In-game ads in hypercausal runners: Increasing revenue without sacrificing other metrics

• Azur Games used hypercausal runner game Taxi Run to experiment with a new method of monetising in-game ads
• This resulted in a 5% increase in overall revenue and up to a 20% increase in the US without negatively impacting the game's metrics or gameplay

Understanding how to best monetise your game can be crucial for a title's financial success, but with so many strategies available, knowing how best to apply them can be a challenge.

In this guest post, Azur Games producer Milana Gelmanova shares how the hypercasual runner game Taxi Run was able to boost its revenue through a new monetisation method using in-game ads and placing banners within its levels.

Gelmanova details how the experiment worked and what results it gained, as well as offering tips on how to incorporate this method into your own game.

In the summer of 2023, we experimented with a new method of monetising in-game ads across several projects. We carefully placed advertising banners throughout the levels, with some banners being clickable and others functioning like traditional billboards.

For the hypercasual runner game Taxi Run, this approach resulted in a 5% increase in overall revenue and up to a 20% increase in the US, all without negatively impacting other metrics or gameplay.

Additionally, we discovered that integrating banners organically into level design can enhance the visual appeal, making the game more vibrant. Today, we're considering incorporating in-game ads into other genres, not just hypercasual runners.

Here's how we systematically explored optimal formats and locations for unobtrusive product placement in the game.

Experiments and initial results

Last summer, we began testing this hypothesis on several small-scale projects. We carefully added billboards to the level design, but the initial results were underwhelming. The metrics remained the same due to the small player base, resulting in limited data for analysis.

We then tried in-game ads in Taxi Run, a project with significant growth potential, which meant we needed to tread lightly. We started cautiously with a few banners, but even then, it became clear that the idea worked. Monetisation metrics began to go up, and so did the number of banners in the next iteration.

In addition to the number of placements, we experimented with different sizes, formats, and locations of the ads. There’s a list of our best practices at the end of this article. For example, we tested banners hanging over the road and temporarily obstructing the player’s view and long horizontal billboards along the route. 

This meticulous approach throughout the year led to positive results:

• A 5% increase in worldwide revenue without impacting other metrics

• A 20% increase in revenue in the US

Now, in Taxi Run, revenue from in-game ads exceeds that from some networks in mediation.

In our A/B tests, some advertising banners in Taxi Run were made clickable, while others acted as traditional roadside ads. The effectiveness varied based on the advertisers' goals, with some prioritising clicks and others focusing on visibility and repetition, akin to TV ads.

Further audience analysis showed that the most responsive segment to in-game ads was the 30 to 45 age group. 

Encouraged by the results Taxi Run has yielded, we began to introduce in-game ads to other projects with similar gameplay, such as Jelly Run 2048. Although Jelly Run's level design is more abstract and less detailed, the visual style surprisingly increased interest in banners, enhancing monetisation and making the game design more diverse.

Suitable genres

While many things are yet to be tested, our initial success with in-game ads has been with hypercasual runners, making this genre a recommended starting point. 

We're currently testing in-game ads in about a dozen various projects, with the best results still seen in runners.

We hypothesise that in-game ads could perform well in dynamic games with a constantly moving camera and detailed maps. We’re working on a way to smoothly integrate this feature in other genres. However, it’s crucial to avoid alienating the existing loyal audience.

Hints and tips

Through extensive testing, we've developed some best practices for placing advertising banners in a level:

1. On the freeway, place ads on the sides. And in urban settings, use billboards and banners where they naturally occur.

2. Insert ads into the background elements that don't obstruct the foreground view, such as buildings.

3. Avoid ads that block the player's view or affect gameplay, such as at intersections.

4. The more ads that fit the environment the better the impact on monetisation. Distribute ads evenly throughout the level rather than concentrating them in one area. Start with minimal placements and increase as metrics improve.

5. Ad formats should be experimented with to find what works best. This could include video screens, road banners, or static images. There’s no universal approach and each project may yield different results, so continuous experimentation is necessary.

In Taxi Run, almost square banners (300x250 pixels) and classic 16:9 videos performed best.

In Jelly Run, wide banners along the track were most effective, with 300x250 banners being a close second. Banners perform better than videos in Jelly Run, while videos outperform banners in Taxi Run.

Moving forward, we will continue experimenting with in-game ad formats across different genres.

Edited by Paige Cook