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Monetization Deep Dive
Enhancing User Experience
and Ad Revenue
The Gap
IAP
IAP
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%
Bottom line:
Start with maximizing rewarded ads
Rewarded Ads Equation
= What to measure
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 =
Engagement Rate and Usage Rate
6 Videos a day
100%
Users
40%
Users
1M DAU 400K EU
2.4M
impressions
=
Usage Rate
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
Benchmarks
and Targets
= Where to aim for
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
Impressions ⇨ Revenue
IPM
At least 3
aim for 5
tier 1 / tier 3
Strategy
= How to get there
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
Rewarded Video Strategy
● Visibility
○ What share of users is even aware?
○ Engagement Rate affects twice!
○ Awareness (pop ups?)
● Clarity
○ Does the user understand?
○ Intro page
● 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
Offerwall
Offerwall?
User Initiated ad unit
(rewarded) - great UX
and effects
Wall of offers that
users can complete for
rewards
Publisher gives reward
only when get paid
(According to exchange rate
you define)
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)
● S tore, main screen
● Hard currency
● Awareness - pop ups, DCP
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%
Part 2
System Initiated Ads
(Interstitials, banners, native)
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)
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
How to smartly use system initiated ads
● Timing / Placements - when user finish to play, 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
What does good
Implementation
look like?
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
What Does Good Implementation Look Like?
OW - 2 Placements Gold - Hard Currency
Main Screen Free gold Store Free gold
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
Summary
● More than a revenue tool - can improve many of your
most important KPIs!
● Requires love, attention, professionalism
● Know what KPIs to monitor, what GOALS to set,
and HOW to get there

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IronSource_WN_2018.pdf

  • 1. Monetization Deep Dive Enhancing User Experience and Ad Revenue
  • 2. The Gap IAP IAP 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 is 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 that users can complete for rewards Publisher gives reward only when get paid (According to 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) ● S tore, 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 smartly use system initiated ads ● Timing / Placements - when user finish to play, 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
  • 32. Summary ● More than a revenue tool - can improve many of your most important KPIs! ● Requires love, attention, professionalism ● Know what KPIs to monitor, what GOALS to set, and HOW to get there