Tag: mobile game ads

Mobile games are outspending consoles on national television advertising

Small publishers are forking over huge amounts of money to make sure their products are seen.

Although the console gaming is known for the massive budgets it has for advertising its products on television, the latest trend has actually been for smaller publishers of mobile games to put together some considerable TV campaigns.

In fact, those smaller game companies are outspending their console counterparts at an incredible rate.

Recent statistics released by iSpot.tv have shown that among the top five video category advertising spenders on television, four are within the mobile games space. Together, those companies spent more than $130 million in the first quarter of this year. The top three were King, Machine Zone, and Supercell and their spending made up 30 percent of the entire video games category ad spend on television.

This spending on advertising for mobile games on TV outpaces that of the established console giants.

TV Advertising - Mobile GamesIn fact, those smaller mobile gaming companies didn’t just spend more than Nintendo, PlayStation and Xbox, but they also spent a larger amount than the game manufacturers for those consoles, including Electronic Arts, Ubisoft, and 2K.

Speculation in the industry has suggested that the reason for this trend is due to the shifts occurring within the video game industry as a whole. In 2014, console manufacturers had still been holding the lead position in terms of spending within the video game category. The reason was that Microsoft and Sony were trying to give an explosive launch to their new generation devices (Xbox One and PlayStation 4). The combined spending of those two companies made up 36 percent of the entire category. However, during the same period this year, the combined spending of those brands represented only about 10 percent of the category.

While the first quarter of the year is typically a rather slow one when it comes to console game advertising, as they will usually spend the largest amount of money during the fourth quarter when they release their biggest titles, this doesn’t change the fact that publishers of mobile games are spending a larger amount now than they ever have before on television advertising.

Video ads in mobile gaming apps benefit developers and gamers

Vungle gives mobile gamers incentive to watch video ads.

While ads keep mobile gaming apps free, one of the main complaints mobile gamers have with regard to these advertisements is that they pop-up while they are playing and this disrupts the game. However, in-app advertising platform Vungle has created a technique that actually gives gamers incentive to watch the ads.

Vungle delivers ads without interrupting the player’s gaming experience.

The ads that Vungle puts inside a mobile game promote other games or smartphone apps. That said, unlike other traditional forms of in-app advertising that disrupts the game, Vungle provides an opt-in approach that also includes a benefit for the player.

Ville Heijari of Vungle explains that “when we do an opt-in approach, people actually want to see the ads.” He also went on to say that “gamers download the other applications that are being advertised, but they also gain some kind of benefit within the game or app.”

Vungle helps game developers make money from free mobile gaming apps and provides advertisers with a new audience.

Mobile Gaming App - In-app advertisingThe in-app video advertising company is helping developers of mobile games earn money from mobile users who, on average, are not interested in paying for apps. It also provides advertisers with a mobile audience for their ads.

For instance, RGB Express is a puzzle game on the Vungle platform. The games developer, Markus Kaikkonen, says that while the game was launched as a paid app for Apple devices, he decided to offer the Android version of the app for free in December 2014. In order to make money from it, Kaikkonene joined Vungle, which places video ads inside his game that rewards players with a game credit or hint, simply for watching a 15-second ad.

Kaikkonen explained that in the Android version, “the player can use hints to watch the solutions for the problems.” He added that the player can purchase more hints if they desire, but if they want to continue enjoying additions to the game for free, they can watch a Vungle video ad and obtain a hint at no cost.

In order to create space to plug in advertisements for consumer brands, Vungle’s strategy is to build up a customer base and boost overall mobile gaming app usage. Half of the ads Vungle puts into mobile games promotes games and smartphone apps, and the other half of the advertisements on the firm’s platform are paid for by companies like Nokia and Unilever.