The State of In-Game Advertising

My name is Joe Gruender and I head up the advertising efforts at Mochi Media. I have led the Mochi ads team for nearly 4 years. My goal of this post is to update you on Mochi’s ads business – where we are today, ad industry market forces in play, and what our plans are for the immediate future. I have also included an infographic at the end of my post the helps visually illustrate my points here.

Where we are today

Over the past three years, we have been working hard to improve in-game ads monetization for not only US and UK based audiences, but for other global markets as well. During that time we’ve developed partnerships in strategic regions, ranging from Canada to Western Europe to China, to better monetize our Mochi Ads inventory (and therefore, developer revenues in these markets). The net result is that we’ve been able to grow our global net eCPM by 177% since January 2009. But we still have more that we want to do…

Where the market is going

Online Video is HOT! According to a recent study by eMarketer, online advertisers will be increasing their budgets for online video ads 400% by 2015. Currently, online video takes up 63% of advertisers’ online budgets. Online video is also eating into more traditional TV ad budgets. The percentage of online, as a percentage of both TV and online, is expected to increase 46% by 2015- in other words, the bites online video is taking from TV will keep getting bigger. Why am I mentioning all of this? Because Mochi Media already has a premium ad product that shows video ads, so we are in a good spot.

The online ads market has been growing in size and evolving in complexity. New industry standards, such as VAST (Video Ad Serving Template) and VPAID (Video Player Ad Interface Definition), are helping bring uniformity and greater flexibility to the marketplace. Those who cannot support these new standards are not being considered as highly by advertisers & marketers for their future ad buys.

Where we’re going

In order to stay competitive and to continue to increase revenue for developers and publishers, we’ve worked to adopt these new technologies (VAST and VPAID). These standards help us grab more deals at better rates, because it unlocks more inventory and gives advertisers more flexibility as well as better reporting. We’re also pursuing partnerships with market leaders in strategic regions to better monetize global traffic. In fact, we have just created a strategic partnership to focus on selling Mochi Ads in Brazil! Other markets of interest for us include the Far East and Eastern Europe.
As we continue on in 2012, Mochi is redoubling its efforts to get back to our ‘core’ business: ad-serving and distribution. We’re confident that both developers and partners will benefit from this renewed focus from Mochi Media.

 

Thank you for reading my post. Please feel free to comment if you have any questions or suggestions.

- Joe

 

 

  • http://profile.yahoo.com/DJIVMTPAJ2OJ5XDFXK2FJ6NFLY giovanni

    Mochi ads in Brazil great news b^__^d.  Doubling down on video ads, not so hot. :(

  • http://profile.yahoo.com/YQOTK6HK7XCERZEHFHH7R4OW5M Bankuuu

    Relaxing and nice post
    Love you Joe

  • http://www.games143.com/ Free Online Games

    Great.. In mochi all are growing, advertisers , publishers and developers

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