Monetization Deep Dive
Enhancing User Experience and Ad Revenue
Yuval Lotan
Supply Leader - SEA, India and Australia
ironSource Ltd.
Top Partners
INSEA DEVELOPERS
EU DEVELOPERS
PARTNER MEDIATIONS
The Gap
IAPIAP
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
(= efficient 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
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 KPIs
= 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
Optimization (granular bidding,
post-install events,
suppression…)
Revenue =
Engagement Rate and Usage Rate
6 Videos a day
100%
Users
40%
Users
1M DAU 400K DEU
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
= What to aim for
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
Strategy
= How to get there
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
Rewarded Video Strategy
● Visibility and Awareness
○ Engagement effects twice!
● Clarity
○ Does the user understand?
● Capping and pacing
○ To avoid risk
○ Segmentation
● 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
Offerwall
Offerwall?
Rewarded, User
Initiated ad - great UX
Wall of offers where
users can complete for
rewards
Publisher gives reward
only when they get paid
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
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
● 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
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 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!
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
Thank you
Don't Let 'Quantity Over
Quality' Be Your Mobile Mantra
Daphna Gal
Senior Partner Development Manager, APAC
AppsFlyer
Chapter 1:
Don't Let 'Quantity Over
Quality' Be Your Mobile Mantra
THE ATTRIBUTION
AUTHORITY
100%
Independent &
Unbiased
$17B
Ad Spend
Measured
85k+
ApplicationsIntegrated
Partners
4,000+
1T+
Mobile Actions
Measured Per Month
The 3 Waves of App Marketing
3rd WAVE
ROI
2nd WAVE
Engagement
1st WAVE
Acquisition
Installs
You can’t go to the bank
with installs
Source: AppsFlyer, May 2018
And Global Retention Rates Are...
While Uninstalling Apps is Common...
31%24%
25%
21%
22%
26%
31%
32%
36%
37%
32%
Not much to
ride on
anymore...
So What Do I do?
FOCUS ON
VALUE!
Engagement Monetization
Engagement Monetization
The Engagement Wave
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
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)
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
3) Create Targeted Lists for
Effective Retargeting
Segment-Driven
Retargeting
af_purchase
Price > $10
Personalized
Retargeting
Consumer ID 8888
Levels completed 7
Leveraging Raw Uninstall Data
Analyze uninstalls per device
or user characteristics
Build an audience for retargeting
Feels great
riding the
engagement
wave doesn't it?
But Are
You Up
for the
Ultimate
Wave?
Afraid to Catch
The ROI Wave?
67%Don’t/can’t measure the ROI of
their mobile marketing
Source: Forrester
MOBILE IS ACTUALLY THE
MOST MEASURABLE
ECOSYSTEM EVER CREATED
Monetization
I ♥ MOBILE
Which brings us to...
Chapter 2:
Ad Revenue Attribution: The
Missing Piece in Your LTV
Houston
We Have a
Problem
Weekly rate calculation
Fewer Ads
Viewed
Fewer In-App
Purchases
Poor retention → Monetization Squeeze
Maximize revenue
from multiple
revenue streams
4-5%
IAP:
Whales Are Mighty but Few
Share of Buying Users
(2018, Gaming)
Maximize revenue
from multiple
revenue streams
● Improved technology
● New ad formats
● Better targeting
● Accurate measurement of ads
and their effectiveness
Robust IAA Growth Forecasted
App
Download
Revenue
In-app
Purchase
Revenue
Subscription
Revenue
Ad
Revenue
IAA Already Eating Sizable Piece of the Pie
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
Super Important Considering CPI Trend
Network B
Network A LTV = IAP $1.8 + IAA ? = $1.8
LTV = IAP $1.6 + IAA ? = $1.6
Where to Spend
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
MEASURING AD REVENUE
Ad Revenue Attribution
App
Download
Revenue
In-app
Purchase
Revenue
Subscription
Revenue
Total Mobile LTV
Ad
Revenue
The Missing Piece in Your LTV
Once enabled, your Facebook ad revenue will be automatically reported in your AppsFlyer dashboard.
AppsFlyer Ad Revenue Reporting
Thanks!
daphna.gal@appsflyer.com
Best practices in UA
Cuong Nguyen (Silver)
Co-founder, Head of Product
Amanotes Pte. Ltd
● 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 )
3 lesson I learnt when doing UA for our games
Most people are too obsessed
with paid user acquisition
Because that’s the thing you have most control over
ASASOAm S
Free & earned media are still most important for most of the companies
ASO
Virality PR
...
There’s no one single formula here….
Analyze your (prospective) traffic sources and allocate
resources accordingly
Measurement capacity is everything!
At $0 profit, you are willing to pay $1 for a user
At $0 profit, you are willing to pay $4 for segment A & just $0.25 for B
Bidding price
Install
If you bid 4 times higher, you will be likely to have 4+ times of installs
Bidding price
Install
Segmentation are the driver for scaling UA
ROAS = VALUE A USER BRINGS TO YOU/ COST YOU PAY TO GET THEM
ROAS SEGMENT 1
ROAS = VALUE A USER BRINGS TO YOU/ COST YOU PAY TO GET THEM
ROAS SEGMENT 2 ROAS SEGMENT 3
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”
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
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
Creative is the next big thing!
Bid right, target right
Creative conversion
Creative conversion
Product conversion
Product conversion
Understand
your target
users
Test your
hypothesis
Analyze
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
I need to have 4 videos to test
I need to test this hypothesis …..and it needs 4 videos
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
Thank you
Email: silver@amanotes
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