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How do advertisers measure ROI in game advertising?
smithjones Member
10 posts
10 topics
3 months ago

Advertisers measure ROI (Return on Investment) in game advertising by tracking a combination of performance metrics, engagement data, and business outcomes. Here are the key ways they evaluate effectiveness:

  • Impressions and Reach: Advertisers track how many players see their in-game ads. High impression counts indicate strong visibility, which is crucial for brand awareness campaigns.

  • Click-Through Rate (CTR): If the ad is interactive (especially in mobile games), CTR helps measure how many players clicked on the ad after seeing it. This shows direct engagement with the content.

  • Conversion Tracking: Advertisers use tracking pixels or unique URLs to measure how many users performed a desired action (e.g., app installs, purchases, sign-ups) after viewing the ad.

  • Engagement Metrics: Time spent interacting with the ad, completion rate of rewarded videos, or participation in branded challenges are all indicators of how engaging the ad content is.

  • Brand Lift Studies: Surveys conducted before and after exposure to in-game ads help assess increases in brand awareness, favorability, and purchase intent.

  • Cost Metrics (e.g., CPM, CPC, CPA): Advertisers evaluate how much they paid per impression, click, or action and compare it with revenue generated. Lower costs with higher returns mean better ROI.

  • Attribution Models: Advanced attribution tools help track a gamer’s journey from the in-game ad to the final conversion point, allowing for accurate ROI calculations.

  • Lifetime Value (LTV): For games that drive app installs or purchases, advertisers assess the lifetime value of each acquired user to determine long-term ROI.

By combining these data points, advertisers gain a clear understanding of how their in-game ad campaigns contribute to their business goals and whether the investment is profitable.