All About Ads

ALL ABOUT ADS! Joe Gruender, Mochi Ads GuyMr. Shen, Game Developer / Player & Mochi Employee JULY 26TH, 2011

WHY SHOULD YOU CARE?“ALL I NEED TO KNOW IS I PUT MOCHI’S CODE IN MY GAME, AND IEARN MONEY.”KNOWING HOW IT ALL WORKS WILL HELP YOU UNDERSTAND:!   WHY CERTAIN ADS ARE BEING SERVED INTO YOUR GAME!   AD TERMINOLOGY & DEFINITIONS!   WHY THE AD MARKET FLUCTUATES 2

WHAT DRIVES REVENUE ON THE INTERNET?!  ADS!  SUBSCRIPTIONS!  E-COMMERCE (INCLUDING MICRO-TRANSACTIONS) 3

ADS DRIVING THE INTERNET!  ONLINE VIDEO ADS CONTINUE TO BE THE FASTEST-GROWING FORMAT, WITH AN INCREASE OF MORE THAN 52% PREDICTED THIS YEAR. SOURCE: HTTP://WWW.EMARKETER.COM/ARTICLE.ASPX?R=1008431)!  TO FUND ONLINE-VIDEO SPENDING, MANY PREDICT TO CANNIBALIZE DISPLAY ADVERTISING AND SOME EXPECT TO MOVE AS MUCH AS 5% OF TELEVISION BUDGETS. SOURCE: HTTP://WWW.REELSEO.COM/VIDEO-ADVERTISING-FASTER-GROWTH/!  SOME 62% OF MARKETERS WILL MIGRATE TV AD DOLLARS TO DIGITAL VIDEO, BASED ON THE BELIEF THAT THE MEDIUM DELIVERS A MORE POSITIVE ROI, COMPARED WITH 47% OF AGENCIES AS THEY ATTEMPT TO FOLLOW THEIR TARGET AUDIENCE SOURCE: HTTP://WWW.IDGKNOWLEDGEHUB.COM/BLOGS/?P=8007 4

US ADVERTISING MARKET Source: http://www.businesswire.com/news/home/20110413006052/ en/IAB-Reports-Full-Year-Internet-Ad-Revenues-2010 5

GETTING PHILOSOPHICALDIFFERING PHILOSOPHIES AROUND ADVERTISING!  TWO CAMPS: !  Ads are evil and should be abolished. !  Ads make me money, so I can keep building the things I love. 6

ADS MAKE ME MONEY…..TWO TYPES OF ADVERTISERS WHO WANT YOUR BUSINESS!  BRANDING!  REMNANT 7

WHO WANTS TO BUY YOUR INVENTORYBRANDING ADVERTISERS:!  FOCUS ON EDUCATING GAME PLAYERS OF THEIR BRAND, PRODUCT NAME ETC.!  GROWING ONLINE PRESENCE!  REPURPOSING EXISTING OFFLINE VIDEO CONTENT.!  HOST INITIATED VIDEO WITH HOST INITIATED VIDEO.!  HIGH BUDGETS AT GREAT ECPMS!  GREATER CONSUMER INTERACTIONS ! BrandBoost ! Watch&Win 8

WHO WANTS TO BUY YOUR INVENTORY!  REMNANT ADVERTISERS: !  Are looking for inexpensive, high volume opportunities !  Have growing budgets !  Don’t have long term commitments !  Ability to self manage inventory !  VAST (trusted partners only) !  Ad server integration !  Self-Serve Platform More on Branding & Remnant advertisers later 9

MOCHI’S FOCUSMAKING A GREAT AD PLATFORM EVEN BETTER BY:!  IMPROVING AD QUALITY!  LOCALIZING SALES EFFORTS!  IMPROVING ADS REVENUE 10

QUALITYIN THE LAST 24 MONTHS:!  WE’VE SHUT DOWN THE MANY TYPES OF UNDESIRABLE, BUT LEGAL ADS.!  WE’VE INSTITUTED BETTER QUALITY CHECKS !  Human review !  Roughly 10% of all submitted ads are denied. !  Challenges !  IP target !  Proxy servers !  Misleading landing pages http://www.mochimedia.com/adv-guidelines.html 11

LOCALIZED SALESMOCHI IS FOCUSED ON CREATING HIGH VALUE / HIGH REVENUEGENERATING PARTNERSHIPS IN STRATEGIC MARKETS!  CURRENT SUCCESS !   US/UK/CA !  Western Europe !  North America / W. Europe / AU/NZ!  CONTINUING EFFORTS !  Latin and South America !  Asia (non-Chinese) !  China 12

IMPROVING REVENUETHINGS WE’RE DOING TO INCREASE DEVELOPERREVENUES:!  BETTER MONETIZE GLOBAL MARKETS (LEVERAGING NEW PARTNERSHIPS IN W. EUROPE, TURKEY AND AUSTRALIA)!  LOOKING FOR PARTNERS IN LATIN AND SOUTH AMERICA!  EXPLORING NEW AD PRODUCTS ! Watch&Win !  BrandBoost !  ScoreAds !  Others soon in late Q3 13

MOCHI ADS PRODUCTS!  PRE-ROLL ADS / TIMED ADS!  SCORE ADS!  CLICK-AWAY ADS!  CUSTOM ADS 14

MOCHI ADS PRODUCTS, CON’DPRE-ROLLS / TIMED ADS:!  CPM/CPC!  SKINNED VIDEO/VIDEO/FLASH/STATIC IMAGES!  90% OF OUR INVENTORY 15

MOCHI ADS PRODUCTS, CON’DCLICKAWAY ADS:!  CPC BASED ADS ONLY.!  NO VIDEO!  LOWER ECPM BUSINESS – SELF-SERVE PLATFORM!  10% OF INVENTORY!  PROFITABLE EXCEPTIONS – OF COURSE. 16

MOCHI ADS PRODUCTS, CON’DSCORE ADS:!  CPM/CPC!  FLASH / STATIC IMAGES!  OPT-IN!  FREQUENCY CAPPED 2 VIEWS EVERY X MINUTES!  ADDITIONAL REVENUE STREAM 17

MOCHI ADS PRODUCTS, CON’DCUSTOM ADS:!  DEVELOPER SETS A MINIMUM ECPM BENCHMARK FOR MOCHI TO SERVE PAID ADS, OTHERWISE DEVELOPER’S OWN STATIC IMAGE RUNS.!  NO REVENUE 18

ECPM V. REVENUEI GET A HIGHER ECPM USING “X”…ECPM != REVENUE! ECPM IS A METRIC, IT ISN’T SOMETHING YOU CAN SPEND. REVENUE IS SOMETHING YOU CAN SPEND.!  ASK YOURSELF: “AT THE END OF THE DAY, WHAT’S GOING TO MAXIMIZE YOUR REVENUE?” 19

ECPM != REVENUE, CON’DCPM? REVENUE? QUÉ?!  CPM VS CPC VS. CPA !  CPM favors the developer (and Mochi). !  CPC is middle ground. !  CPA favors the advertiser. 20

BEHIND THE SCENES: ADS ECO-SYSTEMTHE PLAYERS:!  GUARANTEED INVENTORY BUYERS!  REMNANT INVENTORY BUYERSTHE INFRASTRUCTURE:!  SALES (SOMEONE HAS TO DO IT)!  AD APPROVALS!  ADS ARE CALLED!  ADS ARE SERVED 21

THE PLAYERS: GUARANTEED INVENTORY BUYERS GUARANTEED INVENTORY BUYERS !   DEFINITION: PARTIES THAT BUY A GUARANTEED IMPRESSION GOAL BETWEEN A START AND AN END DATE. TYPICALLY, THESE ADVERTISERS ARE INTERESTED IN SHARE OF VOICE (SOV), REACH AND FREQUENCY. !   TYPES !   “Branders” – agencies !  Driving consumer awareness. Think McDonalds, X-Men movie trailers !   WANTS TO REACH A TARGET AUDIENCE !   At Mochi, we use game categories as a proxy for user demographic information. For example, we know from comScore that puzzle games skew towards mature women (e.g. Moms), while Fighting games tend to attract a more male audience. 22

THE PLAYERS: REMNANT INVENTORY BUYERSREMNANT INVENTORY BUYERS!  DEFINITION: PARTIES WHO BUY INVENTORY WITH A FOCUS ON PRICE. START AND END DATES, DEMOGRAPHICS ARE NOT AS MUCH A FOCUS AS PERFORMANCE.!  TYPES: !  “Arbitragers” !  Customers who make a living on the thin margin between the buy rates and sell rates. These players need cheap inventory in huge amounts. Think Gamevance.com downloads. !  Traffic Drivers” !  Customers, who have their own website, typically game portals or iphone apps developers, and need to drive eyes as cheaply as possible. !  Video Ad networks !  Ad networks who look to buy inexpensive inventory to run video banners 23

INFRASTRUCTURE: SALESSALES DEALS ARE DONE BY!  MOCHI SALES FOLKS!  MOCHI AUTHORIZED REPRESENTATIVES! MOCHIADS SELF-SERVE!  PREFERRED AD NETWORK PARTNERSHIPS 24

INFRASTRUCTURE: GETTING ADS IN YOUR GAMEADS ARE SERVED INTO YOUR GAMES VIA:!  MOCHI SITE SERVING!  AN XML CONNECTION TO BRANDERS’ AD SERVERS!  CUSTOM AD SERVER INTEGRATION 25

DIFFERENT TYPES OF ADS: PRE-LOADER ADPROS:•  Great for guaranteeing an ad impression for a play of your game•  Coupled with LiveUpdates is a great technology for updating your game across the internet as well as encrypt it for security•  Easy to implement 26

DIFFERENT TYPES OF ADS: PRE-LOADER ADCONS:•  From a player standpoint, it does force an ad impression for a play of your game and some ads have a required time limit•  If the game is hacked in any way and LiveUpdates is removed, then the advertisement will also be removed. 27

DIFFERENT TYPES OF ADS: CLICK-AWAY ADPROS:•  Excellent alternative for Pre-Game Ad•  Unobtrusive – player is not forced to wait for anything•  Even if LiveUpdates are removed, these advertisements are not tied into the code and will stay inside your game 28

DIFFERENT TYPES OF ADS: CLICK-AWAY ADCONS:•  300x250 ad space required that cannot be rotated, skewed or obstructed in any way•  Lower eCPM as higher, richer media based ads are not passed through Click-Away Ad displays 29

DIFFERENT TYPES OF ADS: INTERLEVEL ADPROS:•  Excellent alternative for Pre-Game Ad•  Even if LiveUpdates are removed, these advertisements are not tied into the code and will stay inside your game 30

DIFFERENT TYPES OF ADS: INTERLEVEL ADCONS:•  Player will be forced to wait a period of time (like a Pre-Game Ad) before being able to progress with the game•  A bit more obtrusive than a Click-Away ad as it takes over the screen 31

MR. SHEN’S SUMMARYAd Type PROs CONs Pre-‐Game Ad •  Richer media ads capabili3es (ex: •  Hacked games removing Flash, video, etc.) meaning higher LiveUpdates also removes eCPM the ad •  Compa3ble with Mochi Media’s •  Forces a predetermined LiveUpdates Service wait 3me for each 3me the •  Easy to implement (one line of game is loaded code) •  Takes over whole game stage Click-‐Away Ad •  Unobtrusive •  Generally lower eCPM than •  Can be integrated into the game pre-‐game ads stage how the developer sees ﬁt •  300x250 minimum space •  If LiveUpdates are removed, Click-‐ required for ad Away Ads will s3ll work Inter-‐Level Ad •  Placed at natural breaks of the •  Forces a predetermined game; does not force an ad when wait 3me for each 3me ad the game starts is shown •  If LiveUpdates are removed, Inter-‐ •  Takes over whole game Level Ads will s3ll work stage 32

FIN 33

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All About Ads

by mochimedia on Jul 27, 2011

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All About Ads — Presentation Transcript