Web3 Game Publisher Views In-Game Adverts as a Unique Opportunity

As the world of Web3 gaming keeps evolving, it is becoming clear that Pixels, the blockchain-based farm simulator, is at the forefront in more ways than one. With more than a million daily active users, Pixels has officially become the largest Web3 game out there since its launch in 2021. But this is not all — the game has made a bold move: clickable in-game ads, which are already generating impressive results.

On July 24, 2024, Pixels launched its first intrinsic in-game advertising feature, strategically placing ads on virtual billboards and banners. Picture this: Take a stroll through your virtual land, casually spotting a clickable ad for a crypto token. More than 50 out of the 237 people who clicked the ad made a purchase. That’s a conversion rate of more than 20% in only two weeks! That’s a win-win for both gamers and advertisers.

Even though last year, Web3 gaming took a major hit after the crypto winter, millions of users still log on to play these blockchain-based games. The catch? These gamers are young, tech savvy and fun with all things digital, thus making Web3 gaming platforms such as Pixels an ideal advertising gold mine. According to Pixels founder, Luke Barwikowski, this crowd loves spending money on digital assets, including profile pictures and avatars. So, it’s no surprise that blockchain companies and crypto brands are the first to jump on the advertising train. And honestly, it makes total sense.

But the shocking part is that Barwikowski believes brands outside of crypto could also reap big from advertising to this digital-native audience. Think online casinos or gaming-related products. “It’s the same advertisers that are all over free-to-play games,” he said. And it’s not hard to imagine why.

But there is a catch. For one, the Sandbox, a prominent Web3 gaming platform, is not jumping on board just yet. As noted by its COO, Sebastien Borget, the risk is simple: too many ads can hurt the user experience. And to be fair, nobody likes to be bombarded with pop-ups while they’re trying to farm virtual corn or build a digital city.

Even Pixels is playing it cautiously. Clickable ads could pull players away from the game entirely, which, as WeGame2’s cofounder Nina Mackie points out, is a big no-no in both traditional and Web3 gaming.

Despite the risks, Pixels’ ad strategy isn’t only benefiting advertisers. The players, especially those who own virtual land, are raking in some sweet rewards too. Thanks to in-game ads, landowners are earning revenue from billboards placed on their digital plots, and some are reportedly seeing returns of up to 33% annual yield on their NFTs, according to Quinn Campbell, founder of ad tech company PTAL.

In-game adverts could find some utility among enterprises such as Horizon Fintex as they drum up awareness about their different solutions needed by the public.

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