In-game advertising comprises from 10% to 30% of overall revenue for social game titles, according to Appnext. That represents a dramatic shift from just two years ago when often irrelevant in-game ads were producing negligible single-digit revenue numbers, Dean Takahashi writes. "It's a myth that ads don't work in social games. You just have to do them right. We believe that ads can become a major source of revenue," says Tal Perry of Appnext, which banks on interstitial ads timed to appear at natural breaks in game play.

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