Advertising is responsible for 30% of the revenue of social games

Appnext, a company engaged in the monetization of social app traffic, claims that from 10% to 30% of revenue to games is generated by embedded advertising. And developers should not forget about it, much less ignore it.

Initially, advertising was responsible for only a small part of the revenue. For example, at the end of 2011, representatives of Zynga stated that the share of advertising in the total revenue of the company is less than 10%.

But times are changing. Incomes are growing.

According to the vice president of Appnext According to Tal Perry, advertising may soon become the main source of income for social and mobile games, “you just need to use it correctly.”

As he notes, previously advertising was annoying, popped up in the midst of the gameplay and, thereby, distracted users. At the same time, the ads themselves contained irrelevant information framed in simple banners at the edge of the screen, which most people usually ignored.

Now this situation has changed, interactive embedded ads that appear during natural breaks, for example, when a user completes a game session or loses a level, have become widespread.

Actually, the implementation of such ad blocks is handled by Appnext. 

Ads are created in HTML or Flash format and receive a clear description. So, this is not just a “blind click”, the players know what to expect.

Appnext has a staff of 15 people. This young company, founded last year, has already been able to attract several million dollars. Its competitors are Chartboost, Lifestreet Media, PlayHaven, NativeX, Tap4Tap and LeadBolt.Source: venturebeat.com