Reasons Why In-Game Advertising Is The Next Game Changer

News
January 7, 2021
Reasons Why In-Game Advertising Is The Next Game Changer

By 2023, the number of gamers all over the world is expected to reach over three billion. Undoubtedly, the major transition in the video game industry over the past few years is toward mobile.

Mobile gaming is quite lucrative. That’s why we’ve seen popular personalities like Kate Upton and Arnold Schwarzenegger making big money to act in advertisements that promote free video games.

Although the working models differ, generally developers make “freemium” games that can be downloaded and played for free. However, these games provide in-app purchases to improve the user experience. Other developers often sell in-app advertisements, product placements, or a combination of these strategies.

Owing to their massive popularity, mobile video games offer an efficient and ingenious marketing platform to reach customers. However, several businesses and media buyers don’t know how to run an in-game promotion. Most of them do not understand several kinds of in-game advertising.

Many advertisers imagine advertising within video games as rigorously hard-coded or product placement. However, that’s one of the numerous kinds of in-game ads. Just like any other digital platform, you can execute a real-time promotion within video games.

In this article, we’ll take a look at what in-game advertising is and its various types. Plus, we’ll also explore some of the key benefits of in-game advertising that make it a popular marketing channel in the years to come.

What is In-Game Advertising?

In-game advertising is a monetization approach that developers use to increase the returns of their video games. They make money and get paid by displaying mobile game ads to the consumers. According to Facebook, 73% of gamers are contented with the ad-based model of app games today.

The ads that deliver the highest ROI are the ones that are incorporated directly into the game loop, working as a component of your game. This way, the ads become a part of the user experience and can help enhance app engagement and retention rates.

Types of In-Game Advertising

There are several kinds of mobile game advertising approaches and ad formats that developers can incorporate into their games to boost mobile game ad revenue. The following are the three main kinds:

Dynamic In-Game Advertising

Popularly known as DIGA, this is definitely the most prevalent kind of in-game ad. It empowers media purchasers to buy ads within video games that support real-time and geo-targeting advertisement. The ads appear within a 3D gaming setting, on simulated items like hoardings, posters, and bus stops. These are the items that you would imagine to view in a lifelike outdoor game.

Advertising networks can provide dynamic in-game advertisements in real-time via an ad server, just like banner ads are shown on sites. You can also place ads in already launched games. This allows publishers to generate an extra recurrent income stream.

The biggest advantage of this type of in-game advertising is the effortlessness of planning and executing a promotion. It empowers businesses and media purchasers to execute time-sensitive campaigns on an expedient cost-per-impression (CPM) price model.

Static In-Game Advertising

This type of in-game advertisement occurs in the form of product placement within the console, desktop, and mobile video games. These ads are designed and incorporated inside a video game during its planning and development phase. As a result, these ads enable a more personalized integration. For instance, static in-game ads are usually incorporated into the game plot or let users engage with a product.

Static in-game ads can be a fantastic channel for businesses and media purchasers seeking to reach worldwide users because they lack geo-targeting capabilities. However, they won’t work for businesses seeking to advertise a time-sensitive promotion as these ads stay in a video game for its complete lifecycle (usually up to 3 years).

Advergames

Advergames are custom build video games with the only objective of marketing a brand or product. You can play them on almost any platform. Advergames usually vary from a well-designed 3D game to a web-based simple game. The plot, gameplay, and environment advertise the commissioning brand or product.

The chief advantage of this type of in-game ad is how a brand constructs an enjoyable and progressive relationship with customers. Just like static in-game ads, these ads are more suitable for businesses and media purchasers seeking to create awareness on a worldwide level.

Expenses, development time, and the absence of targeting capabilities cause difficulties for many enterprises that wish to use advergames for advertising.

Why Should You Use In-Game Advertising?

Advertisers are exploring different ways to get their products in front of users, both on console and mobile games. In-game adverts enable native and programmatic ads to reach people from wide demographics. Some other benefits of in-game advertising are:

Produce higher mobile game ad revenue

The mobile gaming industry in the US has been on the rise this year. In 2020 Q2, mobile game revenue exceeded $6 billion for the first time. COVID-19 caused a 55% year-over-year growth due to the increased mobile activity during the lockdowns in the country.

Unfortunately, many gamers do not pay to play. However, mobile game advertising is an exceptional monetization approach that game developers can use along with in-app purchases. Games with great ad placements can yield between $50 and $100 effective cost per mille (eCPMs) using mobile game advertising.

Increase in-app purchases

In-game advertising together with the right mobile game strategy can increase in-app purchases by almost six times.

Ad components that work as a part of your in-game economy, such as rewarded video ads, give customers a flavor of the in-app purchases you provide and show them the value of in-game products. Before long, gamers end up paying for in-app purchases instead of engaging with the rewarded video.

Improve the user experience

Ad units that are integrated into your game loop generate the best experience for your customers. For instance, you can offer consumers free rewards such as coins in return for watching or interacting with advertisements at particular points in the game. Around 71% of gamers claim viewing video ads is their favored way to ‘pay’ for in-game content.

Enhance user engagement and retention

In-game ads act as a retention tool to inspire customers to return to your game because they give them rewards for engaging with ads. You can also use ads as an engagement tool by encouraging customers to engage with a rewarded ad element that gives them the precise number of coins they require to carry on with the game.

For instance, Kongregate, one of the major online video game publishers, executed rewarded ads and observed engagements upturn by 40% to 60%.

Step Up Your Advertising Game with Eskimi’s In-Game Advertising

Eskimi DSP with its in-gaming exchanges allows advertisers to maximize reach and achieve great results. Eskimi has integrations with major players in the market like AdColony and Unity that can bring in-game advertising to new heights. We place display ads in the game environment, making them non-intrusive.

From casual mobile gamers to dedicated VR enthusiasts, we can help you connect to your target audience no matter where they are located. We offer a full-stack solution to create, manage, and sell your in-game inventory.

Eskimi enables a no-code game monetization strategy that prioritizes user experience. This translates into better revenues, higher retention, and happier players. With our suite of cutting-edge tools and technologies, you can make ads fit your game instead of distracting from it.

We give you full control and support all devices and genres. From ad execution to reporting, we become your full partner in steady game monetization. Contact us now to learn more about our services.

Start your project with Hyperion

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