1.
Monetization Deep Dive
Enhancing User Experience and Ad Revenue
Yuval Lotan
Supply Leader - SEA, India and Australia
ironSource Ltd.

2.
Top Partners
INSEA DEVELOPERS
EU DEVELOPERS
PARTNER MEDIATIONS

3.
The Gap
IAPIAP
Ad
Monetization
Ad
Monetization
Share of Revenue / Impact Share of Attention / Sophistication

4.
Part 1
Rewarded Ads (User Initiated)

5.
Rewarded Ads - The Magic Ad Unit
Great
eCPMs
(= efficient revenue source)
Great
UX

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 KPIs
= 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
Optimization (granular bidding,
post-install events,
suppression…)
Revenue =

10.
Engagement Rate and Usage Rate
6 Videos a day
100%
Users
40%
Users
1M DAU 400K DEU
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

12.
Benchmarks
and Targets
= What to aim for

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.
Strategy
= How to get there

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.
Rewarded Video Strategy
● Visibility and Awareness
○ Engagement effects twice!
● Clarity
○ Does the user understand?
● Capping and pacing
○ To avoid risk
○ Segmentation

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.
Offerwall

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.
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.
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.
Part 2
System Initiated Ads
(Interstitials, banners, native)

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.
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.
● 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.
What does good
Implementation
look like?

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.
What Does Good Implementation Look Like?

29.
OW - 2 Placements Gold - Hard Currency
Main Screen Free gold Store Free gold

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.
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.
Thank you

33.
Don't Let 'Quantity Over
Quality' Be Your Mobile Mantra
Daphna Gal
Senior Partner Development Manager, APAC
AppsFlyer

34.
Chapter 1:
Don't Let 'Quantity Over
Quality' Be Your Mobile Mantra

35.
THE ATTRIBUTION
AUTHORITY
100%
Independent &
Unbiased
$17B
Ad Spend
Measured
85k+
ApplicationsIntegrated
Partners
4,000+
1T+
Mobile Actions
Measured Per Month

36.
The 3 Waves of App Marketing
3rd WAVE
ROI
2nd WAVE
Engagement
1st WAVE
Acquisition
Installs

37.
You can’t go to the bank
with installs

38.
Source: AppsFlyer, May 2018
And Global Retention Rates Are...

39.
While Uninstalling Apps is Common...
31%24%
25%
21%
22%
26%
31%
32%
36%
37%
32%

40.
Not much to
ride on
anymore...

41.
So What Do I do?

42.
FOCUS ON
VALUE!

43.
Engagement Monetization

44.
Engagement Monetization

45.
The Engagement Wave

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.
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.
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.
3) Create Targeted Lists for
Effective Retargeting
Segment-Driven
Retargeting
af_purchase
Price > $10
Personalized
Retargeting
Consumer ID 8888
Levels completed 7

50.
Leveraging Raw Uninstall Data
Analyze uninstalls per device
or user characteristics
Build an audience for retargeting

51.
Feels great
riding the
engagement
wave doesn't it?

52.
But Are
You Up
for the
Ultimate
Wave?

53.
Afraid to Catch
The ROI Wave?
67%Don’t/can’t measure the ROI of
their mobile marketing
Source: Forrester

54.
MOBILE IS ACTUALLY THE
MOST MEASURABLE
ECOSYSTEM EVER CREATED

55.
Monetization
I ♥ MOBILE

56.
Which brings us to...

57.
Chapter 2:
Ad Revenue Attribution: The
Missing Piece in Your LTV

58.
Houston
We Have a
Problem

59.
Weekly rate calculation

60.
Fewer Ads
Viewed
Fewer In-App
Purchases
Poor retention → Monetization Squeeze

61.
Maximize revenue
from multiple
revenue streams

62.
4-5%
IAP:
Whales Are Mighty but Few
Share of Buying Users
(2018, Gaming)

63.
Maximize revenue
from multiple
revenue streams

64.
● Improved technology
● New ad formats
● Better targeting
● Accurate measurement of ads
and their effectiveness
Robust IAA Growth Forecasted

65.
App
Download
Revenue
In-app
Purchase
Revenue
Subscription
Revenue
Ad
Revenue
IAA Already Eating Sizable Piece of the Pie

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.
Super Important Considering CPI Trend

68.
Network B
Network A LTV = IAP $1.8 + IAA ? = $1.8
LTV = IAP $1.6 + IAA ? = $1.6
Where to Spend

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.
MEASURING AD REVENUE

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.
Once enabled, your Facebook ad revenue will be automatically reported in your AppsFlyer dashboard.
AppsFlyer Ad Revenue Reporting

73.
Thanks!
daphna.gal@appsflyer.com

74.
Best practices in UA
Cuong Nguyen (Silver)
Co-founder, Head of Product
Amanotes Pte. Ltd

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.
3 lesson I learnt when doing UA for our games

77.
Most people are too obsessed
with paid user acquisition

78.
Because that’s the thing you have most control over

79.
ASASOAm S

80.
Free & earned media are still most important for most of the companies
ASO
Virality PR
...

81.
There’s no one single formula here….

82.
Analyze your (prospective) traffic sources and allocate
resources accordingly

83.
Measurement capacity is everything!

84.
At $0 profit, you are willing to pay $1 for a user

85.
At $0 profit, you are willing to pay $4 for segment A & just $0.25 for B

86.
Bidding price
Install

87.
If you bid 4 times higher, you will be likely to have 4+ times of installs
Bidding price
Install

88.
Segmentation are the driver for scaling UA

89.
ROAS = VALUE A USER BRINGS TO YOU/ COST YOU PAY TO GET THEM

90.
ROAS SEGMENT 1
ROAS = VALUE A USER BRINGS TO YOU/ COST YOU PAY TO GET THEM
ROAS SEGMENT 2 ROAS SEGMENT 3

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.
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.
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.
Creative is the next big thing!

95.
Bid right, target right
Creative conversion
Creative conversion
Product conversion
Product conversion

96.
Understand
your target
users
Test your
hypothesis
Analyze

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.
I need to have 4 videos to test

99.
I need to test this hypothesis …..and it needs 4 videos

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.
Thank you
Email: silver@amanotes
Publishing, career, & opportunities