Cat Studio HK grows daily revenue 50% with AdMob hybrid monetization approach

Qi Yong-Cheng began writing mini-games while he was a university student. After forming Cat Studio, Qi chose to monetize his app with in-app purchases (IAP). He integrated AdMob IAP house ads to provide users with greater exposure to the items available for purchase -- without compromising player experience. He also adopted a hybrid monetization approach by implementing AdMob banner and interstitial ads. As a result, daily revenue grew 50% and average revenue per daily active user (ARPDAU) increased 30%.

In 2013, Qi launched Little Commander 2 – World War II, and just a year later, he released Little Commander 2 – Clash of Powers. With different defensive formations, a variety of towers to mix and match, and different paths of focus, Qi put the gaming experience in players’ hands. The app immediately captured the attention of hundreds of thousands of users and was soon widely downloaded all around the world.

Seeing this initial success, it was time for Qi to monetize his app. After identifying IAP as the main source of revenue, he knew he needed to focus on providing users with greater exposure to the items available for purchase. To make them more visible, Qi integrated AdMob IAP house ads.

AdMob IAP house ads made the path to purchase simple, giving users the ability to buy directly from the IAP ad. Using Google’s proprietary data and models, AdMob predicts which users are more likely to spend and shows targeted IAP ads. This helped to maximize revenue among paying players; however, it wasn’t only paying players that drove revenue for the app. Qi was also able to generate revenue from players less likely to pay by showing them AdMob interstitial ads instead of offering them in-app purchases.

This hybrid monetization approach helped keep the game experience intact without an overwhelming number of ads. Not wanting to sacrifice the user experience for revenue, AdMob IAP house ads delivered tailored offers while reducing the overall number of non-targeted ad impressions.

Using three different sets of AdMob IAP house ads alongside Google’s recommendations, Qi adjusted display ratios according to click through rates. As a result, he replaced certain ad images with clearer, more attractive images. This strategy had an immediate impact: in just one month, daily revenue for the app overall increased 50% and ARPDAU increased 30%.

Working closely with the AdMob team, Qi saw the power of thoughtful app design when implementing ads into the gameplay experience. By integrating ads smoothly into the interface and at natural pauses in the game, he maximized revenue without compromising the player experience. With AdMob’s support, Qi is working on future game releases that incorporate this personalized approach to monetization.