5 best practices for cost-efficient user acquisition

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5 Best Practices for Cost-Efficient Player Acquisition

Pepe Agell Head of International

@joseluisagell @chartboost

150,000+ Games

20 billion game sessions

600 million monthly active gamers

In 4 years, Chartboost has became the largest only-games platform on mobile. We are privileged to work with more than 150k games and reach over 600M

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Context

Message

Quality

Iteration

Free stuff

Build an immersive message…

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Who are you talking to?

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What are they looking for?

fun

thrill

challenge

immersion

self-improvement

sharing

bragging

time killing

visuals

realization

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Vide

os

8 IPM

Inte

rstit

ials

3 IPM

Bann

ers

.1 IPM

Immersive formats help

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+15% conversion

What’s your core competence?

…in the right context

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Games within games

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but that’s not enough

Grouped country and device

Separate country and device

Category targeting

Optimize publishers by eCPM

Optimize publishers by ROI

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People react to different messages. If you are able to play around with message and context, you can open up new inventory that was never available to you earlier.

Message+Context= Opportunity

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Message+Context= Opportunity

Define what Success means for you

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Retention and engagement

Monetization

Virality

= Lifetime Value

Pick your standard

D1, D7, D28 (%)

How many users do I keep over time

DAU Daily Active Users

MAU Monthly Active Users

DAU/MAU Ratio measuring engagement of uniques

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KEY METRICS:

Glu Portfolio 10-13%

Angry Birds (back in day) 0.1%

Jackpot Party Slots 16%

Zynga Portfolio (Poker) 22-23%

DAU/MAU BENCHMARKS:

Metrics to track retention and engagement

Day 1 (the day after) 0.4

Day 7 0.2

Day 28 0.1

RETENTION BENCHMARKS :

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Metrics to track retention and engagement

0.0%

7.5%

15.0%

22.5%

30.0%

Dice Word Casino Puzzle Card Strategy Role Playing Simulation Action Music

13.6%

5.0%

11.9%11.1%

6.9%

12.6%

23.5%

13.2%

16.5%

19.4%

D(7) Retention, Chartboost

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Convert virtual currency into real money

ARPU/ARPDAU ($)

$ Revenue / # (Daily Active) Users

Payer Rate (%)

# Paying Users / # Total Users

ARPPU ($) $ Revenue / (# Users * Payer Rate %)

Average Purchase

Price$ Revenue / # Purchases

“Whales” drive IAP revenue (10% of payers drive 50% of revenue^)

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KEY IAP METRICS:

Glu 3Q '13 Glu 3Q '14

$9.88

$4.03

ARPU BENCHMARKS:

Puzzle, time management 1-5c USD

Hidden object, adventure 3-7c USD

RPG, social casino 5-10c USD

ARPDAU BENCHMARKS: ^Swrve 2014 report

Metrics to track monetization

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“K-Factor” Lift achieved through social — 0.1 means a 10% lift in users

Bootup screen for SGN’s new Paint Monsters title

Social virality lowers effective cost per install by bringing more players on board

Virality

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Lifetime Value (LTV) often tries to incorporate: — Monetization (IAP and ads) — Monetization yet to come

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1012141618

D0 D365

Day 14: 3.1x Day 250: 1.09x

Day 7: 4.25x

ARPU Projection Curve

Google found that: — 18% of customer total value is within first 24 hours — Of those who purchase, 37% will do so on the first day

Lifetime value (LTV)

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No one will decide for you

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How does success look like after 60 days?

*Estimates based on GamesBrief, Jon Walsh August 2014

$1.35-$2.40 $0.07-$0.12 $0.38-$0.69ARPU*

$0.6 $0.03 $0.15Ads

$0.75-$1.80 $0.04-$0.09 $0.23-$0.54IAP

+

Launch, learn and iterate

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Softlaunch before scaling

Sample size: 10,000-20,000 players Timeframe: 2-10 weeks

Canada New Zealand Sweden NetherlandsAustralia

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Softlaunch before scaling

Dec 13(1)

Jan 14(2)

Jan 7(2)

Jan 23(1)

Oct 28(6)

Company Game Release date (updates)

Test markets

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Work backwards from your 60-day success

GOOD BAD MEDIOCRE

% Conversion rate

2.5% 0.5% 1.0%

ARPPU $20 $5 $10

Ad ARPDAU $0.03 $0.005 $0.01

After 48 hours *

$1.35-$2.40 $0.07-$0.12 $0.38-$0.69ARPU*

$20-$36 $5-$9 $10-$18ARPPU Range

3.25%-5% 0.75%-1.0% 2.25%-3%Conversion rate

*Estimates based on GamesBrief, Jon Walsh August 2014

Predicted conversion rate growth48h-60 days*

1.5x-2x

ARPPU growth48h-60 days*

1x-1.8x

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Iterate to achieve success

Come up with different messages/call to actions DOWNLOAD

PLAY

FREE

Exclude non performing publishing apps

EXIT

Test the visuals of your creatives

A B

Don’t forget the free stuff

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Start with your own network

Cross-promotion campaigns perform up to 6x better than advertising on the network

Players in your network are more likely to convert into paying users

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Start with your own network

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Start with your own network

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Game-to-game direct deals

Developers choose their own terms

You can focus your acquisition efforts on valuable sources of players

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5 best practices for cost-efficient player acquisition

In the right context

Build an immersive message

Define what quality means to you

Launch, learn and iterate

Don’t forget the free stuff

Questions?

Thank you!