Does Ad Monetization matter?

🚀 Last month Socialpoint launched Top Troops! A new mid-core merge mobile game.

While the game itself brings a fresh and engaging twist to the genre, there’s a particular aspect of its ad monetization strategy that stands out and warrants discussion.

🤔 With only two Rewarded ad placements in the game at the moment – a 24-hour cooldown spot in the store and a merchant deal unlocked at level 10 – Top War is treading a unique path. Given these meager and hidden placements, we’re estimating an ad viewer rate of around 30% and an IMP/DAU between 0.8-1.0. So, what does this mean in terms of revenue?

This means that the daily Revenue Per User currently from ads is around $0.054 meaning that after D10 this contributes around $0.54 to player LTV.  If IMP/DAU was increased to 5.0 with a 60% ad viewer rate this would mean that ads could generate around $2.00-2.30 to overall player LTV.

On a title that’s generating currently $44,000/day with CPIs that are most likely around $30-40 would this increase in LTV actually matter?

🔍 A helpful tool to predict the revenue impact of new placements is the cohort view in AppLovin MAX and ironSource Levelplay. By seeing the Daily Revenue Per Cohorted Users over time you can with simple maths calculate rough estimates on ad revenue if you were to increase the IMP/DAU and the ad viewer rate. Using this data is quite powerful as it takes your existing retention metrics into account.

🤝 Before diving into the nitty-gritty of implementing new ad placements, it’s crucial to weigh the benefits. Is the potential increase in revenue worth the effort?

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