This document discusses design options for including video ads in free-to-play games. It presents results from several A/B tests conducted by Social Point on the impact of video ads. The tests found that "pull" video ads have no impact on churn, while "push" video ads have a small negative impact on churn. Additionally, video ads can cannibalize in-app purchase revenue, but the combined revenue from video ads and in-app purchases may be greater than from in-app purchases alone. However, allowing players to watch too many video ads may decrease average revenue per paying user by more than the additional video ad revenue can offset.

2. AGENDA
1. WHAT DESIGN OPTIONS EXIST FOR INCLUDING VIDEO ADS INSIDE F2P GAMES?
2. DOES DISPLAYING AN AD FOR A COMPETITIVE GAME INSIDE YOUR APP INCREASE CHURN?
3. DO VIDEO ADS CANNIBALISE IAP REVENUE?

3. INTRODUCTION TO SOCIAL POINT
325 PEOPLE WITH 3 TOP MOBILE GAMES

4. ANALYTICS @ SOCIAL POINT
DATA
PRODUCTS
5 PEOPLE11 PEOPLE
DATA
LAB
11 PEOPLE
GAME DATA
SCIENCE
EMBEDDED ANALYSTSDATA ENGINEERS MACHINE LEARNING
28 PEOPLE DEDICATED TO IMPROVING THE GAMES WITH DATA

6. “PULL” DESIGN OPTION 1: MONSTERWOOD

7. “PULL” DESIGN OPTION 2: DOUBLE REWARDS

8. “PULL” DESIGN OPTION 3: SPEED UP

9. “PUSH” VIDEO ADS DESIGN: SKIPPABLE VA

10. WHAT DO PLAYERS PREFER?
97M
65M
22M

12. WHAT DO YOU THINK?
1. GO TO SLIDO.COM
2. CLICK JOIN EVENT
3. ENTER CODE #J468

13. DO VIDEO ADS INCREASE CHURN? NO
30%
43%

14. WHAT ABOUT PUSH VIDEO ADS?

15. AB TEST RESULTS: IMPACT OF SKIPPABLE ADS ON FOLLOWING DAY RETENTION
-0.9%
-1%
0%

17. WHAT DO YOU THINK?
1. GO TO SLIDO.COM
2. CLICK JOIN EVENT
3. ENTER CODE #N766

18. ANOTHER AB TEST…..

19. AB TEST RESULTS: IMPACT OF VIDEO ADS ON LIFETIME VALUE
0%
-8%
+5%

20. REVENUE FROM VIDEO ADS OFFSETS CANNIBALISATION EFFECTS
0
IAP revenue
IAP + VAD revenue

21. AND THEN WE MADE A MISTAKE….

22. WE ACCIDENTALLY INCREASED THE NUMBER OF VIDEO ADS WATCHED
0% -8%39%

23. ARPU DECREASED FOR PAYERS WHO WATCHED MORE THAN 4 VIDEO ADS
+8%
-5%
*THIS DECREASE WAS TOO BIG TO BE OFFSET BY VIDEO AD REVENUE

25. 1. “PULL” Video ads have no impact on churn
2. “PUSH” video ads have a small negative impact on churn
3. Video ads DO cannibalise IAP revenue
4. IAP + VAD revenue can be greater than IAP alone
5. BUT be careful not to allow players to watch too many video ads