are bombarded with these ads, it can negatively affect their experience and make them drop the game.
Pros:
- Full-screen visibility offers maximum visibility and a strong impression.
- Ideal for natural breaks, like between levels, without disrupting gameplay.
- High potential for ad revenue compared to banners.
Cons:
- Overuse can frustrate players, leading to uninstalls or lower retention.
- Timing is crucial; poorly placed ads disrupt the gaming experience.
- May be skipped quickly if not engaging enough.
Banner Ads
Banner ads are simple and non-intrusive. They sit at the top or bottom of the screen while players are engaged in gameplay. The beauty of banner ads is that they don’t disrupt the flow of the game, but the downside is that they generate the least amount of revenue compared to other ad types. Since they’re always visible, players may eventually get used to them and ignore them altogether, leading to lower click-through rates and less profit.
Pros:
- Non-intrusive and doesn’t interrupt gameplay flow.
- Easy to implement and widely supported by ad networks.
- Suitable for casual games with consistent screen space.
Cons:
- Generates low revenue due to banner blindness.
- Limited engagement and often ignored by players.
- Can clutter the screen if not designed properly.
Native Ads
Native ads are designed to blend seamlessly into the app’s design, making them look like part of the game. This could mean in-game billboards or product placements that feel natural rather than disruptive. They’re great because they don’t scream “advertisement,” which makes them less intrusive. However, the challenge is that they require creative integration with the game’s environment. Plus, it can sometimes be difficult for players to distinguish between an ad and a legitimate part of the game.
Pros:
- Blends smoothly into the game, maintaining a cohesive experience.
- Less intrusive, making players more likely to engage.
- Allows for creative integration, increasing appeal and relevance.
Cons:
- Challenging and time-consuming to implement effectively.
- May require constant updates to keep the ads relevant.
- Players might not recognize them as ads, leading to lower direct revenue.
Playable Ads
Playable ads are interactive and allow users to engage with a mini-game or a demo of another game before deciding to download it. These are incredibly engaging because they let users try before they buy. The downside? Playable ads require more resources to develop, and they need to be designed carefully to ensure they’re engaging without being too complicated. But when done right, they can significantly boost app installs and revenue.
Pros:
- Highly interactive, engaging users by letting them try a mini-game.
- Increases app install rates by providing a demo-like experience.
- Delivers a better user experience, appealing to potential new players.
Cons:
- Expensive and resource-intensive to develop.
- Needs to be well-designed to avoid frustrating users.
- May not suit all game genres, limiting versatility.
Video Ads
Video ads are short, 15-30-second clips that auto-play during certain breaks in the game. These ads are great because they capture the player’s attention and often come with the option to skip after a few seconds. They can generate a lot of revenue, especially if they’re paired with rewards. The downside is that some players find them annoying, especially if they pop up too frequently or at inopportune times, like in the middle of a crucial level.
Pros:
- High engagement and retention, especially with rewarded or skippable formats.
- Generates significant revenue when placed strategically.
- Easy to integrate into existing ad models.
Cons:
- Can annoy players if placed too frequently or disruptively.
- May require high-quality video inventory for maximum impact.
- Longer ads may lose player attention, affecting completion rates.
Offerwalls
Offerwalls are essentially a marketplace for players to choose actions in exchange for rewards. This could mean watching a video, downloading another app, or completing a survey. The beauty of offer walls is that they give players the freedom to choose which ad actions they want to engage with, which can feel less intrusive. However, they require careful integration and can lead to lower-quality traffic or users who only engage with the offer wall for rewards without fully engaging with the game.
Pros:
- Gives players the freedom to choose their preferred engagement method.
- Can generate high revenue through diversified actions like app installs or surveys.
- Works well for games with reward-based ecosystems.
Cons:
- May attract low-quality traffic from users who only want rewards.
- Requires careful integration to avoid looking cluttered.
- Results might not translate into long-term engagement or conversions.
What Are The Revenue Models in Mobile Gaming
There are different revenue models commonly used in the mobile gaming industry to generate revenue from mobile games.
These models are customized to different player types and monetization strategies. Let’s break down the primary revenue models—Freemium, Premium, In-Game Advertising (IGA), and In-App Purchases (IAP)—and explore how much money they can make for game developers.
1. Freemium
The freemium model is everywhere in mobile gaming. In this model, players can download the game for free but face optional in-game purchases or ads to access premium features. Just like games like “Clash of Clans” or “Candy Crush”.
This model works because it gets people to try the game without commitment. From there, it’s all about hooking them with engaging gameplay and tempting offers like extra lives, exclusive items, or unlocking levels. Mobile game ad revenue is often generated here through ads shown to free players who don’t spend on in-game purchases.
- Earnings Potential: Depends on ad impressions and purchases. With millions of users, even small ad clicks or purchases add up.
- Who Pays?: Ad networks pay based on impressions, clicks, or actions, while players who want to speed up their progress pay directly.
Pros of Freemium:
- Wide player base
- Potential for high lifetime value from a small percentage of paying users
Cons of Freemium:
- Relies on constant updates to keep players engaged and spending.
2. Premium Model
In the premium model, users pay upfront to download the game. It is just like an “old school” way of gaming, but it still works for high-quality or niche games like “Monument Valley”.
This model is great because it avoids bombarding players with ads or in-app purchases. Its drawback is that it limits the audience since many players hesitate to pay upfront.
- Earnings Potential: Revenue depends entirely on downloads, so it’s a one-time income stream per player.
- Who Pays?: Players, and only once—before even trying the game.
Pros of the Premium Model:
- Simple, upfront income with no ongoing monetization strategies needed.
Cons of Premium Model:
- Tougher to attract players in a market dominated by free-to-play games.
3. In-Game Advertising (IGA)
In-game advertising is a direct way to monetize by showing ads to players during gameplay. This includes formats like rewarded ads, banner ads, and interstitial ads. This model is super popular in freemium games where ads target non-paying players.
With mobile game advertising revenue, your earnings depend on the type of ad and the engagement rate. For instance, rewarded ads can generate better returns because players willingly engage, while banners may yield less due to low click-through rates.
- Earnings Potential: Varies based on ad format. For example, How much does AdMob pay per 1000 views? Around $1–$5, depending on geography and engagement.
- Who Pays?: Ad networks or advertisers who pay you per impression, click, or action (CPM, CPC, or CPA).
Pros of In-Game Advertising:
- Steady income even from free players, with no need for direct purchases.
Cons of In-Game Advertising:
- Overuse of ads can drive players away if the experience becomes annoying.
4. In-App Purchase (IAP)
IAPs are a goldmine for mobile game developers. Players download the game for free and then spend real money on in-game items, like costumes, upgrades, or virtual currency. Games like “Fortnite” thrive on this model.
This model often works alongside IGA, where ads target non-spending players, while big spenders (or “whales”) buy their way to a competitive edge. Average revenue per user in mobile games is often highest with this model when a small percentage of players make large purchases.
- Earnings Potential: Huge if done right. Some players spend hundreds or even thousands, which offsets the large majority who don’t spend at all.
- Who Pays?: Players who want to enhance their gameplay experience or stand out.
Pros of In-App Purchase (IAP)
- High revenue potential, scalable based on game design and player engagement.
Cons of In-App Purchase (IAP)
- Needs a well-designed economy to avoid being pay-to-win or alienating non-paying players.
Best Practices For Generating Ad Revenue in Mobile Games
Generating ad revenue from mobile games isn’t just about adding ads—it’s about doing it smartly. Here are some best practices to maximize your mobile game ad revenue while keeping players happy:
1. Choosing the Right Ad Format
Not all ads are created equal. Picking the right format like rewarded ads, interstitials or native ads depends on your game style.
For example:
- Use rewarded ads to offer incentives without annoying players
- Place interstitial ads during natural gameplay breaks to avoid interruptions.
2. Optimize Ads Placement And Training
Poorly placed ads can frustrate players and hurt your retention rate. The key is to integrate ads effectively.
For example:
- Show ads at logical points, like after a level ends or when a player loses.
- Avoid excessive frequency; less is often more when it comes to player retention.
Well-timed ads boost engagement and encourage higher in-game advertising revenue.
3. Leverage Rewarded Ads
Rewarded ads are a win-win: players get something they want such as extra lives and you earn ad revenue.
They work well because they’re optional, creating a sense of choice and value for the player.
This format consistently delivers high average revenue per user in mobile games compared to other ad types.
4. Test And Analyze Ad Performance
Use tools like a mobile game ad revenue calculator to track ad performance metrics like CPM (cost per mile) or engagement rates. Regularly analyze your data to:
- Identify high-performing ad placements.
- Optimize or remove low-performing formats.
5. A/B Test Your Ads
Not sure which ad format or placement works best? Run A/B tests to compare performance. For example:
- Test banner ads vs. interstitial ads.
- Experiment with different reward types in rewarded ads.
The insights can help you make data-driven decisions for higher advertising in mobile games earnings.
6. Keep Ads Non-Intrusive
Balancing ads with user experience is critical. Ads that disrupt gameplay lead to uninstalls. Here’s how to keep it non-intrusive:
- Avoid ads during intense gameplay moments.
- Use formats like native ads or banners for a subtler touch.
A smoother experience means better retention and steady revenue growth.
7. Partner with Reliable Ad Networks
Working with top-tier ad networks like AdMob or Unity ensures high-quality ads and better payouts. These networks often have robust tools to help optimize your ad placements.
For example, wondering how much AdMob pays per 1000 views. A good network ensures competitive CPM rates, increasing your revenue potential.
8. Focus on Player Retention
The longer players stick around, the more ad impressions you’ll generate. To improve retention:
- Create engaging gameplay with regular updates.
- Offer incentives like daily rewards to keep users returning.
Higher retention means more chances for in-app advertising revenue without chasing new users constantly.
9. Avoid Overloading Your Game with Ads
Too many ads can hurt the gaming experience and lead to uninstalls. Stick to a balanced strategy:
- Limit the number of ads per session.
- Offer ad-free options through in-app purchases for players who want uninterrupted gameplay.
Happy players are more likely to engage with ads over time.
10. Use Hybrid Monetization Models
Combining ad revenue with other models like in-app purchases or subscriptions can maximize your earnings. For example:
- Offer a subscription plan to remove ads while still monetizing non-subscribers with ads.
A hybrid approach captures revenue from all types of players.
Conclusion:
Ad revenue in mobile gaming isn’t just about placing ads—it’s about placing the right ads in the right way. From choosing the best revenue models to optimizing ad formats like rewarded videos or interstitials, every decision can impact your mobile game ad revenue. By understanding the factors affecting ad revenue in gaming apps and leveraging tools like a mobile game ad revenue calculator, marketers can unlock the full earning potential of their apps.
Whether it’s improving user experience or experimenting with innovative ad strategies, the key is to balance profitability with player satisfaction. Ready to level up your ad revenue game? Just reach out to Pancertech today, as an experienced app development company, we are experts in game development and monetization methods. We make sure to bring your dream to reality.
Faqs
1. How much do app developers make per download?
The revenue per download depends on the monetization strategy. Developers using in-app advertising revenue or in-app purchases often earn more than apps with just a one-time payment model. On average, free apps earn between $0.01 and $0.10 per user through ads or purchases, but this varies based on the average revenue per user mobile games and regional factors.
2. How much do rewarded video ads pay?
Rewarded video ads can generate $10 to $50 per 1,000 views, depending on the mobile game ad revenue model, user engagement, and the app’s niche. These ads typically perform well because they offer users incentives like in-game rewards. Developers can use a mobile game ad revenue calculator to estimate earnings from these ads.
3. How much does AdMob pay per 1,000 views?
AdMob’s revenue varies widely, but Android app ads revenue typically ranges from $1 to $10 per 1,000 impressions for banner ads and $5 to $50 for interstitial or video ads. The payout depends on the app’s location, user base, and ad format.
4. Who pays ad revenue?
Ad revenue is paid by advertisers who use platforms like AdMob, Unity Ads, or Facebook Audience Network to place their ads in apps. The income is influenced by factors affecting ad revenue in gaming apps, such as user engagement and app category.
5. What is the ROAS formula?
ROAS (Return on Ad Spend) is calculated by dividing the revenue generated from ads by the cost of running the ads. For example:
ROAS=Revenue/AdSpendROAS = Revenue / Ad SpendROAS=Revenue/AdSpend
A higher ROAS indicates better ad campaign performance, crucial for advertising in mobile games.
6. How to get revenue from a mobile game?
To generate revenue, integrate strategies like game app advertising, in-app purchases, or subscriptions. Focus on in-game advertising revenue, which includes rewarded ads, banner ads, and interstitial ads. Optimizing ad placements and ensuring a balance between ads and user experience are key.
7. How to increase app revenue?
Boost your earnings by implementing the best money-making game apps for Android strategies:
- Use analytics to track average mobile game revenue and optimize ad placements.
- Focus on how to optimize mobile game for ad revenue by reducing intrusive ads and improving user experience.
- Experiment with new formats like native ads or gamified ads for better engagement.
8. What are the factors affecting ad revenue in gaming apps?
Several factors influence ad revenue, including user demographics, ad format, engagement rates, and app category. Apps with high retention and active users typically generate more mobile game advertising revenue.
9. Which is the best game app to make money?
The best game app to make money is one that combines a great user experience with effective monetization models, such as rewarded ads or in-app purchases. Casual games often perform well because they attract a broad audience and sustain engagement.
10. How Can a Mobile Game Increase Revenue?
To maximize in-app advertising revenue, focus on:
- Testing different ad formats (e.g., video ads, banners, interstitials).
- Ensuring ads are relevant and not disruptive.
- Regularly using a mobile game ad revenue calculator to evaluate performance.