Understanding the Conflicts of Interest in Mobile Game Ad Monetization
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Ad monetization is a popular platform for bringing revenue to free-to-play games. However, this model hides an inherent conflict of interest. Understanding the motives of all participants is important for maximising the impact.
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Understanding the Conflicts of Interest in Mobile Game Ad Monetization
- 2. HELLO! I AM STANISLAV STANKOVIĆ, the Creative Director at Track20/EA Studio in Helsinki, Finland 2
- 3. “ In-game ads are a popular model of monetization for many free-to-play games 3
- 4. $190 000 000 000 Mobile ad spending in 2019! 4 Data by Statista
- 5. WHY THIS PRESENTATION? ▪ Ad monetization is complex ▪ Multiple participants involved ▪ Understanding motives is important to maximize the revenue ▪ Model hides a dark secret! 5
- 6. AD SYSTEM
- 7. AD SYSTEM 77 YOUR GAMEAD NETWORK YOUR PLAYERADVERTISER
- 8. PARTICIPANTS 88 YOUR GAMEAD NETWORK YOUR PLAYERADVERTISER Buys ad space from AD NETWORK Provides an ad Buys ad space in YOUR GAME Sells ad space to AD NETWORK Shows ads to THE PLAYER Watches ads Installs games
- 9. MOTIVES
- 10. FOUR SIDED CONVERSATION 1010 YOUR GAME AD NETWORK YOUR PLAYER ADVERTISER
- 11. “ Dark secret: This model is built on an inherent conflict of interest 11
- 12. GAME CREATOR ▪ Player is a product ▪ Sells eyeballs ▪ Wants that player sees as many ads as possible GAME CREATOR vs. PLAYER PLAYER ▪ Things game is a product ▪ Wants to play the game ▪ Wants to see as few ads as possible 12
- 13. GAME CREATOR ▪ Cares about player engagement ▪ Wants to keep the player GAME CREATOR vs. AD NETWORK AD NETWORK ▪ Gets paid per install ▪ Wants to take the player away from the game 13
- 14. OPTIMIZING USER EXPERIENCE ▪ GAME CREATORS and AD NETWORK optimize UX for opposite aims ▪ Average play session 10 minutes ▪ Ad length 30 seconds ▪ Ads per session 4 ▪ Time spent watching ads 2 minutes ▪ 20% of UX in hands of AD NETWORK! 14
- 15. GAME CREATOR ▪ Paid to acquire users ▪ Wants to keep the player ▪ Sells ad space GAME CREATOR vs. ADVERTISER ADVERTISER ▪ pays to acquire users ▪ Wants to take away the player ▪ Buys ad space 15
- 16. “ Game Creator and Advertiser are in direct competition! 16
- 17. AD NETWORK ▪ Gets payer per install ▪ Maximises click through rate ▪ Optimises visuals for click through rate AD NETWORK vs. ADVERTISERS ADVERTISERS ▪ Pays per install ▪ Wants to minimise the cost ▪ Cares about quality of acquired users 17
- 18. “ Ad network’s and Advertiser’s motives well aligned 18
- 19. AD NETWORK ▪ Maximises click through rate ▪ Doesn’t care that ad is representative of the game AD NETWORK vs. PLAYERS PLAYERS ▪ Wants to be entertained ▪ Counts that ad is a representative of the game 19
- 20. “ Current trend of misleading ads is ethically problematic 20
- 21. ADVERTISERS ▪ Want to attract players ADVERTISERS vs. PLAYERS PLAYERS ▪ Want to be entertained 21
- 22. CONCLUSION
- 23. KEY TAKEAWAYS ▪ Ad monetization model is complex ▪ Four sides in the operation ▪ Inherent conflict of interest on multiple levels ▪ Understanding interests of participants is important ▪ Finding a compromise is the key 23
- 24. 24 THANKS! ANY QUESTIONS? You can find me at: ▪ www.linkedin.com/in/stanislavstankovic ▪ stanislav.stankovic@gmail.com