Maximizing Game Revenue with Reward Video Ads

Game developers are continually looking for effective ways to monetize their games, and AppLixir’s Pre-roll and Reward Video Ads offer a proven solution for boosting revenue on Facebook/Web, iOS, and Android platforms. Among these, video ads have risen as the second-best revenue source for most games, only trailing in-app purchases (IAP). However, one area where developers face some uncertainty is in predicting revenue from video ads, largely due to fluctuating CPM (Cost per Mille) trends.

Continuing on Maximizing Game Revenue with Reward Video Ads post, to help game developers navigate these fluctuations, we’ve compiled a year-long analysis of CPM trends specifically for web and desktop video ads. For developers, especially those focused on monetization on web and desktop, tracking CPM trends can provide critical insights to optimize ad placements, predict revenue, and enhance financial planning.

Monthly CPM Trend Analysis (Web/Desktop)

Continuing on Maximizing Game Revenue with Reward Video Ads post,  Using January as a baseline, we’ve broken down the percentage changes in CPM across the months, revealing seasonal patterns that developers can consider when planning ad campaigns and launches.

1. CPM Performance in Q1 and Q2: January to July

   • January serves as the baseline. Starting the year, CPMs often reflect stable post-holiday demand.
   • February to March: Typically, CPMs reach their first peak in March. Demand increases as advertisers roll out new budgets for the year, pushing CPMs up.
   • April to July: From April, CPMs stabilize near January’s levels, reflecting steady demand with minor fluctuations. This period offers dependable revenue, though it’s generally slower than March.

2. Q3 Dip and Q4 Surge: August to December

   • August is often the slowest month for CPMs, likely due to lower advertiser demand and reduced user engagement during vacation periods. CPMs usually experience a noticeable dip, resulting in lower revenue.
   • September to December: The final quarter sees a sharp recovery in CPMs, starting in September. This upward trend intensifies into November and December, as advertisers ramp up holiday campaigns, culminating in the highest CPMs of the year. This is the prime revenue period, and developers can maximize earnings by ensuring optimal ad placements during this time.

For many developers, analyzing CPM trends by region can be equally valuable. While worldwide trends provide a helpful overview, individual geographies may experience distinct demand cycles influenced by holidays, events, and seasonal trends. Understanding these nuances can help developers adjust strategies to target high-performing markets more effectively.

Key Takeaways for Game Developers Using Video Ads

• Video Ads as a Core Revenue Stream: With steady CPM trends and increased user engagement, video ads are a reliable revenue source that can complement in-app purchases effectively.
• Seasonal Planning Matters: Developers can maximize ad revenue by aligning their ad strategies with CPM fluctuations, especially during the Q1 and Q4 peaks.
• CPM Analysis Enhances Financial Projections: Regular analysis of CPM trends can aid in forecasting revenue, helping developers make data-driven decisions for game updates, marketing pushes, and content releases.

In upcoming posts, we’ll explore mobile CPM trends and breakdowns across key markets, helping developers strategize for both web and mobile platforms.

AppLixir Rewarded Video Ads

Continuing on Maximizing Game Revenue with Reward Video Ads post,  By understanding CPM trends and planning around seasonal highs and lows, game developers can harness AppLixir’s Pre-roll and Reward Video Ads to optimize their ad revenue. For those focused on web and desktop gaming, these insights offer a roadmap to maximize earnings by aligning with the natural CPM ebb and flow throughout the year.