The war in Ukraine has had a major impact on the mobile gaming industry since the end of February 2022.
Advertisers pulled back when they realized that people had bigger problems with downloading new apps and games for mobile devices, the report said.
This has a big impact on advertisers and developers of mobile apps and games, as changes in demand affect margins in Ukraine and Russia in particular.
Valerie Alfimova, CFO at Appodeal Stack and a business growth expert, says cost-effectiveness (eCPM) has made a big impact. Appodeal updates its mobile eCPM report quarterly, which analyzes the eCPM of millions of ad impressions from over 70 ad networks worldwide.
“The entire industry was affected on many levels, as eCPM plummeted,” said Alfimova. At the end of March, eCPM on Android plummeted by 75% and iOS by 71%. That’s what happened right after the clash took place. That’s not out of the question, given this huge geopolitical shift and the number of countries involved.”
For the latest report, the iOS rewarded video ads eCPM has knocked the US out of the top rankings, as it ranked third in the second quarter, just below Japan and Australia. Appodeal said it was also surprised to see how emerging countries such as Taiwan, South Korea, UAE and Kuwait are booming in this segment.
The ECPM of rewarded video ads on Android saw the US and Australia in the top spots, followed by East Asian countries. European countries such as the United Kingdom, Sweden, Germany and France have lost their place in the top rankings, as have their eCPMs.
The ECPM of rewarded video ads in Russia and the CIS markets saw a gradual recovery in Q2 2022. In March, eCPM plummeted by half on iOS and Android. But as months passed, eCPM quickly recovered and by May, eCPM was back up and running.
The ECPM of rewarded video ads in markets such as the US, Japan, the UK and many countries has plummeted since March. Australia appears to be one of the few countries with positive eCPM trends, until June, when it plummeted below March levels on both iOS and Android.
ECPM full screen advertising on iOS has been improved. Compared to the previous quarter, Appodeal found that eCPM in all countries increased. Not only on the top chart but also at the bottom of the eCPM leaderboard. Saudi Arabia, in 20th place, is now $3.33, while a few months ago it was around $2.50. Android has seen a similar recovery.
The ECPM of rewarded video ads in the Russian and CIS markets halved in iOS and even more in iOS in the last month of March. That was largely due to fluctuations in the economy and political geography.
The ECPM of rewarded video ads in Asian countries is blooming like never before, and Appodeal is expected to continue to grow for the rest of the year. Japan has surpassed the average eCPM of the US for the first time. In addition, eCPM in markets such as Korea, Taiwan, Hong Kong, Singapore and many others is also increasing.
In June, the eCPM of rewarded video ads on both platforms experienced a small drop, which is not unusual for the summer months. Brazil stands out for its strong eCPM fluctuations. The country seems to have become a place where apps are getting more attention.
Russian game companies have been torn apart by the war. Game Insight moved its headquarters in 2014 (when the first fighting began in eastern Ukraine) to Lithuania, but most of its development team remains in Russia. With the outbreak of the new war, Game Insight closed its doors and laid off 600 employees.
Playrix moved its headquarters from Vologda, Russia, to Dublin in 2014. But the company said employees were split between offices in Ukraine and Russia. And Wargaming has closed its studio in Minsk, Belarus.