How Much Money Do Mobile Games Make Per Ad?

Mobile games have become an enormous industry, and advertising plays a crucial role in generating revenue for developers. A common question among developers and publishers is, "How much money can mobile games actually earn per ad?" This article dives deep into this question, exploring the metrics, ad types, benchmarks, and effective strategies to maximize earnings.

Understanding eCPM

The primary metric used to measure ad revenue in mobile games is eCPM, which stands for effective Cost Per Mille (1,000 impressions). The eCPM formula is simple:

eCPM = (Total ad revenue / Total impressions) × 1,000


If your game generates $10 from 1,000 ad views, the eCPM would be $10.

Types of Mobile Ads and Revenue Potential

There are four primary types of ads used in mobile games:

1. Banner Ads: Small and unobtrusive, these ads typically have lower engagement and lower eCPMs, averaging around $1.50.
2. Interstitial Ads: Full-screen ads displayed at natural gameplay breaks. These ads offer higher engagement and typically generate eCPMs between $3 to $6, with top markets like the US achieving up to $13.
3. Rewarded Video Ads: Highly engaging as they offer players incentives, such as game currency or power-ups, to watch. These ads have the highest eCPMs, typically between $15 to $25.
4. Native Ads: Integrated seamlessly into the game's design, these typically have eCPMs ranging from $2 to $4.

Translating eCPM into Revenue Per Ad

To determine how much each individual ad impression earns:

Revenue per impression = eCPM ÷ 1,000


For example, if you have an interstitial ad with an eCPM of $6:

Revenue per ad = $6 ÷ 1,000 = $0.006 per view


Though seemingly small, these amounts scale dramatically with increased impressions.

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Real-Life Revenue Example

Consider a scenario with 100,000 daily active users (DAU). Each user sees:

• 3 interstitial ads per day
• 2 rewarded video ads per day

Interstitial ads:

• Daily impressions = 100,000 × 3 = 300,000
• Revenue at $6 eCPM = (300,000 ÷ 1,000) × $6 = $1,800/day

Rewarded video ads:

• Daily impressions = 100,000 × 2 = 200,000
• Revenue at $20 eCPM = (200,000 ÷ 1,000) × $20 = $4,000/day

Combined, this equates to $5,800 daily or approximately $174,000 monthly.

Factors Affecting eCPM

Several factors influence eCPM rates, including:

• Geographic Region: Higher-paying markets include North America and Western Europe.
• Ad Network Quality: Networks like Google AdMob, Unity Ads, and ironSource offer varying rates.
• User Experience: Ads integrated seamlessly and shown at natural breaks enhance user engagement and thus revenue.

Strategies to Maximize Ad Revenue

To increase ad revenue, developers should consider:

• Optimal Ad Placement: Place ads during natural breaks to ensure minimal disruption.
• Frequency Management: Balance ad frequency to avoid overwhelming users, thus preventing churn.
• Geo-Targeting: Prioritize ads in regions with higher eCPMs.
• Hybrid Monetization: Combine advertising with in-app purchases or subscriptions to maximize revenue streams.

Conclusion

Understanding the revenue potential of each ad type and strategically optimizing your ad placement and frequency can substantially increase mobile game revenue. By staying informed of current eCPM benchmarks and industry best practices, developers can effectively maximize earnings while maintaining a high-quality user experience. Contact us to increase your ad monetization.

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