Overwolf, a gaming platform, increased its monthly programmatic revenue by 15% year on year between February and March after joining The Trade Desk’s supply channel optimization project, OpenPath, in December.
The private corporation would not provide more particular financial information. It purportedly made $50 million in ad sales in 2022, but informed ADWEEK that this figure had “increased significantly.” Overwolf did add that a “very small” portion of the 15% revenue growth comes from cost savings from avoiding supply-side platform fees, which can range from 10% to 30%. It wouldn’t say how much more demand it was getting from OpenPath than from simply using The Trade Desk’s demand-side platform.
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For the past few years, The Trade Desk’s advertisers have had indirect access to Overwolf’s supply in the open exchange, accounting for more than half of Overwolf’s programmatic ad income. After observing strong performance and low audience duplication across platforms like Twitch, the DSP approached Overwolf about joining OpenPath, which connects the gaming platform’s supply of ad inventory directly to The Trade Desk’s vast swath of advertisers.
Since January, two big advertisers—one QSR and one pharmaceutical—have made more strategic purchases through the gaming platform as a result of the inventory being available on OpenPath, according to Nathan Lindberg, Overwolf’s head of U.S. brand partnerships. It declined to provide any information about those transactions.
“The more we can create a direct path, the more advertisers we get, and the more money we put in creators’ pockets,” Lindberg said soon before speaking at the IAB’s PlayFronts on April 1, when the platform sponsored a session for the third time.
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Overwolf’s business model differs from that of traditional gaming publishers and viewing networks such as Twitch. It is one of the leading game modification platforms, which means it owns the technology and network that allow creators and developers to create companion apps for popular games such as Minecraft, Fortnite, and Roblox.
A League of Legends player who is stuck on a level may use the companion app Porofessor to find out how to defeat a character. These apps, produced by developers employing Overwolf technology, feature IAB standard ad formats. According to Lindberg, Overwolf and developers share revenues of 50% to 80%. In 2024, it rewarded creators $240 million.
According to Comscore estimates, Overwolf has over 500 apps and 100 million monthly active users on its network. According to Lindberg, the fact that its audience consists of game players rather than viewers is critical to its advertising strategy.
Overwolf marketers who purchase through OpenPath can target audiences based on characteristics such as the games they have played (or have not played, if they want to avoid M-rated titles like Call of Duty), the hardware they use, their internet service provider, and zip code, among others.
Joining OpenPath provides fresh revenue for platforms like Overwolf with zero drawbacks, according to Robert Webster, CEO of AI marketing consultant TAU. According to Webster, Overwolf’s 15% total programmatic revenue growth is among the highest in the business.
“Not many publishers are seeing huge volume from OpenPath yet,” he indicated. “OpenPath is effective, but not revolutionary. … It’s performing well with some retail media networks. Perhaps some major gambling businesses are using The Trade Desk and OpenPath, which would make sense.”
There is a tiny price for joining OpenPath, which some publishers say feels like a tax. Publishers have previously informed ADWEEK that not signing up to OpenPath will result in a loss of ad revenue.
“Gaming is a dynamic, fast-growing industry, and advertisers are seeking smarter, more personalized ways to connect with its passionate players,” said Sean Holzman, The Trade Desk’s general manager of inventory development.
“Overwolf Ads stands out by reaching the gaming community across desktop apps and websites with relevant ads that enhance, rather than disrupt, the gaming experience,” Holzman said, adding that Overwolf was one of the first large gaming inventory systems to interface with OpenPath.
Overwolf presently links directly to only one DSP: the Trade Desk. Overwolf also connects to various DSPs via private marketplaces, including Viant and Simplifi.
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