Why do so many advertisers stick only to the big media channels (a.k.a. walled gardens)? What opportunities are they missing in the lesser-known arenas?
This article reveals how playable ads are capturing attention in Germany. I’ll give you a closer look at how these ads are used in gaming and non-gaming apps and offer insights that could open new doors for your mobile marketing efforts.
Interactive ads, often called playable ads, are a popular way to engage users with interactive content, and I will use these terms interchangeably throughout this article. While playable ads are traditionally associated with gaming apps—allowing users to try out gameplay within the ad—non-gaming apps often use interactive elements like end cards appended to video ads. Both genres aim to enhance user engagement by offering interactive experiences within advertisements.
Example of a “Playable” Gaming App Ad:
“Playable” Non-Gaming App ad:
As I am looking into what channels and formats can be used outside of walled gardens, this research aims to understand the current landscape of interactive ad usage in Germany. By analyzing how these interactive ads have been used through demand-side platforms and ad networks in Germany over the past year, I seek to understand the acceptance of special ad formats among advertisers and publishers. By exploring this advertising format for gaming and non-gaming apps, I aim to identify patterns and trends that could inform future advertising strategies and support me in effectively integrating interactive ads into my offerings.
To thoroughly investigate these aspects, I have outlined a detailed methodology below that explains my data sources, the types of ads analyzed, and the study’s limitations.
Methodology
Data Source: AppMagic, covering the ads for gaming and non-gaming apps for the last 365 days (as of late September 2024) for iOS and Android in the US and Germany.
Ad Types Analyzed: Playable ads are categorized into two categories: Pure Interactive and Video with Interactive End Cards.
Limitations:
Search ads from Google and Apple are not available.
The analysis is based on impression data, providing insights into ad exposure, not user engagement (CTR) or conversion outcomes (CR).
The results consist of 1,000 top ads from games and non-gaming app sections each, totaling 2,000 ads analyzed.
The Publisher and app-specific numbers come from a different source than the total impression share tables. Expect discrepancies, but that doesn’t change the overall picture of this article.
With the methodology established, I present the findings, highlighting key insights into using interactive ads in Germany.
Findings
Playable Ads Popularity in Germany vs. the US
Observation and Analysis:
Playable Ads Share:
In the US, playable ads account for approximately 5.6% of all ad impressions.
In Germany, playable ads make up about 10% of all ad impressions.
Higher Adoption in Germany: The higher portion of playable ads in Germany suggests a stronger adoption and possibly greater effectiveness of interactive ads within the German market compared to the US.
Building on the comparison with the US market, we now dig deeper into the overall impressions of playable ads within Germany itself.
Overall Impressions in Germany
Observation and Analysis:
High Use in Games: Playable ads make up about 18.3% of all game ad impressions, showing they’re quite popular in the gaming industry.
Less Use in Non-Gaming Apps: For non-gaming apps, playable ads account for only 1.2% of ad impressions, suggesting that these ads aren’t as commonly used outside of games.
Industry Preference: This indicates that game advertisers prefer interactive ads to highlight gameplay and engage users, whereas non-gaming app advertisers tend to use alternative ad formats.
With the overall impressions established, I now focus on identifying the leading Demand-Side Platforms (DSPs) and Ad Networks that facilitate the distribution of playable ads in Germany.
Leading DSPs for Playable Ads in Germany
Observation and Analysis:
Applovin’s Dominance: Applovin accounts for 83% of the playable ad impressions in Germany. The remaining DSPs collectively account for 17%.
Lack of Big Three: In the playable category, the big three advertising platforms—Google, Meta, and TikTok—are not leading in terms of impressions.
DSP Requirements and Barriers to Entry
While platforms like Meta, Google, and TikTok are often called “walled gardens” due to their closed ecosystems, some ad networks and DSPs can be even more restrictive, acting as “the Great Wall” because of the significant barriers to entry they present. The combination of stringent requirements and the lack of publicly available information often makes it challenging for smaller advertisers or those with limited budgets to access their services, as these platforms primarily work with larger apps that can meet their demands.
Case Study: AppLovin’s Requirements for a Test
Although AppLovin dominates the playable ad impressions in Germany (as well as in the US), accessing their ad network comes with notable requirements (anecdotally, as this information is not publicly disclosed as far as I could search):
Inventory: Their successful gaming campaigns are primarily within the AppLovin ad network, leveraging their extensive reach in the gaming sector.
Daily Budget: Requires a minimum daily spend of $500 to $2,000 (depending on your cost per purchase, or CAC) for one country on one operating system, which can be prohibitive for smaller advertisers.
Performance Optimization: A minimum of 10 to 15 purchases/events is required on the first installation day to begin optimization, indicating a focus on high-volume campaigns.
Complementary Services: Provides playable ads to enhance user engagement at no additional cost, offering a significant benefit for advertisers who meet their requirements.
Learning Phase: The initial machine learning phases are crucial, and after several weeks, the system starts to deliver promising results, emphasizing the need for sustained investment.
ROAS Targeting: Campaigns are tailored to meet the specified Return on Ad Spend (ROAS) targets (I hope you know yours, though), emphasizing performance metrics and profitability.
AppLovin is a big player in the playable ad market, but its tough rules can block smaller advertisers. Ironically, though, these rules are also what you need to meet to succeed on other big platforms like Meta, Google, and TikTok. It shows just how challenging it is to make a profit from ads if you’re not ready to spend big.
Type of Playable Ads in Germany
To gain deeper insights into the nature of playable ads used, I explore the different types of interactive ads employed in the market.
Playable ads are divided into:
Pure Interactive: Directly playable ads without prior video content (tagged in AppMagic as HTML).
Video with Interactive End Card: Video ads followed by an interactive CTA (tagged in AppMagic as Video and HTML).
Observation and Analysis:
Preference for Video-First: Non-gaming apps mostly use the “Video with Interactive End Card” format (82.9%), indicating they prefer to start with a video before adding interactivity.
More Balance in Games: While games also favor the video-first approach (69.5%), they use Pure Interactive ads more often (30.5%) than non-gaming apps.
Engagement Strategy: Starting with a video might help grab attention, and the interactive end card keeps users engaged.
Impression Distribution Across Ads in Germany
Observation and Analysis:
Most Ads Have Moderate Reach: Most ads (63.4%) have between 100k and 500k impressions, meaning most interactive ads reach a moderate audience.
Fewer High-Impression Ads: Only a small number of ads (29) have over 1 million impressions, showing that it’s less common for interactive ads to go big.
This distribution suggests that, while many advertisers are experimenting with interactive ads, only a few have scaled them to reach a larger audience, possibly due to budget constraints or testing phases.
Top 10 Gaming and Top 10 Non-Gaming Publishers Using Interactive Ads in Germany
Observation and Analysis:
Game Publishers Lead: The top spots are held by game publishers like King and Niantic, Inc., showing that game companies are the main users of interactive ads.
App Publishers Are Catching Up: Some app publishers like SUBSUP and aestimium GmbH also use interactive ads, though their impression shares are smaller.
Top 10 Gaming and Top 10 Non-Gaming Apps Using Interactive Ads in Germany
Observation and Analysis:
Popular Games Use Interactive Ads: Big names like Candy Crush Saga and Pokémon GO! are investing in interactive ads, showing that even well-known apps use them to attract more users.
Non-Gaming Apps Joining In: Non-gaming apps like Talkie AI and testerup are also using interactive ads, indicating that this format is gaining traction outside of games.
Variety of Genres: The list includes different types of non-gaming apps and games, suggesting that interactive ads can work well across various categories.
Publisher Country Distribution in Germany
Observation and Analysis:
International Influence: The majority of impressions come from publishers outside Germany, with Vietnam and the United States leading the way.
Local Publishers Less Active: German publishers account for only a small portion of impressions, suggesting they might be less engaged with interactive ads compared to international publishers.
Global Competition: Publishers from all over the world are targeting the German market, making it a highly competitive space.
Recommendations
Based on the observations and analyses presented above, I offer the following recommendations for advertisers, publishers, and DSPs.
For Advertisers
Game Advertisers:
Keep Using Interactive Ads: Since they’re effective in the gaming sector, continue to use and experiment with interactive ad formats.
Test Different Formats: Try both Pure Interactive and Video with Interactive End Card ads to see which works best for your audience.
Non-Gaming App Advertisers:
Consider Adopting Interactive Ads: Interactive ads have the potential to stand out, as they’re not as common in this sector.
Customize Content: Create interactive ads that reflect your app’s offers to engage users effectively.
For Publishers
German Publishers:
Increase Engagement: Use interactive ads more to compete with international publishers.
For Demand-Side Platforms (DSPs)
Support Advertisers:
Simplify Ad Creation: Provide easy-to-use tools for creating interactive ads to encourage more advertisers to use them.
Offer Guidance: Share best practices and tips on how to make effective interactive ads.
Samet Durgun, with his brand “Growth Therapist,” is a mobile marketing consultant with over ten years of experience helping mobile apps grow through creative and data-oriented marketing strategies. He has worked with well-known names like Zalando, Wooga, and Google, as well as many subscription and gaming app startups.
