AdInMo, the most innovative and player-centric monetization platform for mobile game developers, today published the results of its industry survey* carried out in partnership with Gamesforum to look at hybrid monetization trends in free to play mobile games.
The study charts the continued growth of hybrid monetization (defined in the study as the mix of revenue generation through in-app purchases (IAP) and in-app advertising (IAA)). Bucking the trend of an IAP downturn in the last 12 months**, the study found that over twice as many games makers questioned were able to grow their IAP revenue share (45%) this past year vs. IAA (17%). This mixed model looks set to continue, with the study identifying that in the next six months:
- 72% of game makers are planning to implement or advance their hybrid monetization strategy
- 63% of respondents are prioritising how to increase IAP conversions
- 49% of respondents are planning to integrate immersive in-game ads.
On the operational challenges of a hybrid approach, the survey found that planning against monetization metrics by geo; player segmentation strategies and cannibalization trade-offs between purchases and ad revenue were the top three pain points for the industry to master.
Monetization expert and author of the report, Tiffany Keller, said: “Gamesforum’s survey shows publishers and developers are split when it comes to predicting the future, both the IAA and IAP majority camps each forecast a larger share of revenue next year (approx. 38% each). My prediction based on the study analysis is that intrusive ads have a limited lease on life, with developers moving towards immersive ad formats combined with personalized IAP conversion. Today’s gaming marketing landscape demands game makers master LTV unit economics by selecting strong monetization platform partners to mix and match IAA and IAP best practices regardless of game genre.”
Kristan Rivers, AdInMo Co-Founder and CEO, added:
“This report shows that IAA and IAP models are not an either-or scenario. The shake-up of monetization models is a positive shift driven by innovation, cross-team collaboration and most importantly putting emphasis on a better player experience. It’s great to see half of the industry respondents already see immersive in-game ads as part of the hybrid evolution.”
Kristan explains more:
“Gamesforum’s study clearly identifies the need for quality and unobtrusive ad placements as part of a hybrid strategy. Our latest InGamePlay 3.0 SDK introduces IAPBoost™ and CrossPromo which enable game makers to integrate in-game advertising into their user acquisition and IAP conversion strategies.
These new products, along with clickable ad units and the InGamePlay Magnifier, keep the player in the game experience and are already delivering above industry benchmark install rates, driving hybrid monetization innovation.”
