Industry Trends
4 min read
By
Phil Mohr
Andrew Maher
CEO and Co-founder
ML engineering
Mar 12, 2025
The Growing Challenge in Game Monetization
Game studios today increasingly rely on “blended” or “hybrid” ROAS strategies. This means Ad networks, like Google Ads or Applovin, optimize for the sum of IAP and Ad revenue. While these campaign types work well out of the box, a lot of games don’t use their full potential. Blended / hybrid campaigns bring fundamentally different types of users compared to pure IAP or Ad optimised campaigns - and treating them with the same monetization design leaves growth opportunities untapped.
In most games, every player receives the same monetization experience, regardless of whether they’re more inclined to spend via IAPs or engage with ads.
This is a crazy big opportunity cost!
Players who would generate high ad revenue might be stopped too frequently in their progression flow by IAP prompts, reducing their engagement and opportunity to see ads. Meanwhile, potential high-value payers might be overexposed to ads, disrupting their experience and lowering their lifetime value (LTV). In both cases, the game is losing revenue by failing to tailor the experience appropriately.
Optimizing the First 30 Days with Smart Config
To maximize LTV, game developers need a differentiated monetization strategy from Day 1—before missed opportunities compound. The first 30 days are critical for linking in-game monetization with UA efforts, yet too often, UA and game teams work in silos. Metica bridges this gap with Smart Config.
What is Smart Config?
Smart Config is a remote game configuration tool that allows developers to seamlessly integrate Contextual Bandits from Day 1. It ensures that every player experiences the right monetization strategy—whether through ads, IAPs, or a mix—without needing to manually tweak in-game settings.
What Smart Config Does:
Finds the perfect balance between ad intensity and engagement for each player.
Adjusts difficulty dynamically, ensuring the right level of challenge.
Personalizes tutorial pacing, adapting to each player’s learning curve.
Feature progression & unlocks, ensuring retention and engagement.
By integrating Smart Config early, studios can adapt in real time to player behavior—preventing revenue loss and ensuring players are engaged from their very first session.
How Smart Config & Contextual Bandits Adapt in Real Time
The power of Metica’s Smart Config with its underlying Contextual Bandits ML optimization lies in processing multiple data points at scale and adapting the monetization strategy for each player in real time.
Key Contexts In A Bandit That Drive Optimization
UA Campaign Source - Did the player come from an IAP-focused campaign? An ad-heavy UA source? Knowing this from Day 1 can shape early monetization strategies.
Device Type - A high-end device often signals higher spending potential, while low-end devices suggest a preference for ad engagement.
Geographic Region – Spending behavior varies by region, so optimizing ad frequency and IAP pricing per country ensures better monetization outcomes.
Early Gameplay Behavior:
Clicks on ads early? - They’re more ad-friendly - Increase ad exposure.
Skips rewarded ads? - Shift focus to IAP for monetization.
Engages with IAP offers early? - Reduce ads to avoid disrupting spending behavior.
Ad Engagement & Revenue History:
High historical ad revenue? - Keep showing ads.
Low ad revenue? - Prioritize IAP-driven monetization.
By using Smart Config to integrate Contextual Bandits from Day 1, developers ensure that every new player is monetized in the best way possible—right from their first interaction.
Why This Approach Works for Game Studios
For years, game monetization has relied on manual segmentation and one-size-fits-all strategies—which lead to missed opportunities and suboptimal revenue. Metica changes this by:
Automating Monetization Adjustments – No more manual intervention. The system dynamically adjusts ad frequency and IAP offers based on real-time player behavior.
Maximizing Player LTV – By ensuring each player receives the best monetization experience for their behavior, developers increase overall revenue without harming retention.
Scaling Efficiently – Whether a game has 10,000 or 10 million players, SmartConfig and Contextual Bandits adapt instantly, ensuring the right balance of ads and IAPs at any scale.
Reducing Churn & Increasing Retention – No more frustrating experiences where high-value payers see too many ads or ad-focused players are bombarded with IAPs they’ll never buy.
Final Thoughts: Monetization Needs to Be Smarter from Day 1
The best monetization strategies don’t just maximize revenue—they create a better player experience. Players should never feel like they’re being pushed toward a monetization path that doesn’t fit them.
By dynamically adjusting ad frequency, IAP offers, and in-game incentives from the very first session, Smart Config and Contextual Bandits ensure that every player contributes to LTV in the most effective way possible, and that especially modern campaign formats like blended or hybrid are scaled to maximum potential.
At Metica, we work with game studios to implement AI-driven monetization strategies that make balancing IAPs and ads effortless—starting from Day 1.
Want to optimize your game’s first 30-day funnel and beyond? Let’s talk.
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