Sensor Tower – Ad Monetization Without Killing Retention: Best Hybrid Practices

This report focuses on ad monetization strategies in mobile games, especially hybrid games that combine in-app purchases and ads.

It emphasizes that ads do not necessarily harm player retention if implemented thoughtfully as part of a design system considering format, timing, and pressure. The report analyzes three main ad types—Rewarded Video, Interstitials, and Banners—each with different impacts on retention and revenue. It provides evidence-based recommendations and best practices to improve engagement, progression, and lifetime value while minimizing negative impacts on retention.