Mobile gaming has a unique dynamic: players are deeply engaged, but also deeply protective of that engagement. The formats that work best are ones that either fit naturally into gameplay or make the interruption worth tolerating.

1. Rewarded Video Ads

The clear winner for mobile gaming.

Players opt in to watch a 15-30 second video in exchange for in-game currency, extra lives, or power-ups. The opt-in nature is everything here: completion rates regularly hit 80-90%, and players who engage with rewarded ads tend to have higher LTV than non-engagers.

Why it works: The value exchange is explicit and player-controlled. No one feels ambushed.

How to place it: Trigger the offer at natural friction points: out of lives, out of coins, stuck on a level. The offer should feel like a lifeline, not an interruption.

2. Interstitial Ads

High CPM, but placement is everything.

Full-screen ads shown between game levels or sessions. They perform well for publishers because of their size and visibility, but they tank retention if shown too aggressively.

Why it works (when done right): Natural break points in gameplay make full-screen ads feel less intrusive.

How to place it: Stick to level transitions, loading screens, or after a game-over screen. Cap frequency hard, 1 every 2-3 minutes at most. Never interrupt mid-gameplay.

3. Playable Ads (as a monetization format for DSP-side, relevant for publishers understanding their inventory)

More relevant to the advertiser side, but publishers should know these exist because they attract premium advertiser spend. Playable ads let users try a mini-version of another game before downloading.

Why it matters for publishers: Advertisers pay more for inventory that runs playables because engagement and conversion rates are high. If your mediation stack supports it, prioritizing playable-friendly placements can lift eCPM.

4. Banner Ads

Low disruption, low revenue.

Banners sit at the top or bottom of the screen during gameplay. They rarely perform well in gaming specifically because players learn to tune them out (banner blindness is real), and they can interfere with touch controls.

When they make sense: Casual or idle games where the main UI isn’t touch-intensive. Hyper-casual titles sometimes use them effectively. For mid-core or action games, banners are largely a waste of screen real estate.

eCPM reality: Significantly lower than rewarded or interstitials, usually by a factor of 5-10x.

5. Offerwall

Underused, but strong for certain game types.

Players complete advertiser tasks (install an app, reach a level, sign up for something) in exchange for large in-game rewards. It’s basically rewarded video on a larger scale.

Why it works: High intent from players, and advertisers pay on a CPA basis, so eCPM can be very strong.

How to place it: Works best in games with a meaningful in-game economy: RPGs, strategy games, simulation games. Less relevant for hyper-casual titles with no real economy.

Also check: Best offerwall ad networks for publishers

Format vs. Game Genre Quick Reference

Game Genre	Top Formats
Hyper-casual	Interstitial + Rewarded Video
Mid-core / RPG	Rewarded Video + Offerwall
Puzzle / Casual	Rewarded Video + Interstitial
Idle / Incremental	Rewarded Video + Banner + Offerwall
Action / Real-time	Rewarded Video only (careful with interstitials)

The eCPM Stack, Roughly

Rewarded Video > Offerwall > Interstitial > Playable > Banner

The key variable that shifts this is fill rate: a format with slightly lower CPM but high fill can outperform a high-CPM format with low demand.

The publishers who get this right treat ad formats as part of the game design, not something bolted on after. When the reward feels earned and the break feels natural, retention and revenue move together instead of against each other.

UndrAds works with game and app publishers to help them monetize their games better using AI agents. Learn more by talking to us.

Best Ad Formats for Mobile Gaming Apps

Rashmita Behera