𝐔𝐧𝐢𝐭𝐲 𝐢𝐧 𝟐𝟎𝟐𝟓 𝐜𝐨𝐮𝐥𝐝 𝐛𝐞 𝐟𝐚𝐜𝐢𝐧𝐠 𝐚 𝐭𝐮𝐫𝐧𝐚𝐫𝐨𝐮𝐧𝐝 𝐬𝐭𝐨𝐫𝐲 𝐭𝐡𝐚𝐭

𝐀𝐩𝐩𝐋𝐨𝐯𝐢𝐧 𝐟𝐚𝐜𝐞𝐝 𝐢𝐧 𝟐𝟎𝟐𝟑 — 𝐅𝐫𝐨𝐦 “𝐬𝐩𝐞𝐜𝐮𝐥𝐚𝐭𝐢𝐨𝐧” 𝐭𝐨

“𝐫𝐞𝐯𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧” 📰

🔎 In 2023 AppLovin released AXON 2.0 which was an improved version of

their ad tech. This was after initially trying to acquire Unity in 2022 to
"merge strengths", but the deal fell through. Regardless, AXON 2.0 in 2023
is when AppLovin began to see a shift in earnings/revenue trend. This shift
also came with not just a positive trend in the EPS, but also began to grow
YOY as well. The market had no choice but to start evaluating the market
cap differently and the stock saw its first major breakout before the rest
became history as to where AppLovin is now Unity seems to finally be
taking a similar approach with the release of Unity 6 and Vector. What
Unity is going through right now can be similar to where AppLovin was in
2023. Vector introduces a new addition to their ecosystem which primarily
focuses on Ad revenue which is a huge money making potential for them
as it can also narrow down their debt deficit as they pave their way to
profitability. All while Unity 6 is focused on the development department
and growing relations with devs and partnership scalability. Two major
components of its ecosystems have simultaneously seen a massive
change. If Unity can now prove these changes are shifting their financials
for the better, it is nearly identical to how AppLovin began their
turnaround story Applovin could also feel threatened if Unity does turn
things around as the market may feel Unity is the cheaper/diverse option
here. This opens up Unity for any potential buyouts if a major company
can see the opportunity to dethrone Applovin with their recent major surge
Whether bought out, or not, Unity currently is in a situation where it all
comes down to maximizing their "AXON 2.0" phase. Full throttle mode with
Unity 6 and Vector, and force the market to re-adjust the market cap in a
pretty strong and growing sector of 3D/AR+VR/Ads/Software —— Attached
are fundamental trend shifts which AppLovin saw vs what Unity is going
through now
https://www.youtube.com/watch?v=m1L2U-R9cOM

✅ If the user consents (taps “Allow” on the ATT prompt):

Feature Unity Ads AppLovin

✅ Yes — Unity can access in- 🚫 Not by default — unless

First-party game behavior and analytics you explicitly share
data access data if integrated (Unity custom data via SDK or
Analytics, IAPs, sessions, etc.) mediation setup

IDFA access ✅ Yes ✅ Yes

✅ Strong — AppLovin
Cross-app / 🔸 Limited — mostly relies on its
builds persistent identity
3rd-party own network and Unity-
graphs across 3rd-party
data operated games/apps
networks

✅ High — especially from

Personalized ✅ High, especially in games
3rd-party identifiers and
ad targeting using Unity engine + Unity Ads
large-scale mediation
power + Unity Analytics
footprint

🔍 What this means in practice:

 Unity has stronger access to first-party behavioral data — like

levels played, purchase behavior, session length — especially if
the game is built in Unity and uses Unity services (Ads,
Analytics, IAP).

 AppLovin, on the other hand, has broader third-party data

aggregation via its massive mediation footprint (MAX) and
partnerships, but less native access to fine-grained first-party in-
game behavior unless the developer explicitly shares it.

how can Unity use this in game data to serve more accurate ads

ChatGPT powiedział:

When a user consents to tracking (via Apple’s ATT or similar prompts),

Unity can legally and technically tap into first-party, in-game
behavioral data to serve more accurate (personalized) ads. Here’s how
they do it:

🎯 How Unity Uses In-Game Data for More Accurate Ad Targeting

1. Player Segmentation
Unity collects gameplay data like:

 Session duration

 Levels completed

 Items bought (IAP)

 Ad engagement behavior (e.g., rewarded video completion rate)

 In-app events (e.g., reaching a boss, failing a level)

➡️Unity then uses this to place players into cohorts:

 High spenders

 Reward-video enjoyers

 Casual users

 Hardcore daily users

This lets Unity serve ads relevant to the user type. For example, high
spenders might see ads for other strategy games with deep
monetization.

2. Lookalike Modeling

Unity compares your player’s behavior to similar users across its global
network of games using Unity Ads & Analytics.

 If your player acts like users who installed Game X after seeing Ad
Y…

 Unity can show them similar ads with a higher chance of conversion.

Think of it like:

“Players who behave like this often download puzzle games after watching
15s rewarded videos — so let’s show them those.”

3. Optimizing Ad Type & Format

Unity learns:

 Does this user skip interstitials?

 Do they finish rewarded videos?

 Do they engage with playable ads?

Then Unity adjusts ad format, timing, and frequency to what works
best for that user. That’s a form of behavioral personalization too.

4. Dynamic Pricing / Real-Time Auction Bidding

Using behavior data, Unity adjusts the eCPM (value) of the user in real-
time auctions:

 A high spender who engages with ads is worth more.

 Unity feeds this into programmatic auctions to get the highest-

paying, most relevant ad for that specific player.

🧠 Example:

A player frequently watches rewarded ads, plays daily, and has purchased
gems once. Unity classifies them as an "engaged casual spender."
So Unity might:

 Prioritize showing them rewarded ads for similar midcore games.

 Charge advertisers more to access this user.

 Use similar player data across other games to refine targeting.

🚫 If No Consent:

All of this shuts down. Unity switches to contextual targeting only:

 Game genre

 Device type

 Time of day

 Location (if allowed)

 No IDFA, no behavioral data, no lookalikes.

As of 2025, Unity maintains a dominant position in mobile game

development:

 Over 70% of all mobile games are powered by Unity .

 53 of the top 100 highest-grossing mobile games are built

using Unity's engine, accounting for approximately $16 billion in
consumer spending .
  71 of the top 100 revenue-generating mobile games
incorporate at least one Unity SDK, representing $22.2 billion of the
$30 billion total consumer spend among these games .

Unity's widespread adoption is attributed to its cross-platform capabilities,

extensive asset store, and a robust community of developers, making it a
preferred choice for both indie developers and large studios.

 Unity is the dominant engine for mobile:

 Unity powers over 70% of all mobile games, including many of

the top-grossing ones.

 Its strengths in 2D/3D rendering, cross-platform support, and

monetization SDKs make it a go-to choice for both indie devs and
major studios.

 High-performing games can be built on Unity — even complex

ones:

 Examples like:

o 🧙 Harry Potter: Puzzles & Spells (Zynga)

o 🎲 Monopoly GO! (Scopely/Hasbro)

o 🧢 Pokémon GO (Niantic – uses Unity + proprietary backend)

 These prove Unity is not just for small casual games — it can
support networked, geo-based, and high-fidelity 3D gameplay.

 Unity’s ecosystem (engine + ads + analytics) adds business value:

 Easy access to monetization (Unity Ads, ironSource)

 Real-time analytics and A/B testing

 Fast iteration and deployment pipelines

 🏆 Top 10 Grossing Mobile Games – May 2025

Rank Game Title Developer/Publisher Game Engine

1 Honor of Kings Tencent / TiMi Studio Group Proprietary
2 Whiteout Survival Century Games Unity
3 Last War: Survival Century Games Unity
4 Royal Match Dream Games Unity
5 MONOPOLY GO! Scopely Unity
6 Game For Peace Tencent / TiMi Studio Group Proprietary
7 Coin Master Moon Active Proprietary
8 Gossip Harbor Merge Games Unity
9 Clash Royale Supercell Proprietary
Rank Game Title Developer/Publisher Game Engine
10 Pokémon GO Niantic (now Scopely) Unity

if Unity catches up to axon 2.0 with new ads tech, the Vector, is there a
reason for a relative majority of advertisers to still go with applovin given
this first party access that Unity has and applovin doesn't

ChatGPT powiedział:

Great question! Even if Unity’s Vector AI-powered ads tech (Axon 2.0)
delivers big improvements, there are still several reasons why a sizable
chunk of advertisers might stick with AppLovin or other platforms instead
of fully switching to Unity. Here's why:

1. Maturity and Track Record

 AppLovin is a seasoned player with a mature, battle-tested ad

platform that many advertisers trust for performance and reliability.

 Advertisers often stick with proven solutions rather than jump

immediately to newer tech, even if it’s promising.

2. Broader Network & Inventory

 AppLovin connects to a huge, diverse global network of apps and

ad inventory, often more extensive than Unity Ads, which is mainly
tied to Unity games.

 Advertisers seeking the widest reach across many game engines and
app categories might prefer AppLovin’s scale.

3. Ad Format Variety

 AppLovin offers a variety of ad formats (video, playable ads,

rewarded ads, interstitials, banners) across many verticals.

 Unity Ads has historically focused on in-game video and rewarded

formats, which, while growing, might not cover every advertiser’s
preferred format or targeting.
4. Data Depth & Analytics

 While Unity has first-party data from its game engine

ecosystem, AppLovin specializes in ad-tech data analytics and
targeting, refined over years and across many app categories.

 Advertisers might favor platforms with deeper or more diverse

behavioral signals beyond just in-game activity.

5. Cross-Platform Reach

 Advertisers often want to reach users across multiple platforms

and game engines — not just Unity-based titles.

 AppLovin’s mediation and marketplace reach beyond Unity’s

ecosystem can be a decisive factor.

6. Sales & Support Relationships

 AppLovin has built strong sales, account management, and

agency partnerships.

 Advertisers value relationships and personalized support, which take

time for Unity to develop at the same scale.

7. Risk Management & Diversification

 Marketers don’t want to put all their budget in one basket.

 Even with first-party data advantages, many advertisers run

campaigns across multiple networks to diversify risk and optimize
ROI.

Summary

Unity (Vector AI + 1P
Factor AppLovin
Data)

First-party (Unity games) + Third-party data + huge

Data Source
AI-driven network data

Massive, cross-engine &

Network Size Large but Unity-focused
platform

Ad Format Growing, video-heavy Broad, including playables &

 Unity (Vector AI + 1P
Factor AppLovin
Data)

Variety banners

Maturity & Trust Emerging Established leader

Advertiser
Building Strong & longstanding
Relations

Cross-Platform
Limited to Unity ecosystem Wide across all ecosystems
Reach

Bottom line:

Unity’s Vector AI and first-party data give it a strong competitive

edge, especially within the Unity ecosystem. But AppLovin’s scale,
diverse inventory, and mature relationships mean many advertisers will
keep using AppLovin, at least for now.

For Unity to become the clear majority choice, it will need to:

 Prove consistent superior ROI at scale

 Expand ad format variety and cross-platform reach

 Build strong advertiser partnerships and support

Unity’s Digital Twins Business — Revenue Potential & Outlook

1. What Is It?

 Unity enables companies to create real-time, interactive 3D

digital twins of physical assets, factories, vehicles, cities, and
more.

 These digital twins are used for simulation, monitoring, training,

predictive maintenance, design validation, etc.

 Key industries: Automotive (e.g., BMW), manufacturing, energy,

aerospace, smart infrastructure.

2. Revenue Model
  Mostly B2B SaaS / licensing fees — clients pay for:

o Access to Unity’s engine tailored for digital twins

o Cloud services (real-time data streaming, collaboration)

o Custom solutions & support

 Potential for recurring revenue through subscriptions, long-term

contracts, and premium services.

3. Market Opportunity

 The global digital twin market was valued at roughly $9-10 billion
in 2024 and projected to grow 25-35% annually over the next 5–7
years.

 Industries are increasingly adopting digital twins for efficiency

gains, cost savings, and innovation, fueling strong demand.

 Unity’s real-time 3D capabilities and industry partnerships position it

well to capture a significant share.

4. Competitive Position

 Unity is competing with traditional industrial software vendors

(Siemens, Dassault Systèmes, PTC) and emerging real-time 3D
platforms.

 Unity’s advantage lies in:

o Easy-to-use engine with powerful visualization

o Real-time interactivity

o Cross-platform support including AR/VR

o Growing ecosystem of tools and partners

5. Strategic Importance for Unity

 Digital twins represent a high-growth, high-margin revenue

stream complementary to its gaming and entertainment business.

 Helps diversify Unity’s revenue beyond volatile game development

cycles.
  Increases stickiness with large enterprise clients, potentially leading
to long-term partnerships and cross-selling opportunities.

6. Summary

Aspect Digital Twins Business

Revenue Model B2B SaaS, licensing, enterprise contracts

Market Size (2024

~$9-10 billion globally
est.)

Growth Rate 25-35% CAGR

Unity’s Competitive
Real-time 3D, interactivity, AR/VR, partnerships
Edge

Strategic Value to Diversifies revenue, stable enterprise income, tech

Unity leadership

Bottom line:

Unity’s digital twins business is a strong, growing source of high-

margin, recurring revenue that complements its gaming and ads
businesses. It’s a strategic pillar for long-term diversification and growth,
well-aligned with industry trends toward digital transformation.

Unity's real-time 3D technology has been widely adopted across various

industries beyond gaming, including automotive, architecture,
engineering, construction, energy, and digital human modeling. Here's an
overview of notable non-gaming applications developed with Unity:

🚗 Automotive Industry

1. BMW: Utilizes Unity to create digital twins of its manufacturing

facilities, enabling virtual simulations of production lines to optimize
operations and improve efficiency. time.com

2. Volvo Cars: Employs Unity's real-time 3D technology across its

automotive lifecycle, enhancing visualization tools for design and
engineering processes. create.unity.com
3. Toyota: Develops VR and AR tools using Unity to improve efficiency and
quality in design, engineering, and training. create.unity.com

4. Volkswagen: Leverages Unity to create virtual production

environments and training programs for workers across its global
production sites. digitaltrends.com+1create.unity.com+1

5. Audi: Created an interactive car configurator with Unity, allowing

customers to customize and visualize their vehicles in real-time.
medium.com

Architecture, Engineering, and Construction (AEC)

1. Sitowise: A Nordic company that uses Unity to build digital twins of

cities and infrastructure, such as the Port of Oulu in Finland, for urban
planning and simulation purposes.

2. Vectuel: Developed a 1,000 km² digital twin of the Paris metropolitan

area using Unity, aiding city officials and architects in design and
construction planning. create.unity.com

3. Tilbury Douglas: A UK-based construction company utilizing Unity to

create digital twins for concept design and project delivery.
create.unity.com

⚡ Energy and Manufacturing

1. Siemens: Created a digital twin of its Munich location using Unity,

facilitating virtual demonstrations and customer engagement.
immersivelearning.news

2. Zutari: An engineering firm that uses Unity to plan and monitor large-
scale solar photovoltaic projects through digital twins, optimizing site
efficiency. create.unity.com

3. Brose Group: Developed a 3D digital asset library with Unity,

streamlining marketing content creation and enhancing customer
engagement. create.unity.com

🧍 Digital Humans and Avatars

1. Ready Player Me: Integrates with Unity to create customizable

avatars for various applications, including virtual reality and gaming.
create.unity.com
2. Unity's "Enemies" Demo: Showcases the creation of realistic digital
humans using Unity's advanced rendering capabilities. create.unity.com

🏥 Healthcare and Training

1. Fetal Heart VR: A medical training application that uses Unity to

simulate fetal hearts, allowing doctors to practice and understand
congenital diseases. wired.com+2time.com+2unity.com+2

2. Rezzil: Employs Unity to develop VR sports training programs,

enhancing athletic performance through immersive simulations.
create.unity.com

🌐 Urban Planning and Smart Cities

1. Orlando Economic Partnership: Collaborated with Unity to build a

comprehensive digital twin of the Orlando region, aiding in urban planning
and infrastructure development.

2. City of Espoo: Utilized Unity to simulate urban lighting scenarios,

assisting in city planning and environmental impact assessments.

The water technology behind Avatar: The Way of Water -

https://unity.com/blog/industry/technology-behind-avatar-the-way-of-water