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Akhavan said, and it serves them more frequently to players who don’t make in-app purchases.Īnalysts routinely press King on when it will move from testing to rolling out ads to all games for its 314 million monthly active users. Glu often serves ads after a level of play has been completed, because there is a natural pause then, Mr. The secret to making ads work, he said, is to be strategic about when they run and who sees them. In the second quarter, Glu had $12.4 million in quarterly ad revenue, up from $2.4 million in the same quarter of 2013. When Chris Akhavan arrived in 2013 at Glu Mobile Inc., publisher of games such as ” Kim Kardashian: Hollywood,” the chief revenue officer discovered a lot of resistance to ads at Glu Mobile.

“They make me feel as though my time is more worthwhile,” she said. Jamie Lynn, a 21-year-old Florida college student, says she spends about 15 minutes a day playing games like King’s “Candy Crush Saga” and Supercell’s “Hay Day” and tolerates ads that offer rewards.

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Some 62% of developers said player retention increased or stabilized after they introduced video ads with rewards, according to a 2016 study from Unity Technologies Inc., whose game-creation software includes tools for advertising. That is why rewarded ads are changing so many developers’ minds. “If you want a long-term relationship with players, ads don’t make any sense.” “Ads are very disruptive,” said company founder Andreas Papathanasis, a former game developer with Supercell Oy, of Helsinki. chose not to include any ads in “Hades’ Star,” a game about space exploration released in July - the Canadian startup’s first. During a 15- or 30 -second video, players have ample opportunity to close the app and open another. Video, for example, is potentially more engaging than traditional banner ads, but it is also riskier. Still, even today players dislike many of the ad formats in games. app stores featured ads, up from 45% a year earlier and 29% in 2015, according to analytics firm Apptopia Inc. In the first half of 2017, 78% of the top 50 grossing games on Apple Inc.’s and Alphabet Inc.’s U.S. People are spending more time on mobile devices, and brands need ways to reach them, he said. Mobile games are especially attractive to brands “because they’re highly engaging,” said Tom Goodwin, head of innovation at ad agency Zenith USA, a unit of Publicis Groupe SA. The company doesn’t report ad revenue but it “is definitely a growth area,” he said. advertise in EA’s mobile games, up from just a handful five years ago, said Dave Madden, head of global brand partnerships. through the soccer game’s messaging system.ĭozens of brands including Ford Motor Co.

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A recent promotion from Electronic Arts Inc.’s “FIFA Mobile,” for example, gave players the option to acquire free virtual characters and other items if they shared an ad from Coca-Cola Co. Players who engage receive in-game perks such as extra lives or virtual currency. Rewarded ads are an alternative for them. These purchases generate considerable revenue for game makers but are dependent on a minority of dedicated players who are big spenders on virtual goods. Game makers hope “rewarded ads” will extend the boom in mobile-game advertising and help them continue diversifying beyond players’ in-app purchases. It projects the number will climb to $49 billion in 2018.

This year, mobile games are on track to generate $39.8 billion in ad revenue world-wide, up almost 90% from $21.1 billion in 2015, according to App Annie Inc., an app data and analytics firm.

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The shift in strategy has lifted the gates on a torrent of mobile-game ad revenue. Rather than treat ads as a necessary evil, a mandatory toll booth players have to pass through, developers increasingly are embedding them into games as an optional experience that players can choose in exchange for rewards. acquired it in 2016, reflects new thinking about ads in the mobile-game industry. and others in a handful of mobile games including “Candy Crush Soda.” The reversal, which the game developer set in motion soon after Activision Blizzard Inc. King Digital earlier this year began tests of ads from Nestlé SA, Visa Inc. Four years after it stopped putting ads in its mobile videogames because it suspected they were too disruptive, King Digital is testing them again in a new format, a move Wall Street analysts think could generate $1 billion in revenue for the company by 2019.