How Much Do Mobile Games Earn per Ad?

Are you curious about how much mobile games make per ad? The world of mobile gaming is a multi-billion dollar industry that has seen exponential growth in recent years. With the rise of smartphones and the increasing popularity of mobile gaming, game developers have found new ways to monetize their games. One of the most common ways is through advertising. But just how much do mobile games earn per ad? In this article, we will explore the various factors that determine the revenue generated by mobile game ads and provide some interesting insights into this rapidly growing industry. So, get ready to find out the secret behind the lucrative world of mobile game advertising!

Understanding Mobile Advertising

What is mobile advertising?

Mobile advertising refers to the practice of promoting products or services through mobile devices such as smartphones and tablets. This form of advertising has become increasingly popular in recent years due to the widespread use of mobile devices and the internet.

One of the main advantages of mobile advertising is its ability to reach a large audience. With billions of people worldwide using mobile devices, advertisers can reach a massive audience by placing their ads on mobile apps and websites. Additionally, mobile advertising allows for highly targeted advertising, enabling advertisers to reach specific demographics based on factors such as age, gender, location, and interests.

Another advantage of mobile advertising is its ability to generate significant revenue for mobile app developers and publishers. By displaying ads within their apps or websites, these companies can earn money each time a user clicks on an ad or makes a purchase. This revenue can be significant, particularly for popular apps and games that have a large user base.

In summary, mobile advertising is a powerful tool for promoting products and services through mobile devices. With its ability to reach a large audience and generate significant revenue, it has become an essential part of the mobile ecosystem.

Types of mobile ads

When it comes to mobile advertising, there are several types of ads that can be used to monetize mobile games. Here are some of the most common types of mobile ads:

1. Banner Ads: Banner ads are the most traditional form of mobile advertising. They appear as a rectangular or square box on the screen, usually at the top or bottom of the app. These ads are typically static, but can also be animated or interactive.
2. Interstitial Ads: Interstitial ads appear as full-screen ads that cover the entire screen, usually when the user is transitioning between different screens or levels in the game. These ads can be either video or image-based, and can include interactive elements such as buttons or swipeable controls.
3. Video Ads: Video ads are becoming increasingly popular in mobile advertising. They can appear as pre-roll ads before the game starts, mid-roll ads during gameplay, or post-roll ads after the game is finished. Video ads can be either in-game or out-of-game, and can range from 15 seconds to several minutes in length.
4. Native Ads: Native ads are designed to blend in with the overall user experience of the app. They can take the form of sponsored content, such as articles or videos, or can be integrated into the game itself, such as a branded level or character. Native ads are often more effective than other types of ads because they are less intrusive and more engaging for the user.

Understanding the different types of mobile ads is important for mobile game developers who want to maximize their earnings per ad. By choosing the right type of ad for their game, developers can ensure that they are reaching the right audience and delivering the right message in a way that is both engaging and non-intrusive.

Benefits of mobile advertising for developers

Revenue Generation

One of the primary benefits of mobile advertising for developers is revenue generation. By incorporating ads into their mobile games, developers can earn money from advertisers without having to charge users for the game itself. This allows developers to generate income without having to rely solely on the success of their game in the app store. Additionally, mobile advertising can be a significant source of revenue for developers, especially for free-to-play games, where in-app purchases and ads can generate substantial profits.

User Engagement

Another benefit of mobile advertising for developers is increased user engagement. Ads can be used to keep users engaged with the game by providing rewards or incentives for watching ads. This can be a powerful tool for keeping users interested in the game and increasing the likelihood that they will continue playing. Additionally, mobile advertising can be used to promote in-app purchases or new content, which can help keep users engaged and interested in the game.

Audience Targeting

Mobile advertising also allows developers to target specific audiences with their ads. By using targeting tools, developers can ensure that their ads are being shown to the most relevant audience for their game. This can be especially important for niche games that may not appeal to a broad audience. By targeting specific audiences, developers can increase the likelihood that their ads will be effective and generate revenue.

Overall, mobile advertising offers a range of benefits for developers, including revenue generation, user engagement, and audience targeting. By leveraging these benefits, developers can create successful mobile games that generate significant revenue and engage users.

Analyzing Mobile Game Ad Revenue

Factors affecting ad revenue

When it comes to mobile game ad revenue, several factors play a crucial role in determining how much money a game can earn per ad. Understanding these factors can help game developers optimize their ad strategy and maximize their earnings. Here are some of the key factors that affect ad revenue in mobile games:

1. Frequency of ads:
   One of the most important factors that affect ad revenue is the frequency of ads in a mobile game. If a game has too many ads, players may become frustrated and stop playing the game altogether. On the other hand, if a game has too few ads, the game’s revenue may suffer. Finding the right balance between the frequency of ads and player engagement is crucial for maximizing ad revenue.
2. Ad placement:
   The placement of ads in a mobile game can also affect ad revenue. Ads that are placed in strategic locations within the game, such as during loading screens or in between levels, can be more effective at capturing player attention and generating revenue. However, if ads are placed in a way that disrupts the gameplay or interrupts the flow of the game, players may become frustrated and stop playing the game.
3. Ad format:
   The format of the ads themselves can also affect ad revenue. Ads that are visually appealing and relevant to the game’s content are more likely to capture player attention and generate revenue. On the other hand, ads that are poorly designed or irrelevant to the game’s content may be ignored by players and fail to generate revenue.
4. User engagement:
   Finally, user engagement is a critical factor that affects ad revenue in mobile games. If players are actively engaged in the game and spending money on in-app purchases or other items, they are more likely to be receptive to ads and willing to engage with them. However, if players are not engaged in the game or are not spending money on in-app purchases, they may be less likely to engage with ads and generate revenue.

By understanding these factors and optimizing their ad strategy accordingly, mobile game developers can maximize their ad revenue and ensure that their games are both engaging and profitable.

Average earnings per ad

Industry benchmarks

The mobile gaming industry is known for its diverse revenue streams, and advertising is one of the key contributors. The average earnings per ad (EPA) can vary depending on several factors, such as the game genre, target audience, and advertising format. It is essential to establish industry benchmarks to better understand the earnings potential of mobile game ads.

Factors affecting earnings

Several factors influence the average earnings per ad in mobile games. One critical factor is the relevance of the ad to the target audience. If the ad is not relevant to the player’s interests or preferences, it may result in a negative user experience and a lower click-through rate (CTR). Moreover, the frequency and placement of ads can also impact the EPA. Too many ads or ads placed in poor locations can lead to player frustration and churn.

Another crucial factor is the ad format. Different ad formats, such as rewarded videos, interstitials, and banners, have varying EPA. Rewarded videos, for instance, have been known to generate higher EPA due to their ability to offer value to the player in exchange for watching the ad. On the other hand, banner ads, which are less intrusive, may have lower EPA but still contribute to the overall ad revenue.

Comparing earnings across different genres

The average earnings per ad can vary significantly across different mobile game genres. For instance, casual games and puzzle games tend to have higher EPA due to their wide appeal and higher player engagement. On the other hand, harder-core games like action and strategy games may have lower EPA, as their audience is more niche and may be less receptive to ads.

It is also essential to consider the regional differences in EPA. Mobile games that are popular in regions with higher ad spending, such as North America and Europe, tend to have higher EPA compared to games popular in regions with lower ad spending.

In conclusion, understanding the average earnings per ad in mobile games is crucial for developers to optimize their ad revenue. By analyzing industry benchmarks, factors affecting earnings, and comparing earnings across different genres, developers can make informed decisions on how to maximize their ad revenue while ensuring a positive user experience.

Monetization strategies for mobile games

• In-app purchases
  • In-app purchases (IAP) are a popular monetization strategy for mobile games, allowing players to purchase virtual goods or in-game currency for real money.
  • IAP revenue can be a significant source of income for mobile game developers, particularly for free-to-play games.
  • Common virtual goods purchased through IAP include new characters, skins, weapons, power-ups, and other in-game items.
  • The success of IAP in mobile games depends on the game’s design, pricing strategy, and the perceived value of the virtual goods offered.
• Subscription models
  • Subscription models involve charging players a recurring fee to access certain content or features within the game.
  • Subscription-based mobile games typically offer a premium experience, with additional levels, exclusive characters, or enhanced gameplay mechanics.
  • Some mobile games offer both IAP and subscription options, catering to different player preferences and budgets.
  • Subscription models can provide a more predictable and stable revenue stream for mobile game developers, but they may require more investment in content and ongoing support.
• Ad revenue sharing
  • Ad revenue sharing involves displaying ads within the mobile game and sharing the revenue generated with the game developer.
  • Ads can appear as banners, interstitials, or rewarded videos that players can view in exchange for in-game rewards.
  • Ad revenue sharing can be an attractive monetization strategy for mobile game developers, as it does not require players to make an upfront payment or commit to a subscription.
  • However, ad revenue sharing can also lead to player frustration if the ads are intrusive or detract from the overall game experience.
  • Developers must carefully balance ad revenue with player engagement and satisfaction to maximize revenue and retain users.

Case Studies: Successful Mobile Game Ad Campaigns

Example 1: Candy Crush Saga

Candy Crush Saga is a popular mobile game that has been downloaded by millions of users worldwide. The game was first released in 2012 and has since become one of the most successful mobile games of all time. The game’s success can be attributed to its simple yet addictive gameplay, colorful graphics, and the widespread popularity of the Candy Crush franchise.

One of the key factors that contributed to the success of Candy Crush Saga is its advertising strategy. The game uses a freemium model, which means that it is free to download and play, but players can purchase in-game items with real money. The game generates revenue through in-app purchases and through advertisements that appear between levels.

The advertising strategy used by Candy Crush Saga is a combination of interstitial ads and banner ads. Interstitial ads are full-screen ads that appear between levels, while banner ads are smaller ads that appear at the top or bottom of the game screen. These ads are typically 15-30 seconds long and are designed to be unobtrusive, so as not to disrupt the player’s gaming experience.

In terms of revenue generated from ads, Candy Crush Saga is estimated to earn around $1 million per day from in-game advertisements alone. This is an impressive figure, considering that the game is free to play and does not require players to purchase anything in order to progress. The game’s advertising revenue is generated through a combination of impressions, clicks, and engagement with the ads.

Overall, the success of Candy Crush Saga’s advertising strategy can be attributed to its ability to balance the need for revenue generation with the need to provide a seamless gaming experience for players. By using interstitial and banner ads that are short and unobtrusive, the game is able to generate significant revenue without alienating its user base.

Example 2: Subway Surfers

Overview of the Game

Subway Surfers is a popular endless runner mobile game developed by Kiloo and SYBO Games. The game was released in 2012 and has since gained a massive following, with over 1 billion downloads as of 2021. In the game, players take on the role of a graffiti artist who must outrun the police and their dog in a dangerous and exciting urban environment.

Advertising Strategy

Subway Surfers employs a freemium monetization model, which means that the game is free to download and play, but players can purchase in-game items and upgrades with real money. The game features a variety of ads, including video ads, interstitial ads, and rewarded videos. These ads are strategically placed throughout the game to maximize engagement and revenue.

Revenue Generated from Ads

According to reports, Subway Surfers generates a significant portion of its revenue from ads. In 2020, the game generated over $370 million in revenue, with a large portion of that coming from in-game advertising. The game’s developers have stated that they are constantly testing and optimizing their ad placements to ensure that they are generating the maximum amount of revenue possible while still providing a positive user experience.

Overall, Subway Surfers is a prime example of a mobile game that has successfully leveraged in-game advertising to generate significant revenue. By strategically placing ads throughout the game and constantly testing and optimizing their approach, the game’s developers have been able to create a sustainable business model that benefits both the company and the players.

Example 3: Clash of Clans

• Clash of Clans is a popular mobile strategy game developed by Supercell, a Finnish game development company.
• The game was released in 2012 and has since become one of the most successful mobile games of all time, with over 500 million downloads and grossing over $10 billion in revenue.
• Clash of Clans’ advertising strategy involves a mix of in-game ads, interstitial ads, and rewarded videos.
• In-game ads appear as banners at the bottom of the screen, while interstitial ads appear as full-screen screens that players must watch before continuing to play.
• Rewarded videos are videos that players can choose to watch in exchange for in-game rewards such as gold or gems.
• According to a report by Sensor Tower, Clash of Clans generated over $1 billion in revenue from in-game ads in 2019 alone.
• The report also states that the game’s ad revenue has consistently increased year-over-year, with a 17% increase from 2018 to 2019.
• This suggests that Clash of Clans’ advertising strategy is highly effective and lucrative for the game.

Example 4: Mobile Legends

Mobile Legends is a multiplayer online battle arena (MOBA) game that has gained immense popularity among mobile gamers worldwide. Developed by Moonton, the game was released in 2016 and has since become one of the most played mobile games in the genre. The game’s success can be attributed to its engaging storyline, high-quality graphics, and seamless gameplay.

Advertising Strategy:

Moonton adopted a multi-pronged approach to promote Mobile Legends. The company leveraged various marketing channels, including social media, influencer marketing, and in-game advertisements, to reach out to its target audience. Moonton also collaborated with other popular mobile game developers to create cross-promotional campaigns, which helped to increase the game’s visibility and user base.

Revenue Generated from Ads:

Mobile Legends generates revenue through in-game advertisements and in-app purchases. The game displays ads to users during loading screens and in between matches. These ads are typically short and non-intrusive, and they do not disrupt the gaming experience. In addition, Mobile Legends offers in-game purchases, such as premium heroes and skins, which players can buy using real money.

According to sources, Mobile Legends generated over $100 million in revenue in 2020, with a significant portion of this revenue coming from in-game advertisements. The game’s high revenue can be attributed to its large user base and the effectiveness of its advertising strategy.

Overall, Mobile Legends is a prime example of a mobile game that has successfully monetized through in-game advertisements. The game’s advertising strategy, coupled with its engaging gameplay and high-quality graphics, has helped it to attract and retain a large user base, generating significant revenue from in-game advertisements.

Tips for Mobile Game Developers to Maximize Ad Revenue

Understanding target audience

As a mobile game developer, it is crucial to understand your target audience to maximize ad revenue. Your target audience includes demographics, user behavior, and geographical location. Here are some tips to help you understand your target audience:

Demographics

Demographics refer to the characteristics of your target audience, such as age, gender, income, education level, and occupation. Understanding these characteristics can help you create targeted ads that appeal to your audience. For example, if your game is aimed at young adults, you can create ads that feature trendy music and bright colors. If your game is aimed at seniors, you can create ads that feature a slower pace and simpler graphics.

User behavior

User behavior refers to how your audience interacts with your game. By analyzing user behavior, you can identify which ads are most effective and create more of them. For example, if you notice that users are more likely to click on ads that offer in-game rewards, you can create more ads that offer these rewards.

Geographical location

Geographical location can also play a role in your ad revenue. By understanding where your audience is located, you can create ads that are tailored to their region. For example, if your game is popular in Asia, you can create ads that feature Asian culture and language.

In conclusion, understanding your target audience is crucial to maximizing ad revenue in mobile games. By considering demographics, user behavior, and geographical location, you can create targeted ads that appeal to your audience and increase your revenue.

Optimizing ad placement

Ad placement is a crucial aspect of monetizing mobile games through advertisements. Developers need to carefully consider where to place ads in their games to maximize revenue without negatively impacting the user experience. Here are some tips for optimizing ad placement in mobile games:

1. Frequency capping: Frequency capping limits the number of times a user sees a particular ad within a specific time frame. This can help prevent ad fatigue and ensure that users continue to engage with the ads, rather than becoming annoyed by their frequency. Developers should consider implementing frequency capping to optimize ad revenue while maintaining a positive user experience.
2. Ad density: Ad density refers to the number of ads displayed within a game. While increasing ad density can lead to higher ad revenue, it can also detract from the user experience and lead to lower engagement. Developers should find a balance between ad density and user experience to maximize revenue without sacrificing user engagement.
3. Interactive ads: Interactive ads, such as rewarded videos or interstitials, can be a highly effective way to monetize mobile games. These ads offer users incentives, such as in-game currency or power-ups, in exchange for watching the ad. Interactive ads can be placed strategically within the game to maximize user engagement and revenue.

Overall, optimizing ad placement is a critical component of maximizing ad revenue in mobile games. By carefully considering factors such as frequency capping, ad density, and interactive ads, developers can strike a balance between user experience and revenue generation.

Engaging users through ads

Effective engagement through ads is a critical factor in maximizing ad revenue for mobile games. By keeping users engaged with the ads, developers can increase the chances of users interacting with the ads, leading to higher revenue generation. Here are some tips for mobile game developers to engage users through ads:

• Rewarded video ads: Rewarded video ads are a popular choice among mobile game developers as they offer users incentives for watching the ads. In these ads, users can earn rewards such as extra lives, power-ups, or other in-game benefits by watching the ad. This not only keeps users engaged but also increases the chances of them watching the ads to the end.
• Offering in-app benefits for watching ads: Offering in-app benefits such as extra lives, power-ups, or other in-game benefits for watching ads is an effective way to keep users engaged. By offering these benefits, users are more likely to watch the ads, leading to higher ad revenue for the developers.
• Limiting ad interruptions: Interrupting the game flow with ads can be frustrating for users and may lead to them leaving the game. Therefore, it is essential to limit ad interruptions and provide users with a seamless gaming experience. By doing so, developers can increase user engagement and generate higher ad revenue.

In conclusion, engaging users through ads is crucial for maximizing ad revenue for mobile games. By offering incentives, limiting ad interruptions, and providing users with a seamless gaming experience, mobile game developers can increase user engagement and generate higher ad revenue.

Experimenting with monetization strategies

Developing a successful mobile game requires not only creating an engaging and well-designed product but also implementing effective monetization strategies. To maximize ad revenue, developers should experiment with various approaches to find the optimal balance between user engagement and revenue generation. Here are some key tips for mobile game developers:

1. Testing different pricing models: Offering a diverse range of pricing options can help attract different types of users and maximize revenue. Developers can experiment with free-to-play games that generate revenue through ads, in-app purchases, or both. Additionally, offering premium features or special editions at a higher price can help target more dedicated and potentially high-spending users.
2. Balancing in-app purchases and ad revenue: Striking the right balance between in-app purchases and ad revenue is crucial. While in-app purchases can provide a more significant revenue stream, ads can still generate income without requiring users to make a purchase. Developers should test different combinations of in-app purchases and ads to determine which approach resonates best with their target audience.
3. Utilizing social media for user acquisition: Leveraging social media platforms like Facebook, Twitter, and Instagram can help attract new users and increase engagement. Developers can create social media campaigns, collaborate with influencers, or offer in-game rewards for sharing or liking the game on social media. These strategies can help expand the game’s reach and increase the number of impressions and clicks, ultimately driving up ad revenue.
4. A/B testing ad placement and frequency: Testing different ad placements and frequencies can help optimize revenue generation. Developers can experiment with displaying ads during specific gameplay moments, such as loading screens or after completing levels, to maximize user engagement and ad visibility. Additionally, testing various ad frequencies, such as showing ads every few game sessions or after a certain number of levels, can help determine the optimal balance between user experience and ad revenue.
5. Exploring alternative ad formats: In addition to traditional banner ads, developers can experiment with alternative ad formats like interstitials, rewarded videos, or native ads. These formats can provide a more engaging user experience while still generating revenue. Developers should consider which ad formats resonate best with their target audience and incorporate them into their monetization strategy.

By continually experimenting with different monetization strategies, mobile game developers can optimize their approach to maximize ad revenue while maintaining user engagement and satisfaction.

Continuously analyzing performance data

To optimize ad revenue in mobile games, developers must continually analyze performance data. This includes tracking ad revenue, identifying trends, and adjusting strategies based on data.

One crucial aspect of performance data analysis is tracking ad revenue. Developers should monitor the amount of revenue generated from ads, as well as the number of ads displayed. This information can help identify which types of ads are performing well and which ones are not.

Identifying trends is another essential aspect of performance data analysis. Developers should look for patterns in ad revenue, such as spikes or dips, and try to determine the reasons behind them. For example, a spike in revenue might indicate a popular new ad, while a dip could suggest that certain ads are not performing well.

Based on the data gathered from tracking ad revenue and identifying trends, developers can adjust their ad strategies. For instance, if a particular type of ad is generating a lot of revenue, developers may want to show more of those ads. Conversely, if an ad is not performing well, developers may need to change its placement or format.

In addition to these strategies, developers should also consider using ad mediation tools. These tools help maximize ad revenue by allowing developers to work with multiple ad networks simultaneously. By comparing offers from different networks, developers can ensure they get the best possible rate for their ad space.

Overall, continuously analyzing performance data is essential for mobile game developers who want to maximize their ad revenue. By tracking ad revenue, identifying trends, and adjusting strategies based on data, developers can optimize their ad placements and ensure they are getting the most out of their mobile games.

FAQs

1. How is the revenue generated from mobile ads in games calculated?

The revenue generated from mobile ads in games is calculated by multiplying the number of ad impressions by the cost per impression (CPI). The CPI is determined by the advertiser and can vary depending on the target audience and ad format. The revenue is then further calculated by subtracting the ad network’s commission and any other fees.

2. What factors affect the amount of revenue generated per ad in mobile games?

The amount of revenue generated per ad in mobile games can be affected by several factors, including the type of ad format, the target audience, the frequency of ads, and the game’s popularity. For example, rewarded video ads tend to generate more revenue than interstitial ads, as players can choose to watch the ad in exchange for in-game rewards. Additionally, ads that are relevant to the game’s audience and appear less frequently are more likely to generate higher revenue.

3. How can mobile game developers optimize ad revenue?

Mobile game developers can optimize ad revenue by carefully selecting ad formats and placements, targeting the right audience, and balancing the frequency of ads with player engagement. They can also consider using ad networks that offer higher CPIs and have a good reputation for paying out advertising revenue. Additionally, offering in-game rewards for watching ads can encourage players to engage with the ads, which can increase revenue.

4. What is the average revenue generated per ad in mobile games?

The average revenue generated per ad in mobile games can vary widely depending on several factors, including the type of ad format, the target audience, and the game’s popularity. According to some estimates, rewarded video ads can generate up to $0.30 per ad impression, while interstitial ads may only generate around $0.10 per impression. However, it’s important to note that these figures can vary significantly depending on the specific game and ad network.

5. Are there any risks associated with relying too heavily on mobile ads for revenue in games?

Yes, there are risks associated with relying too heavily on mobile ads for revenue in games. If ads are too frequent or intrusive, it can lead to player frustration and churn. Additionally, ad networks may change their policies or CPIs may decrease over time, which can impact revenue. Therefore, it’s important for mobile game developers to diversify their revenue streams and not rely too heavily on ads alone.

How Much Money Do Mobile Games Make From Ads & Mobile Ad Monetization Strategy