Mobile Games: Ad Monetization

Strategies

Josh Curtis BD Evangelist, Latam & NA

josh@chartboost.com Social Media: joshfcurtis

May, 2016AppsWorld 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

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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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

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

Ad Monetization

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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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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

Thank You!

Josh Curtis BD Evangelist, Latam & US

josh@chartboost.com LinkedIn: joshfcurtis Twitter: joshfcurtis

Cell: +1 909-524-2262