Josh Curtis gave a presentation on mobile game monetization strategies through advertising. He discussed industry trends showing growing mobile game ad revenue. He outlined key metrics like eCPM, ARPPU, and impressions that are important for monetization. Curtis then reviewed different ad formats like banners, interstitials, videos and native ads, noting their pros and cons. He emphasized testing placements, formats and user experiences to optimize monetization. In general, Curtis recommended treating ad monetization as a key business line through ongoing experimentation and investment.

1. Mobile Games:
Ad Monetization
Strategies
Josh Curtis
BD Evangelist, Latam & NA
josh@chartboost.com
Social Media: joshfcurtis
May, 2016
AppsWorld NA

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Who am I?
BD Evangelist working with game
developers in North & Latin America
Help game developers monetize
their games through Advertising
300,000+ games
160+ countries
40 Billion game sessions per month
1 Billion monthly uniques

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Agenda
1. Industry Overview
2. Key Monetization Metrics
3. Ad Monetization:
Formats & Best Practices
4. Key Takeaways

4. Industry Overview

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Industry Size
Source: NewZoo, April 2016

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$655 Million+ and Growing for
Mobile Game Ad Revenue in US (2017)
Source: NewZoo, April 2016

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50% of Ad Revenue from US
DATA: Chartboost Advertising, May 2016
50% 50%
United StatesRest of World

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8DATA: Chartboost Advertising, May 2016
7% : China & UK each
4% : Australia, Germany,
Canada each
26% of Ad Revenue from 5 Next
Ad Revenue from Top 676%

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65% of advertising money earned
still comes from iOS
35%
65%
iOS
Android
DATA: Chartboost Advertising, May 2016

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10DATA: Game Sessions
Americas is 50/50-ish Europe is Android Asia: it depends
But platform varies widely by region
51% 49%
Americas
62%
38%
EMEA
47% 53%
APAC

11. Key Metrics for Monetization

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Monetization has 2 key components
AdvertisingIAP
ARPPU eCPM
95-99%1-5%
ARPPU ($)
$ Revenue / (# Users *
Payer Rate %)
eCPM ($)
$ Effective Cost Per 1,000
Impressions
=
based off IR, CTR, Ad Bid
eCPM calculated off "Install Rate (IR), Click-Through-Rate (CTR), and the Advertiser bid that reflects the overall competitiveness of the campaign"

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Uniques
(DAU + MAU)
# Unique users who use your app
Bootups # of times app is opened up
Impressions # of Ads shown to users
Click-through
Rate (CTR)
% of users who Click or Tap an
Ad in your game
Install Rate (IR)
% of Users who Install an App
from an Ad in your game
eCPM ($)
$ Effective Cost Per 1,000
Impressions =
based off IR, CTR, Ad Bid
Revenue
eCPM x # Impressions =
Revenue
KEY ADVERTISING METRICS:
Metrics to track monetization

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Example Calculation: Daily Revenue
DAUs 50,000
Impressions 100,000
Ratio Impressions /
Uniques
2:1
eCPM ($)
$10 per
Thousand Impressions
Revenue $1,000
CONCLUSION
For $1,000 / Day,
100,000 Impressions
If 2:1 ratio of impressions / uniques:
50,000 Users
REVENUE GOAL: $1,000 / DAY eCPM ($) x Impressions (#) = $ Revenue $

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eCPM is a Variable
Ratio of Unique Users : Impressions
Ad Formats & Ad Locations
Devices: iOS vs Android vs Tablets, etc
User: Country, Hardcore vs Casual, Genre
Conversion & Ad Engagement Rates
Ad Traffic Sources

16. Ad Monetization

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17 DATA: Chartboost Advertising, US, May 2016

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Mobile banners
Lower eCPM
Take up visual & interaction space
Usually not “pretty”
Can work well for certain apps

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Static interstitials
Medium eCPM
Adaptable look & feel
Can be natural
between levels
High Volume of
Inventory

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Animated GIFs
Medium to High eCPM
Adaptable look & feel
Interstitial but with some
cinematic experience
Relatively new format

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Interstitial Video Ads
High eCPM
Can be entertaining
Opportunity to demonstrate or
describe gameplay
Can be skippable
Offers rewarded ad opportunity

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Rewarded Video Ads
Higher eCPM
Same Pros as Interstitial Video
Great Player Experience
Can boost Retention
Rewards Player- relevant reward
and amount (currency, life, skin, etc.)

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Playable ads
High eCPM
User can experience game already in ad
Very easy to update and optimize

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Native ads
Non intrusive
Natural part of gameplay
Variable eCPM
More Manual to Code In

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eCPM
User experience
Var eCPM
$8 - 15
$6 - 14
$7 - 13
$5 - 10
$2 - 6
DATA: Chartboost Advertising, US, May 2016
$0.50 - $1

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26 Source: Slideshare 2016
Use the Right Ad Format for your Game!

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Know Your Users &
Create Different Experiences
User Revenue
Frequency of booting up
Devices: iOS vs Android, Phone vs Tablet, etc
User Demographics, Location, etc
Conversion & Ad Engagement Rates
Create extra triggers to test & turn on or off:
Capping, formats, locations

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General Rules of Thumb:
Ad Monetization in Mobile Games
Placement of ad should feel “natural” as part of the gameplay
More Users = More Money from Ads! Scale is important
Show Ads at key game “break” intervals
Choose the right ad formats for you
Focus on sweet spot: Retention + Revenue

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Best Practices Recap
1. Development, design & placement of ad
products cannot be an afterthought
2. Know your users & treat them differently
3. Set up revenue goals for your users
4. Experiment & Optimize: Test, Test, Test!
5. Treat the ads business like a business line:
Invest in it & hold it accountable for revenues

30. Thank You!
Josh Curtis
BD Evangelist, Latam & US
josh@chartboost.com
LinkedIn: joshfcurtis
Twitter: joshfcurtis
Cell: +1 909-524-2262