In 2024, what is the password to solve the dilemma of realizing growth in games?

Source: Game Teahouse
Author: Piggy
Time: May 24, 2024
two thousand four hundred and sixteen
In the past two years, large factories have been competing and high-quality products have emerged frequently. China's game market has also entered a stage of intense stock competition in the process of rapid development.

Introduction

The game advertisement realized and began to "escape"

In the past two years, large factories have been competing and high-quality products have emerged frequently. China's game market has also entered a stage of intense stock competition in the process of rapid development. It can also be seen from the industry report data released by various institutions that the player scale has reached the peak, the market growth has slowed down, and the purchase price has soared, even a quantity is hard to find has gradually become the industry norm.

At the same time, under the influence of the global economic situation, the player's payment in the game also showed a less optimistic trend. According to the data of Sensor Tower, in 2023, the internal purchase revenue of the mobile game market will decline by 2% as a whole, of which Google Play alone will decline by 6%.

Therefore, in order to fully tap more commercial value, more and more developers have begun to explore and try the realization of advertising. According to the data released by the China Game Industry Report, the proportion of China's mobile leisure game advertising revenue realized in 2023 has increased from 26% in 2022 to 37%.

01

The realization of advertisement is a sharp tool to increase revenue that cannot be missed

The business model of "game+advertising" is not new for a long time, but for a long time in the past, many people mistakenly thought that advertising was just a special way to realize light leisure games. In fact, in recent years, both casual game developers and medium and heavy game developers are actively trying to improve game revenue through advertising.

Compared with the previous big fire "Bullet Case Special Attack Team", it has adopted the mixed realization mode of "IAP+IAA" to attract money at home and abroad. In addition, Wang Sien, CEO of Haibi Games behind the game, emphasized in his speech that "pure payment depth will reduce the playability of big DAU games. In this case, the life cycle and reputation of the game will be worried. Because we cannot have strong long-term income like many games, we insist on hybrid cash flow."

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Another example is Magictavern's mobile game "Magictavern Renovation". When it was launched in the domestic market, it also effectively improved the cash flow benefits by adding advertising cash in addition to internal purchase.

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What kind of role does advertising play in the process of game realization?

In fact, adding an advertising mechanism to the game not only means that the game can have more cashing scenarios and cashing contacts in addition to the internal purchase, but also that developers can use this to meet the game needs of more players and dig out the cashing value of more traffic.

For example, for players with low willingness to pay, incentive advertising can enable them to obtain certain game rewards without paying, so as to improve the game experience, and developers can also stimulate the liquidity potential of more traffic - this is especially critical in a difficult situation, and ultimately help to boost business growth.

At the same time, the realization of advertising can also feed back the long-term operation of the game. Reasonable advertising reward feedback will effectively improve the game feeling of players, stimulate more players to stay in the game, and even actively pay in the game. Gamma data and data released by Meta Audience Network also show that the game daily life, user LTV and internal purchase income and other data have significantly improved after the game is connected to advertising.

 D6B3D5BC-0ABF-415F-89D6-19D9F92F5FAD.png

On the other hand, as many as half of the players now want to get game rewards by watching advertisements (data sources: gamma data and Meta Audience Network). Therefore, it can be said that the realization of advertising is an important weapon for developers to meet the needs of players, improve game revenue, and ultimately achieve a win-win situation between manufacturers and players.

02

Take the "tailwind" of cash flow and drive into the "fast lane" of income increase

Although more and more developers have realized the importance of advertising cash, it is not easy to give full play to advertising in actual game projects. A large number of developers are still puzzled by such problems as how to choose the advertising realization scene, how to match different advertising forms, and how to set up advertising bidding methods.

Fortunately, there are many advertising platforms on the market today, which have launched various commercial solutions for developers' liquidity problems. As long as developers can choose a professional commercial partner, they will have the opportunity to play with advertising liquidity more quickly.

However, the teahouse noticed that up to now, some developers only access one advertising platform when they are cashing in advertisements and buying or selling quantities. However, in fact, it is far from enough to rely only on one company, such as pangolin, to "listen at the same time and be clear", maximize the realization value of traffic and absorb the budget of advertisers in all sectors of the Internet.

So how do advertising alliance platforms such as Youlianghui and Pangolin help developers improve their advertising revenue?

First of all, from the formula of "advertising realization income=exposure/1000 X eCPM", it is the key to increase advertising exposure and eCPM.

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Advertising exposure is mainly determined by three factors: advertising requests, fill rate and exposure rate. The number of ad requests and the exposure rate can be basically optimized by the developers themselves, while the improvement of the fill rate is relatively more complicated.

A mixed cash game development team said that they used to access the proportional distribution or waterfall price comparison mode to return advertisements, but this often resulted in no advertisement return at advertising points, resulting in waste of exposure opportunities, thus unable to obtain the best bid and affect advertising revenue. And when applying the waterfall bidding mode, they also need to spend high labor costs to adjust and optimize the priority of the advertising alliance in real time.

And the bidding mode launched by Youlianghui can help them solve the above problems. After developers access the bidding mode, they can make real-time bidding on different platforms without the old method of setting multiple waterfall levels, and select the ads with the highest price by horizontal comparison for return and exposure.

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Price strategy evolution

Compared with proportional allocation and waterfall bidding, real-time bidding is more complete, transparent and efficient, and requires lower labor costs. Therefore, developers can quickly display the ads with the highest bid while improving human efficiency after accessing the bidding bidding mode of Youquanhui or the hybrid bidding mode of "bidding+waterfall", so as to effectively improve the efficiency of ad filling and maximize the advertising revenue. The teahouse learned that after a game developer accessed the bidding mode of Youquanhui, the advertising fill rate and revenue were significantly improved.

In addition, from the data point of view, the number of requests that Youlianghui receives every day has reached the level of 100 billion, and the large model it uses spans the global traffic industry, mining more than 90 traffic scene features, mature advertising request links and continuously improving service quality have won praise in the industry.

Another major indicator affecting advertising revenue - eCPM is mainly determined by advertising bid, click rate and conversion rate.

The core factor affecting advertising bid is whether advertisers are rich and competitive enough. While Youlianghui not only has access to various conventional advertising budgets, including e-commerce, online services, games, etc., but also has WeChat ecological link advertising budgets.

WeChat ecological link advertising refers to the type of advertising in which the user clicks the advertisement and will jump to WeChat to open WeChat applet/games/official account/enterprise WeChat and other scenarios, where subsequent behavior transformation takes place within WeChat. At present, the WeChat ecological link budget pool has reached a scale of 100 million. It is crucial for developers who want to increase advertising revenue to win this budget. The data disclosed by Youlianghui shows that after a developer accessed the WeChat ecological link budget, the total advertising revenue of the application increased by 10%, the corresponding advertising eCPM increased by 16 times, and the overall WeChat ecological link budget also increased by 14 times.

 0DC9CAE3-8056-488D-94A6-688276C877B2.png

After a mixed cash game was connected to Youquanhui, the total media revenue also increased by 50%, of which the WeChat ecological link budget soared by 400%, and the proportion of the WeChat ecological link budget increased from 11% to 43%, which shows that the WeChat ecological potential with a billion level budget pool is huge.

In terms of click through rate, developers can apply different advertising forms in different scenarios to help players quickly understand advertising content and improve click through. However, it is not easy to do this well. For example, a leisure game developer once disclosed to the teahouse that his team had missed valuable liquidity opportunities and affected the final revenue performance of the product several times in previous projects because of the unreasonable and inadequate design of advertising sites.

In this regard, Youlianghui has prepared eight advertising styles for developers, including opening screen advertising, inserting screen advertising, incentive advertising, and information flow advertising, for the whole scenario of users using the application. Developers can freely choose the combination of advertising styles according to different needs. At the same time, Youlianghui is also continuously and efficiently updating the advertising style template, which can basically meet the advertising needs of the game at different stages.

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8 advertising scenes

The conversion rate is the proportion of traffic that has completed conversion after clicking the advertisement. A game developer told the teahouse that the loss of users was almost inevitable in the transformation path from clicking ads to page hopping, application downloading to final installation.

Therefore, Youlianghui has launched a variety of strategies to shorten the transformation path to help developers effectively improve the effect of advertising transformation: for example, users can download directly in the background to complete the transformation without leaving the current application; Or it can directly arouse the app to enter the landing page to avoid pop-up interception, further shorten the link and improve the success rate of the call.

 0DD435CA-CEB9-4AA9-AEFF-489C85B4D62A.png

In addition, the access process of Youlianghui is also very efficient and simple. Developers only need to complete the cooperation registration and access the lightweight Youlianghui SDK to carry out one-stop management of advertising media, advertising spaces and traffic patterns, and finally complete the settlement. This is particularly friendly for new developers.

ending

In fact, the upsurge of advertising cash flow not only exists in the domestic game market, but also in the global game market where competition has become intense. It has basically become the consensus of game developers at home and abroad to seek business growth through advertising cash flow. For example, "Last War: Survival Game", "Block Black!", "My Perfect Hotel" and other blockbusters, which topped the list of American iOS free games, have all adopted the design of advertising cash.

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Half of the top 4 products on the list use advertising for cash

And with the continuous integration of the game market and the advertising industry, the teahouse believes that advertising cash will become a "required course" for game developers in the future. Only when developers understand and play through the realization of advertising, can they have the opportunity to maximize the commercial value of the game and seek growth in the stock market.

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Source: Game Teahouse
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