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Mobile Growth and Monetization Report 2024

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Sep, 2024 Mobile Growth and

Monetization Report 2024

Insights to help boost your ad strategy

Introduction

In this yearʼs Unity Gaming

Report, we shared that user

growth continues for mobile

gaming and studios are testing

new growth strategies in

addition to existing tactics to

adapt to the changing gaming

industry.

Adapting to market and

industry fluctuations is no easy

feat, but knowing the trends

and benchmarks for user

acquisition UA, in-app

purchases IAPs, and in-app

advertising IAA) can help arm

your team with data-backed

insights to inform efficient

optimizations and grow your

game.

Discover how to optimize your

resources and maximize your

return on investment with the

Unity Grow data in this report.

Whether youʼre looking to

allocate your budget more

effectively, increase repeat IAP

transactions, or engage users

through thoughtful ad

monetization, youʼll find

valuable insights to help you

achieve your goals and boost

your bottom line.

2

Key findings

Campaign strategies are shifting, with

advertisers dividing their spend

allocations between different

campaign optimization types to reach

high-quality users based on specific

in-app actions.

Advertisers are

diversifying their UA

optimization strategies

01

The small group of users who convert

to in-app purchases remains crucial.

By identifying optimal time frames for

initial and repeat purchases,

developers can strategically nurture

payers.

Engage IAP payers at

the right moments

02

Ad engagement is increasing year

over year. Harnessing this

groundswell can not only create a

balanced monetization strategy with

IAPs, but also provide players with

meaningful ways to progress

throughout your game without them

ever having to open their wallets.

More users are

watching ads

03

As the UA landscape continues to evolve,

reaching and retaining the right users at

scale is becoming more challenging. Our

data shows that users acquired through

offerwall have deeper engagement,

stronger retention, and get to a higher

lifetime value LTV) faster than users

acquired through other ad formats.

Offerwall attracts and

retains more high-intent

users

04

Publishers are seeing that offerwall

complements IAP revenue streams by

increasing overall LTV and introducing

highly-engaged, non-paying users to

premium experiences they are more

likely to choose to pay for down the

line.

Offerwall complements

IAP revenue streams

05

3

01

Advertisers are

diversifying their UA

campaign optimization

strategies

Acquiring the right users cost-efficiently continues

to be a challenge for game studios, with marketers

exploring a different mix of campaign optimization

goals to drive a strong return on investment. Our

data shows that marketers are increasingly

diversifying their campaign optimizations and are

exploring different return on advertising ROAS
and

event-based optimizations in conjunction with cost

per install CPI) campaigns in order to find the right

players at the best value.

© 2024 Unity Technologies

Advertisers are diversifying their UA campaign optimization strategies

Optimizers help advertisers fine-tune campaigns towards achieving specific goals. Letʼs take a look at the two most common types of

campaign optimizers.

ROAS-based optimizers

Event-based optimizers

IAP ROAS
In-app purchase ROAS campaigns

optimize to acquire users more likely to make

purchases in your app.

Ad Revenue ROAS
Ad revenue ROAS campaigns

optimize to acquire users who are more likely to

engage with ads in your game.

Hybrid ROAS
Hybrid ROAS campaigns optimize

to target users who are more likely to make

purchases in your app, engage with ads in your

app, or do both.

Optimize your campaign to focus on finding

high-value users that are likely to complete a

specific in-app event in your game, such as

completing a level or making an in-app

purchase. There are many events to target, so

weʼll take a look at the most common events

later on in this report.

Diversification is key

CPI campaigns are still in the mix, however advertisers are diversifying their budget allocations, with ROAS and event-based

optimizers taking more of the pie year over year. While CPI campaigns can help unlock scale, using different campaign optimizers is a

powerful (and automated) way to find players that are meeting your quality benchmarks. Campaign optimizers can serve as a powerful

tool to find players that are more likely to have value beyond initial app install.

5

© 2024 Unity Technologies

Over the last two years, advertisers across

both the ironSource and Unity Ads networks

have shifted budget allocations to further

diversify their campaign strategies by

leveraging optimizers like ad revenue, IAPs,

and hybrid ROAS.

We also see both target cost per action (tCPA)

and target cost per event (tCPE) campaigns

gaining traction
1
, signaling that advertisers are

looking to go even deeper with their

campaigns, seeking out players who are more

likely to complete specific actions in their

games.

Campaign optimizers

have gained traction

month over month

Advertisers are diversifying their UA campaign optimization strategies

Percentage of spend per campaign types – Unity Ad Network

Percentage of spend per campaign types – ironSource Ad Network

1.1

© 2024 Unity Technologies

1. Source: Unity Ad network, ironSource Ad network] Disclaimer: gaming only, CPI

6

When we look at ROAS optimizers, using D7

targets as a benchmark, the top game genres

by spend are still mostly focusing on ad

revenue optimization. However, hybrid

optimizers are a close second across all

genres
2
.

Optimizing for both IAA and IAPs helps create a

more stable and resilient strategy that adapts
to

different user preferences and market

conditions. Hybrid campaigns are becoming

more popular as game genres increasingly

create blended economies relying on both IAA

and IAPs.

D7 ROAS targets by genre

and optimization type

Advertisers are diversifying their UA campaign optimization strategies

1.2

© 2024 Unity Technologies

2. Source: Unity Ads data in 2023 Disclaimer: campaigns with over $100 USD spent in the year.]

7

D7 ROAS targets by genre and optimization type

Looking at the top five game genres by spend

in the U.S., each one is diversifying spend

across multiple campaign optimizations.

Event campaigns like tCPE have also started to

surface in Puzzle 3%, Strategy 8%, Casino

2%, and Arcade 4%
3
, signaling that these

genres are looking to center their UA strategies

even more squarely on finding quality users.

The top 5 game genres by

spend and their campaign

optimizer mix

Advertisers are diversifying their UA campaign optimization strategies

Optimizer tools usage by spend – Unity Ad Network

1.3

© 2024 Unity Technologies

3. Source: Unity Ad demand supply internal] Disclaimer: United States, gaming only, May 1 to May 31, 2024

8

Start by choosing an action in your game that is often

achieved by high-quality players. This can be an action like

making a first in-app purchase or engaging with a certain

amount of ads. We recommend choosing an action that your

top 520% of users with the highest LTV complete within the

first seven days of gameplay.

Choosing an event within this range ensures that you are

targeting a meaningful action performed by a valuable

segment of users, while also providing flexibility in event

selection. This prevents aiming towards an event that is too

rare. Bear in mind, however, that the deeper the event goes

into the gameplay, and the more time needed to achieve it,

the more conversion rate CVR) will drop, and it will take

longer for the campaign to optimize accordingly.

How do you choose an

event to target and whatʼs

the logic behind it?

1.
Completing a level

2.
Registering for a free trial

3.
Making in-app purchases

4.
Watching a certain number of ads

5.
Achieving a significant milestone in the app

Top 5 events that developers

most commonly choose*

* Based on ironSource Ads data

Advertisers are diversifying their UA campaign optimization strategies

© 2024 Unity Technologies

9

Leveraging the benefits of diversifying your UA optimization strategy applies just as much to offerwall as it does to video networks.

As a rewarded marketplace, the offerwall allows advertisers to run various event-based campaign optimizations tailored to specific

player engagement behaviors. Letʼs look at some of those campaign optimizations:

Offerwall campaign optimization

campaigns attract a more scaled, casual user

segment than a typical SRCPE or MRCPE

campaign by offering shorter, quicker, and

more frequent rewards for completing in-app

actions. These campaigns drive higher

conversions and ROAS among audiences

preferring fast rewards for short challenges.

These are designed to complement both

single reward and multiple reward cost per

engagement campaigns.

Daily Reward Cost Per

Engagement DRCPE

Single Reward Cost Per

Engagement SRCPE

Multiple Reward Cost Per

Engagement MRCPE

campaigns reward users for completing a

single deep in-app task within the offerwall

marketplace, such as engaging with an app,

reaching a certain level, or carrying out a

specific task. Typically these campaigns

reach users who are already familiar with
the

offerwall and are invested in completing a

deep in-app action in order to receive

currency in the original game theyʼre

playing.

campaigns reward users for completing

multiple in-app tasks within the offerwall

marketplace. Users engage with an app,

reach a specific level, and perform an action

to earn rewards. Players can see their

progress and rewards along the way which

entices them to keep going and complete the

final task, and in turn helps with completion

rates.

Advertisers are diversifying their UA campaign optimization strategies

© 2024 Unity Technologies

10

Campaign optimizations are only one piece of

the puzzle. Diversification is just as important

when looking at your ad format mix within your

campaigns, since each variety such as video,

end cards, and playable ads engage people

differently.

Formats such as playable ads are highly

effective for driving stronger engagement and

conversion rates, since the format is

interactive, often delightful, and critically gives

players a sense of how your game operates.

Letʼs take a look at the genres benefiting most

from playable ads:

Installs per mille IPM) for

playable ad campaign

benchmarks for the top 5

game genres by spend

Advertisers are diversifying their UA campaign optimization strategies

1.4

© 2024 Unity Technologies

11

Knowing the IPM benchmarks per genre can help gauge how competitive your user acquisition playable ad campaigns are
4
. If you arenʼt

hitting the benchmark for your genre, consider these best practices for creating playable ads:

The creative concept you choose should

depend on your goal and game type. For

example, from a goals perspective, you

might be focusing on quality or scale. To

entice quality players, showcase all the

ranges of customization and choice your

game offers. If scale is your goal, focus on

showing urgency within the gameplay.

Mapping creative concepts to

your goals

Progression

Timing

Give players a clear understanding of
how

game progression might work by

showcasing a characterʼs journey through

different parts of the game. This can give

players a good overview of your gameʼs

mechanics.

Timing is key when sending users to the

app store. For short playables 35

interactions), try directing users to the store

one interaction before the end. For longer

playables 10 interactions), sending users

after five interactions when their interest is

piqued could maximize the likelihood of

them downloading your game.

Advertisers are diversifying their UA campaign optimization strategies

© 2024 Unity Technologies

12

4. Source: Unity Ad demand supply internal] Disclaimer: Playable only, data as of May 1 to May 31, 2024

Engage IAP payers

at the right

moments

Creating IAPs for your mobile game can be labor

intensive, but the payoffs can outweigh the work

if done right. Using data to identify the most

effective IAP products, and then understanding

how to map them to the most impactful moment

based on where a user is at in your game, can

help offset some of the overhead around

implementing IAPs.

© 2024 Unity Technologies

02

1.83% of users convert on IAP during their lifetime, and

28.81% of those users will make at least one additional

purchase, meaning approximately one in three IAP

purchasers will repurchase
5
. In the
2023 Growth and

Monetization Report
, we shared that 77% of all players who

have ever converted to IAP have done so within the first two

weeks. While initial IAP conversion is hard, those who do

convert are much more likely to repurchase, so it pays to

invest in trying to drive those initial conversions.

26.47% of those additional purchases will happen within 30

days of initial purchase. 1.37% will repurchase within 3160

days, and 0.46% within 6190+ days. IAP strategies need to

anticipate and facilitate repeat purchases within this time

frame, and not just work to drive long-term sporadic

spending. It is much easier to estimate who will be paying in

the future (and when) if you know who has paid in the past.

IAP purchasers are a small but mighty group. Providing the

most helpful IAPs at the right moments can provide a big

payoff. So how do you do that?

Those who purchase IAPs are

more likely to buy additional IAPs

within the first 30 days of first

purchase

Advertisers are diversifying their UA campaign optimization strategies

2.1

© 2024 Unity Technologies

IAP Payer Likelihoods

5. Source: Unity IAP Plug in] Disclaimer: games that made over $10k USD in 2023, players that installed in 2023

14

Breaking your game down into three main stages – early, mid, and late game – can help you map users to high-value rewards that will

motivate them at their specific stage. Meet users where they are at to encourage game progression and provide relevant, engaging

offers which can increase chances of repeat purchases.

Dividing your game into stages will help

identify the best ways to engage users

Goal: Engage and convert users

The early game is all about making a great

first impression for the user and showcasing

the fun of the game. This is where the user

will learn all about your gameʼs systems,

mechanics, and available tools – the core

loop of your game.

Early game

Week 1 Days 07

Mid game

Week 2 Days 815

Late game

Week 3 Days 16

Goal: Retention and continued conversion

The user is familiar with the core loop, so

they can focus on progression through

systems. Certain elements like social or

multiplayer pressures can be introduced to

keep players coming back.

Goal: Conversion and deeper complexity

This will be the smallest, most invested

group of players who have retained the

longest. Rewarding them with deepened

complexities and challenges can keep

them engaged.

Advertisers are diversifying their UA campaign optimization strategies

© 2024 Unity Technologies

15

Looking at the conversion rates of each IAP

product type according to game stage, ads

removal 7.0%, subscription 3.7%, and

starter bundles 3.1%) are effective for early

game, while currency 24%, 24.3%) and

limited-time event/sales 16.3%, 16.9%
6
are

strong mid-late game motivators.

The most effective IAP

products according to

game stage

Advertisers are diversifying their UA campaign optimization strategies

2.2

© 2024 Unity Technologies

6. Source: Unity IAP Plug in] Disclaimer: games that had made over $60k USD in IAP revenue in 2023, players who installed in 2023

16

An in-game economy is the system within a

game where players earn, spend, and trade

various currencies, items, and resources.

If rewards for regular gameplay are not

compelling, a player is unlikely to be retained. If

the rewards are too generous, they will be less

likely to consider IAPs and/or IAA to

supplement their progress.

Similarly, if promotional rewards are too high,

players will expect the same value from app

progression and IAPs. Engaged players will

closely examine the balance between earned

and spent rewards to maximize their time

investment.

What is an in-game

economy?

Advertisers are diversifying their UA campaign optimization strategies

2.2

© 2024 Unity Technologies


Players feel that the rewards they get

are worth the time and effort they put

in, whether they get those rewards

from playing the game normally,

watching ads, or buying things in the

game.


Players are clear on what the

different currencies in the game are

for and how they help them move

forward in the game.

Key elements of a strong

in-game economy:

17

Games with higher IAP revenue also have

higher rewarded video RV) impressions,

indicating that users want to engage with

rewarded videos when they need additional

resources.

For games in the 50th percentile of IAP

revenue per monthly active user, there are 3.5

rewarded video ad impressions per user each

month IMPMAU
7
. A strong in-game economy

will drive IAP and IAA engagement together.

A strong in-game

economy helps your ad

monetization

performance

Advertisers are diversifying their UA campaign optimization strategies

2.3

© 2024 Unity Technologies

Rewarded video IMPMAU by IAP performance

7. Source: Unity] Disclaimer: games with over $300 USD monthly revenue from rewarded video, with over 1000 average DAU

18

More users are

watching ads

With macroeconomic pressures mounting, more

users are leaning into ads. Engaging users with IAA

should be a cornerstone of your monetization

strategy, since if done right, ad implementation can

allow users to advance throughout your game

without having to spend money. And given the

larger proportion of users who will engage with ads

over IAPs, this can still drive considerable revenue.

© 2024 Unity Technologies

03

Advertisers are diversifying their UA campaign optimization strategies

The amount of ads watched on average

over total ad watchers, i.e., users who

engage with ads.

Ad depth

Ad engagement

Percentage of users engaging with at

least one ad.

IAA engagement and depth is increasing worldwide

With IAA engagement rising, knowing what types of rewards users engage with most, and where to place them for maximum

visibility, will help create efficiencies in your ad monetization strategy, yield better engagement with your users, and ultimately,

generate more revenue.

© 2024 Unity Technologies

20

Globally, ad engagement increased 3.2% year

over year, with even higher growth in

high-purchasing-power regions like Tier 2 and

Tier 1
8
.

As people face economic challenges limiting

their ability or readiness to pay for IAPs, ads

become increasingly valuable, offering users

an alternative way to access in-game content

for game progression.

Rewarded video

engagement and depth

has increased YoY
across

all regions

Advertisers are diversifying their UA campaign optimization strategies

3.1

© 2024 Unity Technologies

Rewarded video performance 2023 vs 2022

21

8. Source: LevelPlay] Disclaimer: games with over 150k installs in 2022, over 3000 players in a country]

Chart 3.2 shows that Word 38.4%, Role

Playing 37.6%, and Casual 36%
9
are the top

three genres with the highest rewarded video

engagement.

Itʼs a close race between genres for rewarded

video engagement, so no matter your genre, it

can pay to leverage rewarded videos in your

game.

Rewarded video

engagement is highest

amongst Word, Role

Playing, and Casual game

genres

Advertisers are diversifying their UA campaign optimization strategies

3.2

© 2024 Unity Technologies

Rewarded video ad engagement

22

9.Source: LevelPlay] Disclaimer: Games with over 1000 DAU and $100 USD daily total mediated ad revenue]

Genres such as Casino, Sports, and Word excel

at getting repeated ad watches
10
. Genres that

have over 5 typically see longer session times,

but also need to continually provide resources

for progression.

As we see in chart 3.4, providing rewards
when

a user is most likely to benefit from them can

help drive deeper engagement. Ideally,

developers should identify the baseline for
their

genre and then attempt to improve it.

Ad watchers watch the

most ads in Casino,

Strategy and Word

games

Advertisers are diversifying their UA campaign optimization strategies

3.3

© 2024 Unity Technologies

Rewarded video daily ad impression per ad watcher

23

10.Source: Unity Levelplay] Disclaimer: Games with over 1000 DAU and $100 USD daily total mediated ad revenue]

Providing context-sensitive ad placements like

when a user runs out of resources such as

lives leads to 38.1% of users watching
11
.

Having visible, contextual ads offering rewards

that users really need in the moment not only

generates high ad engagement, but more

importantly fosters a positive user experience,

which can benefit you in the long run.

Showing ads during

timely user moments

can result in more

rewarded video watches

Advertisers are diversifying their UA campaign optimization strategies

3.4

© 2024 Unity Technologies

Percent of ad watcher engagement by placement location

24

11. Source: Unity Levelplay] Disclaimer: Games with over 5000 DAU and $50 daily total mediated RV revenue]

While some may worry about overusing

rewarded video placements, our data shows

that games with 1520 placements can actually

achieve engagement rates as high as 46%
12
.

Make sure youʼre providing users with a variety

of different rewarded video formats (short,

long, small, larger rewards) to keep things

interesting. You can always A/B test to see

what users are most responsive to.

Giving players more

opportunities to watch

rewarded video leads to

better engagement

Advertisers are diversifying their UA campaign optimization strategies

3.5

© 2024 Unity Technologies

Rewarded video engagement by number of placements per app

25

12. Source: Unity Levelplay] Disclaimer: Games with over 5000 DAU and $50 daily total mediated RV revenue]

Knowing the rewards that drive the highest

rates of engagement can help you better

understand what motivates your users. Gacha

31.1%, additional moves 30.5%, and daily

rewards 30.3%
13
drive the highest RV

engagement.

This could be since gacha uses a randomized

reward system, which can keep users engaged

since each reward can be different, additional

moves provide users with progression

opportunities they are looking for in the

moment, and daily rewards offer incentive to

return to the game.

Gacha and additional

moves drive the highest

rewarded video

engagement

Advertisers are diversifying their UA campaign optimization strategies

3.6

© 2024 Unity Technologies

Percent of ad watchers that use RV placements for each type of reward

26

13. Source: Unity Levelplay] Disclaimer: Games with over 5000 DAU and $50 daily total mediated RV revenue]

Knowledge is power, and the more you A/B test

elements of your monetization strategy, the more you

can make informed decisions. There are countless

variables you can test, so we looked at what people

are using A/B testing for most.

Bidding leads the pack 77.1%, with developers
testing

bidders to find the most return on their ad inventory,

followed by adding or removing specific ad networks

51.9%) and testing country-specific pricing

optimization 41.2%
14
. Tools like A/B testing provide

developers with both transparency and control over

their monetization strategies, helping them make

educated optimizations.

How developers are

using A/B testing for

monetization

optimization

Advertisers are diversifying their UA campaign optimization strategies

3.7

© 2024 Unity Technologies

27

14. Source: Unity Levelplay]

Percentage of apps that use the test/segmentation tool in Unity LevelPlay

for different purposes

Offerwall attracts

and retains more

high-intent users

As the UA landscape continues to evolve, reaching

and retaining the right users at scale is becoming

more challenging. Our data shows that users

acquired through offerwall have deeper

engagement, stronger retention, and get to a higher

LTV faster than users acquired through other ad

formats.

© 2024 Unity Technologies

04

Advertisers continue to look for ways to scale faster, reach users

who are more engaged from the start, and retain more users with

high LTV. Our data shows that users acquired through the

rewarded marketplace in an offerwall have deeper engagement,

stronger retention, and LTV that scales faster than users acquired

from other ad formats.

By engaging with offers theyʼre interested in, offerwall users earn

rewards when they reach a specific milestone in another game,

sign up for a subscription, make a purchase, or complete a
survey.

Because they are required to complete an action relatively “deepˮ

within the advertised app or game in order to receive their reward,

a user acquired through an offerwall generally shows much higher

retention and LTV.

Users acquired via offerwall

have stronger retention than

other ad formats

Advertisers are diversifying their UA campaign optimization strategies

4.1

When compared to users acquired through RV and interstitials,

users acquired through offerwall have 100% higher LTV on D7,

52.1% higher LTV on D30, and 15.8% higher LTV on D60
15
.

Users who find and convert on offerwall have
27x higher

retention
compared to non-offerwall users

© 2024 Unity Technologies

29

15. Source: Tapjoy, Unity Ironsource] Disclaimer: Apps with at least $5000 USD monthly Offerwall UA spend; Apps with at least
$10000 USD monthly ad RV and INT UA spend]

Average usersʼ LTV by user acquisition channel

In the early stages of gameplay, users obtained

through offerwall also have higher retention

rates than users acquired from other ad

formats.

When compared to users acquired through RV

and interstitials, users acquired through

offerwall have 45.8% higher retention rate on

D1, 86.1% higher retention on D7, and 71.7%

higher retention on D14
16
.

Offerwall early retention

outperforms other ad

formats

Advertisers are diversifying their UA campaign optimization strategies

4.2

© 2024 Unity Technologies

30

16. Source: Tapjoy, Unity Ironsource] Disclaimer: Apps with at least $5000 USD monthly Offerwall UA spend; Apps with at
least $10000 USD monthly ad RV and INT UA spend]

Retention by user acquisition channel

Multi Reward Cost Per Engagement MRCPE) campaigns

that feature diverse offers with a stronger emphasis on

deeper engagement during early gameplay are creating

more value for both advertisers and users. Here, users

complete multiple actions or events within one offer to earn

in-app currency. These rewards encourage them to stay in

games longer and unlock more revenue potential for

advertisers. Our data shows that MRCPE offers that involve

710 steps are especially popular among users.

Offering rewards at multiple steps is a key advantage of

MRCPE campaigns. This means users donʼt have to commit

to reaching the end of the funnel in order to receive

rewards. Instead, users can still have a positive experience

by earning rewards along the way even without completing

all steps in the campaign.

Out of all top-performing offerwall MRCPE campaigns,

24.2% have 36 steps, 37.3% have 710 steps, and 23.2%

have 1114 steps
17
.

Rewarding users at each

step drives deeper

engagement

Advertisers are diversifying their UA campaign optimization strategies

4.3

© 2024 Unity Technologies

Percentage of top performance MRCPE offers by number steps

31

17. Source: Tapjoy] Disclaimer: Apps with at least 10 offer conversions in year 2023

Daily Reward Cost Per Engagement DRCPE) campaigns bring

high-quality users back to an app day after day at scale, with the

ability to earn more rewards as they complete tasks. Designed to

complement MRCPE campaigns, which typically appeal to more

advanced users, DRCPE campaigns engage a new customer

segment of casual users with shorter, quicker, and more frequent

rewards like finishing a level or winning a battle. Rewards are capped

each day, encouraging users to keep coming back to earn more

rewards as they progress further in the game.

DRCPE campaigns are driving increased conversions and higher

ROAS among audiences that prefer short challenges with fast and

frequent rewards. Casual users who typically only engage with video

ads are recognizing the value offerwall can bring. These shorter tasks

can yield as much or even more rewards for minimal time and effort.

Diversifying offerwall UA with Daily

Reward CPE campaigns

Advertisers are diversifying their UA campaign optimization strategies

© 2024 Unity Technologies

32

MRCPE step types that encourage reaching a

certain level within a limited time frame are

more popular among advertisers. A progress

bar shows how close users are to the next

reward and inspires them to keep going. These

steps continue to encourage deeper gameplay

and higher-level completion while boosting
LTV

beyond install.

Among the advertisers utilizing MRCPE

campaigns, 63.5% implement level

achievement steps, 45% use task completion

steps, 30.2% integrate in-app purchase steps,

and 26.4%
18
incorporate steps involving app

engagement or tutorial completion.

Time-bound steps can

lead to increased

engagement

Advertisers are diversifying their UA campaign optimization strategies

Percentage of total advertisers by offerwall campaign types

4.4

© 2024 Unity Technologies

33

18. Source: Tapjoy] Disclaimer: Apps with at least 10 offer conversions in year 2023

Unsurprisingly, tasks with lower friction, such as tutorial

or level completion, yield higher conversion rates. Task

completion rate starts to decline when steps become

more complex. Lower-friction tasks like tutorial

completion have a nearly 100% completion rate, whereas

more involved tasks like level achievement steps have a

33.3% completion rate.

Steps which involve engaging with multiplayer features

have a 26.8% completion rate, and event completion

steps have a 21.8% completion rate. Sourcing resources

steps have a 17.5% completion rate, inviting friends
steps

have a 8.9% completion rate, and making an in-app

purchase has a 4.2% completion rate
19
. While itʼs not

shocking that fewer users will complete steps like
making

an in-app purchase, this doesnʼt mean you should count

them out. While scale may be low, user quality may be

much higher, especially given the other data in this
report

around repeat IAPs once the first purchase is made.

Lower friction offers

yield higher CVR

Advertisers are diversifying their UA campaign optimization strategies

Completion rate by MRCPE goal type

4.5

© 2024 Unity Technologies

34

19. Source: Tapjoy] Disclaimer: Apps with at least 10 offer conversions in year 2023

For high-friction tasks like IAPs, lower conversion

rates can mean higher cost for advertisers to

shoulder. As a result, running an efficient

campaign that also maximizes scale tends to

involve a mix of event types that allow advertisers

to optimize both spend and reach.

To optimize reach while still attracting high-LTV

users, advertisers should consider adding

high-friction events like completing an IAP with

lower-friction tasks like tutorial completion.

Mixing events types

can lead to completion

of higher friction

events

Advertisers are diversifying their UA campaign optimization strategies

4.6

© 2024 Unity Technologies

35

20. Source: Tapjoy] Disclaimer: Apps with at least 10 offer conversions in year 2023

Tips for optimizing your offerwall UA strategy

Offers that involve between 7

and 10 steps are especially

popular among offerwall users.

01

Engage in

reward-based

progression

Advertisers are diversifying their UA campaign optimization strategies

© 2024 Unity Technologies

Advertisers are gravitating

toward step types that

encourage reaching a certain

level within a limited time frame.

02

Implement

time-bound steps

Tasks that have lower friction

like completing a tutorial or level

have higher conversion rates.

03

Integrate lower

friction tasks

To maximize scale, a mix of

event type will enable you to

optimize your spend and reach.

04

Mix event types

36

Offerwall

complements IAP

revenue streams

Some app developers operate under

the misconception that offerwall has

the potential to cannibalize IAP

revenue because it provides users
with

an alternate way to access premium

content outside of the in-app store. In

fact, offerwall is designed to be

complementary to both IAA and IAP

strategies. An offerwall provides value

to users who arenʼt willing to pay with

money, but who are invested enough

in the game that they are looking for

additional ways to get access to

premium in-app content, for example,

by engaging with an ad.

© 2024 Unity Technologies

05

In addition, that exposure to premium

content can work to lower the barrier

to entry on making a future IAP

purchase. As a result, publishers are

seeing that offerwall complements

IAPs and retention by keeping users in

the game for longer, building
long-term

loyalty, increasing ARPDAU, and

introducing highly engaged,

non-paying users to premium

experiences they are more likely to

choose to pay for down the line.

For publishers looking to optimize their

monetization mix, offerwall plays an important

role in boosting overall ARPDAU and generating

growth. Offerwall unlocks the ability to monetize

a wider audience, including reaching users who

may not initially convert in IAP-based games.

According to our data, monthly ad revenue per

converter for offerwall exceeds that of RV. When

compared to IAP, offerwallʼs monthly ad revenue

per converter is lower, but remains significant.

Offerwallʼs monthly ad revenue per converter of

$4.04 garners a healthy 30% of the $13.27 IAP

earns. Meanwhile, the average monthly ad

revenues per converter for the same

performance category was $0.15 for RV
21
.

Offerwall ad

revenue per

converter surpasses

RV

Advertisers are diversifying their UA campaign optimization strategies

Offerwall’s monthly ad revenue per converter is strong

5.1

© 2024 Unity Technologies

38

21. Source: Unity IAP Plug-in, Unity Levelplay, Tapjoy] Disclaimer: Apps with at least $1000 USD monthly Offerwall revenue; at
least 1000 DAU; at least $1000 USD monthly Rewarded Video revenue; at least $1000 USD monthly IAP revenue]

Successful offerwall monetization strategies

prioritize discoverability and currency sales. The

wording used on offerwall entry points can

directly impact whether users engage with the

ad format.

As an example, offerwall entry points

emphasizing the word “freeˮ have a 4.8% higher

open rate than those without the same

terminology
22
. Because the start of the funnel

serves as a critical foundation for the rest of

offerwall monetization, maintaining a high open

rate shouldnʼt be overlooked.

Words matter when

it comes to

discoverability

Advertisers are diversifying their UA campaign optimization strategies

Offerwall button that emphasizes “free”

5.2

© 2024 Unity Technologies

39

22. Source: Tapjoy] Disclaimer: Apps with at least $500 quarterly offerwall revenue in 2023

When making your offerwall visible in main UI

screens, location is key. Apps that feature

prominent offerwall placement are seeing

stronger discoverability. Similar to many game

features, prominence in a game UIʼs main menu

leads to increased engagement and also serves

to remind users that offers are available.

Diving in deeper, games that have their offerwall

entry point in the lobby or the main UI screen

have a 5.9% better open rate than those that do

not 21.1% vs. 15.2%
23
.

Prominent offerwall

placement can

increase traffic

Advertisers are diversifying their UA campaign optimization strategies

Offerwall that has entry point in lobby / main screen

5.3

© 2024 Unity Technologies

40

23.Source: Tapjoy] Disclaimer: Apps with at least $500 quarterly offerwall revenue in 2023

For games with strong virtual economies, offerwalls

may be harder to find. With sophisticated and complex

virtual economies come more screens, pages, and/or

modes, making it difficult for users to find an offerwall

entry point. As a result, users can forget to engage with

them. Thatʼs why utilizing pop-up messages or dialog

boxes to direct users to an offerwall improves

discoverability across the board.

As part of currency sales promotion, pop-ups can also

be segmented to reach specific user types, like casual

users and/or non-payers. When thinking about

pop-ups, publishers should also consider utilizing

messaging with deep linking to the offerwall. This

ensures that any traffic generated by a user clicking on

the pop-up is directly routed to your offerwall.

Pop-ups enhance

offerwall

discoverability

Advertisers are diversifying their UA campaign optimization strategies

Offerwall that uses pop-up in-app message to engage users regularly

5.4

© 2024 Unity Technologies

Games that use pop-ups to engage users with

offerwall have a 3.3% higher open rate than games

without pop-ups 20.9% vs. 17.6%
24
.

41

24. Source: Tapjoy] Disclaimer: Apps with at least $500 quarterly offerwall revenue in 2023

Currency sales lead

to year-round

revenue spikes

Advertisers are diversifying their UA campaign optimization strategies

Percentage of games grouped by average number of offerwall sales per month

5.5

© 2024 Unity Technologies

With currency sales, users can earn between 1.5x to 10x the

standard offerwall rewards in return for completing a task, like

playing an advertiserʼs game and finishing a level. Their limited

time frame encourages users to quickly complete an offer in order

to take advantage of these higher rewards, which can lead to an

increase in conversions by as much as 46% during the sale
25
.

Currency sales are limited-time promotions that give users the

chance to earn more virtual currency than usual for every

offerwall offer with which they engage. By promoting initial

engagement with offerwall, currency sales are inspiring a

growing number of users to engage with offers they may

otherwise have ignored. This strategy leads to periodic boosts in

revenue throughout the year.

In terms of currency sales, conveying special promotions

through clear, compelling, and discoverable messages is

critical. Because these sales trigger spikes in revenue

throughout the year, games with strong offerwall
monetization

strategies tend to run 12 currency sales monthly
26.

42

25. Source: Tapjoy] Disclaimer: Data from January 2023 through Nov 2023

26. Source: Tapjoy] Disclaimer: Apps with at least a single offer conversion in year 2023

Tips for maximizing your offerwall

monetization strategy

The wording used on offerwall

entry points can directly impact

whether users engage. Entry

points with the word “freeˮ have

higher open rates.

01

Make your

messaging clear &

compelling

Advertisers are diversifying their UA campaign optimization strategies

© 2024 Unity Technologies

Prominent placement of offerwall

in main UI screens serves as a

reminder of available offers and

can lead to increased visibility,

higher open rates, and stronger

engagement.

02

Prominent offerwall

placements

Pop-ups also enhance offerwall

discoverability, reminding users

of rewards they can earn and

directing them to engagement

opportunities.

03

Improve

discoverability with

pop-ups

Special promotions encourage

new users to engage with offers

they may have originally

dismissed, generating periodic

revenue spikes throughout the

year.

04

Implement

currency sales

43

Conclusion

The Unity-backed data outlined

in this report serves as

essential building blocks for

your appʼs success. By

focusing on the strategies and

tactics that have proven

effective for other apps in your

genre, you can allocate your

resources more efficiently,

maximize your return on

investment, and plan your ad

monetization strategies

accordingly.

44

Grow and monetize

your game

Unity gives you tools to help drive your

revenue and growth goals. Whether

youʼre a publisher, advertiser, or both,

tap into the expertise and insight you

need to support your monetization and

user acquisition strategy.

Learn more

45

About Unity

Unity NYSE U) is the world’s leading

platform of tools for creators to build and

grow real-time games, apps, and

experiences across multiple platforms,

from mobile, PC, and console, to spatial

computing. For more information, visit

Unity.com.

For more information about Unity Grow,

visit
unity.com/grow

Forward-Looking Statements

This publication contains “forward-looking statements,ˮ as that term is defined under federal securities laws, including, in
particular, statements about Unity’s plans, strategies and objectives. The words “believe,ˮ “may,ˮ “will,ˮ “estimate,ˮ
“continue,ˮ
“intend,ˮ “expect,ˮ “plan,ˮ “project,ˮ and similar expressions are intended to identify forward-looking statements. These
forward-looking statements are subject to risks, uncertainties, and assumptions. If the risks materialize or assumptions prove
incorrect, actual results could differ materially from the results implied by these forward-looking statements. Further
information on these and additional risks that could affect Unityʼs results is included in our filings with the Securities and
Exchange Commission SEC) which are available on the Unity Investor Relations website. Statements herein speak only as of
the date of this release, and Unity assumes no obligation to, and does not currently intend to, update any such
forward-looking statements after the date of this publication except as required by law.

46

About the data

The data in this report is drawn from the

Unity Cloud, Unity Ads, Tapjoy, and

ironSource as data sources, including

games made with Unity that are sending

events through the platform.

We take data privacy seriously and have

omitted and anonymized information from

this report that would individually identify

any single game, developer, or publisher.

Games are broken out into publicly

available categories as defined on the iOS

and Google Play stores where available.

Although we also include outside sources

of information, the data shown in the

charts and graphics is original to Unity. In

addition, we are grateful to those members

of the industry whom we interviewed for

this report, many of whose contributions

are quoted throughout.

Hereʼs how weʼve classified the different markets:

Tier 1 T1
Includes the U.S., Canada, Australia, and Great Britain. These are countries with considerable purchasing power.

Tier 2 T2
Includes Denmark, Sweden, Norway, Finland, and Ireland. These countries have very high levels of English comprehension but slightly less purchasing power than T1.

Rest of world RoW
Includes countries not listed as T1 or T2

Global
: Includes all countries across T1, T2, and RoW

47

© 2024 Unity Technologies