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In-game advertising in mobile gaming: Benefits, strategies, and top examples
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What is in-game advertising in mobile gaming?
In-game advertising is a revenue strategy game developers employ in which they earn money by selling ad space in their games. While the ads come in various formats, the goal for each remains the same—draw attention to the ad without interrupting the player’s gaming experience.
In-game advertising is a popular choice for ad campaigns and can deliver up to a 12% uplift in purchase intent. In fact, global ad spend on mobile gaming advertising is projected to reach $130.9 billion by 2025 (up from $46.7 billion in 2021), and 93% of media buyers plan to include in-game ads in their campaigns.
Discover the benefits of in-game advertising that make it popular, the different types of in-game ads, and several key strategies for effective in-game advertising.
How do in-game ads work?
This monetization method allows advertisers to purchase ad space within a developer’s game. These ads can take various forms, including static placements like banner ads or dynamic formats like interstitials and rewarded videos.
Developers generate significant revenue by integrating ads directly into gameplay while offering users a free-to-play experience. This approach benefits both developers and advertisers: developers can monetize without depending solely on in-app purchases (IAPs), while advertisers reach a highly engaged audience, making in-game ads an effective tool for acquiring new customers and promoting products, services, or other apps.
The benefits of mobile in-game advertising
The benefits of mobile in-game advertising extend far beyond revenue generation. App developers can enrich the user experience for increased engagement by offering rewards for watching videos or delivering relevant content with in-game ads.
Advertisers like that mobile gaming provides brand safety as it doesn’t contain user-generated content. Brands can rest assured that their ads only appear in appropriate and relevant gaming environments, offering them more control. Additionally, as in-game ads rely on user interaction, advertisers can accurately track key metrics such as engagement, reach, and completion rate.
In-game advertising formats
In-game advertising continues to evolve, offering brands flexible, innovative options to engage gamers without interrupting their gameplay experience. These formats fall into two main categories of in-game advertising: static and dynamic.
Static in-game advertising
Static ads are integrated into the game during the app's development stage. As the name suggests, these ads cannot be changed in static in-game advertising, but they offer a sense of realism within the game. Like product placement in a movie or music video, static ads often appear on billboards or signs within the game. While traditionally less popular than dynamic ads, static in-game advertising is gaining traction as newer iterations allow for greater customization. By 2028, static ads are anticipated to generate $6,365.3 million in revenue.
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Dynamic in-game advertising
In contrast to static ads, dynamic ads are banners displayed in a game that can be updated in real time. Dynamic in-game advertisements provide advertisers with a great deal of flexibility and are easy to scale. They can also be used to geo-target opted-in users.
Another reason dynamic ads are a popular choice among advertisers is the diversity of ad formats. Below, we’ll cover the six most common types of dynamic ad formats.
Interstitial Ads
Interstitial ads are rich, interactive ads that cover the entire screen and take advantage of natural pauses in the user’s gaming experience, such as breaks between levels. As they don’t disrupt gameplay, these ads are highly effective at capturing attention and generally generate high impressions and conversions. Interstitial ads are 29 times more likely to drive conversions than banner ads, making their creative execution and timing critical to success.
For optimal performance, interstitial ads must feature high-quality visuals and a compelling call to action (CTA). Advertisers should also measure performance metrics such as CTR and CPI to optimize results. Some interstitial ads include interactive features, such as swipeable showcases or gamified experiences.
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Native Banners
Native banners appear similar to web banner ads in that they blend seamlessly into the background. They appear on virtual billboards, in-game stores, or as part of the game interface for an unobtrusive ad experience. Unlike display banners, native ads are embedded and, therefore, appear as part of the content.
By 2031, native ad spend is projected to reach $307.82 billion worldwide, driven by continued technical innovations like in-feed native ads, fully integrated with content. For instance, in a racing game, native banners might appear on virtual billboards along the track, promoting real-world brands without disrupting the immersive experience.
Contextual ads
Contextual ads are delivered based on the user’s current state when the ad is served. Advertisers provide topics, keywords, and targeting parameters to digital media platforms, which use algorithms to match the ad with relevant content, topics, and images.
For example, contextual ads in a football mobile game may display promotions for athletic wear or sports equipment, making the ad feel natural and relevant to the player’s experience.
Contextual ads have gained popularity due to new privacy regulations limiting personal data collection. Contextual targeting has become an effective, privacy-compliant solution that focuses on content relevance rather than personal information.
The future of contextual ads lies in AI-powered targeting and real-time content analysis, allowing advertisers to serve even more precise ads based on gameplay behavior, further boosting user engagement and return on investment (ROI). With advancements in machine learning, these ads are becoming increasingly accurate and relevant, making them a powerful tool for advertisers.
Check out our blog: Contextual advertising’s comeback, for further insights on harnessing contextual ads.
Rewarded video ads
As the name suggests, this format of ads rewards users if they watch a full-screen ad. After users watch a 15-30 second video ad, they are given in-game currency, extra lives, more levels, etc. For instance, in Subway Surfer, players can watch a video ad to claim daily rewards like in-game currency and items, providing valuable incentives that help them progress.
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Users generally prefer rewarded video ads over in-app purchases, and 62% of developers have reported increased user retention after implementing them. This format boosts user satisfaction and increases the likelihood of repeated interactions, driving higher ad revenue for developers. Users who engage with rewarded video ads are 4.5 times more likely to make an in-app purchase.
Ready to get started with rewarded video ads? Our article Understanding rewarded video ads offers 10 best practices for utilizing rewarded ads.
Playable ads
Playable ads are a highly effective form of interactive video advertising, allowing users to experience a short preview of a game before deciding to download it. This trial format showcases the app’s essential features, offering a "try before you buy" experience that reduces uninstall rates and boosts retention.
For example, in Tile Dynasty: Triple Mahjong, users can engage with a simplified version of the game through a timed challenge to experience its core mechanics. After completing the trial, players are prompted to install the app to continue playing, seamlessly guiding them from interaction to conversion.
As augmented reality (AR) and mixed reality technologies advance, playable ads are expected to evolve into playable AR ads, blending immersive gameplay with real-world interactivity. By integrating AR elements, advertisers can create hybrid experiences that deepen user engagement. For instance, users could play part of a game on their mobile device while AR projects the game world onto their physical surroundings, merging the virtual and real worlds for a more dynamic experience.
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Advergaming
Technically speaking, advergaming isn’t a single dynamic ad but rather an entire game explicitly built to promote a company or product. In advergaming, ads are embedded throughout the game, pointing to the brand that built the game.
For example, an automotive company might create a race car game in which users can race using the company’s latest models. This would give players a hands-on experience with the brand’s products in a fun, engaging way. This method helps increase brand recall, as users interact more with the brand through immersive gameplay.
For more advergaming examples, read Advergaming: Why your brand needs a mobile game.
Mobile in-game advertising strategy
Creating effective in-game mobile ads requires a strategic approach to reach and engage the right audience. Here are some essential tips for game developers and app marketers to boost the performance of their in-game advertising campaigns:
Know your gaming audience
Understanding your audience is vital to creating ads that resonate. According to Statista, five out of ten people will be mobile gamers by 2025. Gaming is no longer a niche market. For example, did you know that 55% of females in the U.S. play mobile gaming apps versus 45% of males? As often purported, males do not make up the lion's share of mobile game players.
Additionally, mobile gaming is not just for young people, as 60% of Gen X and 42% of baby boomers play mobile games, according to data from NewZoo. With this wide demographic range, it’s crucial to tailor your in-game ads to fit the preferences of your specific audience segments.
Pay attention to ad placement
You want your ad to delight the user, not frustrate them. Where and when your ad appears can make or break the user experience. The golden rule in ad placement is this: Never interrupt the user experience. Consider the three most noninvasive opportunities: Before gameplay, during a natural pause in the game, or post-game play.
Measure and optimize
With such fierce competition in the mobile app gaming environment, monitoring your in-game ad campaigns is essential. A mobile measurement partner (MMP) helps app marketers and game publishers measure campaign performance across multiple advertising channels, providing the data needed to fine-tune campaigns. MMPs offer advanced features like:
- Audience segmentation for building custom audiences for retargeting and campaign optimization.
- Cohort analysis to observe user behavior over time and identify trends.
- Deep linking to drive users directly to specific content or promotions.
To learn more, check out The essentials of mobile app attribution
Adjust and in-game advertising
As a leading MMP, Adjust offers real-time analytics to help you measure the user journey and identify top-performing channels. With Datascape, you can visualize performance data, comparing attribution, cost, and metrics in a customizable dashboard for faster, more efficient decision-making. Additionally, TrueLink enhances deep linking and retargeting, guiding users to specific in-game content, promotions, or products, improving campaign effectiveness.
Customizable attribution logic further enhances Adjust’s capabilities, enabling you to tailor measuring and reporting to your specific goals. This flexibility ensures your ad spend delivers the highest ROI across all partners and channels.
Adjust has also been instrumental in helping gaming companies like Tamatem, Melsoft Games, and IsCool Entertainment optimize their in-game advertising campaigns. Tamatem achieved a 34% increase in installs, and Melsoft Games doubled their ad spend while improving campaign efficiency by 40%. IsCool Entertainment leveraged Adjust’s data insights to boost user acquisition and refine its ad performance strategies.
Ready to elevate your in-game ad performance with the MMP of the Year? Schedule a demo today to discover how Adjust’s solutions can drive your in-game advertising strategy and success.
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