AD APOCALYPSE 2024 with Felix Braberg, Ad Monetization Consultant
Dec 20, 2023
auto_awesome
Guest Felix Braberg, ad monetization expert, discusses the impact of privacy changes on ad monetization, practical ways for games to double their ad revenue, and the efficacy of different ad formats. They also talk about the changes brought by Apple, Amazon, and Google to the ad monetization ecosystem.
In-app ads play a crucial role in generating revenue for mobile games, regardless of the genre.
Publishers need to focus on metrics such as ad revenue per daily active user and fill rate, not just ECPM.
Branded ads have limited growth in the mobile gaming industry due to the dominance of performance-based advertising and higher LTV.
Deep dives
The Importance of In-App Ads and Ad Revenue
In-app ads play a crucial role in generating revenue for mobile games, regardless of the genre. Studies have shown that even RPG games, which are traditionally more core-focused, generate around 20% of their revenue through in-app ads. Additionally, the completion rates for rewarded video ads across different genres indicate that users enjoy these ads, even in core genres such as RPGs and strategy games. Ad revenue is an important metric for publishers, and while ECPM (effective cost per thousand impressions) is often discussed, it is just one component of ad revenue. It is essential for publishers to focus not only on ECPM but also on other metrics such as ad revenue per daily active user and fill rate.
Challenges and Considerations in Ad Monetization
Ad monetization in mobile games comes with its own set of challenges and considerations. One of the key considerations is the ad quality and user experience. While networks may push for longer ads and multiple clicks on end cards, it is important for publishers to negotiate and maintain control over these elements to ensure a positive ad experience and reduce user complaints. Transparency in ad revenue calculations and the inner workings of mediation platforms is limited, which can make it challenging for publishers to fully understand and optimize their ad revenue. Maximizing competition in mediation and constantly reviewing and adjusting ad placements can help publishers optimize their ad revenue.
The Role of Brands in Mobile Advertising
Branded ads have been a topic of discussion in the ad monetization industry for some time. However, the dominance of mobile gaming and its higher trackability and LTV have limited the growth of branded ads. Brands typically invest more in fast-moving consumer goods, agencies, and big brand companies, whereas mobile games offer higher LTV and trackable metrics, making them more attractive for performance-based advertising. While branding ads do see a spike during certain periods, such as Black Friday and Christmas, they are not as prevalent in the mobile gaming industry overall. The gaming industry's economic impact and the focus on performance-based advertising limit the space for branded ads to compete effectively.
Maximizing Ad Revenue through Mediation
To maximize ad revenue, it is recommended to start with Unity ads as the network during soft launch and focus on metrics like ad viewer rates and impressions per daily active users (DAU). Once the game starts scaling, adding mediation with four to six networks can double ad revenue. It's important to have a competitive mediation stack and choose networks that contribute at least five to 10% of overall revenue, while avoiding networks that earn more than 40% to maintain competitiveness. The number of ad networks should be adjusted based on these metrics.
Types of Ad Placements and Best Practices
There are three main types of ad units: rewarded ads, interstitial ads, and banner placements. Rewarded ads, which offer users incentives to watch, earn high ECPMs and should aim for at least 45% ad viewer rates and four to five impressions per DAU to generate substantial revenue. Interstitial ads, although disliked by users and impacting retention, are suitable for games without a deep economy and require A/B testing and segmentation. Banner placements have the lowest ECPMs but can be monetized effectively by keeping the same banner visible at all times. Audio ads are a growing format, while offer walls provide opportunities for robust in-game economies. The future may see changes due to the EU's Digital Markets Act, requiring developers to comply with consent management platforms for targeted ads.
In-app ads are either important or crucial depending on the genre of games you’re making. In this episode, I’m joined by Felix Braberg, a true ad monetization expert. Together we discuss the effect of privacy changes on ad monetization, practical ways for games to double their ad revenue, the efficacy of different ad formats, and the changes onset by Apple, Amazon, and Google to the whole ad monetization ecosystem. connect with Felix (www.felixbraberg.com)
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode