In game design, it is well known that Level 1 novices and Level 200 veterans need different challenges, rewards, and economies. Yet, when it comes to monetization, many designers continue to serve the same “meal” to both beginners and seasoned players. However, what remains hidden in plain sight is the fact that, according to industry reports, there is a direct, positive correlation between game progression and a player’s tolerance to ads.
What is progression-based monetization?
Progression-based monetization is built on a simple idea: as a player’s relationship with a game evolves, so should monetization. Rather than using a single cooldown or ad format, leading studios now use dynamic strategies that adjust ad frequency and format according to player progression, engagement, and game context. This method replaces one-size-fits-all monetization with a structured system where ad frequency adapts to player engagement.
Smarter A/B testing: segmentation, frequency, and format mix
There is a huge opportunity to move beyond testing one cooldown timer for your entire audience. Instead of chasing a single average cooldown, often it’s more beneficial to test different setups based on how far players have progressed. According to Airflux, a company that helps publishers solve the “ad fatigue vs. revenue” dilemma by acting as an automated monetization and data science team, this strategy was a key pillar for Treeplla’s Cat Snackbar. They didn’t just look at one metric; they adjusted ad exposure by segmenting users based on country, purchase behavior, and in-game progression. For their most engaged, high-value segments, this multi-layered approach saw eCPMs increase by 20 to 30 times, proving that the right user at the right stage is incredibly valuable.
The logic here is simple: adjust the pressure based on player maturity. For example, veteran players can be tested with shorter cooldowns, such as 30 seconds, while early-stage users are exposed to more conservative frequencies. In many cases, more engaged players are more willing to accept increased ad frequency due to higher investment and familiarity with the game loop.
Importantly, if you only test the timer, you might find that a 60-second cooldown causes churn. However, if you change the ad format mix, perhaps making every second ad a Rewarded Video instead of a forced Interstitial, that 60-second frequency might suddenly become acceptable.
That being said, ad format strategy might also evolve alongside progression. It might be worth starting with a reward-heavy “onboarding phase” to establish a positive value exchange through optional, high-reward placements. As engagement grows, publishers can transition into a hybrid model where Interstitials are introduced at natural pauses, gradually balancing forced breaks with the rewards players have already come to value. Finally, for committed veterans with a high “sunk cost” the strategy can pivot to maximizing ad density through frequent Interstitials while reserving Rewarded Videos for critical progression boosts.
Progression-based monetization across genres
Industry trends show ad revenue growing faster than in-app purchases, yet adoption varies significantly by genre.
In Core games, developers often hesitate to introduce ads due to “whale protection” concerns. However, the solution is not fewer ads, but smarter implementation. Progression-based monetization enables context-aware delivery: for example, presenting a rewarded ad in moments when a player is usually stuck transforms ads from friction into utility.
In Casual games, the common strategy is to monetize aggressively before retention declines. However, excessive early ad pressure often accelerates churn, creating a self-fulfilling outcome. A more effective approach is to integrate ads into moments of need, such as offering a “save” or “retry boost” after failure, turning potential drop-off points into meaningful value exchanges.
Soft launch
While we advocate for sophisticated, progression-based ad logic, we must also acknowledge the reality of the soft launch phase. Before you can implement complex progression-based ads, you must first establish your baseline: how ad frequency impacts retention, session length, and engagement. Identifying the pain point at which additional ad exposure begins to negatively affect user behavior is critical. This baseline data serves as the foundation for more advanced systems, enabling teams to design progression-aware monetization with confidence rather than assumptions.
Evolving with the player, monetization that respects User Experience
Static monetization struggles to keep pace with evolving player behavior. As players invest more time, their expectations change, and their ad tolerance might increase. Teams that account for this dynamic can unlock stronger retention and revenue outcomes. An industry report from Deloitte and Google AdMob highlights the sensitivity of this balance: even well-loved titles are not immune to poor ad design, with 1 in 5 players reporting they would drop a favorite game due to a poor ad experience.
Ultimately, the goal is not simply to increase ad frequency or revenue in isolation, but to strike a sustainable balance where player comfort and long-term monetization reinforce one another. This principle is at the core of Bidlogic’s approach to mobile game monetization!
