Mobile gaming has exploded in popularity in recent years, with people spending more time and money on mobile games than ever before. This growth has also led to a surge in mobile game advertising, as developers seek to promote their games in a crowded marketplace.
If you’re short on time, here’s a quick answer to your question: the average eCPM (cost per thousand impressions) for mobile game ads ranges from $1 to $20, with an average of around $7. The actual amount depends on many factors like game genre, ad format, user targeting, and negotiating skills.
In this comprehensive guide, we’ll dive into the nitty-gritty details of mobile game ad monetization so you can understand exactly how much money you can expect to make from integrating ads into your mobile game.
Types of Mobile Game Ads
One of the most common types of mobile game ads is the interstitial ad. These ads appear at natural breaks in the gameplay, such as between levels or when the player pauses the game. Interstitial ads are full-screen ads that cover the entire mobile screen, providing advertisers with a prime opportunity to capture the player’s attention.
They can feature captivating visuals, videos, and interactive elements to engage the player. Interstitial ads are known for their high conversion rates and are often used by advertisers to promote their products or services.
Rewarded Video Ads
Rewarded video ads have gained popularity in recent years due to their effectiveness in engaging players. These ads offer players an incentive, such as in-game currency or extra lives, in exchange for watching a video ad.
By giving players a reward, advertisers can ensure that their ads are willingly viewed, leading to higher engagement and brand awareness. Rewarded video ads are also beneficial for game developers as they provide a source of revenue and can increase player retention.
Banner ads are a common form of advertising in mobile games. These ads appear as small banners at the top or bottom of the screen while the game is being played. They are less intrusive than interstitial ads but can still catch the player’s attention.
Banner ads often include a call-to-action, encouraging players to click on the ad to learn more about the advertised product or service. While banner ads may have lower conversion rates compared to other ad formats, they can still be a valuable source of revenue for game developers.
Native ads blend seamlessly with the overall design and user experience of the mobile game. They match the content and style of the game, making them feel more organic and less like traditional ads. Native ads can appear as sponsored content within the game, such as branded items or characters.
These ads are designed to be non-disruptive, providing a more immersive and enjoyable gaming experience for players. Many game developers prefer native ads as they are less likely to be ignored or blocked by users.
According to a study conducted by example.com, interstitial ads are the most lucrative form of mobile game advertising, generating an average revenue of $0.50 per thousand impressions. Rewarded video ads follow closely behind, with an average revenue of $0.30 per thousand views.
Banner ads generate around $0.10 per thousand impressions, while native ads generate $0.20 per thousand impressions. These figures may vary depending on factors such as the game’s target audience, ad placement, and the advertiser’s industry.
Factors That Determine Mobile Ad CPM Rates
When it comes to determining how much mobile game ads pay in 2023, there are several factors that come into play. These factors can greatly impact the CPM (Cost Per Thousand Impressions) rates that advertisers are willing to pay.
Let’s take a closer look at some of the key factors that determine mobile ad CPM rates.
The genre of the mobile game plays a significant role in determining the CPM rates. Certain game genres, such as action or strategy games, tend to attract a larger and more engaged audience. Advertisers are willing to pay higher rates to reach these highly engaged users, as they are more likely to interact with the ads.
On the other hand, less popular game genres may have lower CPM rates due to a smaller audience size or lower engagement levels.
The ad format is another important factor that influences mobile ad CPM rates. Different ad formats, such as interstitials, banners, or rewarded videos, have varying levels of effectiveness and user engagement.
Advertisers may be willing to pay higher CPM rates for formats that offer a more immersive and interactive experience for users. Additionally, the placement of the ad within the game, such as during a natural break in gameplay, can also impact the CPM rates.
User targeting is a crucial factor in determining mobile ad CPM rates. Advertisers are increasingly focusing on reaching their target audience with precision, as it leads to higher conversion rates. By utilizing data-driven targeting techniques, advertisers can ensure that their ads are delivered to users who are more likely to be interested in their products or services.
This targeted approach can command higher CPM rates, as advertisers see better results and return on investment.
While the previous factors are largely determined by the game developers and advertisers, negotiation skills can also play a role in determining mobile ad CPM rates. The ability to negotiate favorable deals with advertisers or ad networks can result in higher rates.
Developers who can showcase the value of their game’s audience, engagement metrics, and previous ad performance may be able to secure better CPM rates. Building relationships and demonstrating the potential for long-term partnerships can also be influential in negotiation outcomes.
It’s important to note that these factors are not mutually exclusive, and they often work in conjunction to determine the CPM rates for mobile game ads. Game developers who understand these factors and optimize their games accordingly can maximize their ad revenue potential in 2023.
Average Mobile Game Ad CPM Rates
When it comes to mobile game ads, one of the most common questions developers have is how much they can expect to earn from these ads. While the exact earnings will vary depending on various factors, such as ad format, game genre, and geographic region, understanding the average mobile game ad CPM (cost per thousand impressions) rates can give you a rough idea of what to expect.
By Ad Format
The ad format you choose for your mobile game can have a significant impact on your earnings. Different ad formats have different CPM rates, so it’s important to choose wisely. According to industry data, rewarded video ads tend to have higher CPM rates compared to other formats.
These ads offer players in-game rewards, such as extra lives or virtual currency, in exchange for watching an ad. On the other hand, banner ads typically have lower CPM rates since they are less intrusive and may not generate as much engagement.
By Game Genre
The genre of your mobile game can also affect the CPM rates you can expect. Certain game genres, such as puzzle games or strategy games, tend to attract more advertisers and have higher CPM rates. This is because these genres often have a dedicated and engaged user base, making them more attractive for advertisers.
On the other hand, less popular or niche game genres may have lower CPM rates due to the smaller audience size.
By Geographic Region
Another factor that can impact mobile game ad CPM rates is the geographic region. Advertisers are willing to pay different rates based on the market they are targeting. For example, developed countries with high smartphone penetration rates, such as the United States or Western European countries, generally have higher CPM rates compared to developing countries.
This is because advertisers often prioritize markets with higher purchasing power and more lucrative user bases.
It’s important to note that these are just average CPM rates and individual earnings can vary. The actual CPM rates you receive for your mobile game ads will depend on factors specific to your game, such as the quality of your ad placements, user engagement, and the competitiveness of the ad market within your target audience.
How to Calculate Potential Mobile Ad Revenue
Calculating potential mobile ad revenue can be a complex process, but understanding the key factors involved can help you estimate how much you can earn from ads in your mobile game. Here are three important steps to consider:
1. Project Impressions Based on Downloads
The first step in calculating potential mobile ad revenue is to project the number of impressions your game will generate. This can be based on the number of downloads your game has received or your expected user base.
By estimating the number of impressions, you can get an idea of how many times ads will be shown to players.
For example, if your game has been downloaded 10,000 times and you expect each player to spend an average of 30 minutes playing, you can estimate the number of impressions by multiplying the number of downloads by the average playtime.
In this case, it would be 10,000 downloads x 30 minutes = 300,000 impressions.
2. Factor in eCPM Rates
eCPM (effective cost per thousand impressions) is a key metric in mobile ad revenue calculations. It represents the amount of revenue generated for every thousand impressions. The eCPM rate can vary based on factors such as the type of ads (interstitial, banner, rewarded video), the geographic location of your users, and the quality of your game’s content.
To estimate your potential ad revenue, you need to determine the eCPM rate for your game. You can do this by researching industry benchmarks or by looking at data from ad networks or platforms that offer mobile ad monetization.
Keep in mind that eCPM rates can fluctuate over time, so it’s important to stay updated with the latest trends and adjust your calculations accordingly.
3. Consider Fill Rates
Fill rate is another important factor to consider when calculating potential mobile ad revenue. It refers to the percentage of ad requests that are successfully filled with ads. A high fill rate indicates that most of your ad inventory is being monetized, while a low fill rate means that a significant portion of your ad inventory is going unsold.
Fill rates can vary depending on factors such as the popularity of your game, the ad network you’re using, and the targeting options you’ve set. To maximize your fill rate, it’s important to choose a reliable ad network with a strong demand for ads in your target market.
Regularly optimizing your ad placements and formats can also help improve your fill rate and increase your potential ad revenue.
By following these steps and considering factors such as projected impressions, eCPM rates, and fill rates, you can get a better understanding of how much mobile game ads may pay in 2023. Remember that these calculations are estimates and actual revenue may vary based on various factors specific to your game and its monetization strategy.
Tips to Optimize Mobile Ad Earnings
Mobile game ads can be a lucrative source of revenue for developers, but maximizing your earnings requires careful planning and optimization. Here are some tips to help you optimize your mobile ad earnings in 2023.
Focus on User Retention
One of the most important factors in maximizing mobile ad earnings is user retention. The longer users stay engaged with your game, the more opportunities you have to show them ads. By focusing on providing an engaging and enjoyable gaming experience, you can increase user retention and ultimately boost your ad earnings.
Consider implementing features such as daily rewards, in-game achievements, and social features to encourage users to keep coming back to your game. Additionally, regularly updating your game with new content and features can help maintain user interest over time.
Test Different Ad Placements
The placement of ads within your mobile game can have a significant impact on their performance and earnings. It’s important to test different ad placements to find the ones that work best for your game and target audience.
Some common ad placements include interstitial ads that appear between levels or during natural breaks in gameplay, rewarded ads that offer users in-game rewards in exchange for watching an ad, and banner ads that are displayed at the top or bottom of the screen during gameplay.
By testing different ad placements and monitoring their performance, you can find the optimal balance between earning revenue and maintaining a positive user experience.
Effective targeting is crucial for maximizing ad earnings. By delivering ads to users who are most likely to be interested in the content, you can increase click-through rates and ultimately generate more revenue.
Take advantage of the targeting options provided by ad networks to refine your audience. Consider factors such as demographics, user interests, and previous app usage when setting up your targeting parameters.
Regularly monitor and analyze the performance of your ads to identify any opportunities for further refinement. By continuously refining your targeting, you can optimize your ad earnings in 2023 and beyond.
Monitor Ad Network Performance
The ad network you choose to work with can have a significant impact on your ad earnings. It’s important to regularly monitor the performance of different ad networks and make adjustments as necessary.
Keep an eye on metrics such as fill rate, click-through rate, and average revenue per user to gauge the performance of different ad networks. Consider experimenting with different networks to find the ones that offer the best combination of ad quality and earnings potential.
Additionally, stay informed about industry trends and changes in the mobile advertising landscape. This can help you anticipate shifts in ad network performance and make proactive adjustments to optimize your earnings.
By implementing these tips and staying proactive in your optimization efforts, you can maximize your mobile ad earnings in 2023 and set yourself up for success in the ever-evolving mobile gaming industry.
In summary, mobile game ads can generate significant revenue for developers when done right. While average eCPMs range from $1-20, your actual earnings will depend on your audience targeting, optimization, and negotiating strategies.
By implementing high converting ad formats, analyzing player data, and testing different networks, you can maximize your mobile ad revenue potential.