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