Is it just a closed loop of game companies paying eachother or are they getting money from somewhere else?
In: Economics
Wow hey a topic I’m an expert at!
Well, the basic idea is that when you show an ad for your game in another game, you’re paying in CPM, or ‘Cost Per Mile’ which means 1000 views.
One ad can get millions of views per day or even hour if the budget is high enough.
The goal then, is to get the users to come to your game and filter through your business model–whether that be in game purchases, in game ads, subscriptions, rewarded ads, or offer walls.
If you run an action game called Ninja Attack and I have an RPG game called Ninja Hero Gaiden, chances are players of your game might want to play my game too. So I would contact an advertising company like Google, Facebook, Unity, or Ironsource to get advertising.
The key is the Business Model. Do I make my money from advertising or from in game purchases?
If it’s from advertising, the goal is simple, make you play long enough to see more ads than I paid for.
More likely thought, it’s to get you to come and play the game and spend money.
One user out of 100 coming and spending $1 will net me 10x what I spend. Worth it.
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