Video ads can increase ad revenue in games without hurting the retention of gamers or the purchases they make, according to a study by ad mediation firm Fuse Powered.
Toronto-based Fuse Powered studied millions of ad impressions for games for 15 days prior to adding interstitial video ads (which run in the middle of a pause during a game) and 15 days after adding them. The result was a 300 percent increase in eCPM (effective cost per mil, or ad revenue generated per 1,000 impressions) and a 700 percent lift in average revenue per daily active user (ARPDAU). Fuse Powered said that these ads did not affect rates of retention and in-app purchases — something key the mobile gaming industry, which brought in nearly $16 billion in 2013.
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