We all know that Video is one of the biggest trends of the last years in mobile gaming. Now there is a study that confirms it. Unity recently put together a report based mainly on surveys of users and game makers. The report shows how dominant Video ads are today and the trend seems to get stronger even.
Key points from the in-game advertising report:
- 71% of the users said they prefer Video Ads as the way to ‘pay’ for the game
- After adding rewarded video – 86% of developers saw increase or no change in IAP, 68% saw increase or no change in retention and only 14% saw any negative impact at all
- When surveying studios of 5 to 20 people – 90% said they are adding rewarded video ads in their next title
You can download the full report here (after filling out a signup form).
Interpretation of the video ads report
This report demonstrates a trend we are all aware of and was covered in a recent article in this blog – More ads in mobile games. Unity is making an effort to highlight the trend as their advertising business is becoming a substential part of their business and they are positioned as one of the key players in the video space. This is the reason behind them investing in such a report.
For developers, I believe most of them know already about the availability of rewarded video so there is no big news here.
Related – video ad LTV attribution
With the trend of advertising becoming a significant part of mobile app revenues it is important to start measuring ad LTV more precisely. Today most game publishers divide the daily ad revenue by the daily active users to reach ARPDAU number. However this method assumes all users are the same and each user is contributing the average amount of revenue. In reality, some users are interacting more with the ads, clicking and installing the advertised apps. Since mobile campaigns today are mostly paying on CPI basis, there is a big difference in ad revenues between different users in the app. Accurately calculating the LTV per user, cohort and segment is becoming a key skill for game developers these days.