

Summarized here by Johannes Heinze of AppLovin: Instead of having to awkwardly cram in In-App Purchases into a casual title, developers can monetize off their active playerbase even if they don’t have a meaningful economy with anything to sell. Video Ads have opened up these categories because it monetizes on 100% of your user base. The casual segment has been dominated for years by the Match 3 Saga model with other casual categories struggling for meaningful revenue (ex. The rise of Video-Ad driven monetization has heralded in a new era within mobile game design. Source: SOOMLA Blog (an excellent source of info on Video Advertising!) Designing for video ads has allowed for innovation in the maturing mobile space that is much needed.
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No longer seen as superficial revenue on top of IAP revenue, designing for video ad revenue has become the dominant revenue growth area for free to play companies.

In the last couple years, Video Ads have reached a tipping point. Starting with companies like Ketchapp and Futureplay, it became abundantly clear that games can drive meaningful revenue from video advertisements, and advertisers can find a captive audience in mobile players. Rewarded Video Ads have been a constant, dominating trend in free to play over the last few years.
