77% of Players Convert to In-App Purchases within First Two Weeks, Unity Report Finds

A recent report from Unity reveals that 77% of players who make in-app purchases (IAP) do so within the first two weeks of downloading a mobile game. This data suggests that players who have not made an in-game purchase during this timeframe could be targeted for alternative monetization methods, such as in-game advertising.

Key Findings from the Report

• The sweet spot for converting first-time buyers is a price range between $1.01 and $5.00.
• In-game currency, sales events, and bundles account for 56% of all iOS revenue and 58% of Android revenue.
• 55% of games saw higher engagement with rewarded ads between levels compared to other ad placements.
• Pop-up ads were found to be the least engaging form of rewarded advertising.

According to the report, additional rewards, in-game currency, and gacha mechanics were the top rewards in terms of engagement, accounting for a combined 47%. Additional rewards alone accounted for almost 20% of all engagement.

The Importance of a Varied Approach

The report emphasizes the significance of implementing diverse ad monetization approaches, such as offerwalls. Offerwalls present players with a list of offers and challenges to complete in exchange for in-game rewards. By adopting a varied strategy, developers can complement their core IAP strategy and increase player retention.

In games that utilize offerwalls, they contribute an average of 33% to total ad revenue. Some offerwalls even offer payouts as high as $68 for users who convert on multi-reward offers. The report highlights how offerwalls can build resilient and efficient game economies by providing more options for players with different engagement levels and attracting high-quality users who are willing to pay more. Moreover, offerwalls expand the pool of potential advertisers, allowing game studios to tap into lucrative brands.

Racing and card games demonstrate particular receptiveness to offerwalls, with 45% and 42% of ad revenue coming from this advertising method, respectively.

To maximize offerwall revenue, Unity suggests making the entry point visible to users, keeping the offers fresh, and maintaining consistent branding with the app. Additionally, only Android supports multi-reward offers, making it a more lucrative market for offerwalls.

Maximizing In-App Revenue

The report also explores methods for game developers to maximize in-app revenue. According to Unity’s survey, hypercasual games offer the best conversion rates for advertising, with the genre itself achieving a conversion rate of 4.68%. Racing games (4.13%) and action games (3.87%) follow closely behind.

Targeting alternative countries, specifically Tier 2 countries like Australia, Japan, and South Korea, can increase the likelihood of success. Understanding market preferences can help game makers optimize their return on investment. For example, the click-through rate (CTR) for sports game ads in Japan is 13% higher than the average for Tier 2 countries, while the CTR for racing games is 7% below average. Therefore, it is advisable for developers to consider these market preferences when deciding where to advertise specific genres.

Lastly, custom store pages allow developers to create tailored experiences that align with specific creatives and messaging, resulting in a consistent user experience and improved overall performance. The puzzle genre leads in terms of utilizing custom store pages, accounting for over 40% of games that employ this method. Casino and lifestyle games also make up a significant portion, each representing over 10% of the total.

Unity was recognized as one of the top 50 mobile game makers of 2022.