ab testing & optimization for creatives in user acquisition | erdem inan

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AB Testing & Optimization for Creatives in Mobile User Acquisition Erdem İnan Director, BI & Marketing Peak Games

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Page 1: AB Testing & Optimization for Creatives in User Acquisition | Erdem Inan

AB Testing & Optimization for Creatives in Mobile User Acquisition

Erdem İnanDirector, BI & Marketing

Peak Games

Page 2: AB Testing & Optimization for Creatives in User Acquisition | Erdem Inan

Overview

• Peak Games & Marketing Team & Myself

• Why Creative Optimization is important?

• Creative Testing Process: From Planning to Execution

• Real Life Cases on Creative Optimization

• Q&A

Page 3: AB Testing & Optimization for Creatives in User Acquisition | Erdem Inan

Peak Games

• Founded in October 2010, based in Istanbul / Turkey, a team of 100 people• 300M+ Installs globally, 2 Games in Top 100 Grossing in US Stores, 2

Games in Top 5 Grossing in TR Stores.• Active in 150+ Countries with 10+ Titles in Synchronous Multiplayer &

Casual Categories• Flagship Titles: Toy Blast (US), Spades Plus (US), 101 Okey Plus (TR), Okey

Plus (TR)

Page 4: AB Testing & Optimization for Creatives in User Acquisition | Erdem Inan

Marketing Team & Myself

• BI & Marketing Team – A Team of 15 People: Analytics, User Acquisition & Art, Big Data Team – Providing services to 10+ products in User Acquisition, CRM and Analytics– 10+ Game Launches; Regular User Acquisition Campaigns in many countries at

large scale.

• Myself: – 3.5 years at Peak Games. – Leading the User Acquisition + CRM + Analytics teams– Engineering Background with an Economics MSc.

Page 5: AB Testing & Optimization for Creatives in User Acquisition | Erdem Inan

Why Creative Optimization is important?

Ad Impression

Ad Click

Ad Install

CTR

CVR

cpm

cpc

cpi

• Publishers want to maximize the revenue from their ad inventory, advertisers should be giving them highest cpms.

• The system is based on eCPM maximization

Advertisers / Metrics

Advertiser A Advertiser B Advertiser C

Target CPI 3 USD 2 USD 10 USDImpressions 1000 1000 1000

CTR 10% 20% 5%Clicks 100 200 50CVR 15% 25% 10%

Installs 15 50 5Expected Cost 45 USD 100 USD 50 USD

Calculated CPM 45 USD 100 USD 50 USD

• Advertiser B wins the auction, Advertiser C gets the second place, Advertiser A gets the third place.

Page 6: AB Testing & Optimization for Creatives in User Acquisition | Erdem Inan

Why Creative Optimization is important?

• Better creatives can lead to higher eCPMs => a. Can lead to higher scale at same ratesb. Can lead to cheaper installs.c. Can put you in an earlier impression in most ad networks: (Earlier

rewarded video impressions have higher CTRs and CVRs which will lead even better eCPMs and create a self-fulfilling loop)

d. Can even lead to higher quality installs.

Page 7: AB Testing & Optimization for Creatives in User Acquisition | Erdem Inan

Creative Testing Process: Understanding Users

• Research: – Facebook Audience Insights– Google Search Trends– Twitter Hashtags– Profiling Competitors’ Audiences– Searching Web

• Competitors’ Creatives:– Tools to check competitors’ best

performing creatives

• Creating a Typical Player: • Geographics: US, UK, CA• Demographics: F, 45+• Other Interests:

• Country Music, Bingo, Slots, Puzzle Games

• Music Shows, TV Shows, Celebrities• Things to consider

• Politically conservative• Raising Grandkids• Middle Income• More affinity: IL, TX, OH • Religious…

Page 8: AB Testing & Optimization for Creatives in User Acquisition | Erdem Inan

Creative Testing Process: Executing Tests

Ad Pattern 1 v1.0

Ad Pattern 2 v1.0

Ad Pattern 3 v1.0

Ad Pattern 4 v1.0

Ad Pattern 5 v1.0

Ad Pattern 2 v1.0

Ad Pattern 2 v1.1

Ad Pattern 2 v1.2

Ad Pattern 5 v1.2

Ad Pattern 5 v1.0

Ad Pattern 5 v1.1

Ad Pattern 5 v1.2.3

Ad Pattern 5 v1.2

Ad Pattern 5 v1.2.2

• Some Ground Rules:– Total image test budget should not exceed x

% of the total budget– ~30 installs per creative is usually enough for

a rough evaluation.– Use the previous test know-how in creating

next creatives. (buttons, cta, banners, backgrounds etc.)

– All creatives should run at the same time, for the same duration, either with same budget, or with same impressions

Page 9: AB Testing & Optimization for Creatives in User Acquisition | Erdem Inan

Creative Testing Process: Reporting & Analysis

• Finding an exceptional creative instead of many good creatives• Mind the “risky” inverse correlation between CTR and CVR• Remember the second and third best performing: Ad Fatigue • Checking Significance• Chartboost, Unity Ads, Facebook for easy & proper AB Testing.

Page 10: AB Testing & Optimization for Creatives in User Acquisition | Erdem Inan

Case: Image Optimization towards CPI

• Gin Rummy Plus => Image Optimization towards lower CPI• Fail: Lower CPI does not necessarily mean lower CPE.

• Above three has better CTRxCVR and lower CPI to our winning creatives• Misleading creatives can lead to lower % Actives thus higher CPEs• 30% lower performance in CPEs compared to our regular creatives.

Page 11: AB Testing & Optimization for Creatives in User Acquisition | Erdem Inan

Creative Testing: Iterating Images

12

4

3

5

• Discussing each experiments within the team.

• Decomposing Images: What made this image work?

1. CTA in the image2. Rubic Cube Item3. Game Play Background4. Shiny Play Button5. Contrast between background and

foreground items

• Create iterations of each element.• Test again!

Page 12: AB Testing & Optimization for Creatives in User Acquisition | Erdem Inan

Case: Calibrating between CTR and CVR

Base Image: Very Good CVR 1st Iteration: Increasing CTR 2nd Iteration: Further Increasing CTR

Pattern 1: Good CTR, Good CVR Pattern 2: High CTR, Low CVR Pattern 3: Above Average CTR & CVR

Page 13: AB Testing & Optimization for Creatives in User Acquisition | Erdem Inan

Case: Reaction to Different Creatives (1/2)

United StatesCTR: 1.55%

CR: 33%

TurkeyCTR: 1.58%

CR: 28%

NetherlandsCTR: 2.03%

CR: 34%

United StatesCTR: 0.88%

CR: 36%

TurkeyCTR: 3.44%

CR: 33%

NetherlandsCTR: 1.33%

CR: 37%

• Cultural Similarity & Localization in Ads are crucial in creative performance• Finding the right creatives for a segment of users may cut costs easily by 40-50%.

Page 14: AB Testing & Optimization for Creatives in User Acquisition | Erdem Inan

Case: Reaction to Different Creatives (2/2)

Good Performers Bad Performers

Turkey

Italy

US

• There are absolute winners & losers in creatives; but cultural effects can kick in.• Expectations & Prejudices might work: But A/B Testing for each region is critical

Page 15: AB Testing & Optimization for Creatives in User Acquisition | Erdem Inan

Case: Preparing Creatives for Different Times of the Year

• Easter, Valentine’s Day, 4th July, Month of Eid, Halloween Christmas are extraordinary days for users. Make sure you respond that.

• Such specific days in calendar might affect costs, available traffic and virality of ads

Page 16: AB Testing & Optimization for Creatives in User Acquisition | Erdem Inan

Creative Testing: Things to Know

• 500+ creatives for a mid-large scale game• Different ad units, channels & sizes might have different winning creatives.• Interstitials and banners usually have different winning patterns.• Dropping CTR with the same volume of installs is a warning sign to change creatives.• In creative testing the prices will be higher than an optimal campaign. • Emerging markets might have bandwidth problems => Make sure you have lower

sized creatives as well. • Video Testing:

– Video networks are extra sensitive to creative performance– Videos are difficult to test.– Test concepts => Make sure execution is as good as possible in each concept. – Thumbnail image has a high effect on performance.

Page 17: AB Testing & Optimization for Creatives in User Acquisition | Erdem Inan

Wrapping Up

• Creative Optimization brings greater scale at a cheaper price

• Success in creative optimization needs a systematic approach and a constant effort with a strong team.

• There are more failures than successes in creative optimization.

• Ad Creatives are cultural, contextual and usually a composition of certain elements.

Page 18: AB Testing & Optimization for Creatives in User Acquisition | Erdem Inan

Questions?

Erdem InanDirector, BI & Marketing @ Peak Games

[email protected]