How much do mobile games make per ad

As an experienced mobile game developer and passionate industry commentator, I closely track the earnings potential of mobile game ads. Currently, the average US mobile game makes $3 to $7.5 per 1000 ad impressions (RPM), according to ironSource. But with the right genres and monetization tactics, some titles achieve over $100 RPM. This ad revenue – along with in-app purchases – is fueling mobile gaming‘s explosion into a $116 billion market by 2024.

In this in-depth guide, I‘ll cover everything a developer needs to know about successfully monetizing through mobile game ads and just how lucrative it can be.

Key Mobile Game Ad Earnings Metrics

Let‘s start with some key mobile ad revenue benchmarks, according to ironSource:

Average US mobile game RPM:$3 – $7.5
Rewarded video CPM:$25-$50
Interstitial CPM:$10-$30
Offerwall CPM:$20-$60

So at a $7.5 RPM, a game with 500,000 daily impressions could generate over $150,000 per month from ads alone! However, earnings vary greatly based on factors like user locations, genres, chosen ad formats and creative optimizations which I‘ll cover next.

Matching Ad Formats to Game Genres and Users

Every genre has its own optimal ad strategies – the trick is matching them properly and avoiding player irritation. Let‘s examine popular formats and how they perform across top genres…

See ad format performance by genre
Hyper CasualPuzzleRacing
Rewarded video★★★★★★★★★☆★★★☆☆
Interstitials★★★☆☆★★☆☆☆★☆☆☆☆
Offerwalls★★★★☆★★★☆☆★★☆☆☆

As shown, the fast pace and replayability of hyper-casual games allows them to incorporate more ad formats without impeding users. Whereas interruptive interstitials frustrate players in immersive genres like racing. Optimizing each genre takes testing, analytics and understanding user psychology.

Hyper-Casual Ad Monetization Powerhouses

Hyper-casual games have emerged as a mobile ad earnings powerhouse thanks to their mass-market appeal, higher ad receptivity and specialization around fast session lengths.

Take High Heels, which at its peak was generating over $100,000 daily from rewarded and interstitial ads placed at the end of short game rounds. Or 1996‘s Tap Roulette (by SUZHOU Wangxun Internet) – using opt-in rewarded videos instead of mandatory ads at checkpoints boosted retention and earnings to $50k daily.

Both High Heels and Tap Roulette limit banner ads to avoid obstructing tap targets during hyper-casual gameplay. Other tactics spurring their ad success include:

  • Position opt-in videos as rewards rather than interruptions
  • Gate progression at natural endpoints to present rewarded ads
  • Prompt users to watch ads to unlock customizations

Balancing appropriate ad density for each title remains an art – but executed well the payoff is tremendous.

Mobile In-App Ad Market Projections

The already massive mobile in-app ad market is projected for strong continued expansion according to Juniper Research:

  • Mobile in-app ad spend reaching $295 billion by 2025
  • Higher value video ads driving 55% market share by 2025
  • CPMs rising from $6.80 now to $10 by 2025

Driving this growth is the precision targeting enabled by mobile apps vs other mediums like print and television. This allows relevant audiences to be reached more accurately – sending earnings and advertiser competition upward.

Particularly promising is the combination of free-to-play gaming‘s mass user draw with finely targeted video ads. 2025 will see mobile gaming emerge as the ultimate advertising medium.

Cutting Edge Ad Technology and Formats

We‘re also seeing encouraging mobile ad format innovation that boosts revenue while improving user experience:

Playables – mini game demos that reward users upon completion of set objectives. Completion rates of 75%+ achieve far higher payouts.

Augmented Reality – immersive 3D ad units that entertain rather than interrupt users. Click through rates as high as 17% recorded.

Machine Learning Optimization – smart analytics tailor ad placement and frequency to maximize revenue while minimizing user irritation and attrition.

And this is just the beginning! Expect sophisticated ad experiences that feel native to mobile games in the near future thanks to technologies like 5G and AI.

As a lifelong gamer myself, I‘m incredibly excited by the possibilities ahead. We‘re entering a golden age of mobile gaming innovation and monetization. I‘ll be sure to keep you posted right here on the latest earnings strategies for this explosive, dynamic arena!

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