In-game ads: make money without ruining the game
Some top mobile titles earn tens of millions a year from in-game ads. That sounds great, but messy ad choices kill retention fast. Here’s a straight, practical guide to the ad types, what actually works, and how to test changes that grow revenue without losing players.
Common ad formats and when to use them
Rewarded video: Give players an obvious exchange—extra lives, coins, or boosters. Rewarded ads usually boost engagement and feel fair when the reward is meaningful. Tip: cap rewards per day and track reward-to-purchase cannibalization.
Interstitials: Full-screen ads between levels or after a match. They convert well but interrupt flow. Use them sparingly, after natural breaks, and never mid-action.
Banners: Small, persistent ads that don’t disrupt play. Low revenue but safe for retention. Use banners in menus or loading screens, not in active gameplay.
Playable ads: Let users try a condensed version of another game. Great for user acquisition and high intent installs. Place them where players can opt in, like a rewards screen.
Native and branded placements: Integrate ads into game worlds—posters, billboards, or branded items. When done right they boost CPMs and keep immersion. Make brand assets match your art style.
How to balance revenue and player experience
Track ARPDAU (average revenue per daily active user) and retention metrics together. A spike in ARPDAU that drops D7 retention is a bad trade. Start with small tests: add rewarded offers, measure session length, then scale winners.
Use frequency capping and smart placement. Players tolerate one interstitial per level end but not one every minute. Segment by player value—light spenders see more rewarded ads, whales see fewer interruptions.
Personalize ad relevance. Contextual targeting (game genre, level difficulty, recent actions) beats blind high-frequency ads. Relevant ads increase clicks and reduce annoyance.
Measure beyond clicks: track post-ad events—did players return, make purchases, or churn? Combine ad revenue with LTV modeling to see if an ad strategy is sustainable. Test pricing models (CPM, CPC, CPI) and optimize to the KPIs that matter for your game.
Don’t forget privacy and consent. Implement consent flows for GDPR and CCPA, and prepare for platform changes like IDFA restrictions. Use aggregated measurement tools and server-side events where possible.
Quick checklist to try this week: 1) Add a single rewarded placement with a clear reward, 2) Cap interstitials and move them to natural breaks, 3) A/B test creatives and CTAs, 4) Track ARPDAU alongside D1 and D7 retention. Small, measured moves beat big risky changes.
If you want, I can help outline a test plan for your game—tell me your genre and current ad mix and I’ll suggest the first three experiments.
