'Best practices to deliver Lifetime Value Optimization' - Kaya Taner at App Promotion Summit Berlin

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AppLift helps mobile game advertisers acquire loyal, quality gaming users at scale on a CPI basis. On the supply side, they offer media partners to easily and effectively monetize their traffic with …

AppLift helps mobile game advertisers acquire loyal, quality gaming users at scale on a CPI basis. On the supply side, they offer media partners to easily and effectively monetize their traffic with relevant game offers, on both iOS and Android. At App Promotion Summit Berlin, AppLift CEO Kaya Taner gives insights on generating ROI - positive traffic for free-to-play mobile games.

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  • 1. Best practices to deliver LTV: Insights on generating ROI-positive traffic for free-to-play mobile games Kaya Taner– 28/11/2013 Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com Part of
  • 2. Who is talking? Kaya Taner CEO & Co-Founder AppLift 70 people+, offices in Seoul, Berlin and San Francisco Acquiring millions of users per month for 150+ games Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com 2
  • 3. The 3 waves of paid User Acquisition Top charts Goal Lowest CPI ROI positive High volume CPI LTV > CPI Pricing Top position Flat fee SDKs No SDK Many SDKs Non-incent 2012 Few SDKs Ad type Incentivize d 2011 Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com aCPI Non-intrusi ve 2013+ 3
  • 4. How to buy ROI positive traffic Tracking setup App Store optimization Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com Traffic buying 4
  • 5. Tracking setup Campaign tracking Attribution of installs to paid and non-paid channels In-game tracking Tracking of in-app events to measure and analyze user behavior Methods: Fingerprint, IDFA/Android ID Players: Players: Common identifier needed to match channels with in-app behavior Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com 5
  • 6. KPI‘s for in-game tracking ROI-positive User Acquisition Retention  Day 1, 7, 30  DAU  DNU Monetizati on Engagement  Average time in app / session  Total daily sessions / DAU Virality • K-factor (viral growth rate per-user • • Trackable: Social Media, Referrals, Invites etc. Non-trackable: Word of Mouth  ARPU = total revenue / # users  ARPPU = total revenue / # paying users  Monetization rate = % of users that made in-app purchases Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com 6
  • 7. The in-game KPI‘s in the User‘s Lifecycle Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
  • 8. How to buy ROI positive traffic Tracking setup App Store optimization Traffic buying eBook on Mobile Games Marke Available for free download on www.AppLift.com Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com 8
  • 9. How to buy ROI positive traffic Tracking setup App Store optimization Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com Traffic buying 9
  • 10. Find the right traffic sources It is critical to understand and identify the best traffic sources for your target your users In app In game Mobile Web Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com 10
  • 11. Address the users appropriately Find the best performing way to reach the audience and address your potential new users • Performance based Pay for new gamers on a risk-free CPI, optimize the channels based on eCPI • + Non-incentivized Understand if a higher chart position really pays off or if a sustained campaign has better returns • + Non-intrusive (detailed) Ensure that your game is presented in the Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com 11
  • 12. Examples of non-intrusive integrations Tailor the use of ads and promotions to your product, gameplay and enrich the user experience If done right, non-intrusive ads can show average CTR’s of 13%, Conversion rates of 16% and result in eCPM’s of 33 USD for the publisher Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com 12
  • 13. Understand the real cost of your acquired users CLV > eCPI eCPI takes into account all the costs induced by the acquisition of one user as well as free installs • Fixed costs • Setup costs • “Free” promotions Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com • Virality (K-factor) • Additional organic installs
  • 14. Modeling CLV CLV RDk = retention rate on day k ARPDAUk = Average revenue per daily active user on day k Retention 60% 40% 20% 0% Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
  • 15. What does this mean for your launch timeline? 4 weeks before submission Integrate install tracking SDK and in-game tracking SDK 2 weeks before launch Set up campaigns with traffic partners ● Prepare creatives ● Set up tracking Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com ● ● Game is live! ● ● Review in-game events Optimize eCPI‘s for traffic source and estimate
  • 16. Talk to us Kaya Taner CEO & Co-Founder kt@applift.com Download eBook at www.applift.com Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
  • 17. BACKUP Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com 17
  • 18. Identify ROI positive channels Sour ce CPI K-Facto r 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 selection accordingly You can scale your user acquisition with ROI Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com positive channels 18
  • 19. Wave 1: Buy a chart position “Can you guarantee a chart position?” Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com 19
  • 20. Wave 2: Buy volume on CPI “Give me as many installs as possible for this CPI!”  No tracking beyond the install  CPI adjusted based on happiness with volume Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com 20
  • 21. Wave 3: Buy ROI positive traffic “I will only pay as much as the user is worth in my game!”  Track the quality  CPI adjusted based on quality delivered Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com 21
  • 22. Examples of non-intrusive integrations Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com 22