What You Should Know About Monetizing Hyper-Casual Games

Hyper-casual games have had a massive following since its popularity surged after Voodoo raked in millions of downloads when it offered such format. It is inevitable, then, for brands to eventually find ways to capitalize on the trend. Given how the format has successfully maintained its popularity several years after it first surged, monetizing it is a must. This post will provide you with a guide on what you should know about hyper-casual games and the tools of the trade to help you benefit from it.

What are Hyper-Casual Games?

Before we dive into the nitty-gritty of monetizing hyper-casual games, let us first understand what they are. A hyper-casual game is a mobile gaming application that provides users with instant gameplay. It follows pretty straightforward game mechanics. Players can choose from a variety of simple game formats, such as stacking, falling, turning, swerving, and growing. Its simplicity has attracted many players because onboarding is fuss-free. They can download the app and play instantly. When done right, they can be pretty addictive.

The success of these hyper-casual games depends on their target audience. They do not cater to the hardcore gamers that would spend thousands on becoming successful in a game. Hyper-casual games cater to the mass market looking for a game with easily understandable mechanics, a highly engaging progression model, and a minimalistic interface.

What Makes Hyper Casual Games Popular?

Many are surprised by the fact that these hyper-casual games are not a new game genre. In fact, they have similarities with arcade games that were popular during the 70s. However, they were only sensationalized a few years back. Perhaps one of the critical factors why these games have maintained its popularity is because they have implemented deeper and more meaningful core features. This alone increases its number of daily active users (DAU), with some games having as much as 94,000 DAU.

Which Ad Formats Work for Hyper-Casual Games?

Hyper-casual games do not have highly sophisticated in-app platforms that can allow them to monetize using in-app purchases. As such, the only way to monetize is to run in-game advertisements. The best way to monetize hyper-casual games is by choosing the best ad format that would work and bring in money. Based on our experience, these three ad formats work best:

1. Rewarded Video Ads

Rewarded video ads are hailed as the hottest generator of ad revenue in the gaming market. This ad format provides players in-game rewards for watching ads. For example, a player can only use up 10 energy instead of the usual 15 or 20 energy after watching a 30-second video of an advertisement. The reward they get would allow them to progress quickly through their game – a win-win situation, not only for the advertiser and publisher but also for the player as well.

2. Banner Ads

Some advertisers may not be too willing to use banner ads because of the so-called banner blindness. However, the proper use of mobile banner ads can help rake in ad revenue. A study shows that banner ads are more effective than irrelevant video ads. It is even far more superior than native ads when compared to Android post-installation engagement.

3. Interstitial Ads

When using interstitial ads to monetize, these two main factors should be considered: the ads shown per second and the interstitial type. Developers should also decide if the video will incorporate a skip button and when it will appear on the screen. The success of using interstitial ads also depends on how native it is to the game. When done right, interstitial ads can bring in tons of ad revenue.

With the way things are going now, hyper-casual games would change the landscape of gaming monetization. To stand out from the rest of the pack, developers must get to work on improving and implementing deeper features that would help them attract more advertisers.


For more information about how AlgoriX’s different ad formats can help you monetize your hyper-casual game, contact us.



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Pranav Kataria

Associate Director, Programmatic Strategy

As the Associate Director of Programmatic Strategy, Pranav brings over 8 years of experience in the adtech industry working with Publishers, DSPs, Agencies, and Advertisers from global regions to improve their monetization, performance, and strategies. With great understanding of the mobile market, his expertise lies in analytics, account management, strategy, and ad sales. With this refined skill set, he brings customer-centric mindfulness that enables growth and innovation.

Before joining AlgoriX, his keen business perspective and skills have earned him opportunities to work across different organizations and verticals in the advertising ecosystem; be it improving the processes, sales enablement, and managing client relationships.

Ray Xia

VP, AlgoriX Partner Studio

Ray Xia was a mainstay at Tencent Games, having worked at the company for 13 years. There, he took on various roles including backend developer, application development manager, and game producer. During this time, he actively participated in the development and operation of popular titles such as QQ Pet, QQ Pet Fight, and games involving the Naruto franchise. To date, these games have over 10 million daily active users. Through this rich well of experience he has accumulated covering all aspects of game development and operation, he aims to spearhead more creative endeavors via AlgoriX Studios.

Naomi Li

VP, Research and Development

Naomi Li has a decade’s worth of experience in research and development for the adtech industry. She started her career at Baidu where she was mainly responsible for the Automation Testing of the Baidu Fengchao Ad Search Engine. There, she focused on the fields of overlapping experiment infrastructure, rich media ads rendering, and ad antispam technology. Moreover, as part of Baidu’s International Group, she led the research and development of various monetization and advertising mechanisms for Baidu’s overseas app store, SDK, and AdNetwork. At present, she is responsible for the overall direction of AlgoriX’s R&D efforts, which include product planning, technical architecture design, and talent training.

Frederic Liow

SVP, Revenue Growth & Strategy

A veteran in the digital advertising industry, he began his career during the early days of the dotcom era. To date, his passion for the digital industry is still as strong as ever (and getting even stronger). Spanning twenty years of his digital career, he has worked for leading companies like Nielsen, MRM McCann, Omnicom Media Group, Millward Brown and Smaato. Currently, Frederic is the revenue officer for AlgoriX spearheading global revenue growth, business expansion and strategic partnerships. He has set up and built AlgoriX’s global mobile ad exchange, hiring talents, establishing best practices, and injecting global industry standards into the company. Prior to his current role, he was the Head of Demand for Smaato, overseeing the demand business and operations in APAC. Frederic is currently based in our Singapore HQ.

Xinxiao Guo

Chief Operation Officer

Equipped with a decade’s worth of experience in global product operation as well as a deep understanding of emerging markets, Xinxiao brings her expertise in mobile traffic monetization and programmatic advertising to the table. Before her role at AlgoriX, she was a core member of iQIYI’s research and development unit. After that, she moved to Baidu as Head of Programmatic Advertising.

At present, she is AlgoriX’s co-founder and Chief Operation Officer. Together with the team, she aims to help game developers effectively reach global audiences and implement better monetization strategies.

Ruiz Xie

Chief Executive Officer

With nearly 20 years of business experience, Ruiz Xie founded AlgoriX with the vision of creating a global advertising platform and entertainment ecosystem. Through AlgoriX’s services, he aims to create a more inclusive tech ecosystem by providing customized solutions that meet the needs of businesses at every stage. At the same time, through AlgoriX Studios and its third-party partner studios, the company is currently bringing to life a greater goal of providing a comprehensive entertainment platform for people worldwide, which covers games, IP, comics, movies, and more. At present, he leads nearly a hundred employees with concrete plans to expand the company by establishing more offices worldwide.

Before founding AlgoriX, Ruiz Xie joined CoreMail in 2002. There, he created the first Ajax version of the mailbox in China for NetEase, which was the largest Internet company in China at the time. After that, he joined Tencent in 2005 and contributed to the creation of Tencent Games while also building a large scale distributed storage system. In 2013, he moved to Baidu where he took part in developing Baidu International’s overall architecture and search advertising system. During his tenure, he was also the Chairman of the Baidu Global Technical Committee and Baidu’s chief architect.