Game Makers Are Doubling Down on Hybrid Monetization – Here’s Why

Key takeaways from our recent Gamesforum “Mobilize and Monetize” podcast discussing how in-game is driving monetization evolution.

The Shift Towards Hybrid Monetization

According to AdInMo and Gamesforum’s report, 72% of game developers were planning to advance a hybrid monetization strategy; a shift driven by the decline of hyper-casual games and increasing user acquisition and development costs.

So how’s it going? 

Publishers are moving beyond the traditional model where only 1–2% of players make in-app purchases (IAPs).  Those leaning in to hybrid aim to convert 40–60% of “players” into “payers” using diverse monetization strategies such as downloadable content (DLC), subscriptions, and in-app ads (IAAs). The key to success is aligning game design, development, and monetization teams to balance product, presentation, and promotion.

Why Hybrid Monetization is a Game Changer

AdInMo recognized the potential of hybrid monetization early on as a well-balanced approach to IAA and IAP ensures that all players, whether they pay or not, are engaged and contributing to the game’s success. This aligns with developers’ goals of maximizing retention and session length while ensuring a seamless experience for players.

“The goal is to increase the overall revenue pot rather than just shifting from one monetization method to another”.

Driving Revenue and Engagement with In-Game Ads

In-game ads can enhance player experiences rather than detract from them. AdInMo measures player interactions every 200 milliseconds to generate predictive audience insights using AI and machine learning. This allows developers to:

• Offer premium ads at higher CPMs by targeting relevant audiences.
• Utilize AdInMo’s CrossPromo feature to retain players within a publisher’s portfolio, reducing UA costs.
• Implement IAPBoost™, which presents targeted in-game purchase offers at the right moment (e.g., offering a powerful weapon before a boss battle), increasing conversion rates.

Success Stories and Measurable Impact

Developers who have adopted AdInMo’s hybrid monetization solutions have seen impressive results:

• NOXGames doubled their monetization revenue through a combination of in-game ads and IAPBoost.
• NimbleBit saw a 10% increase in IAP revenue after integrating AdInMo.
• A typical CrossPromo campaign gives a developer a 14% increase in click-to-install rates.
• In some cases, D7 retention improved by 4-5%, demonstrating that immersive ads can enhance player engagement.

The Future of Monetization: Beyond Clicks and CPMs

Traditional monetization metrics like CPM and fill rate don’t fully capture the value of hybrid monetization. Instead, developers should focus on:

• Viewability and dwell time to measure the impact of in-game placements.
• Behavioral and intent data to refine ad targeting and improve engagement.
• Overall LTV (lifetime value) growth across all monetization methods.

Hybrid monetization isn’t just about increasing ad revenue—it’s about finding a balance that enhances player experiences while driving sustainable growth. 

If you want to learn more about how AdInMo can help optimize your monetization strategy, get in touch with our team today. 

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