Unlocking Creativity #9: The Art of Monetization in Mobile Games

Hell yeah, we're back! It's been a busy week. So thank you everyone who supports me.. This really means a lot!

I have received many questions and I will answer them next week. Don't worry!

In this article, we will briefly talk about the The Art of Monetization in Mobile Games.

Monetization is the most important department for a gaming companies and my guest today is Michael Kopelovich. He is quite experienced in the industry. He has previously worked as a Creative Performance Manager and later switched to the Data Analyst.

Before starting the newsletter series, Michael has been very supportive and encouraged me to take this step. I want to thank him again here. Hopefully, it will be beneficial for all of you as well.

Btw, Michael writing articles about game design and monetization. So you can follow his newsletter..

Q: Hi Michael, Could you please introduce yourself and tell us a bit about your switch from creative performance to focusing more on monetization, especially with all the changes happening around you in the company?

A: Sure, I’d love to! I’m Michael, and I've been in the mobile industry since 2017, initially working on everything from shopping to travel apps. But when I started at IronSource—what's now Unity—I got my first taste of the gaming world, and honestly, I just fell in love with it. There’s something about the energy and creativity in gaming that just clicked with me.

When there were some big shifts at the company, like when IronSource turned into Unity and our creative performance department closed, I found myself at a crossroads. Moving into monetization really seemed like the right step.

It’s this cool mix of creativity, sales, and data—all stuff I’m passionate about, plus it lets me dive deeper into understanding player behavior. It’s been a pretty exciting journey, and I’m really enjoying where I’m at now, merging all the things I love in the gaming space.

Q: What is creative strategy according to you? How many people should a team be formed? How many creatives should be produced per week?

A: To me, a creative strategy is essentially a plan of action for how you're going to execute your creative ideas, especially when it comes to marketing a game. It’s about being systematic with your approach—like A/B testing and diving deep into data to analyze results. Unfortunately, I've noticed that some studios churn out loads of creatives almost randomly without a real plan, relying more on luck than on strategic insight. They might not have the right expertise in-house, or they might be copying what competitors do, just hoping something will stick.

As for team size, it really varies. Some studios might work with freelancers or have a couple of motion designers who aren’t really trained to work with data, which makes strategic creative development a bit hit or miss. Ideally, a team should be well-rounded, with skills in both creative design and data analysis to really home in on what works best.

Regarding the number of creatives produced per week, it really depends on your resources, but starting with a few a week is a good baseline. It's more about quality and strategic testing than quantity

Q: How does a successful creative strategy impact the overall monetization of a game, considering factors like user engagement and retention?

A: I like to think of it kind of like when a new movie is about to launch. What you're basically doing with a game is creating a bunch of cool and engaging 'trailers'—each one designed to grab people's attention and draw them into the game, hoping they'll stick around and enjoy it. Unlike movies that typically stick to one or two main trailers, a game allows you to experiment with multiple versions.

Each 'trailer' or creative can highlight a different feature of the game or present it in a unique way that appeals to different audiences.

This approach is crucial because it lets you see which versions bring in the right audience—the ones most likely to engage with the game and keep coming back. It’s all about finding the sweet spot that not only attracts users but also retains them, which directly feeds into effective monetization. More engaged users generally mean a healthier revenue stream from the game, as they're more likely to invest in it, whether it's through in-app purchases, subscriptions, or viewing ads.

Q: Could you share insights into how data from creative testing and user behavior analysis influences monetization strategies?

A: Absolutely, the potential of creative testing really can't be overstated. It allows us to experiment with a multitude of ideas effortlessly before even integrating those ideas into the game. For instance, consider how studios like Playrix and Dream Games have used non-authentic creatives extensively. You’ve probably seen those ‘save the king’ or ‘pull the pin’ ads, which started purely as advertising concepts. They were so engaging and successful that these studios actually incorporated them as mini-games within their main games.

This approach illustrates a crucial monetization strategy: when a certain type of creative consistently drives high user engagement, it's essential to dig deep into the data to understand why.

Analyzing which aspects of these creatives resonate with the audience can reveal valuable insights. If something works well in an ad, there's a good chance it could enhance the game itself, increasing user retention and potentially boosting in-game spending. Essentially, creative testing isn’t just about attracting users; it’s about refining the game’s content and features based on what players clearly enjoy and engage with

Q: How have ad formats evolved in the gaming industry, particularly with the rise of hybrid games? Could we discuss the shift from interstitial ads to a focus on rewarded videos and in-app purchases, and the challenges and opportunities this creates for studios?

A: When we discuss ad formats, it's clear that the gaming industry is evolving, particularly with the rise of hybrid games. These games are moving away from interstitial ads—which many players find disruptive—towards a model that focuses more on rewarded videos (RV) and in-app purchases (IAP). This shift is great for players as it enhances their experience by integrating ads more naturally into gameplay. However, it presents a challenge for studios, requiring them to invest significantly more in developing engaging content and sophisticated monetization strategies.

Achieving success in this hybrid model can be highly rewarding. Top games in this category demonstrate that with high retention and prolonged engagement, studios can generate a more stable and potentially larger revenue stream compared to what was typical with earlier hyper-casual games.

A critical aspect of this strategy, which I often discuss in my posts and articles, involves designing optimal RV placements within the game. Crafting these moments is an art in itself. The goal is to introduce rewarded videos at points where players are most receptive, enhancing their likelihood to engage with the ad content. This not only improves their overall experience but also increases the effectiveness of the ads, contributing positively to the game’s monetization success.

Q: In your opinion, whats the emerging trends or technologies in creative optimization and monetization that game studios should pay attention to for long-term success?

A: Though AI and machine learning are big buzzwords right now, and I'm sure they'll transform how we approach creative optimization and monetization, I've yet to try them out myself. Still, it’s something we should all keep an eye on with all the exciting developments coming up.

In the meantime, there are a couple of cool trends that have really caught my attention.

For instance, there's this innovative company called AudioMob. They’re working on something pretty neat—integrating audio ads right into games. What’s great about it is that these ads don't interrupt your gameplay at all. It's a slick way to bring in some revenue without messing with the game's flow.  

Also, I'm really into the recent surge in brand collaborations within games, which are super exciting. Take, for example, the recent partnership between 'Mob Control' and Hasbro where they've introduced iconic Transformers characters like Bumblebee into the game with special events. It’s not just about making the game more fun; it’s a smart move that mixes up the monetization game too.  And then there's the awesome tie-up between PUBG Mobile and Bentley Motors—yes, the luxury car guys! Players get to zoom around in Bentley cars right in the game, which is a brilliant way of mixing luxury with the gritty survival style of PUBG. It’s this kind of innovative cross-industry collaboration that's making games more engaging.

Q: What are your thoughts on the use of fake ads in mobile gaming, and how do they impact user perception and monetization strategies?

A: Fake ads certainly have garnered a bad reputation in the mobile gaming industry, often rightly so, especially when studios employ misleading tactics or distasteful content to draw players. We've all seen ads that use sensationalism or inappropriate themes, which can be quite off-putting.  

However, there's a strategy I like to refer to as 'semi-unauthentic ads,' which, while pushing the boundaries of authenticity, doesn't cross into outright deception. This approach involves using elements in the ad that might not be strictly true to the game's core gameplay but serve as an effective hook.

For instance, an ad might start with an engaging runner scene to grab attention—even if the game isn't a runner. This is designed to keep the viewer watching and then smoothly transitions to the actual gameplay.  

While technically, some might view this as misleading, I believe it's a legitimate advertising strategy when done correctly. It's about capturing interest with something eye-catching but quickly grounding it in what the game genuinely offers.

This method can be an effective way to stand out in a crowded market without resorting to outright falsehoods, and it respects the audience by quickly connecting the hook to real gameplay features. Employing these kinds of ads requires a delicate balance to ensure they remain ethical and effective without misleading the players about the actual gaming experience.

Unlocking Creativity #7: Growth Strategies in Mobile Gaming

So, I would like to thank Michael for his valuable opinions.

If you find it useful, don't forget to share this article with your friends in the industry. And if you have any questions, you can always ask me.

See you next week!