‍

By Munira Rangwala

‍

56% of IAP revenue for iOS and 58% for Android comes from currencies, limited sales events, and bundles.

‍

Launched in 2018, Helix Jump by Voodoo is one of the most successful hyper casual games of recent times, garnering an average of 2 million DAU today. With a constant improvements, Voodoo's team have found the secret formula to their In-App Advertising (IAA) and In-App Purchase (IAP) strategies. Helix Jump monetises the game using three main ad formats - interstitial ads, dynamic banner ads, and rewarded video ads. Apart from running these ads, the game also support In-App Purchase by subscribing to ‘Helix Jump Premium’ for no ads at USD2.99.

‍

‍

If you’re a developer who's exploring ways to monetise through IAA, here’s a detailed overview of the top monetization trends for hyper casual games. 

‍

According to Facebook’s gaming report, 79% of US players, 85% of South Korean players, and 82% of UK players are open to seeing mobile game ads.

‍

1. Strike a balance between In-App Ads (IAA) and In-App Purchases (IAP)

When a player downloads a hyper casual game, he knows that he is bound to see in-app ads. But these ads don’t need to seem forced. If you are able to integrate ads from the development phase, they will seem more in-tune with the mechanics of the game. The one thing common between all the successful mobile game developers and publishes is that they know when to offer IAP and when to offer IAA. 

According to Clement Xue, Head of Activision Blizzard Media, “Advertising needs to be integrated into the game during game design, alongside in-app purchases, so that there's a strong value proposition for players to watch ads and/or pay for IAP while ensuring that the economy is well-balanced."

‍

‍

2. Use interstitial ads, but don’t overdo it

If there’s one ad format that’s notoriously known for its intrusiveness, it’s interstitial ads. Here’s why interstitial ads are annoying:

• They take over the player’s entire screen so there is no way to ignore them
• Players get nothing in return for watching them.

Despite its drawbacks, interstitial ads are widely used. Here’s an interesting statistic by DeltaDNA - As many as 63% of casual/hyper-casual developers display interstitial ads in their games.

It all boils down to how smartly developers are able to integrate interstitial ads in their games. For example, the best time for an interstitial ad to pop up is before starting or upon finishing a level. The key is to not shock players by popping these ads out of nowhere. Most interstitial ads come with a skip or exit button. Test the best time to display this button. In most cases, the skip button appears after three to five seconds. 

3. Use rewarded videos to your advantage

A known fact amongst successful developers is that it is best to show rewarded videos as often as possible. Start monetizing users from day 0, but also focus your monetisation efforts for day 7 and day 30. The players who return to your game beyond day 30 are the ones that rewarded video ads can be most useful for. Here are 5 ways to boost ad engagement with rewarded video placements.

• In-game store - Players in need of hard currency are likely to pay a visit to the in-game store. To ensure users keep coming back to your store, pace the rewarded ads between 4 to 6 hours and then keep A/B testing to find the ideal pace for your game. 
• Time boost - For hyper casual games where wait time for tasks increases depending on progress, rewarded ad placements can help them progress faster. 
• Daily reward multiplier - Give your players an extra reason to open your game by allowing them to view a rewarded ad placement that multiplies their daily rewards. 
• Pre and post level boosters - Pre-level rewarded ad placements can allow players to get additional resources that they need to complete the level. Post-level ad placements can extend play sessions when players fail.
• Home screen - Strategy players spend a significant amount of time on the home screen - deciding between different actions to take. The most common rewards to offer on the home screen are soft currency and gachas, since players always need these to progress through the game. 

‍

4. Test Your Ad Frequency

Here’s an alarming statistic - According to CleverTap, over 1/3 of hyper-casual gamers churned from a game because they saw too many ads. 

Most app store reviews for hyper casual games have one common pet peeve highlighted by players - too many ads! But truly, how many ads are too many ads? According to a joint-research by Unity and Adjust, the most number of ads that can be shown within a minute shouldn’t exceed 3. But the truth is, there is no magical number. Each game determines its own frequency. Ad frequency can be determined by a variety of factors including but not restricted to - 

• Gameplay type
• Average session duration
• Ad formats
• IAAs and IAPs

Only by A/B testing different ad placements, ad formats, and frequency, you will be able to find the sweet spot for your ads. Here's how you can test out Admob ad placements via Firebase!

‍

5. Build for Retention and LTV

Want a full picture of your game’s ROI? Start by looking at player LifetTime Value (LTV). All successful developers and publishers strike a balance between LTV and the user acquisition funnel without harming retention. You can even segment players by their ad-watching habits. Here’s a golden rule – don’t serve players an ad if they have just voluntarily finished watching an ad. This is a sure way to chase players away from your game. ​​Gismart, a leading developer and publisher, expanded its portfolio into hyper casual in 2019. Implementing rewarded video ads and optimising entry points enabled the Gismart team to increase LTV by 5% and ARPDAU by 5-7%.

_____________________________________

‍

While the hyper casual gaming market is hyper competitive, the global in-app advertising market is project to 3X by 2027 with a CAGR of 20.73%. Do plan out your mobile game advertising strategy properly to drive exponential growth! Still researching on your ideal ad formats?

Don't forget to check out our post on Ad Types for Mobile Gaming!

‍