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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?
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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?

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A presentation I gave at GDC Shanghai with a ton of information on Facebook Advertising. I also attempt to answer the question - how much do I need to pay to get 1 Million players to my game?

A presentation I gave at GDC Shanghai with a ton of information on Facebook Advertising. I also attempt to answer the question - how much do I need to pay to get 1 Million players to my game?

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  • 1. Who Am I? CEO @ AdParlor We deliver over 300,000 new users every day for the largest game developers in the world
  • 2. 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
  • 3. Fundamentals of Facebook Advertising
  • 4. Fundamentals of Facebook Advertising
  • 5. 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
  • 6. 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%
  • 7. 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
  • 8. Seeing the Effect on Facebook
  • 9. 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
  • 10. Factors That Effect CPA Rate Country Targeting Creative Target Market Flow from click to conversion Application Saturation Market Conditions Desired Volume
  • 11. 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
  • 12. 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
  • 13. 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?
  • 14. 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+
  • 15. 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
  • 16. 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
  • 17. 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
  • 18. 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
  • 19. Changing Market Conditions
  • 20. Thank YouHussein Fazal – CEO AdParlor Hussein.fazal@adparlor.com @hussein_fazal