Game Ad Formats Explained

As the gaming industry continues to thrive, in-game advertising has become a key strategy for developers and marketers alike. Whether you’re a game developer seeking new ways to monetize your platform or a marketer looking to connect with highly engaged audiences, in-game ads offer a range of opportunities.

From banner ads to offer walls, in-game advertising has versatile ad formats that can hook and engage different demographics. However, with multiple ad formats available—ranging from banners to interactive ads like offer walls and rewarded videos—choosing the right one can make or break the user experience and your revenue stream.

This blog will break down in-game advertising basics, exploring various ad formats, their best use cases, and how to maximize their benefits. Whether you’re just starting or refining your ad strategy, this is your guide to help you choose the best ad format for your gaming platform. 

Choosing the Right In-Game Ad Format

While you have popular options like banners, interstitials, native ads and interactive ones such as playable, reward and offer walls, your gaming platform may not optimally support all the ad formats. 

From ad yield to game niche and demographics, there are multiple factors to weigh before choosing an ad format for your platform. Undoubtedly, AB testing and experimentation will give you proven data to help you find the best ad formats for your platform. However, if you’re starting out, here are the basic pros and cons of each ad format to avoid spending time on wrong combinations and losing users. 

Banner Ads

Banner ads are the go-to option for game developers who are beginning to monetize their platforms. These ads appear at the top or bottom of the screen as a small rectangular box and do not interrupt the gameplay. 

The placement of these ads translate into good impressions for the game developer to generate a steady stream of revenue. However, given its placement gamers get accustomed to the placement and ad format, they pay less attention to these ads. This could cause less number of advertisers opting for banner ads. 

Most display ad yields follow the eCPM revenue model, making them an ideal option for displaying ads to gamers for a prolonged period to gain impressions. Banner ads, once considered static, have evolved to adapt to rich media such as animation and video, keeping them relevant and engaging. 

When to Use Banner Ads

• If other ad formats, like interstitial and video ads, only lead to churn and a decline in retention rate, banner ads may be an ideal fit for your platform. 
• Users such as kids and the elderly play games despite ads; hence, banner ads perform better with these demographics. 
• If you’re running ads for the first time on your platform, banner ads are straightforward to get started.
• Based on the game category, casual games such as puzzles, cards, mind games, etc., provide solid real estate for banner ads. 

When to Avoid Banner Ads

• If the primary revenue medium is in-game ads with a plan to scale. 
• If your banner ads hide functions and buttons in your game interface. 
• If the interface does not support ad placement without compromising the gaming environment.
• If your games cannot function on lower-end devices, banner ads may affect load time and gaming experience. 

Interstitial Ads

Interstitial ads appear in between natural breaks within the game, demanding the player’s complete attention and engagement to pass through and continue with the game. Unlike banner ads, this format dominates the entire screen and is not immediately dismissed. Hence, it has a higher chance of capturing users’ attention and driving click-through rates.

This ad can benefit in two ways:

If you’ve developed a free-to-play game, this ad format can be an ideal primary revenue-driving source.

Alternatively, If you have a freemium model and rely on game subscriptions for revenue, you could use these ads to gently push users towards upgrading to an ad-free experience. 

Irrespective of both cases, interstitial ads can frustrate players if they affect the game flow and interrupt their sessions too often.

When to Use Interstitial Ads:

• When primary revenue is generated from ads. 
• If there are natural breaks between gameplay and the overall workflow. 
• If the revenue is based on eCPM or CPC basis.
• To promote a paid version/ paid upgrades of your game. 

When to Avoid Interstitial Ads

• If the gameplay is continuous and a break will affect the flow for the player, except for a pause.
• If user segments are less aware of the technology, this may lead to churn
• Growing apps that are yet to build their initial user base and player retention
• Using them too often in a short period of time.

Playable Ads

Playable ads allow users to trial run the game promoted within the ad, which involves active and conscious engagement from the user. Users can play the game for 15 seconds to 1 minute, depending on the ad type. However, they can also skip it after a few seconds. 

Playable ads should be placed between natural breaks in gameplay. For example, These ads are placed between game sessions, such as completing one level and waiting for the next one to load. Ads during this interval hold gamers’ attention as they’re eager for them to finish so they can get back to playing. However, this can quickly become a drawback if your game is less interesting than the playable ad. 

While playable ads are similar to interstitial ads except that users can interact in real-time with the former, both ad placements can be used together in the game without causing frustration to the player. Moreover, playable ads are not for every game category. Hence, forcefully including these ads may even result in user churn.

It is worth noting that playable ads follow a CPC or a CPI model depending on the intent of the advertiser. The latter pays higher and can give a good boost to your ad revenues. 

When to Use Playable Ads:

• To generate ad revenue via click-through rates or app installations.
• To seamlessly promote ads in an interactive and real-time manner. 
• You have a free-to-play game and rely primarily on ad revenue.
• Well-versed in the tactics to promote playable ads while retaining gamers. 

When to Avoid Playable Ads:

• Suppose there are no natural breaks in the game. For example, casual games are best suited to playable ads, whereas hardcore, story-driven games are not the forte.
• If your gameplay has frequent breaks and users encounter different game ads at every break, that might get frustrated.
• If the promoted ads are not relevant to your audience demographics.
• If there is a chance that you may lose traffic to the advertised game platform. If your readers are not returning to your game, revenue is earned, but traffic is lost.

Native Ads

Native ads are integrated into the game, where users see them as part of the gaming world as billboards, banners, or posters. These ads allow developers to integrate ads into the gaming experience and seamlessly run advertisements without interrupting the gamer’s workflow.

As a game developer you will have to build native ads into your games which can take longer than other ad formats. These ads should be relevant to the niche and game environment. Hence, one-to-one collaboration with advertisers is necessary, which can be time-consuming and not as seamless as traditional ad formats such as banners or interstitial ads. 

Despite the few drawbacks, native ads are an ideal way to generate brand awareness, as players may remember the advertised brand in connection with the game world. Hence, if you’re looking for an ad format that does not take up a solid odd slot in your game interface or pop-in between sessions, native in-game ads precisely meet the expectation. However, weigh the effort and pricing before getting started with native ads.

When to Use Native Ads

• You have a popular game with a high number of monthly active users. 
• When your game does not naturally support other ad formats, for example, from open-world to casual games, you can easily place native in-game ads. In contrast, racing or car games may not be ideal for native ads as they are fast-paced. 
• Integrate ads seamlessly into your gaming world and generate revenue without making users feel like they are playing a typical free-to-play or freemium game.
• When the target revenue model is eCPM or CPM basis
• To gain more control over ads presented on your platform and be involved in direct collaboration with advertisers

When to Avoid Native Ads

• Intense and fast-paced games are not suitable for native ads because of less exposure.
• If ads do not fit in your gaming environment or user demographics.
• If clicks are a key performance factor. 
• Game developers or publishers looking to monetize their game for the first time via ads.

Rewarded Ads

Rewarded ads offer users in-app rewards like extra life, coins, complementary tools or relevant goodies that help them level up or continue their gameplay. Unlike other ads, such as interstitial or banner ad formats, users voluntarily watch rewarded ads to earn in-game benefits.

As these ads appear by user choice, rewarded ads are ideal for game developers to run CPM, CPC, and CPI campaigns here to influence revenue. However, generating a high click-through rate can be challenging with rewarded ads because the primary intent behind watching the ads is to receive rewards and progress faster in the game. It is, therefore, possible that ads may not be able to entice users to stray away from their current gameplay and visit the promoted ads.

When to Use Rewarded Ads

• If you want to use ads as complementary media to your users and gameplay
• If rewards such as coins, extra lives, or in-game tools play a major role in progressing through each level in the freemium game version
• If in-game features are limited and users are restricted from continuing gameplay beyond a certain extent,
• Ideal for free-to-play or freemium games where users are highly immersed in the game world. 
• To subtly persuade users for in-app purchases for improved game experience.

When to Avoid Rewarded Ads

• If your ad revenue depends on CPC or active user engagement with the ads
• If the reward doesn’t feel substantial or relevant to the game experience, players may feel the ad was a waste of time.
• If the reward alters game balance significantly by making the game too easy or allowing players to bypass key challenges. 
• Game integrity will be compromised if rewarded ads negatively incentivize players to exploit or repeatedly watch ads for rewards without playing the game. 
• If your game’s business model heavily depends on in-app purchases (IAPs), offering too many rewarded ads could affect IAP revenue.

OfferWall Ads

Offerwall ads are both a monetization strategy and an advertising model. From the advertising perspective, Offerwall is similar to rewarded ads, where players benefit from completing a specific task ( not necessarily watching an ad ) and receiving rewards. These tasks include signing up, downloading another app, or completing surveys.

Offerwall ads primarily function on a CPA ( Cost per action ) or CPI ( Cost Per Installation) revenue model, driving tangible results to advertisers from in-game ads; hence, their revenue potential for developers is high. 

Additionally, offer walls are an ideal way to convert freemium users into premium subscribers and monetize your platform via in-app purchases, as some players prefer an ad-free gaming environment. While offerwalls can help you monetize your game via ads and in-app purchases, the ad network you choose is the key to sourcing relevant ads that relate to and entice your user base and game environment. Don’t fret, we can help.

When to Use Offerwall Ads

• If you want to improve in-app conversions through ads
• To provide exciting rewards for freemium users to gamify progress
• To remove the time or in-app resource constraints that lockout gamers.
• To prolong gamers’ sessions and engagement with the overall app
• To lock in players who are conscious about spending money on purchasing in-app features but would like to continue the game
• If you want to incentivize non-paying users

When to Avoid Offerwall Ads

• When there is a lack of balance between rewards and challenges within gameplay. 
• If impressions and conversions are the primary revenue-driving metric. Offerwalls are ideal for CPA, or CPI.
• Offerwalls can sometimes encourage exploitative behavior, where users complete offers solely to gain rewards without engaging meaningfully with the app or advertised content.
• If your monetization strategy focuses on premium purchases, offerwalls might not align with your revenue goals, as users may choose to complete tasks for rewards rather than spend money directly.

Which Ad formats should you opt for?

Based on your game category, there are some standard ad formats you can rule out initially. For instance, Open-World and casual games are best suited for banner and interstitial ads, while fast-paced games and hard-core games better suit native ads. 

Similarly, you can sort out ad formats based on the revenue model you plan to use. This includes eCPM, CPC, CPA and CPI. 

While these are basic filters to rule out irrelevant formats, the best way to find the optimal ad format is to experiment with different models and analyze your user’s interactions and behaviors with the ads. This will help you choose a better performance-backed ad format for your niche and demographics. 

Key Takeaways

• Banner Ads: Simple and ideal for beginners.
• Interstitial Ads: High engagement but can frustrate players if they disrupt gameplay too often.
• Playable Ads: Interactive and ideal for CPC/ CPI revenue, but can distract players from returning back to the main game.
• Native Ads: Seamlessly integrated into gameplay for brand awareness, but require collaboration with advertisers and careful design.

Rewarded & Offerwall Ads: Effective for in-game rewards and freemium models, but balance is key to prevent game exploitation and preserve IAP revenue.