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Casual games now make up 80% of all game downloads, 35% of in-app purchases, and considerable ad monetization revenue – $3.4B just for hyper-casual – according to Sensor Tower statistics published recently in a Deconstructor of Fun article.¹

As the hyper-casual and casual game space grows, publishers have a unique opportunity to increase revenue by using the right combination of monetization elements in their games. For some, this means adding in-app ads (IAA), and for others, in-app purchases (IAP).

While the gains of a hybrid monetization model are considerable, some of our publisher partners were initially concerned that this would disrupt the game experience and decrease retention. Carefully testing ads and entry points while closely monitoring KPIs has enabled them to introduce new monetization features while balancing the overall game economy.

Let's explore a few of their stories.

FRVR – a Malta-based puzzle, sports, and social games publisher – wanted to gain access to more players, so it decided to use Instant Games. Then, it became a priority to introduce ads while safeguarding the player experience.

“We have specific KPIs we're looking at – the most important one is retention,” says Chris Benjaminsen, Founder of FRVR. “We find that we can introduce advertising without having a negative effect on retention, as long as we don't overdo it.”

The publisher continuously measured and optimized rewarded video ads until it reached the right level of ad frequency in relation to eCPMs.

“In some cases, we found that showing more ads does not necessarily lead to more money,” says Chris. “We try to optimise the balance between the highest value per user with the lowest possible advertisement pressure.” For Basketball FRVR, for example, there was a 35% improvement in return on ad spend after running tests with Meta.*

Overall, FRVR introduced advertising without negatively impacting player retention. The company can now invest in deeper experiences for players, while also increasing revenue.

As a traditional game publisher, IAP revenue was very important to MoreFun, and it was cautious about adopting in-app ads.

Shao Zhen, CEO of MoreFun says, "We were actually very worried when we started looking into ad monetization for our in-app-purchase games, wondering: Would it affect retention and IAP revenue?"

MoreFun tested a few prominent rewarded video ad placements – like home screen, during session, boost rewards – learning that if entry points are too hidden, it can lead to a bad user experience.

It also noted that it could use IAA for IAP-heavy games to offer in-game assets to progress.

The results? “After implementing IAA, we saw stable advertising revenue every day and a 2% increase in retention and 36% uplift in ARPDAU for Ace Producer," says Shao. “Players feel very good, which makes them more willing to stay in the game.”

What do these publishers have in common? Despite reservations, FRVR and MoreFun successfully integrated ads in their games, with the support of Meta Audience Network.