Unity's Runtime Fee Triggers a 15% Decline in US Mobile App Advertisers

After Unity, a mobile advertising network, announced a contentious Runtime Fee, the company saw a significant decrease in the number of US advertisers on its ad network. According to data from Sensor Tower, the number of US advertisers dropped by 15% within a single week.

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Unity's Runtime Fee Announcement

In early September, Unity introduced a revised scheme that required developers to pay up to $0.20 for each installation of games created with the Unity Engine. This announcement was met with widespread criticism from the industry, leading to a swift decrease in the number of US advertisers within a week of its announcement.

Industry Backlash and Unity's Response

Within days of the announcement, over 1,000 developers, including prominent names like Voodoo, CrazyLabs, Homa, and Playgendary, signed a collective letter in protest. Many developers also disabled monetization through ironSource and Unity Ads within their apps, pending a review of the new terms. Unity quickly reacted to the backlash, revising the terms again, but not entirely eliminating the new fee.

Leadership Change at Unity

In the midst of this controversy, Unity's CEO John Riccitiello resigned from the company and was replaced by James Whitehurst.

The Impact on Advertisers

Sensor Tower data reveals that the initial backlash led to a significant decrease in the number of US advertisers on Unity's ad network. During the week of September 11, there was a 15% decline, followed by an additional 8% drop the following week.


Interestingly, during the same period the previous year, the number of US advertisers on Unity's ad network had increased by 13% week-on-week, suggesting that the Runtime Fee announcement contributed to the network exodus.

Unity's Recovery

Despite the initial drop, Unity managed to rebound. The company saw a 5% increase in US advertisers in the week following its apology and revision of terms. By October, there was a 15% rise in advertisers again, which coincided with Riccitiello's departure from the company. It's worth noting that the Halloween period likely contributed to the advertiser growth during this time.

Conclusion

Despite week-to-week fluctuations and initial turbulence, Unity ended September with a 9% month-on-month increase in the total number of US advertisers compared to August. This shows Unity's resilience and capacity to rebound amidst controversy.