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Category: Business

Can Netflix, SONY and Microsoft integrate ad networks in the future?

Apple and Google have made marketers’ lives more difficult. Today, it is harder for a game to reach the right audience only through ad campaigns on the major networks that offer this service.

Acquiring new players is more expensive and often ad campaings bring people with different motivations to play.

This week’s news is that Netflix is ​​considering introducing ads to its platform. SONY and Microsoft, which are activating their subscription services, are also seriously considering introducing ads to their games.

New ad networks will be created. Someone calls them “content fortresses”. If these companies play their cards right, companies will certainly be pushed to invest in acquisitions directly on these platforms.

The more you know about people’s actions in other products, the easier it is to reach them. The ads that appear to these people will be more meaningful to them. People who enter a game are likely to be more drawn to the core features and mechanics.

Netflix, SONY and Microsoft can score a big win if they play their cards well. As designers, ads are an interesting tool to get better monetization numbers simply improving the reward ratios.

Best companies know when it’s time to kill a game

It is dangerous to scale a game with questionable product/market fit because of The Traction Treadmill. Sometimes players show up in your game, and a small percentage of them retains.

You may think it’s time to scale. Just add players, instead of improving your game. And this works, for a time. You can grow fast just by doubling ad spend. Or tripling ad spend.

You have 10.000 players, you buy 20.000 more.

Then a large percentage of those players go away and never returns back. You have to replace the percentage you lost plus buy more players to grow. You lose a percentage of players fast, and you have the budget and funding to replace them- but then can’t keep grow on top!

You may want to optimize your campaigns and spend less per Player. But inevitably the problem will reappear at some point. Team’s morale will do down as options become scarce. Increase retention becomes too slow and complex.

That is why is extremely important to polish your product but also understand when you cannot fix it. Also the best companies in the world know when to kill projects.