mobile game asia 2015 bangkok: monetization trends and challenges in 2015

Monetisation Trends and

Opportunities in Mobile

Gaming

Sergio Salvador

Global Head

Gaming Partnerships

“Revenue solves all known problems”

Eric Schmidt, Executive Chairman Google

Which business model is best?

In-app

purchaseUser purchases digital

goods or additional

functionality within the

app

Paid

downloadsUser pays a fee

to download

AdvertisingUser clicks on or

engages with ads

Google Confidential and ProprietarySource: Gartner

Paid vs. free downloads forecast

The majority of apps downloads are free

90%91%

92%

93%

94%

95%

Google Confidential and ProprietarySource: Google AdMob and Park Associates, October 2013

In-app spending dominates game user spend, averaging 91% across these four markets

IAP takes the biggest share of mobile games user

payments

“Only 5% of our

users buy IAP”

2-6% of mobile users drive 95% of IAP purchase value

Killer Whales

1% mobile gamers

Spend >$50 per month

700k NA gamers

Avg. Month Spend. $68.27

Whales (including Killer Whales)

3% mobile gamers

Spend $25 - $49.99per month

2.5MM NA gamers


Dolphins

16% mobile gamers

Spend $5 - $24.99 per month

14.3MM NA gamers


Non-payers

37% mobile gamers

Spend $0 per month

31.3MM NA gamers

Minnows

43% mobile gamers

Spend $0.01 - $4.99 per

month

35.3MM NA gamers

Avg. Month Spend.

$20.94

Mobile

spend p

er

month

($)

Percentage of Mobile Games

Mobile spending is based

on a power curve in which a

small percentage of hardcore

consumers spend exponentially

more money than others.

Source: EEDAR, September 2012

Our vision

Maximising ad revenue

Growing IAP revenue

Understanding your audience

Mobile advertising will become massive

% of Time Spent in Media vs. % of Advertising Spending, USA 2013

Time Spent

Ad Spend

$30B

opportunity

InternetPrint Radio TV Mobile

Source: eMarketer

Google Confidential and Proprietary

Our most successful gaming

partners are getting the most

out of their users by combining

different business models

Revenue indexed

Sources: Google Internal, App Annie

Hybrid model of Ads + IAP = Success

Google Confidential and ProprietarySource: App Annie & IDC Mobile App Advertising and Monetization Trends 2012-2017: The Economics of Free, March 2014

¹Includes online rich media, video, and classified advertising

Mobile in-app ads revenue growing faster than other ads


Bringing it all together

MonetiseCollect Analyse

TrueView on mobile

Interstitials

AdMob IAP-ads

Native Ads

Rewards-Based Ads

Advertising on Mobile has Become Exciting


Boost your revenue with interstitials


TrueView video ad experience on apps

75%of YouTube’s in-stream

video ads are skippable


Video app install ads


Smart banners

“Smart” detection of device

width and orientation

consistently deliver ads

that fit the screen


Engagement ads run seamlessly

across devices and screens ads

Rich media ads that run across

all screens

Uses an advertisers’ existing

assets to create ads

automatically

Dynamically resizes to fit any ad

size


We’re cross-OS,

with plugins for specialised

app development tools


AdMob integrations with

leading game engines for

banner and interstitial ads

Implement

in a few clicks, roll out across

platforms, save dev time

AdMob game engine integrations


Unity

Measurement Protocol iOS SDK Android SDK


AdMob is the largest unified app business platform

650K Apps on AdMob

900m devicesacross iOS, Android, Windows

1m+ advertisersfrom all industry verticals

Extensive global gaming

experience across regions and

business models

200b+ ad callsevery month


30+ networks on the AdMob mediation platform

Source:Google Mobile Ads SDK – Mediation Networks; http://goo.gl/wYksbB


AdMob network CPM has tripled in ~18 months

1x

2x

3x+200% in CPM since Q1 2013

$1 Billion paid

to developers net in the last 2 years

March

2013

September

2014


Our partners on AdMob’s performance

“AdMob is able to provide ads

demand in more than 200

countries for us. We have seen

really competitive, consistently

high RPMs from AdMob

across a variety of formats --

from text interstitials to rich

media and video.”

“We thought we could make it on app

sales alone, but we backed into the ad-

based revenue model. Ad supported

apps are going to be an important part

of our business model going forward”

said Julian Farrior, CEO of Backflip

Studios.


Colopl: house cross-promo and monetisation with AdMob

● Shifting from mobile web to

native game apps in 2011-13

● 27M+ downloads of F2P “Kuma

the Bear” casual games

● Building IAP portfolio

● 50% of casual games

inventory is

monetized ads

● 50% frequency

capped house ads

● CTR in interstitial

house ads 70x other

ads, boosting UA for

core titles

● 3x revenue YoY in 2013

Google Confidential and ProprietarySource: RockYou

RockYou : building the full platform with Google

Growth lifecycle for a developer of digital games

Third party sales Third party sales

Networks

Launch Growth Maturity

Direct Sales

Network Networks RTB

/ / //

Unlock the

power of your

games

Use Google’s latest

technologies to build,

distribute, promote, and

monetise your apps


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Sergio Salvador