Understanding the Revenue Model
Have you ever wondered how much money those games with ads make? It’s a question that often pops up in discussions on Reddit and other online forums. The answer, as it turns out, is quite fascinating and multifaceted.
Types of Games with Ads
Before diving into the numbers, it’s important to understand the different types of games that incorporate ads. There are primarily three types: free-to-play games, freemium games, and ad-supported games. Each of these models has its own way of generating revenue through ads.
| Game Type | Description | Revenue Generation |
|---|---|---|
| Free-to-Play | Players can download and play the game for free. | Revenue comes from in-game purchases, such as cosmetic items, power-ups, or additional levels. |
| Freemium | Players can download and play the game for free, but with limited features. | Revenue comes from in-game purchases, as well as ads that are displayed to players. |
| Ad-Supported | Players can download and play the game for free, with ads integrated into the gameplay. | Revenue comes solely from ad impressions and clicks. |
Revenue from Ad Impressions
One of the primary ways games with ads generate revenue is through ad impressions. Ad impressions refer to the number of times an ad is displayed to a user. The more impressions an ad receives, the more money the game developer earns. According to a report by App Annie, the average eCPM (effective cost per mille, or cost per thousand impressions) for mobile ads in 2020 was $7.32. However, this number can vary significantly depending on the platform, ad format, and target audience.
Revenue from Ad Clicks
In addition to ad impressions, another way games with ads generate revenue is through ad clicks. When a user clicks on an ad, the game developer earns a certain amount of money. The amount earned per click can vary widely, depending on the ad network and the type of ad. According to a report by eMarketer, the average cost per click for mobile ads in 2020 was $0.54. However, this number can also vary significantly.
Impact of User Engagement
The amount of money games with ads make is heavily influenced by user engagement. Games that are more popular and have higher user engagement tend to generate more revenue. This is because they have a larger audience, which means more ad impressions and clicks. According to a report by Newzoo, the global mobile gaming market is expected to reach $100 billion by 2023, with user engagement playing a crucial role in this growth.
Case Studies
Several popular games have demonstrated the potential of generating significant revenue through ads. One such example is “Clash of Clans,” which was developed by Supercell. According to a report by Sensor Tower, “Clash of Clans” generated over $1 billion in revenue in 2019, with a significant portion of that coming from ads. Another example is “Candy Crush Saga,” developed by King. According to a report by Sensor Tower, “Candy Crush Saga” generated over $1.9 billion in revenue in 2019, with ads contributing a substantial portion of that revenue.
Conclusion
So, how much money do those games with ads make? The answer is that it varies widely, depending on the game, the platform, the target audience, and the revenue model. However, it’s clear that games with ads have the potential to generate significant revenue, especially when combined with high user engagement and effective ad strategies.
