It’s Game Over for Ad Fatigue with AI
Adam Smart, Director of Product—gaming at AppsFlyer, predicts that most gaming ads will be created using AI within a year. The technology will help with ad performance stagnation due to ad fatigue.
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“AI is already quietly revolutionising user acquisition (UA) with generative AI tools, and this impact is set to grow significantly. Recognising behavioural triggers, like specific themes or calls to action, enhances ad relevance and appeal. In 2024, marketers increasingly utilise AI to streamline this process,” says Adam Smart, Director of Product – Gaming at Appsflyer.
Appsflyer’s AI-driven solution, Creative Optimisation, identifies patterns, trends, and features that drive optimal audience engagement. This enables marketers to capture maximum value from their ad spend while enhancing the effectiveness of their creative campaigns.
“Leveraging these insights allows you to develop tools and strategies that align with your audience’s preferences, leading to higher engagement and more effective advertising campaigns,” he adds.
Adam brings extensive expertise in user acquisition, user acquisition fraud, and marketing retention platforms, including messenger bots, email, and push notifications. With a strong background in app store optimisation, user management, and player segmentation, Adam excels in driving strategic initiatives to enhance user engagement and retention.
Talking to Martechvibe, Adam presents the current situation of ad fatigue in the gaming industry and how it stagnates ad performance. He also discusses consumer behaviour insights that are valuable for developing tools to optimise ad engagement.
Excerpts from the interview:
How does ad fatigue specifically affect the gaming app audience?
Ad fatigue significantly impacts the gaming app audience by diminishing the effectiveness of repeated advertisements. When users are repeatedly shown the same ad, they become less likely to engage with it. This phenomenon is particularly problematic in the gaming sector where user engagement is crucial.
Initially, there was a belief that as long as the brand was visible, it didn’t matter if click-through rates (CTR) declined. However, this assumption has been debunked, especially for networks operating on CTR or install models. These models rely on sophisticated algorithms to predict the likelihood of an ad being clicked, and ad fatigue disrupts this process.
Current data clearly shows ad performance stagnation due to ad fatigue. By analysing this data, we can observe the plateau in CTR and the positive impact of refreshing ad creatives. This boosts CTR and improves the cost per install (CPI), demonstrating the importance of regularly updating ad content to maintain user engagement and advertising efficiency.
What consumer behaviour insights are most valuable for developing tools to optimise ad engagement?
Understanding your target demographic and their preferences is crucial for optimising ad engagement. Key insights include demographic details like age, gender, location, and interests, which help create resonant content. Analysing engagement patterns reveals optimal timing and frequency for ad placements while identifying preferred content types, such as videos or images, guiding the format and style of ads.
It’s important to monitor the user feedback and sentiment to highlight effective elements and those needing adjustment.
Recognising behavioural triggers, like specific themes or calls to action, enhances ad relevance and appeal. In 2024, marketers increasingly utilise Artificial Intelligence (AI) to streamline this process. Our AI-driven solution, Creative Optimisation, identifies patterns, trends, and features that drive optimal audience engagement. This enables marketers to capture the most value from their ad spend while enhancing the effectiveness of their creative content and campaigns.
Leveraging these insights allows you to develop tools and strategies that align with your audience’s preferences, leading to higher engagement and more effective advertising campaigns.
Also Read: How Can Marketers Combat Ad Fatigue?
What tools and technologies would you recommend for a gaming app that's looking to increase ROAS?
Increasing ROAS (Return on Ad Spend) is complex because it involves multiple factors. One crucial area is the efficiency of user acquisition (UA). By maximising click-through rates (CTR) on ads, you can lower cost per install (CPI), thus reducing acquisition costs. However, retention is equally important. Improving user retention typically leads to increased revenue, thereby boosting ROAS.
To enhance ROAS, it’s vital to avoid focusing solely on one aspect of the business. While UA metrics like CTR and CPI are important, the entire studio should strive for continuous improvement across all areas. Collaboration and comprehensive strategies are key to achieving sustainable growth in ROAS.
How do you see the potential of AI changing the advertising landscape in the gaming industry? Would you have any predictions?
AI is already quietly revolutionising user acquisition (UA) with generative AI tools, and this impact is set to grow significantly. As mobile gaming ads increasingly shift to video as the primary format, we can expect a surge in AI adoption over the next year. I predict most gaming ads will be created using AI within a year.
