We sat down with Cathal O'Sullivan, Head of Ad Monetization at Sandsoft, a seasoned expert in ad monetization and a passionate gamer, to dive into his extensive journey through the gaming industry. From his early days as a startup founder to leading ad monetization efforts at renowned companies like Unity and Sandsoft, Cathal has crafted a career dedicated to balancing revenue generation with a stellar player experience.

In this exclusive Ad Mon Masterclass, Cathal shares his insights on ethical monetization practices, the evolving landscape of ad formats, and the strategies that drive both player engagement and commercial success in today’s competitive gaming market.

Tell us a little bit about yourself and your journey as head of ad mon in a range of companies.

I’m a lifelong gamer and studied computer science in Dublin with the goal to be a game developer or work in the games industry.  My first step in the industry was a gaming startup I founded and ran with a fellow classmate after uni. After 3 years with my startup, I worked at Qualtrics and then made a move to London at Unity where I worked in Ad Monetization sales for five years - working with most of the well-known devs and publishers in Europe.  
 
I was eager to switch to the developer side so I joined Vela Games and Omada where I was leading overall monetization. I then joined Sandsoft to build out and manage the ad monetization ecosystem for their in-house and publishing strategies. My passion is gaming so the core focus is to deliver commercial success through positive player experience and ethical monetization best practices. 

How does Sandsoft approach ad monetization across its portfolio of games, and what strategies have proven most effective in driving revenue while maintaining a positive user experience?  

At Sandsoft, our ad monetization strategy centres on balancing revenue generation with a positive user experience and partner relationship. We focus on building a portfolio of apps that can drive sustainable profitability through hands-on collaboration and best-practice guidance for our partners. 

In terms of strategy, our focus has always been towards commercializing through engagement and gameplay-enhancing mechanics. There’s an unlimited amount of UA, ad mon, live ops or meta game options to explore but without a solid core game loop that holds and maintains player interest, it’s likely the app simply isn’t ready to scale in the long run. 

It’s important to consider how to position and what value multiple RVs provide in an app. Each RV should satisfy a specific player motivation while driving engagement metrics like IAP conversion and retention in parallel. We carefully monitor player retention and engagement to ensure ads contribute to revenue without overwhelming players. 

We’re also committed to ethical advertising, avoiding predatory practices and maintaining trust with our players. In short, Sandsoft’s strategy is about creating a sustainable revenue stream that respects and enhances the user experience, ensuring long-term success and player loyalty.  

What are the key ad formats you prioritise within Sandsoft’s games, and how do you determine which formats are best suited for specific games or genres? 

We aim to prioritize ad formats that balance revenue with user experience, although this isn’t always easy.  There are some positive signals coming from alternative sources such as in-play, app open and audio but for now - we focus our attention on three formats; rewarded videos, interstitials and banners.  
 
We select these ad formats based on game type, game vision, player behavior, and monetization goals. For example, fast-paced games benefit from non-intrusive ads like rewarded videos, while casual games may use interstitials during breaks. 

In the case when interstitials and banners are used, we always consider how to leverage segmentation and smart delivery/removal to enhance IAP conversions and overall LTV. Adding these types of formats without the link towards IAP can have negative consequences. 

How do you balance the need for ad revenue with the importance of maintaining a seamless and enjoyable user experience in your games?

Balancing ad revenue while maintaining a seamless and enjoyable user experience is a core focus at Sandsoft. Modern players are well used to different ad formats and I’m a firm believer in ensuring a positive ad experience.   

One of our first actions was to define an ad quality delivery framework across our partner networks so that players experience a consistent and player-friendly ad experience without frustrating mechanisms driving unnecessary churn. DSPs will always test and iterate to maximize CTR and install rate and in turn squeeze the player's patience. 

We continuously monitor player engagement and feedback to ensure ads are well-received. If an ad format or frequency negatively impacts the user experience, we adjust accordingly to maintain player satisfaction. 

We also aim to limit the number of ads shown during a session to avoid overwhelming players and ensure network SDKs have minimal impact on device stability. Through these strategies, we ensure that ad monetization supports the game’s success without compromising the player experience. 

What emerging trends in ad monetization do you see as most impactful for the mobile gaming industry, and how is Sandsoft adapting to these trends? 

Monetization is constantly evolving and trends come and go depending on the season. The role is leaning to be more product and gameplay as opposed to historically being mediation, network and deal focussed. Leveraging granular data to enable 3P or in-house tools to drive intelligent delivery based on different cohorts and segments is very important.  

The use of AI to deliver highly personalized ad experiences is becoming more prevalent. AI helps tailor ads to individual players based on their behavior, preferences, and in-game actions. Sandsoft is leveraging AI to enhance ad relevance, ensuring that players see ads that align with their interests, which improves engagement and overall ad performance. 

Ad format diversification is another trend to mention. As players become more discerning, diversifying ad formats is essential. Beyond traditional video and interstitial ads, there’s a growing shift towards formats like native ads, in-play ads, rewarded interstitials and many more to enable a more positive gaming experience. Sandsoft is exploring and integrating a variety of these innovative ad formats to keep the experience fresh and engaging for players. 

With profitability becoming more difficult through ad mon only sources, optimizing ad mon to drive IAP and vice versa allows for more flexible monetization strategies. Sandsoft is adopting hybrid models that balance ads and IAP, providing multiple revenue streams while allowing players to choose how they want to engage with the game. By staying ahead of these trends, Sandsoft is not only optimizing its ad monetization strategies but also enhancing the overall player experience, ensuring long-term success in the evolving mobile gaming landscape 

How do you integrate ad monetization without disrupting the gameplay flow?

There are many approaches here depending on the game's journey, genre and vision. The best approach would be to take things slowly and test everything. Engagement metrics are core to monetization so understanding how these interact is critical.  Consider monetization early in the game's core loop so the integration blends seamlessly into the game and experience and should not be attributed to negative sentiment coming from poor ad experience or a hindrance to the game experience. 

Ad monetization should be a value-added experience based on the player persona or need at that point in time. If they are forced to continuously watch an ad to progress or enjoy the gameplay, then they will likely churn before generating reasonable ad ROAS.   

We limit the frequency and placement of ads to avoid overwhelming players. By ensuring that ads appear only at appropriate times and not too often, we maintain the flow of the game while still generating revenue. 

We regularly test different ad placements and formats, analyzing both quantitative and qualitative player data to enable us to continuously refine our approach. The goal is to allow both engaged and non-engaged ad segments to engage and progress at a pace that suits them. If an ad format or network delivery is found to disrupt the gameplay flow, we adjust it based on player insights to ensure a smooth experience.  This helps us to keep ad monetization as a value add rather than hindering the player’s enjoyment, keeping the gameplay experience seamless and engaging.