Kristan Rivers on AdInMo’s SDK 3.0 and the future of in-game monetization

Kristan Rivers on AdInMo’s SDK 3.0 and the future of in-game monetization image
By Mariam Ahmad 1 August 2024

AdInMo's CEO and Founder, Kristan Rivers, joins us to discuss the company's new InGamePlay SDK 3.0, which introduces clickable ad units. The integration of clickable ads marks a departure from traditional in-game ad formats, which have historically been non-interactive. This development aims to offer a more engaging and potentially lucrative advertising solution for developers, while also enhancing the gaming experience for players. However, the introduction of clickable ads raises an important question: could they potentially interrupt and detract from the immersive gaming experience that players value so highly?

In this conversation, Rivers addresses these concerns head-on, explaining how the design of SDK 3.0 ensures a seamless user experience even with the new clickable ad units. He also provides insights into the broader implications of these advancements for the industry, the potential of hybrid monetization models, and his predictions for the future of in-game advertising.

 

Clickable ads could potentially interrupt the gaming experience. How have you addressed this concern in the design of SDK 3.0 to maintain a seamless user experience?  

We didn’t take the decision lightly to introduce clickability to our ad formats. The reason AdInMo was founded is to make the monetization experience better for players, and that includes not suddenly leaving a game when you don’t want to!  

Every step of our product development process has been focused on creating a player first experience. Interacting with the ad will always be the player's choice delivering intentional, not accidental, clicks and a frictionless experience. 

Feature-wise this includes the pre-click visualiser so the players knows it’s an ad and doesn’t click if not wishing to engage with that brand offer. It also includes making the post-click experience as intuitive as possible. Gameplay is never affected because the game is paused as soon as the player chooses to interact with the ad and is frictionlessly returned to the game afterwards.  

Interestingly, in order to achieve our goal of higher player agency and reduced accidental clicks, we deliberately added some friction to the post-click experience via a core feature of our clickable ad units, the InGamePlay Magnifier, which pops up when a player clicks an ad. This means a player is confirming they do wish to pause the game experience and interact with the ad, therefore delivering highly valuable intentionality.  

Could you elaborate on how the new 'InGamePlay Magnifier' feature enhances ad visibility without disrupting gameplay? How does this feature differentiate InGamePlay SDK 3.0 from other advertising solutions? 

AdInMo’s InGamePlay Magnifier is a unique feature of our clickable ad units focused on driving intentional clicks and better outcomes. Once a player has clicked an in-game ad the magnifier spotlights it for better viewability for the player and better metrics for advertisers and developers. We think it will be particularly valuable for video formats driving better VTRs and higher CPMs. 

What kinds of feedback from developers and players were most influential in shaping the updates included in SDK 3.0? 

We’ve had market feedback from both the publishers and our demand partners when designing the clickable ad units. One important consideration was to give control to developers and all of the features in the SDK are fully customisable by the developer - from a game aesthetic perspective and also whether / when to implement clickable versions of our intrinsic in-game ad formats or not. 

We officially opened the beta programme last week and so will continue to get feedback from developers and their players throughout, particularly on some of the hybrid monetization features still to be announced, but to which developers who sign up to the beta programme will have early access to. 

https://www.adinmo.com/the-future-of-in-game-advertising/  

The delicate balance between monetization and player satisfaction is a constant challenge. How can the industry strike a better balance to ensure long-term player engagement and loyalty while maintaining a sustainable business model? 

By shifting to a hybrid monetization model and using ad formats that are focused on player engagement and retention. 

Making a game that generates sustainable revenue while still being joyful for players is the perennial balancing act for developers.  

We can’t keep doing the same things. Regulation has changed. Platforms keep changing the rules. But these are opportunities to get the balance right - and improve both LTV and player satisfaction. 

How effective are hybrid monetization models in balancing revenue generation with maintaining a positive user experience, especially in the context of different game genres like casual vs. mid-core games? 

We’re asking your developer community the same thing right now 😊 

When I started AdInMo, I thought in-game advertising would only work in racing and shooting games. I was definitely wrong! I continue to be surprised and delighted by the styles and genres of games that our developer partners integrate our immersive ad placements into. This diversity across casual and mid-core is in part thanks to the fact that we offer video, static display, rich media, and audio ads from one single SDK - so there’s really no genre or style of game that can’t monetize with in-game advertising.  

For AdInMo, effectiveness is also about the players; driving relevancy and engagement. In-game ad placements are not just broadcast mechanisms to show ads. Every interaction or view a player has of an InGamePlay placement delivers a signal path back to our platform which helps us better understand player preferences, affinities and behaviours.  

Ultimately this player data allows AdInMo to display the right message at the right time, creating the best and most relevant experience for the player and the most money for the developer.  

In a hybrid monetization world, the focus is no longer purely on fill rates and CPMs. Sometimes showing a CPM-based ad isn’t in fact the highest value action for a developer. Some of the exciting features developers can get early access to in the beta programme will open up new models in-game. For example if a player is about to churn out, we should be showing ads for other games from that developer, keeping the player in portfolio and decreasing UA costs. Much more to be announced on this later in the year!   

 What are your top 3 predictions concerning in-game ads for mobile gaming? 

  1. Hybrid monetization is the catalyst that will finally bring stronger collaboration across design and monetization teams. Designing a game from the ground up for a hybrid monetization strategy creates a better game.  Don’t just take my word for it - Scopely is generating 60% of their revenues from IAPs. 
  2. CPMs and CTRs will become a thing of the 2010s. Developers and advertisers will instead focus on attention and engagement metrics, as these are the true measure of impact and value for both the consumer and the advertiser.  
  3. Interruptive interstitial ads will FINALLY disappear by 2026.

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