Preview|Unity 2Q25:Clear Marginal Improvements
Can Unity Vector Sustain Its Acceleration?
In our first report on AppLovin and Unity late last year, we analyzed Unity Vector and Jim Payne. Jim Payne is an entrepreneur I greatly admire and have followed for a long time. After Jim Payne left Unity, I reduced my focus on the company.
However, over the past two months, I've continuously heard gaming industry contacts mention Unity Vector. We've resumed coverage of Unity.
Our recent research has indeed shown very clear marginal improvements in Vector, with ROI genuinely improving 10-20%. Nearly all advertisers mentioned Vector's improvements to us. However, whether this can be sustained still requires monitoring whether ROI will decline after 3-6 months, and whether advertisers can acquire more new users while maintaining higher ROI. This question is critical because advertisers have previously participated in Unity tests multiple times, but often stopped spending due to rapid ROI deterioration or inability to scale.
But this time seems different.
Let's begin the Unity Preview.
We recently spoke with 9 experts to update our views on several key topics
Unity Vector and SDK Progress
Unity Budget Trends
Unity Quarterly Outlook
Unity Vector and SDK Progress
Top SLG Gaming Expert
Performance Improvement Magnitude
After resuming spending in 2025, D7 ROI reached around 6%, compared to only a few decimal points throughout 2024.
Spending remain low and unable to scale. Even with higher ROAS bids, spending doesn't increase.
Previously ran CPA and CPI, now optimizing ROAS directly in the dashboard. Previously, the backend couldn't optimize for monetization data, could only control ROI through CPA management.
CPA now around $15, compared to roughly $3-5 previously.
Reasons for Performance Improvement
The backend now has learning logic, enabling higher eCPM bidding to find high-value users better matched to the game. These users have stronger monetization capabilities - though costs are higher, ROI performance is better. When shifting from buying activated users to buying paying users, prices naturally differ. Competition for high-value users is more intense, naturally driving up costs. This is because optimization targets are deeper, leading to higher CPA prices.
"We only pass back user-related data, such as user conversion information on the Unity platform. This also includes user activation information and 7-day monetization data."
Gap with Competitors
AppLovin's algorithm optimization has led advertisers to invest more, while inventory is also growing. Overall, it's in a positive development trend. Unity's next step may need to consider how to expand inventory, as Unity's inventory is mainly concentrated in gaming, while AppLovin's inventory also includes utilities, e-commerce, and other verticals.
Unity's inventory will definitely grow, because after algorithm updates, inventory inventory utilization will improve, including ROI improvements. But this growth rate definitely can't match AppLovin's early days.
Relationship Between ROI Improvement and Budget
We employ a user acquisition strategy. Once we determine the ROI KPI for user acquisition, that becomes the only metric - the company has no budget cap. As long as we can hit the KPI, we can spend regardless of budget size.
If a channel can't scale, it indicates that inventory with good monetization performance may be limited, such as having too many casual users. As long as KPIs are met, the inability to scale is a inventory quality issue, not a budget issue.
When launching new games, we don't actually differentiate inventory. When a game just launches, both conversion rates and core user distribution in the market are relatively dispersed, so even casual launches won't perform too poorly. Therefore, budgets are ample for new game launches. However, algorithm quality affects budget sustainability. If algorithms perform poorly, budgets get cut quickly.
