Video ads pump revenue into mobile games without hurting IAPs

Good news for Asian game developers for the F2P mobile market! Video ads aren’t going to cost you your audience or their spending power

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Are video ads on a free-to-play mobile game detrimental towards audience attention span and their ability to buy in-game apps? Hardly, according to recent findings.

Ad mediation firm Fuse Powered (via Venturebeat) conducted a 15-day study between mobile games with and without interstitial video ads — advertisements that ran when a game is paused. The results? There was a 300 per cent increase in effective cost per mille (eCPM, or ad revenue generated per 1,000 impressions) as well as a 700 per cent lift in average revenue per daily active user (ARPDAU).

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The firm said that the ads did not affect the rate of retention and in-app purchases. In one example, a tower defense game saw a 400 per cent increase in eCPMs from US$4.02 to US$19.83, while it saw no change in its average revenue per paying user (ARPPU) numbers. The game’s first-time in-app purchase stats saw a slight increase in that same period.

In another example, a word game saw an increase in ad ARPDAU of 40 per cent when it had one video ad playing in its pause menu. The game’s ad revenue went up from 38 to 45 per cent, which resulted in a seven per cent increase in total revenue for the title with that same video ad. A strategy game saw global eCPMs of US$29.43 within the first 28 days using that same video ad structure.

This is a boon for Asian developers and producers of free-to-play mobile games, as these numbers account for their standard method of gaining revenue for their hard work.

Jonathan Toyad

If you want an elaborate answer on who would win in a fight between Ultraman and Godzilla, Jonathan Toyad is your man. A six-year veteran in the game journalism industry, he did words and videos for outlets such as GameSpot, GameAxis, IGN and Stuff.TV. Fears coyotes and scorched earths.

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