Study reveals that video ads can pump up revenues without hurting in-app purchases

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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Dean Takahashi

Dean Takahashi is editorial director for GamesBeat. He has been a tech journalist since 1988, and he has covered games as a beat since 1996. He was lead writer for GamesBeat at VentureBeat from 2008 to April 2025. Prior to that, he wrote for the San Jose Mercury News, the Red Herring, the Wall Street Journal, the Los Angeles Times, and the Dallas Times-Herald. He is the author of two books, "Opening the Xbox" and "The Xbox 360 Uncloaked." He organizes the annual GamesBeat Next, GamesBeat Summit and GamesBeat Insider Series: Hollywood and Games conferences and is a frequent speaker at gaming and tech events. He lives in the San Francisco Bay Area.