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The Developer Tour - Ho Chi Minh City

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The Developer Tour - Ho Chi Minh City

  1. 1. Monetization Deep Dive Enhancing User Experience and Ad Revenue Yuval Lotan Supply Leader - SEA, India and Australia ironSource Ltd.
  2. 2. Top Partners INSEA DEVELOPERS EU DEVELOPERS PARTNER MEDIATIONS
  3. 3. The Gap IAPIAP Ad Monetization Ad Monetization Share of Revenue / Impact Share of Attention / Sophistication
  4. 4. Part 1 Rewarded Ads (User Initiated)
  5. 5. Rewarded Ads - The Magic Ad Unit Great eCPMs (= efficient revenue source) Great UX
  6. 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. 7. Bottom line: Start with maximizing rewarded ads
  8. 8. Rewarded Ads KPIs = What to measure
  9. 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 Optimization (granular bidding, post-install events, suppression…) Revenue =
  10. 10. Engagement Rate and Usage Rate 6 Videos a day 100% Users 40% Users 1M DAU 400K DEU 2.4M impressions = Usage Rate
  11. 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
  12. 12. Benchmarks and Targets = What to aim for
  13. 13. DAU ⇨ Impressions Engagement Rate At least 35% aim for 50% Usage Rate At least 4.5 aim for 8 Total imp/DAU rate At least 1.3 aim for 4
  14. 14. Strategy = How to get there
  15. 15. Rewarded Video Strategy ● Reward ○ Valuable and interesting ○ Dynamic, diversified ● Timing ○ Clean environment (e.g. end of session) ○ Convenient time for installing an app ● Ads from Day 1 - part of your game design
  16. 16. Rewarded Video Strategy ● Visibility and Awareness ○ Engagement effects twice! ● Clarity ○ Does the user understand? ● Capping and pacing ○ To avoid risk ○ Segmentation
  17. 17. ● The goal is to maximize the total user LTV (ads, retention, IAP) ● You can only know by Testing Rewarded Video Strategy Testing, Testing, Testing - Data-driven decisions
  18. 18. Offerwall
  19. 19. Offerwall? Rewarded, User Initiated ad - great UX Wall of offers where users can complete for rewards Publisher gives reward only when they get paid
  20. 20. Offerwall Longer process for the user (> 90% CPE) Not part of the game flow 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
  21. 21. 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%
  22. 22. Part 2 System Initiated Ads (Interstitials, banners, native)
  23. 23. 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)
  24. 24. 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
  25. 25. ● Timing - when users finish playing, breaks ● Frequency / capping - average session length / 3. ● Segmentation - non-paying, non-rewarded? ● Format - rewarded interstitial? X button? # of clicks? User’s Feedback? ● ARPDAU vs. Retention Decision - data driven decision! How to effectively use system initiated ads
  26. 26. What does good Implementation look like?
  27. 27. 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
  28. 28. What Does Good Implementation Look Like?
  29. 29. OW - 2 Placements Gold - Hard Currency Main Screen Free gold Store Free gold
  30. 30. What works in this implementation? ● 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 (end of session) - Helps IPM ● Reward type - soft currency for RV, hard for OW Make it fun, don’t apologize!
  31. 31. Summary ● Ads are more than a revenue tool - They improve many of your game’s KPIs ● Requires attention and professionalism ● Know what KPIs to monitor, what GOALS to set, and HOW to get there
  32. 32. Thank you
  33. 33. Don't Let 'Quantity Over Quality' Be Your Mobile Mantra Daphna Gal Senior Partner Development Manager, APAC AppsFlyer
  34. 34. Chapter 1: Don't Let 'Quantity Over Quality' Be Your Mobile Mantra
  35. 35. THE ATTRIBUTION AUTHORITY 100% Independent & Unbiased $17B Ad Spend Measured 85k+ ApplicationsIntegrated Partners 4,000+ 1T+ Mobile Actions Measured Per Month
  36. 36. The 3 Waves of App Marketing 3rd WAVE ROI 2nd WAVE Engagement 1st WAVE Acquisition Installs
  37. 37. You can’t go to the bank with installs
  38. 38. Source: AppsFlyer, May 2018 And Global Retention Rates Are...
  39. 39. While Uninstalling Apps is Common... 31%24% 25% 21% 22% 26% 31% 32% 36% 37% 32%
  40. 40. Not much to ride on anymore...
  41. 41. So What Do I do?
  42. 42. FOCUS ON VALUE!
  43. 43. Engagement Monetization
  44. 44. Engagement Monetization
  45. 45. The Engagement Wave
  46. 46. Basic In-App Events Click / View Multiple Channels Instal l App Stores App Launches -> Retention Connecting value back to acquiring channel & optimizing Specific App Activity
  47. 47. Rich In-App Events Basic In-App Event Rich In-App Event Purchase Purchase Level (3) Content ID (433) Price (299) Currency (USD) Customer User ID (123456) Date (2/12)
  48. 48. 1) Meet specific business goals Acquire target audience; e.g. users who unlocked level 2 2) Pinpoint top media sources to pinpoint future investment Network 3 Campaign 1 Publisher 12 Creative 6 delivered to beginners The 1-2-3 Punch of Rich In-App Events
  49. 49. 3) Create Targeted Lists for Effective Retargeting Segment-Driven Retargeting af_purchase Price > $10 Personalized Retargeting Consumer ID 8888 Levels completed 7
  50. 50. Leveraging Raw Uninstall Data Analyze uninstalls per device or user characteristics Build an audience for retargeting
  51. 51. Feels great riding the engagement wave doesn't it?
  52. 52. But Are You Up for the Ultimate Wave?
  53. 53. Afraid to Catch The ROI Wave? 67%Don’t/can’t measure the ROI of their mobile marketing Source: Forrester
  54. 54. MOBILE IS ACTUALLY THE MOST MEASURABLE ECOSYSTEM EVER CREATED
  55. 55. Monetization I ♥ MOBILE
  56. 56. Which brings us to...
  57. 57. Chapter 2: Ad Revenue Attribution: The Missing Piece in Your LTV
  58. 58. Houston We Have a Problem
  59. 59. Weekly rate calculation
  60. 60. Fewer Ads Viewed Fewer In-App Purchases Poor retention → Monetization Squeeze
  61. 61. Maximize revenue from multiple revenue streams
  62. 62. 4-5% IAP: Whales Are Mighty but Few Share of Buying Users (2018, Gaming)
  63. 63. Maximize revenue from multiple revenue streams
  64. 64. ● Improved technology ● New ad formats ● Better targeting ● Accurate measurement of ads and their effectiveness Robust IAA Growth Forecasted
  65. 65. App Download Revenue In-app Purchase Revenue Subscription Revenue Ad Revenue IAA Already Eating Sizable Piece of the Pie
  66. 66. How Much to Spend With Without LTV = IAP $1.3 = $1.3 LTV = IAP $1.3 + IAA $0.6 = $1.9 Max CPI $1.29 Max CPI $1.89
  67. 67. Super Important Considering CPI Trend
  68. 68. Network B Network A LTV = IAP $1.8 + IAA ? = $1.8 LTV = IAP $1.6 + IAA ? = $1.6 Where to Spend
  69. 69. Network B Network A LTV = IAP $1.8 + IAA $0.3 = $2.1 LTV = IAP $1.6 + IAA $0.8 = $2.4 Where to Spend
  70. 70. MEASURING AD REVENUE
  71. 71. Ad Revenue Attribution App Download Revenue In-app Purchase Revenue Subscription Revenue Total Mobile LTV Ad Revenue The Missing Piece in Your LTV
  72. 72. Once enabled, your Facebook ad revenue will be automatically reported in your AppsFlyer dashboard. AppsFlyer Ad Revenue Reporting
  73. 73. Thanks! daphna.gal@appsflyer.com
  74. 74. Best practices in UA Cuong Nguyen (Silver) Co-founder, Head of Product Amanotes Pte. Ltd
  75. 75. ● Dec 2014: Cofounded Amanotes – a music & game start-up & publisher with over 120.000.000 installs worldwide after 3+ years ● 2014: Graduated from University of Amsterdam (MSc in Innovation & Entrepreneurship )
  76. 76. 3 lesson I learnt when doing UA for our games
  77. 77. Most people are too obsessed with paid user acquisition
  78. 78. Because that’s the thing you have most control over
  79. 79. ASASOAm S
  80. 80. Free & earned media are still most important for most of the companies ASO Virality PR ...
  81. 81. There’s no one single formula here….
  82. 82. Analyze your (prospective) traffic sources and allocate resources accordingly
  83. 83. Measurement capacity is everything!
  84. 84. At $0 profit, you are willing to pay $1 for a user
  85. 85. At $0 profit, you are willing to pay $4 for segment A & just $0.25 for B
  86. 86. Bidding price Install
  87. 87. If you bid 4 times higher, you will be likely to have 4+ times of installs Bidding price Install
  88. 88. Segmentation are the driver for scaling UA
  89. 89. ROAS = VALUE A USER BRINGS TO YOU/ COST YOU PAY TO GET THEM
  90. 90. ROAS SEGMENT 1 ROAS = VALUE A USER BRINGS TO YOU/ COST YOU PAY TO GET THEM ROAS SEGMENT 2 ROAS SEGMENT 3
  91. 91. ROAS SEGMENT 1 ROAS = VALUE A USER BRINGS TO YOU/ COST YOU PAY TO GET THEM ROAS SEGMENT 2 ROAS SEGMENT 3 “A lot of my users stay in the game even after 30 or 60 days”
  92. 92. ROAS SEGMENT 1 ROAS = VALUE A USER BRINGS TO YOU/ COST YOU PAY TO GET THEM ROAS SEGMENT 2 ROAS SEGMENT 3 PREDICTED ROAS SEGMENT 1 PREDICTED ROAS SEGMENT 2 PREDICTED ROAS SEGMENT 3
  93. 93. ROAS SEGMENT 1 ROAS = VALUE A USER BRINGS TO YOU/ COST YOU PAY TO GET THEM ROAS SEGMENT 2 ROAS SEGMENT 3 PREDICTED ROAS SEGMENT 1 PREDICTED ROAS SEGMENT 2 PREDICTED ROAS SEGMENT 3 LTV PREDICTION 1 LTV PREDICTION 2 LTV PREDICTION 3
  94. 94. Creative is the next big thing!
  95. 95. Bid right, target right Creative conversion Creative conversion Product conversion Product conversion
  96. 96. Understand your target users Test your hypothesis Analyze
  97. 97. Understand your target users Test Analyze ● It’s not only about art. It’s also a science ● Analyze, generate, and generalize the learnings ● Execute the tests at wide scale and high speed
  98. 98. I need to have 4 videos to test
  99. 99. I need to test this hypothesis …..and it needs 4 videos
  100. 100. To sum up… ● Paid UA is not everything! Segment your (prospective) user sources and spend the right focus ● Before scaling your paid UA, make sure you have the capacities to segment your users, and measure your ROAS by segments ● Invest in your creative capacities to be able to generate learnings that can be reapplied
  101. 101. Thank you Email: silver@amanotes Publishing, career, & opportunities

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