How much should I budget for Game Ads?

smithjones

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Dec 30, 2024
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Determining a game ads budget is a complex process that depends on numerous variables. There's no one-size-fits-all answer, but here's a breakdown of factors to consider:



Key Factors Influencing Your Budget:
  • Game Type and Genre:
    • Casual games might require a lower budget compared to complex RPGs or AAA titles.
    • Different genres have varying Cost-Per-Install (CPI) rates.
  • Target Audience:
    • Reaching a niche audience might be more expensive than targeting a broad demographic.
    • Geographic location also plays a role in ad costs.
  • Platform:
    • Mobile, PC, and console platforms have different advertising costs.
    • Within mobile, iOS and Android can have varying CPIs.
  • Marketing Goals:
    • Are you aiming for mass user acquisition, or a smaller, highly engaged player base?
    • Brand awareness campaigns will have different budgets than direct response campaigns.
  • Ad Formats:
    • Video ads, playable ads, and influencer marketing have different costs.
    • Rewarded video ads might have a different cost structure than interstitial ads.
  • Competition:
    • Highly competitive genres will require a larger ad budget to stand out.
  • Life Cycle of the Game:
    • Pre-launch, launch, and post-launch marketing will have different budget allocations.
Budgeting Strategies:
  • Start Small and Test:
    • Begin with a smaller budget to test different ad creatives and targeting options.
    • Analyze the results and scale up your budget based on performance.
  • Focus on Key Metrics:
    • Track KPIs like CPI, retention rate, and lifetime value (LTV) of acquired users.
    • Adjust your budget based on the ROI of your campaigns.
  • Allocate Budget to Different Channels:
    • Diversify your ad spend across various platforms (AdMob, Unity Ads, social media).
    • Allocate budget based on the performance of each channel.
  • Consider the LTV:
    • If your game has strong monetization, you can afford a higher CPI.
  • Balance Organic and Paid:
    • Don't rely solely on paid ads. Invest in organic marketing strategies like community building and social media engagement.
General Considerations:
  • It's crucial to understand that mobile game advertising is an ongoing process.
  • You'll need to continuously monitor and optimize your campaigns to maximize your ROI.
  • It is very important to have very good analytics, so you can track where your spending is going, and what returns you are getting.
In essence, your game ad budget should be a flexible and data-driven allocation that adapts to the performance of your campaigns and the evolving market landscape.