alexander voss, smaato

The Leading Global Mobile Advertising RTB Exchange & SSP

Bedtime StoryGame Developer’s Dream of Monetization

Alexander Voss | Director of Marketing | Smaato Inc.

www.smaato.com

© 2005-2014 Smaato Inc. All Rights Reserved. Smaato® is a registered trademark of Smaato Inc. SOMA™ is a trademark of Smaato Inc.

2012 2013 2014 2015 2016 2017

15,375 20,240 24,314 26,990 27,664 28,935 2,111

4,591

7,856

14,001

23,771

36,887

1,073

1,851 2,819

4,375

6,772

10,694

Paid-for In-app purchases Advertising

2012 2013 2014 2015 2016 2017

57,331 92,876

127,704 167,054

211,313 253,914

6,654

9,186

11,105

12,574

13,488

14,778

Free Downloads

Source: Gartner (September 2013). Flurry (January 2013). Geekaphone (2011)

Mobile App Store Downloads Worldwide (in Millions)

Mobile App Store Revenue Worldwide(Millions of Dollars)

In-app advertising 2015: $4 BillionGames category: 23% (ca. $900 Million)

95% will be free by 201776 of top 100 iOS apps are games.

Why Should Game Developers Care About Monetization?Global App Store downloads increase to 269 Billion in 2017

www.smaato.com


Source: Businessinsider.com.au, Forsee Mobile Satisfaction Index: Media Entertainment Edition Statista.com blog.flurry.com visionmobile.com, huffingtonpost.com, nydailynews.com, Gartner (2013). Socialnomics (2012)

Why Should Game Developers Care About Monetization?Average Social Gamer plays a game 9.5 hours per week – like Alec Baldwin

Average smartphone

user owns 2x more apps than they own shoes

Average smartphone user spends 10x more

time using apps than

taking showers

Mobile Use of Games

grew 66% in 2013, mostly played in the

bedroom66% of tablet

owners and 53% of

smartphone owners play mobile games

daily

The average Social Gamer

plays a game 9.5 hours per

week

Prominent example:

Alec Baldwin removed from

plane for playing Words with

Friends while plane idled at

the gate in 2011

ZZ Z Z

2x

10x

www.smaato.com


MO

ST

PO

PU

LAR

LESS

PO

PU

LAR

MORE EFFECTIVELESS EFFECTIVE

• Surveys• Real-world rewards• Ads – lock screens• Subscriptions• Premium – paid download• Affiliate/e-commerce• Ads – notification ads

• Ads – Text Ads• Offer Walls• App Walls

• Ads – Interstitials• Ads – Video Ads• Ads – Banner Ads• Freemium – In-App Purchases

Source: Venture Beat Intel survey (April 2014)

Which strategy makes the most amount of money for the least effort?

How To Avoid The Mobile Monetization NightmareMost Popular and effective monetization revenue drivers for Games Developers

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Controls Global Demand Programmatic

• Self-serve• Ad Quality • Optimization• 1st & 3rd party data

management

• Massive Reach• Range of eCPMs• Direct Demand for

Brand Campaigns

• Pricing Controls• Reporting &

Optimization Tools• Easy & Fast Integration

How To Avoid The Mobile Monetization NightmareTop 3 factors to look for a monetization platform partner

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Advanced Publisher Self Serve Controls for higher ad revenue

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Smaato Ad Server (coming soon)

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How To Avoid The Mobile Monetization NightmareSmaato’s Global Mobile RTB Platform Solution

www.smaato.com


• Leading, UK-based mobile game development company since 2012

• Creating mobile games on iOS and Android platforms

• First mobile game was Jigsaw Collection HD

• Worked with Smaato to optimize inventory monetization

Game Developer’s Dream Story: MK Jigsaw LPPMK Jigsaw worked with Smaato to optimize inventory monetization

Pieces of the Mobile Monetization Challenge

Optimize iPad and iPhone

inventory

Find international monetization & mediation

partner

Increase ad revenues and eCPM globally

Match Regional

Requirements

Manage Ad

Trafficking

Technology & Ad Format Support

Inventory Monetization Challenge

for MK Jigsaw

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Jigsaw Collection

HD

Floor Price: $1

Game Developer’s Dream Story: MK Jigsaw LPPStrategy: Opening iOS inventory to Smaato‘s Real Time Bidding Ad Exchange (SMX)

Strategy to optimize iOS inventory monetization of „Jigsaw Collection HD“ through RTB:

• Started working with Smaato in 2013. Opended iPad and iPhone inventory to SMX

• Smaato‘s RTB platform determined fair market value for every impression of MK Jigsaws‘s inventory

• How? It brings MK Jigsaw inventory and buyers/brands/agencies into a real-time trading environment

Sub-Second Lifecycle of MK Jigsaw‘s RTB request

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Ad Request

Ad Impression

Ad Impression

Ad Request

Ad Impression

Ad Request

No Ad Impression

No Ad Impression

Tie

r 1

Tie

r 2

Tie

r 3

MK Jigsaw‘s Tiered Setup Strategy with SMX

Game Developer’s Dream Story: MK Jigsaw LPPTiered setup to monetize inventory at multiple price points for highest ad revenue

Tier 1$

Tier 2$

Tier 3$MU

LTIP

LE P

RIC

E P

OIN

TS

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“MK Jigsaw has spent enough time to find partners who can help us achieve our high goals, and once we tried Smaato’s platform, we created strong business relations. Smaato is a premium partner for MK Jigsaw, in helping us to optimize traffic and increase revenue, and enabling us to be a reliable publisher with high-quality traffic.” Andrei Kavalkou, Operation Manager at MK Jigsaw

REVENUE PER REGION

Top Countries per revenue in Q1 2014

RESULTS

Total Revenue increase: 55%Avg. monthly eCPM Q1/14: > $2.24

Majority of ad inventory were:Rich Media Campaigns

Ad Size 728x90 (Leaderboard)

Game Developer’s Dream Story: MK Jigsaw LPPMK Jigsaw‘s total revenue increased by 55% since working with SMX

High revenue Low Revenue

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Games category is key supply and demand category in Mobile• App store downloads increase to 269 billion in 2017 & 95% will be free

• 76 of the top 100 grossing iOS apps are games

Ads are the most popular and effective way for gaming app monetization

• Banner Ads, Video Ads and Interstitials are effecting revenue drivers for gaming apps

• Global RTB enabled platform partners help to improve inventory monetization significantly

MK Jigsaw optimized inventory through SMX and increased revenue

• Since monetizing inventory through SMX, MK Jigsaw increased revenue by 55%

• Tiered setup monetization strategy increased eCPMs and optimized results

Bedtime Monetization Story: Key Take Away Items

www.smaato.com


1. What is my monetization strategy? (free or paid app)

2. How can I monetize on a global scale?

3. Which monetization platform do I choose?

4. Does my monetization partner offer a self serve service so that I

have 100% controls about my inventory?

5. How do I integrate and scale? (hire or partner)

How Can Your Dream Story Start? 5 questions a game developer should ask about mobile monetization

www.smaato.comCopyright © 2014 Smaato Inc. All Rights Reserved Smaato® is a registered trademark of Smaato Inc. | The names of actual companies and products mentioned here may be the trademarks of their

respective owners.

About Smaato

Smaato is the leading global mobile RTB ad exchange helping mobile publishers increase ad revenues worldwide. As an industry pioneer and leader, Smaato provides Ads for Apps, and operates the leading RTB ad exchange and mobile ad optimization platform. More than 76,000 publishers use Smaato to monetize their content worldwide.

Smaato’s global headquarter is in San Francisco, California. The privately held company was founded in 2005 by an experienced International management team. Smaato’s European headquarter is in Hamburg, Germany and the APAC headquarter is in Singapore.

New York City, NYTel: +1 (646) 807 45 [email protected]

Hamburg, GermanyT: + 49 (40) 3480 [email protected]

Singapore, SGT: +65 3157 [email protected]

San Francisco, CAT: + 1 (650) [email protected]

Learn more about Mobile Monetization Strategies www.smaato.com/whitepaper

Alexander Voss

[email protected]

Director of Marketing