The Future of Ad Monetization

The F utu re o f A d M onetiz a tio n
By M aria m A hm ad , H ead o f C on te n t, G am esfo ru m 10-1 1 F e b ru ary | In te rC ontin en ta l H ote l Spo tlig h t S erie s: In sig h ts f r o m In d ustr y L e ad ers

PA G E 2
T h e F u tu re o f A d
M on etiz a tio n
Ahea d o f th eir G am esfo ru m B arc e lo n a 2 0 26 p an el “T h e
Fu tu re of Ad Mon etiz a tio n ,” th re e exp erts : Ta tia n a
K on dra ty e va , C EO a n d C o-F o u n der o f P la yP ack , D am ja n
K ača r , A d M on etiz a tio n S p ecia lis t a t G am eB iz C on su lt in g ,
an d M aksim A m oso v, H ea d o f A d M on etiz a tio n a t N ek ki ,
sh are th eir p ers p ectiv e s o n th e tre n ds, ch alle n g es, a n d
cre a tiv e o p portu n it ie s s h ap in g th e n ext g en era tio n o f a d
m on etiz a tio n .
T H E F U TU RE O F A D M ONETIZ A TIO N
P an el P re vie w
Ta tia n a K on dra ty e va
C EO a n d C o-F o u n der
P la yP ack
D am ja n K ača r
A d M on etiz a tio n S p ecia lis t
G a m eB iz C on su lt in g
M ak sim A m oso v
H e ad o f A d M on etiz a tio n
N ek k i

PA G E 3
T a tia n a K on dra ty e va
Th e b ig gest c h an g e fo r u s in 2 0 25 w as th e fin al m erg in g o f
m on etiz a tio n base d on beh avio u r an aly tic s an d use r
acq uis it io n g oals . T h e s a m e d ata y o u u se f o r a cq uis it io n i s n ow
u se d in a g ood a d -m on se tu p. Q uic k -r e w ard c a su al g am es
sh ou ld a p pea r in y o u r a d s ta ck if y o u r U A c a m paig n a tt ra cts a
p artic u la r k in d o f u se r. R ic h er, p ro g re ss io n -b ase d o ffe rs a n d
possib ly n o a d s a t a ll s h ou ld b e v is ib le t o IA P-d riv e n s p en ders
t h at yo u r U A a tt ra cts . R O AS is d estro ye d w hen th e w ro n g
co h ort is s h ow n th e w ro n g c o n te n t. A nd w e’v e a ll w it n ess e d
th e a b ru p t d ro p s in re ve n ue o f 3 0 % c a u se d b y m is a lig ned
so u rc e s.
T A TIA N A K O ND RATY E V ATh at’s w hy I belie ve th e re a l fro n tie r now is n ‘t ju st new
fo rm ats ; it ‘s a d ap tiv it y . M on etiz a tio n to o ls m ust u n ders ta n d
w here t h e u se r c a m e f ro m a n d h ow u se rs a re in te ra ctin g w it h
y o u r gam e. W hat is th eir beh avio r: ad -d riv e n , hyb rid , or
sp en der. A d kill sw it c h es, re w ard ed p la ce m en ts , an d eve n
fre q uen cy c o n fig s sh ou ld a d ap t a u to m atic a lly to th at d ata .
W hile th e n ew er SD Ks fro m p artn ers are m ovin g in th at
d ir e ctio n , w it h m ach in e-le a rn in g -b ase d p ers o n ali s a tio n , m ost
s tu d io s s till t re a t m on etiz a tio n a s s ta tic .
T h e D ata M erg e R evo lu tio nA dap tiv it y a s t h e N ew F ro n tie rB y 2 0 25, a d m on etiz a tio n h as s h if t e d t o b e o n e o f t h e h ard est
sy ste m s in m ob ile g am in g t o g et r ig ht. E ve n o u ts id e o f h yp er
an d h yb rid -c a su al se ctio n s, it ’s ve ry cle a r th at a d s a re n ot
‘b on us r e ve n ue’, b ut r a th er a b ig p art o f y o u r g am e e co n om y
an d l o op s d esig ned a ro u n d i t . A w ell- p la ce d a d c a n d ou b le t h e
dura tio n o f a s e ssio n o r k ill t h e p la ytim e.
A d M on etiz a tio n a s a S yste m
M on etiz a tio n i s n ow a
c re a tiv e d is c ip lin e.
At P la yP ack , w e’v e s e e n t h is e vo lu tio n u p c lo se . O ur M erg e-2
t it le , M erg e A w ay, ru n s o n a h yb rid m on etiz a tio n m od el t h at
co m bin es a d s a n d in -a p p p urc h ase s. T h ro u g hou t it s li f e tim e,
w e h ave s e en h ow t h e in te ra ctio n b etw ee n t h ose t w o fa cto rs
h as t h e p ow er t o m ake o r b re a k p ro fit a b ilit y . A s a s m all s tu d io
w e n eed to fin d th e a n g le to b e co m petit iv e w it h b ig ger
p la ye rs , a n d i t ’s l it e ra lly a m ill io n d olla r q uestio n h ow t o d o i t .
H yb rid M od els i n A ctio n CEO & C o-F o u n der, P la yP ack

PA G E 4 L o okin g fo rw ard , th e w in n ers in ad m on etiz a tio n w il l be
stu d io s th at d esig n w it h ad s in m in d, n ot aro u n d th em .
Mon etiz a tio n is n ow a c re a tiv e d is c ip lin e a s m uch a d esig n
decis io n a s t h e c o re lo op it s e lf . R esp ect t h e p la ye r, u n ders ta n d
yo u r d ata , a n d tre a t yo u r a d sta ck a s a liv in g sy ste m th at
e vo lv e s w it h y o u r a u d ie n ce .
T A TIA N A K O ND RATY E V AFin al T a k eaw ayAnoth er p ain p oin t is t h at to o o ft e n w hen a d re ve n ue d ro p s,
n o o n e c a n e xp la in w hy. It ‘s a b la ck b ox. F o r s m all s tu d io s lik e
o u rs , th at’s u n acce p ta b le . E ve ry p erc e n ta g e p oin t of yie ld
m atte rs . Yo u need fu ll vis ib ilit y in to w hic h so u rc e s are
p erfo rm in g , whic h ca m paig ns got pau se d , an d whic h
p artn ers actu ally deliv e r cle a n tra ff ic . W e’v e buil t in te rn al
d ash b oard s th at c ro ss-r e fe re n ce R O AS a n d re te n tio n b y U A
ch an n el j u st t o g et t h at c la rit y . W it h ou t i t , y o u ‘r e f ly in g b lin d.
V is ib ilit y a n d A cc o u n ta b ilit yT h e u se r e xp erie n ce sid e m atte rs ju st a s m uch . P la ye rs a re
fa tig ued b y h eavy a d lo ad s. T h ey e xp ect a d s to fe el o p tio n al,
q uic k , a n d re w ard in g — n ot lik e p un is h m en t fo r p la yin g . In
o u r g am es, w e in te g ra te a d m om en ts a s “s id e q uests ,” n eve r
b lo ck e rs . It ’s a b ou t k e e p in g m om en tu m , n ot s to p pin g p la y t o
m on etiz e i t .
U se r E xp erie n ce M atte rs

PA G E 5
D am ja n K ača r
Fo rm ats lik e A pp O pen o r A ud io A ds c a n b e fru stra tin g to
u se rs . N ob od y lik e s b ein g h it w it h a n a d b efo re t h ey’v e e ve n
se en t h e m ain m en u, o r h avin g a v o ic e s ta rt t a lk in g o ve r t h eir
g am ep la y. Im m ers iv e a d s a re m uch b ette r in t e rm s o f U X, b ut
on ly if th ey fit yo u r g am ep la y, w hic h lim it s th em to a fe w
g en re s. If y o u ’r e g oin g t o u se a d is ru p tiv e f o rm at, c lo se ly t ra ck
re te n tio n a n d u se r fe ed back to m ake s u re th at th e re ve n ue
up lif t i s w orth i t .
D AM JA N K A ČA R
A d M on etiz a tio n S p ecia lis t, G am eB iz C on su lt in g
Eve n w hen th ey w ork te ch nic a ll y , m ost of th ese fo rm ats
u n derp erfo rm ag ain st sta n dard on es. Th ey oft e n stru g gle
g ett in g a n y f ill o u ts id e t h e T ie r 1 (o r e ve n ju st U S). A pp O pen
d oesn ’t h ave f ill is su es, b ut t h eir e C PM s c a n b e u p t o x 9 lo w er
th an r e g ula r i n te rs tit ia ls , w hic h l im it s t h eir p ote n tia l.
P oor U se r E xp erie n ceL a ck lu ste r P erfo rm an ceEve ry f e w m on th s y o u h ea r n ew s a b ou t t h e s u cce ss o f n ew a d
fo rm ats , su ch a s A pp O pen , A ud io a d s, Im m ers iv e /In -G am e
Ads a n d sim ila r. D esp it e th e h yp e, th ese fo rm ats h ave n ot
ach ie ve d th e w id esp re a d a d op tio n o f sta p le s lik e re w ard ed
vid eo , in te rs tit ia l a n d b an n er a d s. S o w hat’s h old in g th em
b ack ?
T h e H yp e v s. T h e R ea lit yIt ’s a b it u n fa ir t o g ro u p a ll t h ese fo rm ats t o g eth er s in ce t h ey
se rv e d if fe re n t p urp ose s. S till, a ft e r s e e in g t h em t e ste d a cro ss
d if fe re n t p ortfo lio s, t h ey t e n d t o s u ffe r f ro m s im ila r p ro b le m s:
te ch nic a l fric tio n , poor use r exp erie n ce , an d la ck lu ste r
p erfo rm an ce .
S h are d S tru g gle s A cro ss F o rm ats
W hat w e n ee d is m ore c o n tro l —
n ot a n oth er i n te rs tit ia l i n d is g uis e .
Th e fu rth er y o u r te ch s ta ck is fro m “s ta n dard ”, th e h ard er it
b eco m es to in te g ra te n ew fo rm ats . E ach fo rm at h as it s o w n
quir k s a n d g ett in g it t o w ork s m ooth ly o ft e n t a ke s m ore t im e
th an p la n n ed . A n e xp erie n ce d d eve lo p er c a n a d d a r e w ard ed
vid eo o r a b an n er in a d ay o r tw o, w hile s o m e n on -s ta n dard
in te g ra tio n s ta ke w ee ks to g et rig ht. A t th at p oin t, th e c o st
c a n o u tw eig h t h e p ote n tia l r e ve n ue g ain s.
T e ch nic a l F ric tio n

PA G E 6 Y o u m ig ht g et t h e im pre ss io n t h at m y v ie w o f n ew a d f o rm ats
is q uit e n eg ativ e . O n t h e c o n tra ry , in t h e r ig ht n ic h e, t h ey c a n
b e g re a t. I’v e s e en t h em b rin g in 1 0 % -3 0 % o f t o ta l a d r e ve n ue,
w hen t h ey f in d t h e r ig ht f it .
B ut a re t h ey t h e f u tu re o f a d m on etiz a tio n ? D efin it e ly n ot.
W hen s o m eth in g t ru ly w ork s u n iv e rs a lly , it g ets m ass a d op te d
fa st. N on e o f t h ese f o rm ats c le a r t h at b ar.
W it h to p -g ro ssin g g am es m ovin g a w ay fro m a d s o r n eve r
u sin g t h em in t h e f ir s t p la ce , it ’s h ard t o a rg ue t h at p ili n g o n
m ore a d f o rm ats i s t h e f u tu re o f a d m on .
W hat w e n eed is m ore co n tro l. B ette r w ays to o p tim iz e
e xis tin g ad s an d to o ls to im pro ve th e ad exp erie n ce .
D eliv e rin g th at w ill b e th e n ext b ig th in g in a d m on , n ot
an oth er i n te rs tit ia l i n d is g uis e .
D AM JA N K A ČA RFin al P ers p ectiv eFro m m y exp erie n ce , a fe w tip s th at ca n help wit h
e xp erim en tin g a n d u tili s in g n ew f o rm ats :
D on ’t b elie ve th e s a le s p it c h . T h e p ro m is e s w ill a ctu ally
s o u n d re a so n ab le , b ut o ft e n w on ’t b e d eli v e re d . P ro te ct
yo u rs e lf b y g ett in g a s o lid c o n tra ct t h at m ake s s u re t h at a t
le a st y o u r d eve lo p m en t e ffo rt w ill b e r e p aid .
If a f o rm at r is k s h arm in g t h e u se r e xp erie n ce m ake s u re it
p ays w ell. F o r in tru siv e fo rm ats lik e A pp O pen o r A ud io
A ds, e xp erim en t w it h h ig h p ric e flo ors . Y o u ’l l s a crif ic e fill
b ut o n ly sh ow in g ad s at h ig h p ric e s w ill h elp b ala n ce
re ve n ue a n d c h urn r is k .
U se th e op portu n it y to pro m ote ad -f re e purc h ase .
E xp osu re to in tru siv e fo rm ats ca n cre a te co n ve rs io n
p re ssu re . P air it w it h d is c o u n ts an d ta rg ete d “N o A ds”
o ffe rs t o m axim is e c o n ve rs io n s.
U se r s e g m en ta tio n is k e y in g ett in g t h e m ost o u t o f n ew
fo rm ats . In tru siv e fo rm ats c a n b e a g re a t w ay to g et th e
m ost v a lu e o u t o f t h e u se rs w ho a re l i k e ly t o c h urn a n yw ay.
P ra ctic a l A dvic e f o r E xp erim en ta tio n

PA G E 7
M aksim A m oso v
When ad s beco m e co n te xtu al, th ey sto p fe e lin g lik e
in te rr u p tio n s an d sta rt to act as m ea n in g fu l ch oic e s. Th e
pla ye r t ra d es t im e f o r v a lu e — a n d w hen t h at v a lu e a lig ns w it h
t h eir cu rre n t goal in th e gam e, sa tis fa ctio n re p la ce s
fru stra tio n . It ’s t h e d if fe re n ce b etw ee n “ w atc h in g a n a d ” a n d
“u n lo ck in g a b on us”.
M AKSIM A M OSO V
H ea d o f A d M on etiz a tio n , N ek ki
Th e n ext fe w y e a rs w il l p ush th is lo g ic e ve n fu rth er. L iv e O ps
w ill in te g ra te a d ve rtis in g d ir e ctly in to e ve n ts a n d lim it e d -t im e
sy ste m s. I n ste a d o f s ta tic p la ce m en ts , w e’l l s e e d yn am ic , d ata –
d riv e n t o u ch p oin ts w here o ffe rs a p pea r o n ly w hen t h ey m ake
se n se — durin g a pro g re ssio n w all, or at th e en d of a
m ile sto n e. A d p ers o n ali s a tio n w ill e vo lv e f ro m t a rg etin g u se rs
to u n ders ta n din g c o n te xt.
C on te xtu al V alu e E xc h an g eLiv e O ps M eets A d s y ste m sIn 2 0 26 , t h e m ost v a lu ab le i n -g am e c u rre n cy w on ’t b e g em s o r
g old — it ’l l b e tim e. P la ye rs h ave le a rn ed to tre a t th eir
a tte n tio n a s a r e so u rc e , a n d t h e i n dustr y i s f in ally c a tc h in g u p.
Th e f u tu re o f a d m on etiz a tio n i s n ’t a b ou t s h ow in g m ore a d s —
i t ’s a b ou t sh ow in g th e rig ht o n e to th e rig ht p la ye r, a t th e
rig ht m om en t.
N ot e ve ry p la ye r v a lu es t im e t h e s a m e w ay. S o m e s e e a n a d a s
a sh ortc u t, oth ers as a dis tra ctio n . Th at’s w hy th e next
e vo lu tio n o f a d d esig n lie s in s e g m en ta tio n o f in te ra ctio n —
b uild in g a d ap tiv e a d e xp erie n ce s t h at f it t h e p la ye r’s c o m fo rt,
m otiv a tio n , an d se ss io n flo w . Fo r o n e u se r, it m ig ht b e a
re w ard ed vid eo befo re a to u g h m is s io n . Fo r an oth er, a
co n te xtu al offe r in sid e a li v e eve n t. Fo r oth ers , bra n ded
ch alle n g es or lim it e d -t im e boo sts th at fe el lik e part of
g am ep la y r a th er t h an s o m eth in g e xte rn al t o i t .
S eg m en ta tio n o f I n te ra ctio nT h e fu tu re of ad m on etiz a tio n is n ’t
h ig her f re q uen cy — i t ’s h ig her e m path y.
Pla ye rs a lr e a d y d ecid e h ow t h ey w an t t o p ay — w it h m on ey o r
w it h t im e. O ur jo b a s d esig ners a n d m on etiz a tio n a rc h it e cts is
t o re sp ect th at c h oic e , m ak in g b oth p ath s e q ually e n g ag in g
an d f a ir . T h e f u tu re o f a d m on etiz a tio n is n ’t d efin ed b y h ig her
fre q uen cy, b ut b y h ig her e m path y.
E m path y a s t h e F o u n datio n

Reg is te r N ow T h e F u tu re o f A d M on etiz a tio n
W here t h e N ext E ra o f A d S tra te g y T a ke s S h ap e
Jo in T a tia n a, D am ja n a n d M aksim a t G am esfo ru m B arc e lo n a
(1 0 -11 F eb ru ary ) a s t h ey d iv e d eep i n to :
H ow d ata , d esig n, a n d m on etiz a tio n t e a m s c a n w ork t o g eth er t o
b uild a d ap tiv e a d s y ste m s
Th e b ala n ce b etw een u se r e xp erie n ce , p ers o n alis a tio n , a n d
pro fit a b ilit y
W hat t ru ly d riv e s s u sta in ab le a d r e ve n ue i n 2 0 25 a n d b eyo n d
J o in U s a t G am esfo ru m
B arc e lo n a 2 0 26
PA G E 8 J O IN U S

Bro n ze S p on so rsB ra n d in g & N etw ork in g S p on so rsE xh ib it o rs P A G E 8 O UR P A RTN ER SGlo b al P art n ers Silv e r S p on so rs Th an k Y ou t o
O ur P art n ers