GDC Shanghai - Everything You Need to Know about Facebook Ads: How Much do I Need to Pay to Get 1 Million Players to My Game?

Who Am I? CEO @ AdParlor We deliver over 300,000 new users every day for the largest game developers in the world

Agenda Fundamentals of Facebook advertising How any ad Network makes money – eCPM CTR and CVR why they matter Average CPA Rates in certain countries Factors that effect pricing How much does it cost to get to 1M users? Rising cost of user acquisition Changing market conditions

Fundamentals of Facebook Advertising

Some Basic Terms CTR - Click Through Rate CVR - Conversion Rate CPM - Cost per 1,000 impressions eCPM – Effective cost per 1,000 impressions CPC – Cost per click CPA – Cost per acquisition 4 Clicks from 10,000 Impressions = 0.04% CTR 2 Installs from 4 Clicks = 50% CVR 4 Clicks * $0.30 CPC = $1.20 Cost $1.20 Cost / 2 Installs = $0.60 CPA

Ad Server Fundamentals Any ad network wants to choose the ad with the highest eCPM. o This is true for Facebook and amplified by their focus on user experience. A high CTR means you can buy cheaper clicks A high CVR means you get more conversions for those clicks Generally Facbook Gaming ads o Have a CTR between 0.04% and 0.14% o Have a CVR between 40% and 60%

The Importance of CTRDifference in eCPM based on the CTR [hold CPC bid constant]Impressions CTR Clicks CPC Bid eCPM1,000 1.00% 10 $ 0.50 $ 5.001,000 0.10% 1 $ 0.50 $ 0.501,000 0.05% 0.5 $ 0.50 $ 0.251,000 0.01% 0.1 $ 0.50 $ 0.05Difference in CPC bid based on the CTR [achieve $1.00 eCPM]impressions CTR Clicks CPC bid eCPM1,000 1.00% 10 $ 0.10 $ 1.001,000 0.10% 1 $ 1.00 $ 1.001,000 0.05% 0.5 $ 2.00 $ 1.001,000 0.01% 0.1 $ 10.00 $ 1.00

Seeing the Effect on Facebook

The Importance of CVRDifference in eCPA based on the CVR [holding cost constant] Cost Clicks CVR Conversions eCPA $ 5,000.00 10,000 40.00% 4,000 $ 1.25 $ 5,000.00 10,000 50.00% 5,000 $ 1.00 $ 5,000.00 10,000 60.00% 6,000 $ 0.83 $ 5,000.00 10,000 70.00% 7,000 $ 0.71

Factors That Effect CPA Rate Country Targeting Creative Target Market Flow from click to conversion Application Saturation Market Conditions Desired Volume

Looking Deeper Into Some FactorsCountry CreativeCountry CPAUnited States $ 0.75Canada $ 0.65Hong Kong $ 0.55Taiwan $ 0.45Malaysia $ 0.20Desired Volume You CANNOT discuss price unless you discuss volume. Some advertisers pay $0.50 CPA one day and $2.00 the next day depending on desired volume

A Bit More About Countries Country Facebook Targetable GameCountry Population Population PlayersUnited States 312,038,00 133,550,860 44,766,580United Kingdom 61,792,000 23,668,560 7,787,380Canada 34,350,000 14,717,921 4,933,540Australia 22,559,000 7,887,360 2,768,160TOTAL 430,739,000 179,824,700 60,255,660

How Much Does It Cost To Get 1 Million Users? I cannot answer this question unless I know o Within what time period? o What is your games appeal? o How big is your target market? o Are you counting viral users?

Here Are Some AveragesGenre Spend to get to 1M Users Average CPAHardCore $ 1,472,027.99 $ 1.47Casual $ 863,819.30 $ 0.86Virtual World $ 596,907.12 $ 0.60 Assumptions o Time period ~ 6 months o Traffic is ~70% English Speaking o Open to both M/F 18+

Little War 小小战争Total traffic : 300K Users Grand Chinese- speaking Area 75,871Total spend: 137,978 158K USD 151,547 Just in ThailandCPA: $0.52 USD In North AmericaCampaign length: Four Months

DDtankTotal traffic : All time Conversions: 315K Users United States United KingdomTotal spend: Australia Canada 305K USD South Asia EuropeCPA: $0.97 USDCampaign length: Three Months

MOW 帝国文明Total traffic : All time Conversions: 150K Users United States United KingdomTotal spend: Canada 275K USD 15,708 15,540CPA: $1.83 USD 118,086Campaign length: Three Months

Rising Cost of User Acquisition Over TimeGame is Saturated and CTR/CVR drop – pay more per user“Once you’ve acquired the majority of the early adopters, CPIs in a particular market can increase by 3-5x from your Day 1 CPI! Fortunately, this change doesn’t happen overnight. Refreshingcreative, creating a compelling message, and refining your target audience are the best ways to combat application saturation” – John Marsland, Acquisition Manager

Changing Market Conditions

Thank YouHussein Fazal – CEO AdParlor Hussein.fazal@adparlor.com @hussein_fazal

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GDC Shanghai - Everything You Need to Know about Facebook Ads: How Much do I Need to Pay to Get 1 Million Players to My Game?

by hussein_fazal on Dec 29, 2011

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GDC Shanghai - Everything You Need to Know about Facebook Ads: How Much do I Need to Pay to Get 1 Million Players to My Game? — Presentation Transcript