Mobile Growth and Monetization Report 2024
Download PDFSep, 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 520% 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 SRCPE or MRCPE
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 DRCPE
Single Reward Cost Per
Engagement SRCPE
Multiple Reward Cost Per
Engagement MRCPE
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 35
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 3160
days, and 0.46% within 6190+ 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 07
Mid game
Week 2 Days 815
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 1520 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
27x 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 MRCPE) 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 MRCPE offers that involve
710 steps are especially popular among users.
Offering rewards at multiple steps is a key advantage of
MRCPE 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 MRCPE campaigns,
24.2% have 36 steps, 37.3% have 710 steps, and 23.2%
have 1114 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 MRCPE offers by number steps
31
17. Source: Tapjoy] Disclaimer: Apps with at least 10 offer conversions in year 2023
Daily Reward Cost Per Engagement DRCPE) 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 MRCPE campaigns, which typically appeal to more
advanced users, DRCPE 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.
DRCPE 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
MRCPE 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 MRCPE
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 MRCPE 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 12 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