How Do IAA Games Make Money? A Beginner’s Guide to Ad Formats and Monetization Platforms

In-app advertising (IAA) games earn money by showing ads to players. For games that don’t rely on in-app purchases, ad monetization is the primary source of revenue. But “ads” come in many forms. The type of ad, how it's integrated into the gameplay, and the platform it runs on—all these factors significantly impact revenue.

Let’s explore the most common ad formats and monetization platforms, so you can better monetize your IAA game.

1. Common Ad Formats in IAA Games

1.1 Rewarded Video Ads

Definition: Players voluntarily watch a short video ad in exchange for in-game rewards like coins, extra lives, or energy.

Pros:

• High user acceptance.

• Strong revenue (higher eCPM).

• Can be built into gameplay flow.

Best for: Casual or hybrid-casual games, new developers looking for easy monetization.

1.2 Interstitial Ads

Definition: Full-screen ads shown between gameplay segments (e.g., level end, screen transitions).

Pros:

• High fill rate.

• Flexible integration.

Watch out:

• Can frustrate users if overused.

• Shouldn’t interrupt core gameplay.

1.3 Banner Ads

Definition: Small, persistent ads placed at the bottom or top of the screen.

Pros:

• Simple to implement.

• Passive income for games with idle/screen-time content.

Cons:

• Lowest eCPM.

• May lead to visual fatigue.

2. Popular Monetization Platforms: AdMob, ironSource, Mintegral

AdMob (by Google)

Highlights:

• Massive global traffic.

• Supports mediation with multiple partners.

• Strong integration with Firebase analytics.

Best for:

• Games targeting the US, Europe, or Japan/Korea.

• Developers with analytic capabilities.

ironSource

Highlights:

• Known for rewarded video quality.

• Emphasizes LTV-driven monetization.

• Offers built-in analytics.

Best for:

• Games with deep engagement or revive mechanics.

Mintegral

Highlights:

• Strong in emerging markets (SEA, MENA, LATAM).

• Stable eCPM across regions.

• Good compatibility with China-based platforms.

Best for:

• Developers targeting price-sensitive markets.

• Games seeking scalable yet affordable traffic.

SolarEngine integrates with AdMob, ironSource, Mintegral, and more to provide full-funnel attribution and monetization analytics for IAA developers.

3. Mediation: Boost Fill Rates and Revenue

Instead of relying on one ad network, developers can use ad mediation platforms to aggregate multiple networks. Mediation tools maximize revenue through real-time bidding and intelligent waterfall strategies.

Common Mediation Tools:

• AdMob Mediation

• ironSource Mediation

• MAX (by AppLovin)

• TradPlus (China-based, highly compatible)

Benefits:

• Higher fill rate.

• Optimized eCPM.

• Reduce risk from single-network dependence.

4. Must-Know Metrics: eCPM, Fill Rate, ARPU

To evaluate monetization performance, track the following metrics:

SolarEngine supports full-stack monetization analytics, helping developers combine ad data with user behavior to increase ARPU and LTV.

Conclusion: Monetization Is a Balancing Act

IAA monetization is about more than just plugging in an ad SDK. It requires thoughtful placement, smart mediation, and data-informed decisions. Find the right mix of formats, platforms, and strategies to scale your revenue—without losing your users.