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Nadav Ashkenazy - Casual Connect Europe 2018

ironSource VP Nadav Ashkenazy spoke at the most recent Casual Connect Europe conference in London. Discussing everything from the benefits of rewarded video to supercharging game revenue while preserving and even improving user experience. Check out the deck from his presentation titled "The Ins and Outs of Ad Monetization: How Choosing the Right Ad Format can Supercharge your Game Revenue".

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Monetization Deep Dive
Enhancing User Experience
and Ad Revenue
The Gap
IAPIAP
Ad
Monetization
Ad
Monetization
Share of Revenue / Impact Share of Attention / Sophistication
Part 1
Rewarded Ads (User initiated)
Rewarded Ads - The Magic Ad Unit
Great
eCPMs
(= great revenue source)
Great
UX
Rewarded Ads - The Magic Ad Unit
Definitely doesn’t hurt
retention
Definitely doesn’t hurt
session length
Important to make
sure it doesn’t
cannibalize IAP
Rewarded Ads - The Magic Ad Unit
Definitely doesn’t hurt
retention
Definitely doesn’t hurt
session length
Important to make
sure it doesn’t
cannibalize IAP
Can actually
improve it by
~10% - 25%
Can actually
improve it by
10% - 30%
Can actually
improve it by
0 - 8%
Ad

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Nadav Ashkenazy - Casual Connect Europe 2018

  • 1. Monetization Deep Dive Enhancing User Experience and Ad Revenue
  • 2. The Gap IAPIAP Ad Monetization Ad Monetization Share of Revenue / Impact Share of Attention / Sophistication
  • 3. Part 1 Rewarded Ads (User initiated)
  • 4. Rewarded Ads - The Magic Ad Unit Great eCPMs (= great revenue source) Great UX
  • 5. Rewarded Ads - The Magic Ad Unit Definitely doesn’t hurt retention Definitely doesn’t hurt session length Important to make sure it doesn’t cannibalize IAP
  • 6. Rewarded Ads - The Magic Ad Unit Definitely doesn’t hurt retention Definitely doesn’t hurt session length Important to make sure it doesn’t cannibalize IAP Can actually improve it by ~10% - 25% Can actually improve it by 10% - 30% Can actually improve it by 0 - 8%
  • 7. Bottom line: Start with maximizing rewarded ads
  • 8. Rewarded Ads Equation = What to measure
  • 9. Maximizing Revenue - WHAT KPIs? Publisher Network Impressions * Bids Implementation - Placements, Flow Engagement Rate Usage Rate (Imp/engaged user) Visibility Attractiveness Timing Alignment with virtual economy eCPM IPM Creatives Targeting Relationship (granular bidding, post-install events, suppression…) Revenue =
  • 10. Engagement Rate and Usage Rate 6 Videos a day 100% Users 40% Users 1M DAU 400K EU 2.4M impressions = Usage Rate
  • 11. Session Depth and its Effects Imp IPM 1st 6 2nd 5 3rd 4.6 4th 4.1 5th 3.5 6th 3 7th 2.75 8th 2.5 9th 2.25 10th 2 · Sum of RV IPM · Sum of playable IPM
  • 13. DAU ⇨ Impressions Engagement Rate At least 30% aim for 50% Usage Rate At least 4 aim for 8 Total imp/DAU rate At least 1.2 aim for 4
  • 14. Impressions ⇨ Revenue IPM At least 3 aim for 5 tier 1 / tier 3
  • 15. Strategy = How to get there
  • 16. Rewarded Video Strategy ● Ads from Day 1 ● Reward ○ Soft / hard currency ○ Valuable but different from IAP ○ Dynamic (exponential) ○ Diversified ● Timing ○ Clean environment ○ End of session ○ User and Advertiser - view and engagement
  • 17. Rewarded Video Strategy ● Visibility ○ What share of users are even aware? ○ Engagement Rate affects twice! ○ Awareness (pop ups?) ● Clarity ○ Does the user understand? ○ Intro page
  • 18. ● IAP, Capping, and pacing ○ Reward type Vs IAP currency ○ Caping and Pacing - to avoid risk ○ Segmentation (reward amount?) ○ Maximize total LTV (ads, retention, IAP) Rewarded Video Strategy Testing, Testing, Testing - Data-driven decisions
  • 20. Offerwall? User Initiated ad unit (rewarded) - great UX and effects Wall of offers where users can complete for rewards Publisher gives reward only when they get paid (According to the exchange rate you define)
  • 21. Offerwall Much longer process for the user (> 90% CPE) Definitely not part of the game flow (unlike what RV should be) Average revenue and reward per completion - $3 (unlike 2c in RV) Alternative payment method! (your 2nd store) ● Store, main screen ● Hard currency ● Awareness - pop ups, DCP
  • 22. OW - Benchmark & Target Engagement Rate At least 5% aim for 10% Usage Rate At least 1.2 aim for 2 OW/RV revenue (ARPDAU) rate At least 40% aim for 80%
  • 23. Part 2 System Initiated Ads (Interstitials, banners, native)
  • 24. System Initiated Ads 50% of users won’t pay, and won’t engage with rewarded ads Display ads – the only way to monetize them (+ incremental revenue for the rest)
  • 25. System Initiated Ads With no strong virtual economy (= weak IAP & Rewarded) - System Initiated becomes the main monetization option Can hurt UX, impact retention & session length, and affect probability to purchase Potential risks
  • 26. How to effectively use system initiated ads ● Timing / Placements - when users finish playing, breaks ● Frequency / capping - average session length / 3. ● Format - rewarded interstitial? X button? # of clicks ● ARPU / LTV decision - (ARPDAU Vs Retention) - data driven decision! ○ Segmentation - non paying non rewarded
  • 28. RV - 3 placements Free Reward Main screen, reward is changing (Time Warp, MegaBucks), pace - every 2 hours Free Reward Main screen, fixed with a timer, reward is 4 hrs Boost, cap to 6 impressions a day Speed boost Main screen, timer clock, reward is speed boost, cap to 3 impressions a day
  • 29. What Does Good Implementation Look Like?
  • 30. OW - 2 Placements Gold - Hard Currency Main Screen Free gold Store Free gold
  • 31. What is good there? ● Place - approachable and visible - Helps ER ● Simplicity - clear call to action, explanation page - Helps ER ● Reward - interesting and valuable - Helps ER + UR ● Available in high quantity (10-12 imp a day) – Helps UR ● Dynamic rewarding - keeps the ER + UR in good values ● User flow - a convenient time to make an install - Helps IPM ○ End of session, not the beginning ● Reward type - soft currency for RV, hard for OW ○ Make it fun, don’t apologise