ROI positive User Acquisition for mobile games

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This presentation outlines how mobile app/game developers can acquire new users on a profitable level. …

This presentation outlines how mobile app/game developers can acquire new users on a profitable level.

First it gives an outline of how user acquisition has changed over the past two years.

Then it shows the process of buying traffic in a ROI positive way.

Lastly it summarizes the launch timeline to prepare for a successful app release.

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  • 1. ROI positive User Acquisition for mobile games Dr. Hanno Fichtner – November 2013 Part of
  • 2. Who  is  talking?   Dr. Hanno Fichtner § Co-­‐Founder  &  Partner  HitFox   Group   § Heading  AppLi8  US   § Acquiring  millions  of  users  per   month  for  hundreds  of  games     Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 2  
  • 3. The  3  waves  of  paid  User  Acquisi<on   Top  charts   Goal   Lowest  CPI   ROI  posi<ve   Top  posiJon   High  volume   CLV  >  eCPI   Pricing   Flat  fee   CPI   aCPI   SDKs   No  SDK   Many  SDKs   Few  SDKs   IncenJvized   2011   Non-­‐incent   2012   Non-­‐intrusive   2013+   Ad  type   Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com   3  
  • 4. How  to  buy  ROI  posi<ve  traffic   Tracking  setup   App  Store   opJmizaJon   Traffic  buying     Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 4  
  • 5. Tracking  setup   Campaign  tracking   In-­‐game  tracking   § AUribuJon  of  installs  to   paid  and  non-­‐paid   channels   § Tracking  of  in-­‐app   events  to  measure  and   analyze  user  behavior   § Methods:  Fingerprint,   IDFA/Android  ID   § Players:   § Players:   Common  iden<fier  needed  to  match  channels  with  in-­‐app  behavior     Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 5  
  • 6. The  in-­‐game  KPIs  in  the  user‘s   lifecycle   ROI-­‐posiJve  User  AcquisiJon   RetenJon   §  Day  1,  7,  30   §  DAU   §  DNU   MoneJzaJon   Engagement   §  Average  Jme  in   app  /  session   §  Total  daily   sessions  /  DAU   Virality   §  Facebook  sharing   §  Referrals   §  Reviews   §  ARPU  =  total  revenue  /  #  users     §  ARPPU  =  total  revenue  /  #  paying  users   §  MoneJzaJon  rate  =  %  of  users  that   made  in-­‐app  purchases         Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 6  
  • 7. How  to  buy  ROI  posi<ve  traffic   Tracking  setup   App  Store   opJmizaJon   Traffic  buying     Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 7  
  • 8. ASO  basics:     S<cking  out  and  closing  the  deal   Discoverability   Conversion   OpJmizing  your  presence   on  the  app  stores  through   the  search  funcJon   Closing  the  deal  once  your   game  has  been  discovered   § Icon  (detailed)   § Title   § Screenshots   § Keywords,  IAP  items:   MobileDevHQ,   Searchman,  AppCod.es   § DescripJon  (Android)   Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com § RaJngs     8  
  • 9. The  Conversion  Funnel     Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 9  
  • 10. Screenshot/Icon  A-­‐B  tes<ng  for  iOS   Visits/Clicks  =  6.9%   Visits/Clicks  =  9.6%   +41%     Visits/Clicks  =  5.8%    -­‐16%   Useful  tools  to  start:  www.atmio.com  /  www.sparkpage.com       Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 10  
  • 11. How  to  buy  ROI  posi<ve  traffic   Tracking  setup   App  Store   opJmizaJon   Traffic  buying     Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 11  
  • 12. Find  the  right  traffic  sources   In-­‐App  Traffic   Gaming   Mobile  Web   Non-­‐Gaming       •  Target  audience,   •  Great  targeJng   proven  interest  in   opJons  when  done   games   right   •  Strong  impact  of   posiJve  editorial   content   •  Risk  to  address   only  non-­‐paying   gamers   •  Higher  likelihood   to  address  paying   users   •  Significant   spillover  effect   with  media  &  PR       Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 12  
  • 13. Find  the  right  campaign  setup     1.  Performance  based   Pay  only  on  a  risk-­‐free  CPI,  opJmize  based  on  eCPI   2.  Non-­‐incen<vized   Evaluate  potenJal  benefits  of  higher  chart  posiJon   versus  ROI  of  a  sustained  campaign   3.  Non-­‐intrusive  (detailed)   Present  your  game  in  the  best  possible  way       Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 13  
  • 14. Examples  of  non-­‐intrusive   integra<ons   Resul<ng  KPIs   §  Average  CTR:  13%   §  Average  conversion  rate:  16%   §  Average  eCPM:  33  USD     Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 14  
  • 15. Understand  the  real  cost  of  your   acquired  users   CLV  >  eCPI   eCPI  takes  into  account  all  the  costs  induced  by  the  acquisiJon   of  one  user  as  well  as  free  installs   •  Fixed  costs   •  Setup  costs   •  “Free”  promoJons   •  Virality  (K-­‐factor)   •  AddiJonal  organic   installs     Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com
  • 16. Modeling  CLV   CLV   RDk  =  reten*on  rate  on  day  k   ARPDAUk  =  Average  revenue  per  daily  ac*ve  user  on  day  k   Reten<on   50%   40%   30%   20%   10%   0%   D1   D3   D5   D7   D9   D11  D13  D15  D17  D19  D21  D23  D25  D27  D29     Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com
  • 17. Iden<fy  ROI  posi<ve  channels   Source   CPI   K-­‐Factor   eCPI   CLV   D1  –  Ret.   Level  Comp.   1   $1.90   1.06   $1.79   $1.64   32%   17%   2   $2.10   1.02   $2.06   $2.01   41%   10%   3   $2.50   1.01   $2.48   $2.37   39%   21%   4   $2.70   1.23   $2.20   $2.87   54%   49%   5   $1.80   1.12   $1.61   $1.97   52%   46%   6   $1.90   1.04   $1.83   $1.64   37%   23%   7   $1.50   1.08   $1.39   $1.74   49%   …   42%   Matching  the  eCPIs  with  every  channels  individual  CLV  will  allow   you  to  adjust  the  CPIs  and  channel  selecJon  accordingly     You  can  scale  your  user  acquisi<on  with  ROI  posi<ve  channels     Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 17  
  • 18. What  does  this  mean  for  your   launch  <meline? 4  weeks  before   submission   2  weeks  before   launch   Game  is  live!   •  Integrate  install   tracking  SDK  and   in-­‐game  tracking   SDK   •  Set  up  A/B  tests   •  Set  up  campaigns   with  traffic   partners   •  Prepare  crea<ves   •  Set  up  tracking   •  Review  in-­‐game   events   •  Op<mize  CPIs  for   traffic  source  and   es<mate  CLV     Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com  
  • 19. Talk  to  us Dr.  Hanno  Fichtner   CEO  US,     Co-­‐Founder  HitFox  Group     hf@appli8.com   Download  eBook  at  www.applin.com     Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com