AI in advertising can bring growth to games

Artificial intelligence in advertising technology and combined revenue models are driving the development of Vietnam's mobile game and application industry in a new context.

Applying new technologies to advertising can help games reach more and more users. Photo: The Verge .

Advertising technology (AdTech) is playing an increasingly important role in many industries, including the mobile app and gaming sector in Vietnam. This development comes as the Southeast Asian gaming market is forecast to reach US$6.39 billion by 2025, with Vietnam being a significant contributor.

One of the key drivers is the adoption of artificial intelligence (AI). According to experts, AI in AdTech is becoming essential, especially as users prioritize personalized experiences. AI helps engage customers through chatbots, virtual assistants and deliver relevant ads in real time.

Nana Phan, Head of Strategic Partnerships Southeast Asia at Yango Ads, said AI-powered data analytics helps brands create relevant advertising experiences that foster lasting connections with gamers.

Besides AI, a hybrid revenue strategy is being adopted by many developers. The combination of in-app purchases (IAP) and in-app advertising (IAA), also known as hybrid monetization, is becoming a mainstream trend that helps game publishers optimize revenue. According to an October 2024 survey by AdInMo and Gamesforum , up to 72% of mobile game developers have adopted this model, thanks to its ability to drive both revenue and user engagement.

Ms. Nana Phan, Head of Southeast Asia Strategic Partnerships at Yango Ads, shares about the potential of applying AI to game advertising. Photo: Chi Hieu.

Statistics show that mid-range Android games using the hybrid model achieve a 146% return on ad spend (ROAS) after 90 days. This is higher than the IAP-only (93%) or IAA-only (58%) models. This approach also helps reach a larger audience.

However, the industry also faces challenges, especially in engaging multi-channel users and protecting personal data. Increasingly stringent data regulations require compliance.

Ms. Thu Nguyen, Business Development Director of Yango Ads, emphasized the importance of understanding users. "By analyzing user behavior, advertisers can build appropriate strategies," Ms. Thu said. She also said that using AI platforms to create ads, target, and analyze performance helps increase efficiency and optimize campaigns.

Data privacy is considered a top priority. “We need to put user data privacy at the center,” Thu noted, adding that Yango Ads is committed to data protection and compliance with local regulations.

The Vietnamese gaming market has seen growth with many studios among the world’s top publishers in terms of downloads, such as iKame, Brave Stars, Xgame Global and ABI Games Studio. Focusing on new technologies such as AI and appropriate strategies are seen as key factors for sustainable development.

Source: https://znews.vn/ai-trong-quang-cao-co-the-dem-lai-tang-truong-cho-game-post1545599.html