How to Choose the Right Ad Format for your Mobile Game

Advertising is one of the most important revenue drivers for mobile games, especially free-to-play titles. But monetisation should never come at the expense of the user experience. Choosing the right ad format for mobile games is all about striking a balance—between profitability and playability, between engagement and interruption.

There’s no one-size-fits-all solution. What works for a hyper-casual endless runner may backfire in a strategy game. The key is understanding your game’s structure, session patterns, and player psychology, then aligning that with an ad format that fits naturally into the flow.

This blog will walk you through every major ad format used in mobile gaming, their pros and cons, ideal use cases, and key decision-making factors. Whether you’re a solo indie developer or a mobile game publisher, this guide will help you choose ad formats that enhance—not disrupt—your game.

Why Does Ad Format Selection Matter?

Ad format is not just a technical choice. It influences three crucial pillars of your game's success:

User Retention

If an ad format frustrates users, they’ll exit the game and not come back. A format that feels fair or even beneficial (like rewarded ads) tends to increase session length and return rates.

Monetisation Efficiency

Not all ad formats generate equal revenue. Rewarded videos and interstitials usually offer higher eCPMs, but they need to be used correctly. A well-placed rewarded video can drive 10x the revenue of a poorly placed banner ad.

User Experience

If the ad experience feels forced or repetitive, it creates friction. Smoothly integrated ads that match gameplay context tend to keep players happy—and happy players mean better lifetime value (LTV).

Detailed Overview of Mobile Game Ad Formats

Let’s look at the most commonly used ad formats in mobile games, how they work, their benefits, drawbacks, and when to use them.

1. Rewarded Video Ads

What They Are:

These are 15 to 30-second video ads that users can voluntarily choose to watch in exchange for in-game rewards. For example, watching a video to gain 100 coins, an extra life, or unlock a chest.

Why They Work:

• Voluntary Participation: Players choose to watch, which eliminates feelings of intrusion.

• Clear Value Exchange: Players understand the benefit—watch an ad, get a reward.

• High Completion Rate: Since the reward depends on finishing the ad, most users watch till the end.

• Effective in Free-to-Play Games: Helps monetise users who are unlikely to make purchases.

Best Use Cases:

• Games with in-game currencies, lives, or time gates.

• Idle, hyper-casual, and mid-core games.

• When you want to support monetisation without pushing in-app purchases too early.

Common Examples:

• “Watch an ad to revive.”

• “Watch to open a rare loot crate.”

• “Double your coins by watching a short video.”

Best Practices:

• Always give users the option—never force rewarded ads.

• Keep the reward meaningful but balanced so it doesn’t cannibalise in-app purchases.

• Place the offer at natural pauses (after level completion, game over, etc.).

• Ensure ad frequency limits so users don’t feel overwhelmed.

2. Interstitial Ads

What They Are:

Full-screen static or video ads that appear at transition points in the game—like between levels or after completing a session. Unlike rewarded videos, users don’t choose to watch them.

Why They Work:

• High Visibility: Being full-screen, they capture attention.

• High eCPMs: Advertisers pay more for guaranteed views.

• Good for Games with Breaks: Games with clear start-stop mechanics suit these well.

Drawbacks:

• Can Be Interruptive: If not timed correctly, they break the gameplay flow.

• User Churn Risk: Repeated or poorly placed interstitials can drive players away.

Best Use Cases:

• Puzzle, word, and arcade games with short levels or defined rounds.

• For players who don’t make purchases, it’s a way to generate revenue from engagement.

Best Practices:

• Show only at natural pauses—never in the middle of gameplay.

• Limit frequency: once every 2–3 levels is a reasonable baseline.

• Use ad mediation to test which provider delivers the best fill rates and eCPMs.

3. Banner Ads

What They Are:

Small horizontal ads placed at the top or bottom of the screen. They typically stay visible throughout gameplay without interfering with user interaction.

Why They Work:

• Non-Intrusive: Players can continue gameplay without disruption.

• Constant Exposure: Brings in small, steady income over time.

• Simple Integration: Easy to implement and manage technically.

Drawbacks:

• Low Engagement: Most users ignore banners (also known as banner blindness).

• Low Revenue: Lower eCPM compared to video or interstitials.

• Limited for Fast-Paced Games: Can distract or clutter the UI in action games.

Best Use Cases:

• Games with longer sessions and a slower pace—like Sudoku, idle games, or card games.

• When you want to monetise playtime, not user clicks.

Best Practices:

• Don’t place near interactive buttons to avoid accidental clicks.

• A/B test banner positioning (top vs. bottom) to see what performs better.

• Monitor ad refresh rates to balance revenue and annoyance.

4. Playable Ads

What They Are:

Playable ads give users a brief interactive experience with another game—usually 15 to 30 seconds. While they’re primarily used for user acquisition, they can also be shown inside games to generate revenue.

Why They Work:

• Interactive Nature: Engages players more than passive watching.

• Higher Conversion Rates: Since users try before clicking, it results in better quality installs for advertisers.

Drawbacks:

• More Complex to Load: Requires more memory and processing power than static or video ads.

• Not Suitable for All Audiences: Might distract players who aren’t in discovery mode.

Best Use Cases:

• In games with engaged audiences and high daily sessions.

• For cross-promotion if you have multiple games.

Best Practices:

• Make sure load times are minimal—long waits can lead to abandonment.

• Don’t overuse—1–2 per session is more than enough.

• Test performance against rewarded or interstitials to see ROI.

5. Native Ads

What They Are:

Native ads are integrated seamlessly into the game's environment, mimicking the design and style of in-game elements. They can appear as signs in a racing game, product placements, or sponsor branding within menus.

Why They Work:

• No Disruption: Feels like a part of the game’s design.

• Brand-Friendly: Great for long-term brand partnerships.

• Better User Perception: Seen as content rather than ads.

Drawbacks:

• Requires Design Work: Needs careful implementation to look native.

• Lower Revenue Per Impression: Brands may pay more for sponsorships, but not every campaign offers scale.

Best Use Cases:

• Simulation games, city builders, racing, or any genre with realistic UI design.

• When partnering with specific brands or running long-term sponsorships.

Best Practices:

• Ensure native ads match the game’s art and interface.

• Use them for premium branding rather than mass monetisation.

• Combine with rewarded or interstitials for better overall revenue.

Matching Ad Formats to Game Types

Think of ad format not just in terms of revenue but also in terms of player psychology. Players are more receptive when the ad experience feels fair and optional.

How to Choose the Right Ad Format: Key Decision Factors

When selecting the best ad format for your mobile game, ask the following:

1. What is your game’s structure?

Games with frequent level transitions can use interstitials. Games with long play sessions work better with banners or rewarded ads.

2. Do you have in-game resources or upgrades?

If yes, rewarded video ads are ideal for offering extra content in exchange for watch time.

3. What’s your monetisation strategy?

If most players don’t spend money, ads need to bring in revenue without pushing them away. This calls for a non-intrusive format like rewarded or native ads.

4. What’s your audience like?

Casual gamers may be more tolerant of banners. Mid-core and hardcore gamers expect less disruption and may respond better to native or playable ads.

5. How long are your user sessions?

Shorter sessions = interstitials work well. Longer sessions = banners and rewarded ads make more sense.