Tel Aviv, Israelndash; September 30, 2013, Likelsquo;alligators in sewersrsquo;,lsquo;social games only earn real revenue from virtual goodsrsquo; is an urban myth.
Based on new client data, games monetization ad network appnext ( www.appnext.com) is debunking the latter urban myth.
ldquo;Our developers are earning 10%, 20% even 30% of their revenue from in-game advertising,rdquo; said Elad Natanson, the Founder of appnext.
Historically, why has advertising been delivering less revenue for social gamers?
Though social game developers have been integrating advertising into their games since the earliest social games, ads have failed to make a serious impact in most gamersquo;s bottom line because:
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Many ads served were intrusivendash; popping up in the middle of the gamendash; and discouraged player engagement;
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; The ads served were often not contextually relevant;
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Most ads were of the standard display banner type, placed around the game canvas and therefore ignored by almost all players.
In addition, some game developers were concerned that ads would drive players away.
With only 1-2% of players generating game revenue through the purchase of virtual goods, game developers have been leaving a lot of money on the table through ineffective ad strategies.
Today, monetization networks like appnext have learned from the mistakes of the past and have developed interactive in-game interstitial ads which are triggered at natural game playing breaksndash; when players finish a game session, fail a level, or run out of game currency. They also understand that advertising relevant games in a content recommendation-like format is better for the user experience and leads to improved results all around.
And with ads only served to players who have not purchased virtual goods, game developers donrsquo;t run the risk of losing virtual goods revenue through aggressive advertising.
The results have been a tremendous increase in advertising revenue for game developers.
ldquo;With appnext, wersquo;re seeing the advertising share of our total revenue significantly increase, more than doubling advertisingrsquo;s share of revenue over the last few months,rdquo; said Francois Pacot, CEO, Royal Cactus.ldquo;Thanks to appnext, advertising is now a serious revenue stream for Royal Cactus.rdquo;
ldquo;Advertising is becoming a major source of revenue for us, doubling over the last six months,rdquo; said Simon Smiley, COO, BeJig.
ldquo;As the first monetization solution to offer in-game ads on social games, wersquo;re working with game developers who are generating 30% or more of their revenue from advertising,rdquo; added appnext Founder Elad Natanson.ldquo;And wersquo;re hearing similar results from our competitors and others in the industry.rdquo;
Even Zynga has seen ad revenue increase from 9% of revenue in Q1 2012 to 12% in Q2 2013, a 33% increase.
appnext is a multi-platform monetization and discovery network focused on mobile and social games. The company enables game developers to monetize and grow their game's traffic without affecting the user experience by facilitating the discovery of complementary games through the use of non-intrusive ad units. On mobile, appnext is available for Android and iOS games and supports most major development platforms and frameworks. For social, appnext is an approved ad provider on the Facebook Platform.nbsp; Headquartered in Tel Aviv, with satellite offices in Europe and North America, appnext is comprised of a passionate team dedicated to helping developers.