Gaming 2024: UA & Ad Monetization

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Varied Revenue Impact: RPGs gain about 20% revenue from ads, hyper-casual games as high as 95%, and word/board games around 70-80%.
High Ad Engagement: Core genres like RPGs and strategy games see over 90% ad completion rates, indicating strong player engagement.

Shift to Non-Targeted Ads: Removal of IDFA led to more non-targeted ads, initially dropping eCPM by 50% on iOS.
eCPM Recovery: Despite IDFA removal, eCPM recovered, with the gap between consented and non-consented users reducing from 60% to 18%.
Use of Fingerprinting Techniques: Despite Apple’s disapproval, networks used fingerprinting for ad targeting, showing resilience in ad monetization.

Quality and Intrusiveness Concerns: Criticisms of low-quality content and intrusive end cards in rewarded ads.
Publisher Negotiation Power: Larger publishers can negotiate ad format and duration.
Balancing Act: Need to balance high eCPM against potential negative impact on user retention.

DSP Functionality: DSPs buy advertising inventory programmatically from SSPs.
Complexity and Transparency Issues: In-app advertising is complex and often opaque, especially regarding auction mechanics.

Focus on eCPM and Overall Revenue: Enhancing competition in mediation stack to increase eCPM and ad revenue.
Diversification Strategy: Spread revenue across multiple networks to reduce dependence on any single one.

Shift to Programmatic Bidding: Moving from manual waterfall to automated programmatic header bidding.
Macro Trends and Mediation Platforms: Economic conditions and game launch pace affect ad revenue; utilizing 4-6 networks in mediation can double ad revenue.
Ad Formats and Performance Metrics:
- Rewarded Ads: High ECPM ($15-$30), targeting 45% viewer rate and 4-5 impressions per DAU.
- Interstitial Ads: ECPM range of $11-$50 but can impact user retention.
- Banner Ads: Low ECPM, effectiveness reliant on visibility and refresh rates.
- Offer Walls: High ECPM (up to $300) but limited user utilization (10-12%).
- Audio Ads: Contribute less than 10% to overall ad revenue.

Brand Ads vs Game Ads: Mobile games, with higher LTV and CPIs, outcompete brands in the ad space.
King’s Ad Ecosystem Experiment: King’s attempt to control their ad ecosystem proved less effective.
Amazon and Netflix’s Impact: Their entry into the ad business, with Amazon’s rapid rise and unique approaches, marks a significant development.
Audio Ads and Future Mediation Trends: Audio ads hold potential; future changes in Apple’s policies and the role of programmatic header bidding are pivotal.