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NEWSLETTER #
2

Ad Monetization Newsletter June '25: Can AI Replace Ad Monetization Managers

In this edition: We put AI to the test to answer a bold question: can ChatGPT or any other model actually do the job of an ad monetization manager? Plus operational updates, job openings, events, ad quality and more. We publish exclusive insights like this every month - subscribe now to get them delivered straight to your inbox!
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Featured article

FEATURED ARTICLE
Damjan Kačar

It feels like everybody is using AI these days. From mundane purposes like writing emails and getting news summaries to more serious tasks like getting legal or even medical advice, people are trusting the AI chatbots with important decisions. 

Even in my highly specialized field of mobile ad monetization, it’s becoming common to get questions from clients or colleagues, referring to something that ChatGPT (or some other AI chatbot) told them.

For me, that begs the question: how good are these chatbots actually? Should I be worried about my job being replaced by AI anytime soon?

Methodology

To figure this out, I’ve made a list of 40 ad monetization questions, with the idea to use these questions to test different AI models and see how well they perform compared to my knowledge.

The questions are a mix of several things:

  • Basic knowledge even junior ad monetization managers need to know
  • Common questions that we get from clients in our daily work
  • Advanced knowledge I would expect from seniors
  • And just to spice things up a bit, a few highly difficult problems that are meant to push AI to its limits

A snapshot of some of the questions is shown below, though it's more accurate to describe them as broader topics. Some of them required multiple questions to be covered in full.

The exact way in which the questions are asked is super important when interacting with AI, and it’s called prompting.

Prompting is quite complex and would require an article all of its own (and maybe we’ll write one in the future!). 

What’s important to know is that if you want to utilize AI effectively, you need to learn about prompting. It’s an important skill that allows you to squeeze the maximum out of your questions.

The Importance of Prompting in Our Experiment

I want to point out the exact way in which the questions are asked is super important when interacting with AI, and it’s called prompting.

Prompting is quite complex and would require an article all of its own (and maybe we’ll write one in the future!). 

What’s important to know is that if you want to utilize AI effectively, you need to learn about prompting. It’s an important skill that allows you to squeeze the maximum out of your questions.

How Did We Test AI in Ad Monetization?

The initial idea was to go through these questions with any AI model I could get my hands on.

Very early into my research, it became clear that this is pointless. Free and older models are just not good enough for this to be interesting or useful to anyone. I strongly recommend against using them for ad monetization advice.

In the end, I decided to focus on 3 models which are currently the best on the market (or close to it) according to the majority of the benchmarks:

  • ChatGPT - o3
  • Gemini - 2.5 Pro
  • Claude - Opus 4

I went through all 40 questions with each model, trying to keep it as consistent as possible. The opening questions were always the same, and then the follow-up depended on the responses.

Here are the results. A pretty tight race as you can see, but ChatGPT-o3 takes the crown.

Grading was as follows:

  • Full Marks - Complete answer, I could not give a better one myself, or if I could, the improvement would be marginal
  • Partial - Either the answer wasn’t complete, or there was a mistake of some kind, but nothing too crucial
  • Bad - Flat out wrong or problematic in some other major way

My first impression was that these results were quite good. More than half of the answers got top grades! However, after the initial awe wears off, it becomes clear that not even the best models are good enough yet.

Consider it this way: who wants to collaborate with someone who is wrong almost half of the time? In addition to that, I need to highlight something important - the bad answers were often catastrophically wrong. 

To give an example, one recommendation was that the optimal banner refresh rate was 30-120 sec. When the industry standard is in the 5-15 sec range, implementing even the 30 sec suggestion would drop your ad revenue by 30%-60%!

We’ll go over the bad parts in detail later. Let’s begin by looking at what worked well.

The Good

AI is great at giving detailed overviews on various topics. It can serve as a refresher or a starting point when tackling a new challenge. It also helps a lot with bringing less technically savvy colleagues up to speed.

Massive improvement to data analytics. AI is able to manipulate data and organize it in a way that makes it easier to use. It can also dig for insights, and while it’s not perfect at those tasks, it’s a great starting point. The level of analysis you can do independently is now much higher. Just beware of hallucinations, and make sure to double-check everything.

Amazing for ideation and prototyping. I had great results with questions that were focused on brainstorming about potential implementations, from in-game design to finding solutions to technical issues, AI was exceptional at these tasks.

Here you can see one of the answers that was very impressive to me. This is Gemini on Ad Quests, which after just one question, gave 3 pages of detailed analysis, covering:

  • In-game implementation details - game design, UX/UI look and feel
  • Rewards suggestions and how they fit into the overall economy
  • Analysis of benefits and potential challenges

In addition to all this, the suggested implementation is thematically fitting, which is something a lot of developers that we work with often miss. Often ads are seen as an afterthought or even worse, something disconnected from the game. 

Also, just look at those puns (italicized). I don’t even like puns, but these are great. Implemented as is, they would beat most implementations on the market in terms of flavor.

The Bad

A significant number of mistakes come from AI using bad sources. It often seems that everything with relevant keywords is scraped from the internet, giving priority to websites that are high on Google's index. A lot of these sources are misleading or straight up incorrect. In addition to this, in some cases, the data is just old.

I’ve had multiple instances where a source from 2021 was quoted as relevant. Our industry moves at an incredible pace. The sheer volume of changes can make a single year feel like a decade, which makes older sources completely obsolete.

All models that I've interacted with sometimes exhibit a strange hyperfixation on pattern matching. There was a scenario where I mentioned Brazil as one of the relevant GEOs in my app. Not the most important GEO, not even top 3. Despite that, a disproportionately large number of suggestions for that scenario were in some way focused on Brazil.

This sort of thing happens often enough that it’s worth avoiding all details that are not highly relevant to the question at hand. Which brings me to the next point.

Avoid complex context. Giving too much information (even if it’s relevant) can make the AI confused. Especially if multiple different priorities need to be juggled, things will get messy fast.

Another AI peculiarity is making unsubstantiated claims. There were several cases where the model gives a recommendation that, while theoretically possible, isn’t supported by any kind of data or an existing solution on the market. And I know what you’re thinking, maybe the AI is making connections that we didn’t see!

Nope, all suggestions were quite bad.

The Hallucinated

Hallucinations, the bane of AI. I think everyone who uses AI has experienced these in some shape or form. No matter what you try, they tend to sneak in somehow.

My experience with this research was that the number of answers that included hallucinations of some sort was quite high, between 10% to 20%, depending on the model. However, some of the hallucinations were relatively minor and didn’t significantly downgrade the quality of the answers.

All models struggled significantly with questions in the format “Recommend me top X in a certain category.”
Worst examples were:

  • Recommending a revive mechanic for a genre of games where there is no dying/fail state
  • Claimed that Liftoff is a great network because they bought Chartboost. When asked for a source, fabricated a whole news link that doesn’t exist.

Lesser hallucinations often happen when the scope of the question becomes too large. If possible, try to break things down into smaller parts to avoid this.

Mixing up information and terminology from disciplines that are close to mobile ad monetization (user acquisition, search engine optimization, web-based ad monetization, etc.), and then using information from these disciplines to give suggestions regarding ad monetization.

‍

Just making stuff up, with no obvious rhyme or reason.

Am I Going To Be Replaced By A Chatbot?

The outcome of this research was surprising, with the AI proving to be both better and worse than I had imagined.

Some answers were quite impressive, even better than what I could come up with myself. However, the good was spoiled by the bad. There were plenty of mistakes, even on basic questions.

Other issues also became visible during this research:

• For many topics, it’s challenging to properly utilize the AI if you, the user, lack knowledge on the subject. The quality of the answers would be much worse if I weren’t able to utilize my experience to ask better questions and, in some cases, guide the AI in the right direction.

• Beyond the knowledge of the subject, there is also a lot of skill in the prompting itself. Deeper knowledge on how AI operates and lots of trial and error will give much better results than talking to AI “naturally”.

• The hallucinations pose a significant problem. It’s hard to get proper data on this, but what I managed to find shows that even with the tightest possible setup, the limit on the hallucination-free responses seems to be around 90%. Most are below this number, which means that creating a consistent workflow involving AI is a challenge.

• The old adage, garbage in, garbage out is still as relevant as ever. If the source of AI’s knowledge is bad, you are going to get problematic answers, and there is no way to control that at the moment.

• The default settings of AI make it a dangerous yes-man. They are made to be pleasing and to go along with your ideas. Thread carefully, because current models are way too happy to lead you into an abyss.

So, what is the final verdict? Even with AI’s impressive capabilities, it seems that ad monetization is safe for now. My illustrious beekeeping career will have to wait.

AI is still a tool to augment us, instead of something that is able to replace us. However, when we look at how much AI has improved in just one year, they are definitely getting closer.

And that is quite scary.

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Operational updates

OPERATIONAL UPDATES

1. Google stops answering multiple calls

Since the last week of May, publishers using non-Google mediations and optimizing their ad setups using multiple ad units noticed massive drops in their Google performance. This happened due to Google introducing new enforcement and flagging multiple calls for one impression as invalid traffic. 

There is still no official announcement from Google regarding this and the timeline of this enforcement, but according to our sources, Google will stop answering multiple calls for one impression completely. What does that mean for publishers? 

  • If publishers are using multiple ad units for each impression on mediations such as MAX and LevelPlay, they will be able to keep Google active in 1 ad unit only. Our advice would be to test it out and see in which ad unit Google works best - in the one without any bid floors or in some of the remaining ones.
  • If publishers are utilizing ad units per in-game placement, they will be able to call Google once per each in-game placement.
  • If the publisher is already affected by this, they should delete all Google instances they were using, create new instances on AdMob’s dashboard and only use new ones in a way that would comply with the new rules.‍

2. ironSource Ads and LevelPlay Reporting API update 

Make sure you upgrade your Reporting API to the latest version before August 15, 2025. for uninterrupted service. After this date, all previous versions of the Reporting API will be deprecated. 

You can access the latest Reporting API documentation here.‍

3. Reset your Meta account Login on LevelPlay

To ensure optimal LevelPlay data reporting for Meta Audience Network, reset your Meta account login. This has to be done by Meta account admin. Not doing so will not create any disruptions in Meta’s ad serving, but it will affect reporting on LevelPlay.

4. InMobi transitioning to bidding only on LevelPlay

From 31st July, 2025, LevelPlay will be deprecating all InMobi non-bidding instances. Switch to bidding before this date to continue using InMobi without any interruptions. 

5. UnityAds and ironSource bidders available on AdMob mediation

The Unity Ads bidder is live in open beta for AdMob and Google Ad Manager. Additionally, the ironSource Ads bidder is available in open beta on AdMob and closed beta on Google Ad Manager.

6. AudioMob SDK version 10 brings significant improvements

AudioMob SDK update to v10 had a very positive impact on their overall performance! If you’re using any older SDK versions, we strongly recommend updating to the latest one.

7. Google's immersive in-game ads SDK update

The new SDK version has multiple important improvements, critical bug fixes, and access to more demand than previous versions.

  • Image bug fixes:

Added a fix for viewability, where impressions were sometimes being blocked. This is a critical fix, so they encourage publishers to update ASAP to this version.

  • Video bug fixes:

Added a SetChildLocalZOffset API to the ImmersiveInGameDisplayAd class. If you observe z-fighting (they might appear as black bars in the middle of the video) with the immersive video ad in your game when the ad is shown, you can call this method with a value between 0.0f and 1.0f to increase the offset between the ad GameObject and its child GameObjects. The default value is 0.0002f.

  • House campaigns with AdMob campaigns

You can backfill immersive in-game ads inventory with your own house campaigns, in case of no fill, with AdMob campaigns. This is a great way to promote your other apps in their IIG placements without a revenue trade-off. You can track impressions, clicks, and installs in AdMob directly for their campaigns.

Ad Quality

AD QUALITY

As the battle for the lowest CPI is spreading like wildfire, is it possible to defend your app from all those inappropriate (to say the least), disgusting, and ridiculously long, unclosable ads? The answer is YES, BUT it is getting harder and harder to do so. 

What now seem like blissful times when almost all rewarded video ads were up to 30 seconds long, all interstitial ads were skippable after 5 seconds, and you didn’t need a microscope and a needle to properly hit that “X” button and close the ad seem like something from a previous life. One could say that it was also rare that inappropriate ads (offensive in any way, NSFW, or just gross) would appear just like that, especially if several critical categories were already blocked. 

We feel your pain, and we want to help you deal with this, so we’re dedicating this section to call out all bad apples that appeared on our radar, but could appear on yours too! Starting this month, we will share tips and tricks to improve your ad quality, and you will also have access to this spreadsheet with ads we’ve blocked so far and all details you need in case you want to block them as well. For starters, we included 20 ads that you probably don’t want your players to see. 

We think this is a great opportunity to make this a joint effort, so we invite you to send us the most critical ads you’ve noticed on your end! We will make sure to include them in our spreadsheet and include it in the next edition of the newsletter. A nice way to help your colleagues across the industry, isn’t it!

Lastly, we considered highlighting some images here, but we actually want people to stick with us, not run away. 😅

In case you’ve missed it

  • All GAM (Google AdManager) network partners are using high-engagement ads by default! If you don’t want to see 60s long rewarded video ads and interstitials that are skippable after 15s, you should reach out to your account managers.

Tips & Tricks

  • Block sensitive categories that you don’t want to see in your game from the start.
  • If you’re worried about ad lengths hurting your user experience, or if you’re having a lot of user complaints about ads getting longer, set up ad template limitations on all ad networks. There is an option to limit each part of the ad, and the minimum length for each of these would depend on the ad network. Rewarded videos can be skippable after ~45 seconds, and interstitial ads can be skippable after 5-8 seconds. Sounds much better compared to rewarded videos that can go up to 110 seconds and interstitials being skippable after 15 seconds or more, right? 
  • If you decide to introduce changes in the ad templates, there are a few very important things to keep in mind:
    • Never limit the ad duration itself, just make the ad skippable after a specific time. If you limit the ad duration, it might result in lower demand and a negative impact on your ad revenue.
    • Make sure to enable granting rewards for rewarded videos that can be skipped before the full ad shows.
    • Ad templates can be set up only directly on the ad network side. In order to get this done, you need to reach out to your account managers or support.
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Job alerts

JOB ALERTS
Overwolf
Monetization Manager
Ramat Gan, Israel
Learn more
QS Games
Ad Monetization Manager
Kyiv, Ukraine (Remote)
Learn more
JustPlay
Senior Ad Monetization Manager
Berlin, Germany
Learn more
Fanatee
Ad Monetization Analyst
Brasil (Remote)
Learn more

Did you know?

DID YOU KNOW?

One of the biggest reasons monetization strategies underperform is simple: developers don’t understand all the different ad formats.

Many stick to what they know (usually rewarded video) and overlook formats that might be a better fit for their genre or player flow. An interstitial might boost revenue in one game and tank retention in another. Offerwalls work brilliantly in some economies but feel intrusive in others.

In one of our case studies, for example, we explained how we integrated banner ads in a smart, non-intrusive way that led to a clear boost in ad revenue, with banners making up 10% of the total revenue the app made from ads.

The key isn’t just using more formats. It's understanding which ones work best for your game, and why. From native to interstitials, each format has its strengths and tradeoffs.

Explore the full guide → “Mobile Game Ad Formats Explained”

Upcoming events

UPCOMING INDUSTRY EVENTS
July
30
ChinaJoy + PocketGamer Connects Summit + WhiteNights Summit
Shanghai, China
The biggest event of its kind in this part of the world. If you are looking to expand your network in China, this event is for you. And as if that wasn’t enough, two summits are happening just before the main event.
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August
20
Gamescom
Cologne, Germany
If you have the stamina for the world’s largest gaming event, bringing together developers, publishers, and tech partners, as well as gamers from all over, Gamescom is the place for you. If you haven’t booked your accommodation yet, this is your last-minute reminder to do it, provided there’s anything left.
Explore the event
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