A journey of monetization in apps

A journey of monetization in Apps & Games

DevGamm > Minsk > Belarus

Rami JawharGoogle

1. Myths and facts about monetization2. Current monetization practices

a. Seamless UX with native adsb. Improve user engagement with rewarded ads

3. The future lies in smarter monetization

Agenda:

1.Myths and facts about monetization

Great appsshouldn’t generate revenue. The myths say so.

● Monetization bothers users

● Monetization via ads hurts users experience

● Monetizing with IAP is the only strategy

● Apps only need one monetization strategy

Google Confidential and Proprietary

Less than1%of apps are now

paid for at the pointof download

Juniper, April 2015 and Juniper website, The App Landscape Today, Feb 2015

Myth: People prefer high-quality apps they can pay for

Google Confidential and ProprietarySource: Swrve, Jan 2015

of mobile gamers spend in apps

2.3%

Myth: Monetizing with IAP is the best strategy

Reality: 97% of users do not spend on apps

24%Direct Sales

20%In-App Purchase

20%Subscriptions

3%Others

15%Investments

18%Ads

Google & Advertiser Perceptions, 2T de 2015, encuesta a desarrolladores de aplicaciones de EE. UU. que obtienen entre 50.000 USD y 1 millón de USD al año

* IDC/App Annie: Mobile App Advertising and Monetization Trends 2013–2018 (Tendencias de la publicidad en aplicaciones móviles y la obtención de ingresos en 2013–2018) y Google/ Ipsos, encuesta de panel sobre desarrolladores, 3T de 2015

Google Confidential and Proprietary

Myth: Apps only need one monetization strategyReality: Most Successful developers diversify their revenue

“OK Google, How can I monetize my game

smartly?”

2a.Seamless UX with native ads

Native ads are based on flexible components

User

Banner adN

ative ad User

Advertiser

AdvertiserHeadline: Duck Adventure Appetc.

●Decided to use native ads●600% Increase in CPM●Grew CTR by 6x

Mind Games

Improve user engagement with rewarded ads

2b.

Users: Engaging, Opt-in experience

Advertisers:Reach engaged users

Publishers:High CPM and

retention

Done well, rewarded ads benefit everyone.

Pou

The future lies in smarter monetization

3.

Información confidencial propiedad de GoogleGoogle Confidential and Proprietary

Reached level 5

Average 3 minutes per session

Spent $10 past 30 days

Custom Audience

s

Build custom audiences

Proprietary + Confidential

Source: RadiumOne, January 2016

Realize the full value of each userEach user is different and has a different value. Treat them differently.

Google Confidential and Proprietary

users who are likely to spend on IAP

users whoclick on adsAd

users who share on social media

Firebase for Ads Monetization

User targeting

A/B Testing Implement Ads Performance tracking

Create userlist

Control ads behavior

Create parameter for A/B testingControl ads behavior

MeasurementImplement ads

Ads placement

Frequency

User targeting

Reward itemAds

Lunosoft increased by 500% it’s revenue by segmenting users

Users Product ActionSegmentation Monetization Results

Test 1

Test 2

Conversions

NoneArbitrary Sampling

6 daysduration

IAP Offer145.000 impressions

0,74 USD per 1000impressions $ 107

4 daysduration

Likely Spender?

IAP Offer 6.000 impressions

23,88 USD per 1000Impressions $ 140

Interstitials Ads139.000 impressions

4,22 USD per 1000impressions $ 587

Yes

No

Upl

ift

1. App monetization works2. Diversify monetization strategies3. Pick the right ads for optimal user experience4. Understand your users and their value5. Create value for and from each user

Thank you!rjawhar@google.com