Modeling the negative an‎d positive effects of in-app advertising in the growth of mobile game businesses using a system dynamics

10/20/2026 12:00:00 AM

The purpose of this study is to analyze an‎d model the effects of in-app advertising on the growth of mobile gaming businesses using the system dynamics approach. Given the rapid expansion of the digital gaming industry an‎d its increasing reliance on advertising revenue, understan‎ding the dynamic interactions between advertising variables, user satisfaction, an‎d profitability is of critical importance. In this research, key variables—including the number of in-app advertisements, advertisement duration, external advertising costs, installation an‎d uninstallation rates, an‎d overall profit—were identified an‎d incorporated into a conceptual model, which was then transformed into a quantitative, simulation-based structure using Vensim software. The research population consisted of mobile game users an‎d digital marketing specialists. Data were collected through interviews, questionnaires, an‎d secondary reports. After developing causal loop diagrams an‎d stock-an‎d-flow structures, the model was simulated over a 12-month period, an‎d the outcomes were analyzed across four distinct scenarios. The findings indicate that excessive increases in the number of in-app advertisements, while boosting short-term revenue, lead to a decline in user satisfaction an‎d higher uninstallation rates over time. Conversely, reducing advertisement duration an‎d maintaining an optimal number of ads enhance user retention an‎d long-term profitability. Furthermore, increased spending on external advertising was found to be effective only when accompanied by cost control an‎d targeted user acquisition. The combined optimization of shorter ad duration an‎d a moderate increase in ad frequency yielded the most favorable results in terms of user satisfaction, active user growth, an‎d sustainable profit. Ultimately, the proposed model provides a practical decision-support tool for managers in the mobile gaming industry to eva‎luate an‎d optimize their advertising strategies through dynamic simulation before implementation. The results highlight that balanced management of in-app advertising not only increases short-term revenue but also ensures sustainable growth an‎d long-term user satisfaction.

تبليغات درون‌برنامه‌اي , بازي‌هاي موبايلي , سيستم ديناميك , شبيه‌سازي , رضايت كاربران , سودآوري

In-app advertising , mobile games , system dynamics , simulation , user satisfaction , profitability

Mostafa Khonsari

Dr. Mohammadreza Parsanejad