Arcade game developers implement dynamic in-game advertising through sophisticated technological frameworks that seamlessly integrate commercial messages into the gameplay experience. The primary method involves integrating a Software Development Kit (SDK) from an ad network or mediation platform directly into the game's code. This SDK communicates with ad servers in real-time, fetching and displaying ads based on predefined triggers, such as level completion or menu screen appearances.

A key component is programmatic advertising, which uses automated systems to buy and sell ad space. When a trigger event occurs, the SDK sends a bid request to an ad exchange. Advertisers then bid for the impression, and the winning ad is served almost instantaneously. This ensures that the ads displayed are relevant and can be changed frequently, even after the game has been published, preventing ad fatigue among players.

Developers utilize various ad formats to maximize revenue while maintaining user engagement. Banner ads are placed non-intrusively at the screen's top or bottom. Interstitial ads are full-screen displays shown during natural pauses in the game, like between levels. The most user-friendly format is rewarded video ads, where players voluntarily watch an ad in exchange for in-game currency, lives, or power-ups. This model significantly improves player acceptance of advertising.

To optimize revenue, developers rarely rely on a single ad network. Instead, they use ad mediation platforms. These platforms connect to multiple ad networks simultaneously and automatically select the network offering the highest eCPM (effective Cost Per Mille) for each ad request. This maximizes fill rates and overall earnings. Furthermore, developers carefully balance ad frequency and placement to avoid disrupting the core gameplay loop, which is crucial for player retention. By leveraging these dynamic systems, arcade game developers create a sustainable monetization strategy that funds ongoing development and updates.