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Mobile Games: F2P Monetization
Josh Curtis BD Evangelist - Latin & North America
josh@chartboost.com Social Media: joshfcurtis
Dic, 2016PlatziConf Live
Josh CurtisBD Evangelist - Latin & North Americajosh@chartboost.com | Social Media: @joshfcurtis
300,000+ Games 1 Billion MAUs
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Agenda
1. Industry Overview
2. Make Viral Games
3. Key Monetization Metrics
4. Ad Monetization: Formats & Best Practices
5. Key Takeaways
Industry Overview
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Industry Size
Source: NewZoo, April 2016
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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
DATA: Chartboost Advertising, May 2016
50% 50%United States
Rest of World
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65% of advertising money
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
51% 49%
Americas
62%38%
EMEA
47% 53%
APAC
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How to: Make viral games people want to play
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Influencers & everyday gamers can show & share items to get people excited about investing in the game.
In-App Purchase Perks
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Stream-first has become a genre by itself. Today’s games need to be designed to be viewed, not only played.
High Replay Value
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Competitive and Cooperative Multiplayer GamesThese games are made for streaming, offering unique scenarios to keep viewers sharing & coming back for more.
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User-Generated ContentMake it easy to inspect or view the content; this lets the viewer feel special and get a shoutout.
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Established IP / Brand A strong story allows influencers and gamers to create a special bond with the characters, which keeps users excited to play and share.
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Social Meme / Phenomenon
Tapping into a social meme is a great way to get free publicity and virality, mobile game players & others will be searching the keywords and excited about the theme already.
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Design a Viral Game
3) User Gen Content
4) Competitive & Co-Op
2) High Replay Value
1) IAP: In-App Purchases
5) Established IP or Social Meme
Key Metrics for Monetization
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Monetization has 2 key components
AdvertisingIAP
ARPPU eCPM
95-991-5%
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
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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
CONCLUSIONFor $1,000 / Day, 100,000 Impressions If 2:1 ratio of impressions / uniques: 50,000 Users
REVENUE GOAL: $1,000 / DAYeCPM ($) x Impressions (#) = $ Revenue $
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eCPM is a VariableRatio 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
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