Video ads have become indispensable in the gaming ecosystem, offering developers a powerful way to balance player engagement with sustainable monetization. As the gaming industry thrives, the focus has shifted to maximizing revenue per user (ARPU) and refining strategies to deliver optimal experiences for both players and advertisers. Here’s a look at best practices, incremental enhancements, and key strategies for leveraging video ads in games effectively.

Best Practices for Video Ads in Gaming

1. Rewarded Ads: Enhancing Player Engagement Through Meaningful Incentives

   • Format Overview - Players voluntarily interact with video or rich media ads to gain valuable in-game benefits, such as extra lives, bonus currency, or power-ups (e.g., unlocking new abilities or features during crucial moments in the game)..

   • Best Practices -

     • Contextual Rewards - Ensure rewards are tied to key gameplay needs, such as providing extra lives or power-ups when players face challenges.

     • Voluntary Participation - Offer clear choices to watch ads, allowing players to opt-in without feeling pressured, which fosters a positive gaming experience.

     • Strategic Placements - Position ads during pivotal moments, such as when a player is out of lives or requires additional powers, ensuring high engagement and relevance.

2. Engagement Ads: Blending Ads with Gameplay

   • Format Overview - Ads are shown during natural gameplay transitions, such as between levels or at the start of a session.

   • Best Practices -

     • Player-Centric Frequency Management - Leverage gameplay patterns to adjust ad exposure dynamically, ensuring a balance between player engagement and revenue generation.

     • Behavioral Insights - Implement multiple floor-price based ad units to target high-value users who have reached a specific ARPU within a defined duration. This strategy limits ad exposure while prioritizing high-paying ads, driving higher revenue per user. Developers should configure their app to identify user-specific ad calls, allowing for tailored ad experiences and optimized ad delivery through network and mediation partners, ultimately boosting revenue growth through more targeted and relevant ads based on user game play behavior.

Innovations and Enhancements in Video Ads for Games

1. Unlocking More with Tiered Rewards

   • What It Means: Players can gain more valuable in-game benefits by choosing to watch multiple ads. For instance:

     • Watching one ad rewards coins.

     • Watching two ads unlocks a power-up.

   • Why It Works: Tailor these rewards to match player behavior and needs, making it more likely they’ll opt in to watch.

2. Maximizing Revenue per Player (ARPU)

   • Segmented Ad Experiences: Categorize players based on their gameplay behavior (e.g., frequent players vs. casual users) and deliver tailored ads aligned with their segment. This approach enhances player engagement within the game while maximizing revenue per user. Basis the category the user belongs to Ad requests to be made to the mediation partners.

   • Ad Fill Optimization: Ensure ads are always available when needed, especially in games where watching ads helps players progress (like earning extra lives).

3. Smarter Ad Delivery with Advanced Tools

   • White-Box Mediation: Enhance ad earnings by connecting with multiple ad providers to drive better competition. Opt for neutral mediation providers instead of networks that combine mediation with backfill demand, as this often results in biased fill rates. A neutral mediation platform provides transparent and unbiased demand allocation, ensuring genuine mediation and maximizing your revenue potential.

4. Offering "Ad-Free" as a Choice

   • Some games allow players to pay a one-time fee to remove ads while still earning revenue from others who choose to watch ads. Here’s how to make it work:

     • Dynamic Pricing: Set the fee based on how often a player engages with ads (e.g., heavy ad viewers pay less).

     • Hybrid Monetization: Combine the ad-free option with added perks like bonus coins or exclusive levels for those who opt for the paid version.

Key Technologies for Maximizing Revenue and Enhancing Gameplay

• Advanced Ad Mediation

  Combine demand from multiple distinct sources to maximize fill rates and eCPMs. Leveraging white-box neutral mediation solutions like VMAX allows developers to maintain flexibility and control while ensuring transparency in the mediation process.

• Smart Pre-Caching

  Pre-caching ensures ads load seamlessly without disrupting gameplay, preserving the player experience.

How VMAX Ad Server Helps Developers Thrive

1. ParallelAds Mediation - Seamlessly connects to multiple premium demand sources like Google AdX, InMobi, and PubMatic & More for higher fill rates with transparent Ad mediation.

2. Incentive Optimization - Supports incentivized formats like rewarded ads, Videos & Interstitials and custom formats that dynamically align rewards with gameplay goals.

3. Yield Maximization - Boosts ARPU by optimizing ad delivery and leveraging data science models to prioritize high-value placements / demand partners.

4. Customization & Control - Offers granular control over ad strategies, empowering developers to tailor experiences for their unique audience.

5. SDK Integration for app developers - Reduces development effort with a simple integration that enables access to multiple demand partners and ad formats.

Conclusion

As video ads become integral to gaming, success lies in balancing monetization with player satisfaction. By adopting best practices for incentivized and non-incentivized formats, focusing on ARPU-driven strategies, and leveraging advanced technologies, developers can unlock new levels of revenue potential.

With VMAX Ad Server, game developers can maximize yield while ensuring smooth gameplay experiences—driving growth for their games and their business.

care@vmax.com