Ad monetization strategies are evolving rapidly in the mobile gaming industry, driven by the increasing adoption of artificial intelligence (AI) and blockchain technology. In this masterclass, we'll explore how real-time rewards and blockchain integration can revolutionize player engagement and retention.

As CSO at ZBD, Ben Cousens has been at the forefront of this innovation, leveraging the Bitcoin Lightning Network to create seamless reward systems that enhance player experience. We caught up with Ben to discuss his journey in the gaming industry, innovative ad monetization strategies, and the future of mobile game monetization.

A Visionary Approach

Ben's interest in blockchain technology began during his time at Lakestar, where he invested in innovative companies like 1047 Games and Treesplease Games. His fascination with the Bitcoin Lightning Network's potential to revolutionize the gaming industry led him to join ZBD's leadership team, overseeing business strategy and partnership operations.

Effective Ad Formats

When it comes to ad formats that don't disrupt gameplay, Ben emphasizes the importance of a fair value exchange. Rewarded video ads offer a great opportunity for users to opt-in and receive instant rewards. Developers on ZBD's platform use various ad strategies, adding an extra layer of reward based on gameplay engagement rather than ad interactions.

Native In-Play Ads

An exception to this is native in-play ads, which are less likely to negatively impact gameplay. ZBD integrated with AdInMo last year, offering Bitcoin rewards for gamers who simply see in-play ads as they play. The in-play market has significant room for growth, and integrating AI-powered ad targeting can further enhance user engagement.

Real-Time Rewards

Integrating Bitcoin and blockchain technology enables real-time, micro-payment capabilities (as low as $0.0005), facilitating instant tangible rewards for players. ZBD's platform facilitates seamless, scalable rewards, incentivizing ad interactions from users. This approach significantly improves player retention and engagement, leading to increased ad revenue.

Mitigating Risks

Bitcoin volatility doesn't impact ad monetization directly. However, to mitigate potential risks, ZBD prices rewards in USD amounts, allowing developers to set the amount they want to give out while we pay users in Bitcoin. This approach ensures that even if the Bitcoin price fluctuates, the USD equivalent remains stable.

Boosted Ad Engagement

Rewarding players with Bitcoin for watching ads significantly boosts ad engagement metrics. Data from ZBD's partners consistently shows higher ad view rates and more ad views per session once games integrate rewards. For example, PlayEmber saw a 159% increase in ads per session, demonstrating the positive impact of real-time rewards on player behavior.

Balancing Retention and Revenue

Rewarded play and ad monetization are often considered opposing forces. However, by balancing these two approaches, game makers can maximize ad revenue without negatively impacting retention and player engagement.

Best Practices for Developers

Ben recommends implementing player rewards as a simple yet effective way to boost ad revenue and retention. Testing different strategies is crucial to finding the right balance for each game and player base. ZBD shares guidelines and best practices with its clients, but every game is unique, requiring experimentation to find the sweet spot.

Future Trends in Ad Monetization

Ben foresees a few challenges in ad monetization for mobile games over the next few years. With dropping eCPMs on one side and rising CPIs on the other, game developers may try to compensate by increasing ad frequency. However, this approach is likely to backfire, as users will become increasingly frustrated with invasive ads.

By leveraging AI-powered real-time rewards and blockchain technology, mobile gaming can unlock new levels of player engagement and retention. As the industry continues to evolve, it's essential for game developers to stay ahead of the curve by adopting innovative ad monetization strategies that prioritize user experience.