Observed Signal · Nov 1, 2024 · Interview · Source: OnlineMarketing.de · Impact: 2/5 · Sentiment: Neutral
Games x Marketing: Ad Monetization Gets Harder
In an interview, InnoGames representative Sebastian Goldt describes how the company blends in-app purchases (IAP) and in-app advertising (Ad) to monetize its games, noting that IAP revenue remains substantially higher than ad revenue. The industry trend toward hybrid monetization is especially evident in hyper-casual titles, while mid-core games continue to rely on IAP and increasingly test rewarded video ads. Forge of Empires is the flagship title driving most ad spend, with Heroes of History launched for iOS and Android and a browser version planned later in the year. Advertising spans Google, Meta, TikTok, Unity, AppLovin, and even TV spots in some markets, with overall ad spend described as stable amid consolidation in the ad space. Key challenges include privacy/data protection affecting targeting and store discoverability for an expanding but crowded market. The team uses enterprise AI tools (notably Midjourney) for creatives, though manual review remains essential to preserve branding. They’re expanding creator collaborations while evaluating future game pipelines for 2025.
Industry-relevant discussion on gaming monetization trends and AI in marketing.
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Key Takeaways & Evidence Grounding
- Hybrid monetization combines In-App Purchases and In-App Ads, with IAP revenue still larger than Ad revenue.
- Forge of Empires is the flagship title driving most ad spend; Heroes of History launched on iOS and Android, with a browser version due later this year.
- Ad platforms used include Google, Meta, TikTok, Unity, AppLovin; some TV spots are run in certain countries; overall Ad Spend is stable.
- Privacy/data protection and store discoverability are ongoing hurdles, particularly for mid-core audiences.
- Midjourney is used for creative generation; manual review is required to maintain branding; Creator partnerships are being expanded with a potential separate Creator program.
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