Monetization and the Means to Success | Paul Bowen
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Delivered at Casual Connect USA 2016. Unity Ads serves a network of 1B gamers, and partnered with Unity Analytics, offers unparalleled insights into ad effectiveness and impacts on player lifecycles. Attendees to this session will learn the latest evolution in ad formats, best practices for monetization strategies into the gameplay, and a deeper understanding of key metrics for monitoring, managing, and maximizing the player’s overall lifetime value.
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Monetization and the Means to Success | Paul Bowen
- 2. VP OF GLOBAL ACCOUNT MANAGEMENT, UNITY Paul Bowen
- 4. And The Engine Behind It Analytics Ads IAP
- 6. • No SDK • One Click Integration • Non-Unity, Simple SDK
- 7. Increase of Publishers Monetizing in US Since Last Casual Connect Source:Unity internal data
- 8. Publisher Earnings Increase in US Since Last Casual Connect Source:Unity internal data
- 9. Source:Unity external data Rewarded Video Ads are the Players’ Choice
- 10. CORE LOOP AD LOOP
- 11. 40% 35% 30% 25% 20% 15% 10% 5% 0% 7 May 8 May 9 May 10 May 11 May 12 May 13 May 14 May Top 10 Global Casual Game ShareofuserswatchinganAd Source:Unity internal data
- 13. MIKA RAHKO, CO-FOUNDER AND HEAD OF DEVELOPMENT, FUTUREPLAY We’re seeing an average of 22 rewarded video ads watched per install. And this engagement is sending our revenue through the roof – driving $0.15 average revenue per player per day in the US market. “ “
- 14. MIKA RAHKO, CO-FOUNDER AND HEAD OF DEVELOPMENT, FUTUREPLAY We’re seeing an average of 22 rewarded video ads watched per install. And this engagement is sending our revenue through the roof – driving $0.15 average revenue per player per day in the US market. “ “
- 15. Source:Unity external data Rewarded Video Drives Engagement
- 16. Source: Unity external data 39% Retention Up 23% No Difference 9% Retention Down Rewarded Video = Retained Players
- 17. Source:Unity internal data 55% 0% 37% Day 1 Retention $0.35 LTV$1.90 $0.00 No Ad No Ad 51% Viewed Ad $1.14 Viewed Ad
- 18. MARK WANG, CO-FOUNDER & HEAD OF OPERATIONS, GAME HIVE After designing rewarded video ads around gameplay, we’ve had no loss of retention. In fact, we’ve seen incremental retention increases, and our players are demanding to watch more ads because they can get to parts of the game they couldn’t before. “ “
- 19. MARK WANG, CO-FOUNDER & HEAD OF OPERATIONS, GAME HIVE After designing rewarded video ads around gameplay, we’ve had no loss of retention. In fact, we’ve seen incremental retention increases, and our players are demanding to watch more ads because they can get to parts of the game they couldn’t before. “ “
- 23. Coming soon
- 26. DATA EXPLORER
- 27. FUNNEL ANALYZER
- 28. Better insights on behaviors $$$ Better access to engagement data Better targeting strategy for monetization Better engagement and retention experience
Editor's Notes
- *KEYNOTE, EXCITED, OVERVIEW* Unlock data insights Supercharge game monetization Analytics | Ads | IAP [NEXT SLIDE]: Stephen Sullivan
- *GREETING* Hi everyone! I’m Paul Bowen and I’m the VP of Global Account Management here at Unity Ads. [NEXT SLIDE]: Monetization motor revving
- *CHALLENGES | NEED OF DEVELOPER* Real-time marketing platform Understand players Maximize potential of game *WHY UNDERSTANDING SO IMPORTANT?* Customize the player experience Increase engagement Helps monetization strategies be effective *END RESULT* Well-functioning Monetization Motor Maximize player life time value *SO HOW DO WE DO IT?* Monetization Motor humming smoothly [NEXT SLIDE]: Ads + IAP
- *BUILDING THE MONETIZATION MOTOR* Comprehensive set of tools Two wheels: In-App Purchasing and In-Game Advertising Integrated into the Engine Designed workflows to minimize messy integrations and maximize ease of use *UNITY ANALYTICS* Get fast, easy access to important information Improve in-game economy Optimize player experience *ADS + IAP = AGGREGATE REVENUE* Focus on the metrics that matter Average Revenue Per Daily Active User (ARPDAU) See aggregate Ads and IAP revenue in a single dashboard *INTRO TO ADS* Let’s start with Unity Ads [NEXT SLIDE]: Ads overview
- I’m excited to show you how our monetization platform can give you a holistic picture of your monetization strategy, optimizes your gameplay experience, and ultimately maximizes and extends your players Lifetime Value (LTV). At Unity Ads our singular purpose is enabling developer success We’re not ‘just a network.’ We’re a more sophisticated, next generation game’s platform for ad monetization. At our core we are Unity the game engine – this dna means we think about you the developer first and the value to your players – which results in the most player centric ad business in the industry. There are 3 pieces to achieving this The first is a tight integration with Unity. We know developer are tired of SDKs so we created the only SDK-less solution in the industry. Simple turn on Unity ads, call and ad in your game and you’re done The second is a deep expertise in Games. That’s why today we are going to be showing you actual ad integrations from developer who have cracked the code to successful ad integration. We will also highlight some data we’ve collected from the development communicty in order to share with you Lastly is our global reach. Unity is proud to have a global footprint of advertising experts that offer unique scale, and a direct commitment to EMEA to help you succeed both here and abroad. [NEXT SLIDE]: Simple Setup
- At Unity, we make it as easy as possible for developers to succeed. By doing so, we’ve made Ads and Analytics as easy as possible with the simple flip of a switch and a few lines of code. No SDK required for Unity developers. One Click Integration API is super simple and easily setup in 30 seconds. [NEXT SLIDE]: Publisher earnings growth
- And we’re absolutely committed to the US market. We have full teams of account management and development all across the Americas. And since the last year’s Casual Connect, we’ve had an increase of publishers monetizing via our platform in the US by 216%. Across all of the America’s (US, CA, LATAM), it was 198% [NEXT SLIDE]: Publisher’s Earnings Growth
- And we’ve seen Publisher Earnings increase in the US 161%. Across all of the America’s (US, CA, LATAM), it was 133%. [NEXT SLIDE]: Rewarded Video Ads are the Player’s Choice
- But we’re not just saying this. But before I dive into the product, I want to share with you a quick stat from a research study we did at the end of last year. We gathered research from over 2,000 mobile developers and players to learn about their experiences so we could get first hand information about what they care most about. One thing was overwhelmingly clear. In that study, we learned that out of all types of advertising (paying up front, interstitials/banners, IAP), 71% of players choose watching video ads as their preferred way to ‘pay’ for a mobile game. Specifically, over half was rewarded video ads. By what does this work. What is driving the acceptance of rewarded video advertising [NEXT SLIDE]: Understanding the loops
- Let’s start with a bid of history Next developers placed opt in buttons in stores where you can earn a few coins for watching an ad [NEXT SLIDE]: Strategic implementation For example, these two loops shown here, the core loop and ad loop, should be thought about as one unified experience rather than slapping ads into the game 2 weeks prior to launch. You can do better.
- We’ve seen this first hand in our data as well. One of our casual game* developers had initially integrated ads in a generic manner by placing at the bottom of their storefront, and this led to less than 10% of users watching an ad. However, using Unity Ad’s expertise in game play, the client was able to rebuild the placement into the natural storyline of the game. With that, the share of users watching an ad skyrocketed practically overnight to over 35% and resulting in increased revenue of 3x. 2 takeaways from this example. 1. Take time to integrate rewarded video in a way that fits naturally into you gameplay 2. The time to do this is before launch. A good launch can be the difference between success and failures of a game. You will get the largest amount of player in your game during launch and you do not want to be earning 1/3 your possible revenue. *Developer must remain anonymous (Seriously) Note, this is May of 2015 (last year) [NEXT SLIDE]: Strategically Implementing Rewarded Video
- When you combine the core and ad loops as one continuous, strategic part of the storyline, it has amazing impacts to your monetization. To do so, you can offer your gamers a chance to earn more currency, extra life, or double their score in exchange for watching a short video. To do this, you must think about the total value of your customers and their ARPU, rather than just focusing on clicks that drive up eCPM (effective cost per impression). We help maximize the value of your user base over their lifetime with an end-to-end solution. By designing ads into your natural storyline without interrupting gameplay and giving players the power to choose when they want to watch a video ad, it’s a win-win for all involved: Players stay engaged from a positive experience Developers earn more revenue over the lifetime of more engaged, retained players Advertisers attract better quality audiences [NEXT SLIDE]: Watch a video to enter bonus mode
- And this isn’t just an isolated case. In this example, Futureplay, the makers of the breakaway hit Farm Away!, used the Unity Editor to go from concept to launch in just 4 months. And from the very beginning, focused on creating a positive player experience by strategically implementing rewarded video ads into the gameplay. As a result of this seamless implementation from day 1, they’re seeing average revenue per player per day in the U.S. market of $0.15. Here you’ll see how Futureplay used a method known as entering bonus mode that rewarded their players in a positive fashion. Check out the case study at unity3d.com/ads <Play demo> [NEXT SLIDE]: Retention stat
- And this isn’t just an isolated case. In this example, Futureplay, the makers of the breakaway hit Farm Away!, used the Unity Editor to go from concept to launch in just 4 months. And from the very beginning, focused on creating a positive player experience by strategically implementing rewarded video ads into the gameplay. As a result of this seamless implementation from day 1, they’re seeing average revenue per player per day in the U.S. market of $0.15. Here you’ll see how Futureplay used a method known as entering bonus mode that rewarded their players in a positive fashion. Check out the case study at unity3d.com/ads <Play demo> [NEXT SLIDE]: Retention stat
- So far we’ve been talking a lot about monetization but I am sure you are wondering what rewarded video ad means for the engagement of your game. Tying this back to our research, we discovered that when developers strategically implement rewarded video into a seamless experience, there’s huge impacts to engagement. In fact, almost 80% of players confirmed they are open to engaging with video ads in exchange for in-game rewards. But what does this mean for our developers? [NEXT SLIDE]: Engagement impacts from analytics
- Now, what’s important to stress here is that these are not short term effects by any means, and this strategic way of thinking has a positive impact to not only engagement, but also retention and increasing the player’s LTV. In our before-mentioned research, we also discovered that when implementing rewarded video ads, 62% of developers had no impact or actual increases in retention, while only less than 1-in-10 mobile developers saw any drop in retention. [NEXT SLIDE]: Retention analytics
- More importantly, because Unity Ads is so tightly integrated with Unity Analytics, we can directly measure the long term gains of video ads in your game over the lifespan of your player. For example, from Dec - Feb*, we gathered some internal analytics data from across our network. We saw that on average, players who see video ads, had their Day 1 Retention increase from 37% to 51%, and their Average Revenue Per Daily Active User (ARPDAU) increase significantly, from $0.35 to $1.14. *Dec. 1, 2015 – Feb. 26, 2016 (88 days) [NEXT SLIDE]: Tap Titans example
- On that point, here’s another example of how a developer shifted their strategy in order to focus on long term gains. Game Hive, one of the pioneers of view-to-play games, once monetized most of their games via interstitial ads, yet weren’t realizing the LTV they aspired. So in partnership with Unity Ads, Game Hive integrated rewarded video ads to maximize players’ LTV. The impact - no loss of retention. In fact, they saw incremental increases to retention and even had players demanding to watch more ads! In this example, you’ll see how they trigger a “fairy” that entices the player to click. This works for them because it’s not tricking the player. [NEXT SLIDE]: Next Games Editor Demo
- On that point, here’s another example of how a developer shifted their strategy in order to focus on long term gains. Game Hive, one of the pioneers of view-to-play games, once monetized most of their games via interstitial ads, yet weren’t realizing the LTV they aspired. So in partnership with Unity Ads, Game Hive integrated rewarded video ads to maximize players’ LTV. The impact - no loss of retention. In fact, they saw incremental increases to retention and even had players demanding to watch more ads! In this example, you’ll see how they trigger a “fairy” that entices the player to click. This works for them because it’s not tricking the player. [NEXT SLIDE]: Next Games Editor Demo
- Now that I’ve walked through how to strategically and seamlessly implement rewarded video ads into your game, that’s just one piece of the puzzle. For the whales out there that do purchase on IAP, we have that covered. *WHY DID WE BUILD IT* Make it easy to set up IAP across variety of app stores *WHAT IS IT* Sits on top of games Universal API that is cross-platform, modular Designed to deploy the same code base across a wide variety of different App Stores [NEXT SLIDE]: Previous paradigm
- *PROLIFERATION OF APP STORES* Required developers to write a bunch of store-specific code fore each individual store Performing once is challenging. Repeating it is painful. *SEPARATE LEARNING CURVES* Different languages Different API design and flow of information Requires user to be an expert in every implementation Read hundreds of pages of documentation [NEXT SLIDE]: Unity IAP platform
- *THE SOLUTION* Unity IAP stands this on its head Instead of rewriting IAP code for every store, every store is adapted to work with Unity IAP A single, consistent, universal IAP API. *BENEFIT* Saves developer time We do the heavy lifting so that you can focus more time on building your game. [NEXT SLIDE]: IAP platforms
- *FEATURES* Build into the engine in Unity 5.3 Recently added support for Samsung Galaxy and Tizen Apps, Apple tvOS, and Amazon Appstore Many more to come [NEXT SLIDE]: Unity Analytics
- And finally, all of this data from Ads and IAP must be used to effectively optimize your monetization strategy. *BUILT JUST FOR UNITY* Custom built, by gamers for gamers Haven’t had to compromise to serve the needs *UNIQUE SELLING POINTS* Launched with Multi-Platform Support Focused on building game-specific tooling like Heatmaps and Custom Game Event tracking SDK build straight into the Unity Engine Flip of a switch, the integration is complete and power unlocked *EASY, SEE REVENUE DATA* It’s easy to get started with Unity Analytics and start seeing revenue data [NEXT SLIDE]: Unity Analytics
- *AS SIMPLE AS POSSIBLE* Avoid the hassle of messy integrations and get started quickly with our One-Click Integration See all your data in one dashboard Find insights and develop strategies to more quickly optimize your game’s monetization potential *REVENUE BUILDING BLOCKS* So let’s dive in deeper on creating the revenue building blocks for your game First, let’s take a look at Unity IAP. [NEXT SLIDE]: Engine that pays you
- *AS SIMPLE AS POSSIBLE* Avoid the hassle of messy integrations and get started quickly with our One-Click Integration See all your data in one dashboard Find insights and develop strategies to more quickly optimize your game’s monetization potential *REVENUE BUILDING BLOCKS* So let’s dive in deeper on creating the revenue building blocks for your game First, let’s take a look at Unity IAP. [NEXT SLIDE]: Engine that pays you
- *AS SIMPLE AS POSSIBLE* Avoid the hassle of messy integrations and get started quickly with our One-Click Integration See all your data in one dashboard Find insights and develop strategies to more quickly optimize your game’s monetization potential *REVENUE BUILDING BLOCKS* So let’s dive in deeper on creating the revenue building blocks for your game First, let’s take a look at Unity IAP. [NEXT SLIDE]: Engine that pays you
- To wrap things up, I just want to point out that Unity is the only engine that pays you. In 2015, Unity actually paid out more to developers than we brought in. In fact, we have the highest ARPU of any rewarded video network. Remember that the important metric you as developers should care about is total ARPDAU. This means using the analytics and data engine to maximize you total ad and IAP revenue Unity Analytics enables you to gain better insights, and with Unity IAP and Ads, you can set up the best monetization strategy to enable success. All the services together in our monetization platform reinforce the cycle of acquisition, engagement and retention. Sign up now!
- unity3d.com/ads unity3d.com/analytics adsbeta@unity3d.com