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Ad revenue optimization by game genre

Game genre dictates not just gameplay mechanics, but also monetization potential. Ad revenue performance varies significantly across genres due to differences in session length, player expectations, and retention patterns. This playbook provides a breakdown of ad optimization strategies by genre, supported by data benchmarks and implementation recommendations.

Goal: Maximize ARPDAU and LTV by aligning ad formats, frequency, and strategy with player behavior across genres. Genre isn’t just a creative decision. It defines monetization mechanics.

1. Your genre, your strategy

Genre

IAA Share of Revenue

IAP Share of Revenue

Notes

Top Ad Formats

Game Behavior

Hypercasual

Majority (often >60%)

Minority

Ad monetization dominates due to high user volume and low per-user spend.

Interstitial, playable, rewarded video

Quick sessions, frequent retries

Hybrid-casual

~60% (IAA) / ~40% (IAP)

~40%

Recent data shows a shift to a 60:40 split, favoring ads over IAPs.

Rewarded video, playable

Moderate engagement; mix gameplay & offers. Offer the same easy-to-learn core as casual, but with added depth, progression, and engagement features that keep players invested for much longer.

Puzzle, Board, Solitaire, Word

High (31% YoY IAA growth for puzzle)

Moderate

Puzzle games see significant IAA growth, but IAP remains relevant

Rewarded video, banner

Steady progression, milestone opportunities.

RPG, Strategy

Low IAA

High IAP

Still dominated by IAP, with ads making up a smaller share

Rewarded ads for boosts/cosmetics

Long sessions, spenders vs. non-spenders

Simulation, Sports

High (41% YoY IAA growth)

Moderate

Simulation games lead in IAA revenue growth

Intrinsic/native in-game ads, sponsorships, interstitials

Time-gated events, natural pauses

If you're IAP only, you know, best case scenario, you're going to monetize 3% to 5% of your players. If you integrate rewarded video & interstitial aggressively, you can be monetizing 95%. It just moves the needle.

2. Ad format effectiveness by genre

Hypercasual

Best formats: Interstitials , playable, rewarded video

Why: Quick sessions = frequent natural breaks

Recommendations:

  • Cap at 5–6 ads/hour
  • Segment non-spenders for offerwalls
  • Avoid in-game disruptions, use transition screens

Tip: Match offers to players

Not all players engage the same way. Segment your audience and align monetization accordingly: IAP loops for spenders, well-placed rewarded ads for non-players, and lightweight subscriptions for superfans. Hybrid models (combining rewarded ads with low-price IAPs) are especially effective in lower-ARPU markets where flexibility matters. When timing, targeting, and value line up, monetization feels like part of the experience rather than a disruption.

Hybrid-casual

Best formats: Rewarded video, playable

Why: Players tolerate ads if rewarded meaningfully

Recommendations:

  • Place ads at power-up or retry moments
  • Separate payer vs. non-payer experiences
  • Test reward types: power-ups, soft currency

Puzzle/Word/Board

Best formats: Rewarded video, banner ads

Why: Longer playtime, less urgency

Recommendations:

  • Trigger ads after tough levels
  • Use themed, non-intrusive ads (e.g. in-game shops)
  • Reduce ad load after IAP to protect UX

RPG/Strategy

Best formats: Rewarded ads (boosts, cosmetics)

Why: Premium players don’t like interruptions

Recommendations:

  • Show ads only to non-spenders
  • Avoid session breaks; use after missions
  • Keep ad interruptions <2% of total session time

Simulation/Sports

Best formats: Intrinsic/native in-game ads, sponsorships, interstitials

Why: Highly immersive, time-driven play

Recommendations:

  • Insert ads at halftime, building waits
  • Use branded virtual items/stadiums
  • Align formats with real-world brand partnerships
Playable-Game screen
Playable
Interstital Video-casual
Interstitial
Rewarded-Game screen (1)
Rewarded video

3. System-level optimization tactics

  • Frequency Capping
    Use session-level analytics to cap at 3–5 ads/hour
  • Segmentation
    Separate ad experiences for spenders vs. non-spenders
  • Ad Preloading
    Load in background to protect frame rates and UX
  • A/B Testing
    Test formats, reward values, and placement timing
  • Compliance
    Age-gate (COPPA), content filter, and GDPR readiness

4. Growth strategies used by leading publishers

High-performing studios often adopt the following practices to drive sustainable ad revenue growth:

  • Machine learning-based pacing models to prevent ad fatigue
  • Real-time bidder integration for maximizing fill rate and eCPM
  • Cross-promotion across owned IP to retain users within network
  • Cohort-based ad strategy refinement based on LTV segmentation
 

5. Our core recommendations

Recommendation

Why it matters

Match ad format to session rhythm

Prevents churn, preserves flow

Segment users by spend behavior

Avoids cannibalizing whales

Use rewarded ads for upsells

Higher retention, boosts IAP funnel

Cap frequency and optimize pacing

Prevents fatigue, increases LTV

Place ads at contextually relevant moments

Protects UX and boosts engagement

A/B test continuously

Avoids stagnation, finds hidden lift

Preload and stagger ads

Protects performance in mid-core titles

Use data, not guesswork

Empirical placements wins long-term

Want to learn more?

Optimized monetization doesn’t have to mean more ads. It’s about the right ad, for the right user, at the right time. Game genre gives you the blueprint, so use it. The rest is fine-tuning.

For detailed benchmarking data, genre-specific ad waterfall templates, or a workshop on building your monetization stack, feel free to get in touch with our team anytime.

Alright, enough talk about ad formats, now it’s your turn to tap and swipe. Explore the experience from the player’s perspective with these interactive playables:

Game genre dictates not just gameplay mechanics, but also monetization potential. Ad revenue performance varies significantly across genres due to differences in session length, player expectations, and retention patterns. This playbook provides a breakdown of ad optimization strategies by genre, supported by data benchmarks and implementation recommendations.

Goal: Maximize ARPDAU and LTV by aligning ad formats, frequency, and strategy with player behavior across genres. Genre isn’t just a creative decision. It defines monetization mechanics.

1. Your genre, your strategy

Genre

IAA Share of Revenue

IAP Share of Revenue

Notes

Top Ad Formats

Game Behavior

Hypercasual

Majority (often >60%)

Minority

Ad monetization dominates due to high user volume and low per-user spend.

Interstitial, playable, rewarded video

Quick sessions, frequent retries

Hybrid-casual

~60% (IAA) / ~40% (IAP)

~40%

Recent data shows a shift to a 60:40 split, favoring ads over IAPs.

Rewarded video, playable

Moderate engagement; mix gameplay & offers. Offer the same easy-to-learn core as casual, but with added depth, progression, and engagement features that keep players invested for much longer.

Puzzle, Board, Solitaire, Word

High (31% YoY IAA growth for puzzle)

Moderate

Puzzle games see significant IAA growth, but IAP remains relevant

Rewarded video, banner

Steady progression, milestone opportunities.

RPG, Strategy

Low IAA

High IAP

Still dominated by IAP, with ads making up a smaller share

Rewarded ads for boosts/cosmetics

Long sessions, spenders vs. non-spenders

Simulation, Sports

High (41% YoY IAA growth)

Moderate

Simulation games lead in IAA revenue growth

Intrinsic/native in-game ads, sponsorships, interstitials

Time-gated events, natural pauses

If you're IAP only, you know, best case scenario, you're going to monetize 3% to 5% of your players. If you integrate rewarded video & interstitial aggressively, you can be monetizing 95%. It just moves the needle.

2. Ad format effectiveness by genre

Hypercasual

Best formats: Interstitials , playable, rewarded video

Why: Quick sessions = frequent natural breaks

Recommendations:

  • Cap at 5–6 ads/hour
  • Segment non-spenders for offerwalls
  • Avoid in-game disruptions, use transition screens

Tip: Match offers to players

Not all players engage the same way. Segment your audience and align monetization accordingly: IAP loops for spenders, well-placed rewarded ads for non-players, and lightweight subscriptions for superfans. Hybrid models (combining rewarded ads with low-price IAPs) are especially effective in lower-ARPU markets where flexibility matters. When timing, targeting, and value line up, monetization feels like part of the experience rather than a disruption.

Hybrid-casual

Best formats: Rewarded video, playable

Why: Players tolerate ads if rewarded meaningfully

Recommendations:

  • Place ads at power-up or retry moments
  • Separate payer vs. non-payer experiences
  • Test reward types: power-ups, soft currency

Puzzle/Word/Board

Best formats: Rewarded video, banner ads

Why: Longer playtime, less urgency

Recommendations:

  • Trigger ads after tough levels
  • Use themed, non-intrusive ads (e.g. in-game shops)
  • Reduce ad load after IAP to protect UX

RPG/Strategy

Best formats: Rewarded ads (boosts, cosmetics)

Why: Premium players don’t like interruptions

Recommendations:

  • Show ads only to non-spenders
  • Avoid session breaks; use after missions
  • Keep ad interruptions <2% of total session time

Simulation/Sports

Best formats: Intrinsic/native in-game ads, sponsorships, interstitials

Why: Highly immersive, time-driven play

Recommendations:

  • Insert ads at halftime, building waits
  • Use branded virtual items/stadiums
  • Align formats with real-world brand partnerships
Playable-Game screen
Playable
Interstital Video-casual
Interstitial
Rewarded-Game screen (1)
Rewarded video

3. System-level optimization tactics

  • Frequency Capping
    Use session-level analytics to cap at 3–5 ads/hour
  • Segmentation
    Separate ad experiences for spenders vs. non-spenders
  • Ad Preloading
    Load in background to protect frame rates and UX
  • A/B Testing
    Test formats, reward values, and placement timing
  • Compliance
    Age-gate (COPPA), content filter, and GDPR readiness

4. Growth strategies used by leading publishers

High-performing studios often adopt the following practices to drive sustainable ad revenue growth:

  • Machine learning-based pacing models to prevent ad fatigue
  • Real-time bidder integration for maximizing fill rate and eCPM
  • Cross-promotion across owned IP to retain users within network
  • Cohort-based ad strategy refinement based on LTV segmentation
 

5. Our core recommendations

Recommendation

Why it matters

Match ad format to session rhythm

Prevents churn, preserves flow

Segment users by spend behavior

Avoids cannibalizing whales

Use rewarded ads for upsells

Higher retention, boosts IAP funnel

Cap frequency and optimize pacing

Prevents fatigue, increases LTV

Place ads at contextually relevant moments

Protects UX and boosts engagement

A/B test continuously

Avoids stagnation, finds hidden lift

Preload and stagger ads

Protects performance in mid-core titles

Use data, not guesswork

Empirical placements wins long-term

Want to learn more?

Optimized monetization doesn’t have to mean more ads. It’s about the right ad, for the right user, at the right time. Game genre gives you the blueprint, so use it. The rest is fine-tuning.

For detailed benchmarking data, genre-specific ad waterfall templates, or a workshop on building your monetization stack, feel free to get in touch with our team anytime.

Alright, enough talk about ad formats, now it’s your turn to tap and swipe. Explore the experience from the player’s perspective with these interactive playables: