What All App Businesses Can Learn From the Growth of Mobile Gaming

For our recent App Monetization Industry Outlook report, we interviewed 25 industry leaders to explore the current and future state of app monetization. The insights and recommendations offer both inspiration and guidance for app businesses looking to grow and monetize.

Below, we’ve identified a few strategies and tips that app businesses can learn from mobile gaming, from diversifying revenue to improving ad operational efficiency to adapting to ecosystem shifts. Read on to learn more and understand how to prepare for the rest of 2021 and beyond.

1. Diversify Your Revenue

Build in monetization from the beginning.

As more businesses shift their teams to combine user acquisition, monetization and development into a single process, the days of build first, monetize later are over. Game developers affirm the best results when they’ve built ads in from the start.

“In the past monetization was viewed as something you tack on to your content, but monetization really should be considered as part of the content. It IS the content,” said Becky Ann Hughes, SVP Growth, Glu Mobile.¹

Balance your app’s mix of in-app ads and purchases.

Many successful gaming companies have mastered a diversified revenue model by pairing in-app ads (IAA) alongside in-app purchases (IAP) to drive both incremental revenue and a positive player experience.

Rewarded video ads tend to be highly engaging, since players opt-in to watch the ad and receive a reward in exchange for a completed view. For example, publishers using rewarded video in a hybrid monetization model with Facebook Audience Network saw the following:

• Ludia, a midcore game publisher, saw 1.25 more sessions for players who watch ads, along with a 4x increase in rewarded video ad revenue — with no impact on IAP revenue²
• Product Madness, a social casino game publisher, recorded a 2% rise in retention from non-paying players and 7% more slot spins along with 30% higher eCPMs³

2. Improve Ad Operational Efficiency

Adopt app bidding.

The accelerated shifts to bidding that Facebook discussed at the end of 2020 are playing out globally and across gaming and non-gaming platforms. In fact, Facebook Audience Network will be a bidding-only ad network as of September 30, 2021.

As this shift occurs, app publishers gain time back from the efficiency gains of bidding. Rather than checking price floors across multiple countries to maintain waterfalls, publishers can now see every placement that applies to every country and user.

This efficiency gain was the case with Lion Studios. Jacob Grate, Senior Manager of Monetization, credits their app bidding adoption as having “greatly reduced operational overhead… to free up time to focus on player experience.”

3. Adapt to Ad Ecosystem Shifts

Optimize your in-app ad strategy.

Mobile app marketers are responding to industry changes by developing new solutions for measurement and user acquisition. As you grow your app and seek to attract new audiences, understanding player motivation can be a source of inspiration for ad creatives.

"More than ever, advertisers need to be able to understand how much time the user spends with the ad, who the viewers and players are, how to scale user acquisition and how to drive more profitable ad viewership,” said Rick Kelley, VP Global Gaming, Facebook.⁴

App publishers and developers can optimize their ad strategy by testing new formats and ad frequency. Mobile game businesses are digging deep into rewarded video, learning how to master their use of the most fitting entry points to drive engagement across each type of game.

Prepare Now for 2022

What should app businesses focus on now for future success? Before the end of 2021, consider incorporating both in-app ads and in-app purchases, shifting from waterfall to app bidding and optimizing your ad strategy.

For more industry perspectives and recommendations on app monetization, read: App Monetization Industry Outlook. For brands looking toward current strategies for mobile advertising, read: Why Mobile Advertising Is the Opportunity, Not the Obstacle.