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https://asoworld.com/blog/a-deep-dive-to-mobile-in-game-advertising-and-how-to-maximize-your-monetization-strategy

A Deep Dive to Mobile In-game Advertising And How to Maximize Your Monetization Strategy

Over the years, in-game advertising has become more sophisticated and is proving to be one of the most effective revenue channels for mobile apps today.

Posted: Dec 28 2021
Updated: Sep 15 2025

Home Blog User Acquisition A Deep Dive to Mobile In-game Advertising And How to Maximize Your Monetization Strategy

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in-game ads

With gamers spending approximately $176 billion on games in 2021 alone, the channel is poised for some exciting opportunities. But no matter how many users install your game, generating revenue remains a key component of your app's survival. One of the most effective ways to do this is through in-game video ads. Over the years, in-game advertising has become more sophisticated and is proving to be one of the most effective revenue channels for mobile apps today.

Who is your target audience of mobile game ads

Large-scale game adoption has enabled advertisers to reach a wide audience around the world. The "typical" player profile is no longer relevant. When targeting ads to the most relevant audiences, you must understand the psychology and behavior of your key players. 

This includes the needs, wants and challenges your audience faces. A good starting point is to conduct research or use a research firm to help you form personas. GameRefinery has developed eight key player archetypes that can help you make your decision. Once you've built your ideal user profile, map it to the types of games your audience is most likely to connect with.

game players

Mobile game advertising myths you should know

1. Ads interrupt gameplay

Contrary to what many people believe, mobile gamers are highly receptive to in-game ads due to the clear value exchange. For example, viewing in-game ads often provides users with free play options, extra lives or other rewards. According to Tapjoy, nearly three quarters (72%) of mobile gamers say they understand the role of ads in mobile games and even actively participate in them.

To maintain these levels of acceptance and engagement, mobile game developers and advertisers must continually focus on the user experience, create ads that are the least disruptive, and work to maintain a "player first" philosophy. This means thinking creatively about how to incorporate advertising into the gaming experience.

2. Games are violent, therefore brand environments are unsafe

In-game advertising on mobile games - especially free-to-play apps - is often a highly brand-safe environment. Compared to video games, the content is much lighter and rarely user-generated, which greatly reduces brand safety risks. To make the most of in-game advertising, marketers should employ the same inventory quality measures as other formats and ensure they work with partners who thoroughly vet their inventory.

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3. In-game advertising is only for young males

The stereotype of young male gamers is probably the most prevalent. However, the audience for playing games is becoming increasingly diverse. Back in 2014, socialite Kim Kardashian proved this myth wrong with a mobile game that allowed players to try on clothes and have virtual photo shoots. It was installed nearly 23 million times in its first five months, and players spent 5.7 billion minutes in the same period.

But of course, as with any digital advertising effort, brands must conduct research to determine which games will share their target audience so they don't waste ad spend on players who aren't interested in their product or service.

4. Measurement doesn't exist

Instead, many game developers allow advertisers to use third-party measurement tools, such as software development kits (SDKs) or the IAB's Open Measurement SDK. this allows them to share performance data with many analytics tools and see where their spend is producing the best results.

In-game advertising types

Incentive ads

Incentive Video Ads provide users with in-game rewards in exchange for viewing full-screen ads. These ads range in length from 15 seconds to 1 minute and are typically unskippable. Incentive ads provide a positive experience for both users and publishers because users do not have to pay for exceptional game content, such as winning game currency, unlocking new levels, or receiving unique items. In return, publishers gain exposure and receive incredible engagement rates.

Insertion ads

Inserts are full-screen interactive ads that appear between in-game activities or levels. These ads offer high visibility, but because they are potentially disruptive, advertisers must use inserts carefully and non-invasively.

The user will then be prompted to do one of the following:
  • View the entire ad
  • Interact with the ad and visit the promotion page
  • Skip the 5-second delay before the ad
  • Interstitial ads also typically end with a call-to-action phrase to download the application. Interstitial ads are most effective between stages without having to interrupt the flow of play.

Display banners 

Just like banner ads are common on desktop, banner ads can be used in mobile games. This ad format is typically less expensive than most other formats and is a relatively unobtrusive way to display ads to your audience. When displaying banner ads to users in your mobile game, make sure that the ad space does not cover a critical area on their screen.

Banner ads can contain rich media, such as moving images and video. While banner ads don't offer advertisers much room to convey their message, using video and other rich media is a great way to make banner ads more compelling and increase engagement.

Playable ads

Playable ads are interactive ads in which users are prompted to play a quick demo of the game they are promoting. According to SmartyAds, this gamified ad format is eight times more effective than traditional inserts. The ads are divided into three parts:
  • A quick explanation of the game mechanics
  • A short playable demo
  • Call-to-action phrases for downloading the game

To learn more about playable ads, you can check "How Playable Ads Boost App Installs on App Marketing?" of our previous articles.

When and where do you display your mobile game ads?

When should I place my ads?

Before the game starts: By showing bonus video ads to users before the game starts, you give gamers the opportunity to gain an immediate advantage. Having additional in-game resources before playing the game will enhance the user experience. Showing ads before the game starts also means that gamers with shorter game times are more likely to see the ads.

During breaks in the game: the right time, such as new levels, is perfect for advertising. If you are implementing incentive video ads, you can choose moments when users need additional in-game rewards to progress through your game. However, it's crucial that the ads your users see during natural pauses in your game don't disrupt the user experience too much.

Post-game: You can also show ads to your users when they fail to progress and need to restart. This "end of game" scenario can also be a great opportunity to provide gamers with additional lifelines. For example, a user may have run out of lives, but can avoid the "game over" screen by watching a 15-second ad and gaining extra lives. You can use the "Game Over" screen to give the user a bonus advantage for the next pass.

Which ad format you should use based on your game genre?

Action: From platformers to beat-em-ups, action games focus on dexterity, reaction time, and hand-eye coordination to overcome difficult challenges. Bonus video ads are perfect for players who want to boost their stats or acquire new items. Additionally, action gamers are more likely to become paying players once they realize the exponential benefits of paying or giving away items, so be sure to reward players who interact with your ads and increase your chances of in-game purchases.

Arcade: A classic style game that requires a unique skill in game mechanics. Bonus video ads and inserts work well if the arcade game has multiple levels. Consider offering extra lives or bonus multipliers for interacting with ads.

To learn more about arcade game marketing, you can check "How to Promote Your Mobile Arcade Game" of our previous articles.

Battle Royale: Online multiplayer game that uses elements of survival, last man standing, and cleanup. Similar to action games, consider using a wheel of fortune or bonus video ads when players need an extra boost. You might draw inspiration from Call of Duty's $559 million mobile monetization strategy. Consider offering free bundles, crates, or even points for interacting with video ads. 

Casual: Mass-market, low-risk games aimed at amateurs. Similar to arcade games, consider inserting non-intrusive interstitial ads between levels to create a seamless gameplay experience.

To learn more about casual game market, you can check "How Can Hyper Casual Game Stay Popular And Profitable" of our previous articles.

MMORPG: Massively multiplayer online role-playing games that involve online play, controlling and developing your own character, and role-playing. Due to the immersive nature of MMORPGs, in-app advertising is more difficult than other genres. Hardcore gamers play for hours a day and continued engagement is a priority for publishers. 

To learn more about RPG promotion, you can check "How to promote mobile role play (RPG) game?" of our previous articles.

MOBA: Multiplayer online battle arena games involve two teams of players competing to score goals or take over each other's team structure. The most common ads include inserts and motivational video ads. 

Puzzles: Logic and conceptual skills are required to get through the levels. Similar to casual games, interstitial ads between levels are the most common form of advertising.

Sports: Games that simulate sports such as basketball, soccer, baseball, etc. Motivational video ads are common in sports games.

ASO Topic Mobile Growth,Mobile Analytics,

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Jean L.
ASO Game News Senior Editor | Gaming Writer
Follow Jean L.:
Jean joined ASO Game News as a senior editor and gaming writer in 2022, and her work has since been featured in numerous gaming publications. When she's not writing, Jean can often be found participating in online matches or attending gaming conventions to stay connected with the latest trends.

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