What Does Take-Two’s Potential Sale of Chartboost Mean for Mobile Mediation?
What Does Take-Two’s Potential Sale of Chartboost Mean for Mobile Mediation? 🎮💰
The global mobile ad market is driving massive revenue—around $40 million daily, or roughly $14.6 billion annually, from network-to-publisher payments in mobile games and apps. Take-Two Interactive alone reported $613.3 million in ad revenue in 2023, capturing an estimated 4.21% of in-game ad revenue, making Take-Two a major player in mobile advertising. But with rumors of Take-Two selling Chartboost, what impact could this have on the industry? 🤔
Why This Matters:
Mediation platforms often act as loss leader products, offered at no cost to publishers in exchange for valuable user data that powers networks’ UA campaign profits. Take-Two’s games are currently mostly mediated through Chartboost, giving them direct control over ad placements and margins. If Chartboost is sold, Take-Two might shift its portfolio to a third-party platform like AppLovin or Unity, leading to two major outcomes:
1. Big Pay Day for Take-Two 🚀: With Take-Two’s scale, a mediation partner would likely pay a premium to onboard its inventory. Industry deals have historically paid 10-20% of projected two-year ad revenue, which could mean a bonus of $120-240 million for a two year partnership with Unity or Applovin. 🤑
2. Major Supply Advantage for the winning Mediation Platform 📈: Securing Take-Two’s sizable ad inventory would give the chosen platform a substantial supply boost, enhancing UA capabilities. Typically, the platform’s owner becomes a primary demand partner, capturing 30% margins on ads shown and up to 40-65% margins on UA sales. A 4.21% inventory bump could make a notable impact on the platform’s revenue. 💸
Unity and Applovin are both likely contenders. I’m keeping an eye on SDK updates on Sensor Tower for any shifts in Zynga or other Take-Two Interactive publishers. 👀
