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Ad monetization 101


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Presentation for Geek Girl Carrot Berlin - Sep 23,2015.
Audience: Beginner in the app economy and intro to Ad Monetization metrics.

Published in: Business

Ad monetization 101

  1. 1. App  Economy  &  its  funky  Metrics  ♫   Ad  Mone(za(on  101   Carole  Wai  Hai,  BI  Consultant  @Fyber   Sep.  2015  
  2. 2. Disclaimer   The  views  expressed  in  this  presentaLon  are  only    my  own  and  do  not   represent  the  views  of  my  employer  Fyber  or  its  parent  company  RNTS.  
  3. 3. Alternate  pitch  for  family  and  friends:     Do  you  like  free  Apps?     At  Fyber  we  provide  the  technology  for   Apps  like  Crossy  Road  to  deliver  ads  that   allow  them  to  keep  the  app  free.   Who  I  am?   2007   2008   2010   2011   2014   France   China   USA   Germany  
  4. 4. Alternate  pitch  for  family  and  friends:     Do  you  like  free  Apps?     At  Fyber  we  provide  the  technology  for   Apps  to  deliver  ads  and  stay  free.  
  5. 5. App  Economy     Life  Cycle   AcquisiLon   Engagement   RetenLon   MoneLzaLon   MarkeLng   Product   In-­‐App  Purchase   Premium  Apps   Freemium  Apps     What  if  you  have  the  greatest  game  in  the  world  and  no  one   knows  about  it?  Then  you  only  have  the  greatest  games  in  the   world  that  no-­‐one  knows  about.  Nick  Berry,  Facebook  Data  ScienFst     Acquisi6on  !  Make  your  game  discovered.   Engagement  +  Reten6on  !  Measure  how  great  is  your  game   indeed.   Ad  MoneLzaLon   SubscripLon  
  6. 6. App  Economy  Funnel  Metrics   Industry  numbers:   Up   to   1   out   of   20   users   will   moneLze  via  IAP.   (Among   them,   44%   will   do   so   a]er  the  10+  sessions.)     !   SLll,   you   need   to   moneLze   the  95%  remaining  traffic.   Ad   Revenue   can   generate   non-­‐ negligible  added  income.   20%   from   Ads   80%   from   IAP   Users  vs     IAP  spending  Users   Revenue  Distribu(on   example:  Glu  Games    Freemium  &   MoneLzaLon  
  7. 7. Ad  MoneLzaLon  Landscape   Rewarded  Ads   Non  Rewarded  Ads  Ad   Format   Which  Ad   Networks?   Offer  Wall   Ad  MoneLzaLon   Landscape   What  Ad   Format?   Rewarded  Video   Inters((al   Rewarded  Ads   Non  Rewarded  Ads   A   B     C  
  8. 8. Ad  MoneLzaLon  User  Flow   Ex:  Rewarded  Video   User   plays   Game   See  ‘watch  a   video  for   free  coins’   Click  to   watch  the   video   Finish  the   Video  and   earn  coins   AdverLser   pays  the   publisher.   Ad  MoneLzaLon   User  Flow   Notes:   To  Engage  with  an  Ad:  User  choose  via  opt-­‐in  to  see  the  ad.   To  Complete  an  Ad:  User  complete  requested  acLon  to  receive  virtual  currency.   Rewarded  Video   User   Engagement   Ad  Comple(on   User  Conversion   Ad  Impression   Session   Request   (Publisher)   Fill   (Ad  Network)   Publisher   Revenue  
  9. 9. Revenue   Sessions   Sessions  /  DAU         Impressions  /  Engaged  Users           Avg  CompleFon  /  CompleFng  Users     Considering  Users   Considering  Inventory   Ad  Impressions   Ad  CompleLons   Daily  AcLve  Users   Engaged  Users   ConverLng  Users   Ad  MoneLzaLon   Funnel  Metrics   Rewarded  Video   eCPM   ARPDAU   ARPPU   (Ads)   Jelly  Crush   DAU:  100,000   Impressions:  500,000   ConverLng  Users:  25,000   Revenue:  2,500  eur     eCPM:  5  eur   ARPDAU:  0,025  eur   ARPPU:  0,10  eur  
  10. 10. ARPDAU=Revenue/DAU   eCPM=Revenue/Impression*1000   ARPPU=Revenue/Conver(ng  Users       Ad  MoneLzaLon   Metrics  Monitoring   Rewarded  Video   US   iOS   In  this  order  check:   -­‐  DAU   -­‐  Revenue   -­‐  Impressions   -­‐  ConverLng  users   Important  drop  in   Revenue!   ARPDAU   ARPPU   eCPM  
  11. 11. Which  Metrics?   Criteria:  Best  price  for  your  inventory  +  no  waste       Ad  MoneLzaLon   Benchmarking  Ad  Networks   Rewarded  Video   US   iOS   Ad  Network  A   eCPM:  4  eur   Fill  rate:  90%   90  *4  =  360  eur   Ad  Network  B   eCPM:  5  eur   Fill  rate:  70%   70  *  5  =  350  eur   Ad  Network  C   eCPM:  6  eur   Fill  rate:  60%   60  *  6  =  360  eur   Bonus  quesLon:  Should  you  just  pick  one  Ad  Network  and  just  sLck  with  it?   NoLon  of  Depth  of  inventory    and  Cascade.     Test  Ad  Network    with  100,000  Requests  each:    
  12. 12. •  Fyber  gives  you  free  apps.   •  Ad  MoneLzaLon  is  a  must.   •  eCPM  is  important  to  measure  inventory  value,  but   also  think  ARPDAU  and  ARPPU  (Ads).   •  Fill  Rate  is  important  to  benchmark  Ad  Networks.   •  You  also  probably  want  to  work  with  several  Ad   Networks,  so  a  mediaLon  tool  is  a  good  soluLon.     Key  Take  Away  
  13. 13. QuesLon?     Thank  you!   Fyber  is  recruiLng  ♫   hop://    
  14. 14. DefiniLons  &  Acronyms  ♫    DAU  (Daily  Ac(ve  Users):  number  of  user  using  your  app  on  a  given  day.   Avg  Sessions  Per  User:  Sessions/DAU.  how  many  Lmes  per  day  a  user  opens  your  app,  in  average.   Avg  Ad  View  Per  Engaged  User:  Impressions/Engaged  Users.  Of  users  engaging  with  ads,  how  many   do  they  see  per  day,  in  average.   Avg  Comple(on  Per    Conver(ng  User:  CompleLons/  ConverLng  Users.  Of  users  compleLng  offers,   how  many  offers  to  they  complete  per  day,  in  average.   ARPDAU  (Average  Revenue  per  DAU):  Revenue/DAU   eCPM  =  revenue/impression  *1000   ARPPU  (Average  Revenue  Per  Paid  User)  :  Revenue/ConverLng  Users.  Here  ‘paid  users’  are  users   generaLng  revenue  via  adverLsement.   Engagement  Rate:  Engaging  Users  /  DAU   Fill  Rate:  Fill  /  Request  
  15. 15. Reference  ArLcles  ♫    hops://­‐have-­‐mobile-­‐metrics/   hop://­‐ads-­‐in-­‐mobile-­‐apps-­‐and-­‐games-­‐101.html   hop://­‐seufert-­‐gdc-­‐2014-­‐profitably-­‐launching-­‐jelly-­‐splash-­‐to-­‐1-­‐a-­‐ markeLng-­‐postmortem   hop://­‐and-­‐opinion/61879/niccolo-­‐de-­‐masi-­‐on-­‐whale-­‐behavior/   hop://­‐not-­‐the-­‐hard-­‐sell-­‐drives-­‐in-­‐app-­‐ purchase.html   hop://­‐berry-­‐growth-­‐hacking-­‐casual-­‐connect-­‐video/