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 ...
Fundamentals of Facebook      Advertising
Fundamentals of Facebook      Advertising
Some Basic Terms CTR - Click Through Rate CVR - Conversion Rate CPM - Cost per 1,000 impressions eCPM – Effective cost...
Ad Server Fundamentals Any ad network wants to choose the ad with the highest  eCPM.   o This is true for Facebook and am...
The Importance of CTRDifference in eCPM based on the CTR [hold CPC bid constant]Impressions     CTR         Clicks    CPC ...
Seeing the Effect on Facebook
The Importance of CVRDifference in eCPA based on the CVR [holding cost constant] Cost         Clicks   CVR          Conver...
Factors That Effect CPA Rate Country Targeting Creative Target Market Flow from click to conversion Application Satur...
Looking Deeper Into Some FactorsCountry                     CreativeCountry         CPAUnited States   $ 0.75Canada       ...
A Bit More About Countries                 Country       Facebook      Targetable GameCountry          Population    Popul...
How Much Does It Cost To     Get 1 Million Users? I cannot answer this question unless I know   o Within what time period...
Here Are Some AveragesGenre           Spend to get to 1M Users   Average CPAHardCore        $ 1,472,027.99             $ 1...
Little War 小小战争Total traffic : 300K Users                            Grand Chinese-                                      ...
DDtankTotal traffic :                   All time Conversions: 315K Users                    United States                ...
MOW 帝国文明Total traffic :                   All time Conversions: 150K Users                          United States        ...
Rising Cost of User Acquisition Over TimeGame is Saturated and CTR/CVR drop – pay more per user“Once you’ve acquired the m...
Changing Market Conditions
Thank YouHussein Fazal – CEO AdParlor    Hussein.fazal@adparlor.com         @hussein_fazal
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?

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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?

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

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