1. Best practices to deliver LTV:
Insights on generating ROI-positive traffic
for free-to-play mobile games
Kaya Taner– 28/11/2013
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
Part of

2. Who
is
talking?
Kaya Taner
 CEO
&
Co-­‐Founder
AppLi2
 70
people+,
offices
in
Seoul,
Berlin
and
San
Francisco
 Acquiring
millions
of
users
per
month
for
150+
games
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
2

3. The
3
waves
of
paid
User
Acquisi<on
Top
charts
Goal
Lowest
CPI
ROI
posi<ve
Top
posiPon
High
volume
LTV
>
CPI
Pricing
Flat
fee
CPI
aCPI
SDKs
No
SDK
Many
SDKs
Few
SDKs
IncenPvized
2011
Non-­‐incent
2012
Non-­‐intrusive
2013+
Ad
type
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
3

4. How
to
buy
ROI
posi<ve
traffic
Tracking
setup
App
Store
opPmizaPon
Traffic
buying
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
4

5. Tracking
setup
Campaign
tracking
In-­‐game
tracking
 A[ribuPon
of
installs
to
paid
and
non-­‐paid
channels
 Tracking
of
in-­‐app
events
to
measure
and
analyze
user
behavior
 Methods:
Fingerprint,
IDFA/Android
ID
 Players:
 Players:
Common
iden<fier
needed
to
match
channels
with
in-­‐app
behavior
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
5

6. KPI‘s
for
in-­‐game
tracking
ROI-­‐posiPve
User
AcquisiPon
RetenPon
 Day
1,
7,
30
 DAU
 DNU
Engagement
 Average
Pme
in
app
/
session
 Total
daily
sessions
/
DAU
Virality
• K-­‐factor
(viral
growth
rate
per-­‐
user
•
•
MonePzaPon
Trackable:
Social
Media,
Referrals,
Invites
etc.
Non-­‐trackable:
Word
of
Mouth
 ARPU
=
total
revenue
/
#
users
 ARPPU
=
total
revenue
/
#
paying
users
 MonePzaPon
rate
=
%
of
users
that
made
in-­‐app
purchases
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
6

7. The in-game KPI‘s in the User‘s
Lifecycle
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com

8. How
to
buy
ROI
posi<ve
traffic
Tracking
setup
App
Store
opPmizaPon
Traffic
buying
eBook
on
Mobile
Games
Marke<ng
Available
for
free
download
on
www.AppLiT.com
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
8

9. How
to
buy
ROI
posi<ve
traffic
Tracking
setup
App
Store
opPmizaPon
Traffic
buying
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
9

10. Find
the
right
traffic
sources
It
is
cri<cal
to
understand
and
iden<fy
the
best
traffic
sources
for
your
target
your
users
In
app
In
game
Mobile
Web
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
10

11. Address
the
users
appropriately
Find
the
best
performing
way
to
reach
the
audience
and
address
your
poten<al
new
users
• Performance
based
Pay
for
new
gamers
on
a
risk-­‐free
CPI,
opPmize
the
channels
based
on
eCPI
• +
Non-­‐incen<vized
Understand
if
a
higher
chart
posiPon
really
pays
off
or
if
a
sustained
campaign
has
be[er
returns
• +
Non-­‐intrusive
(detailed)
Ensure
that
your
game
is
presented
in
the
best
possible
way
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
11

12. Examples
of
non-­‐intrusive
integra<ons
Tailor
the
use
of
ads
and
promo<ons
to
your
product,
gameplay
and
enrich
the
user
experience
If done right, non-intrusive ads can show average CTR’s of 13%, Conversion
rates of 16% and result in eCPM’s of 33 USD for the publisher
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
12

13. Understand
the
real
cost
of
your
acquired
users
CLV
>
eCPI
eCPI
takes
into
account
all
the
costs
induced
by
the
acquisiPon
of
one
user
as
well
as
free
installs
• Fixed
costs
• Setup
costs
• “Free”
promoPons
• Virality
(K-­‐factor)
• AddiPonal
organic
installs
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com

14. Modeling
CLV
CLV
RDk
=
reten*on
rate
on
day
k
ARPDAUk
=
Average
revenue
per
daily
ac*ve
user
on
day
k
Reten<on
50%
40%
30%
20%
10%
0%
D1
D3
D5
D7
D9
D11
D13
D15
D17
D19
D21
D23
D25
D27
D29
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com

15. What
does
this
mean
for
your
launch
<meline?
4
weeks
before
submission
2
weeks
before
launch
Game
is
live!
• Integrate
install
tracking
SDK
and
in-­‐game
tracking
SDK
• Set
up
campaigns
with
traffic
partners
• Prepare
crea<ves
• Set
up
tracking
• Review
in-­‐game
events
• Op<mize
eCPI‘s
for
traffic
source
and
es<mate
CLV
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com

16. Talk
to
us
Kaya
Taner
CEO
&
Co-­‐Founder
kt@appli2.com
Download
eBook
at
www.appliT.com
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com

17. BACKUP
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
17

18. Iden<fy
ROI
posi<ve
channels
Source
CPI
K-­‐Factor
eCPI
CLV
D1
–
Ret.
Level
Comp.
1
$1.90
1.06
$1.79
$1.64
32%
17%
2
$2.10
1.02
$2.06
$2.01
41%
10%
3
$2.50
1.01
$2.48
$2.37
39%
21%
4
$2.70
1.23
$2.20
$2.87
54%
49%
5
$1.80
1.12
$1.61
$1.97
52%
46%
6
$1.90
1.04
$1.83
$1.64
37%
23%
7
$1.50
1.08
$1.39
$1.74
49%
…
42%
Matching
the
eCPIs
with
every
channels
individual
CLV
will
allow
you
to
adjust
the
CPIs
and
channel
selecPon
accordingly
You
can
scale
your
user
acquisi<on
with
ROI
posi<ve
channels
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
18

19. Wave
1:
Buy
a
chart
posi<on
“Can
you
guarantee
a
chart
posi<on?”
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
19

20. Wave
2:
Buy
volume
on
CPI
“Give
me
as
many
installs
as
possible
for
this
CPI!”
 No
tracking
beyond
the
install
 CPI
adjusted
based
on
happiness
with
volume
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
20

21. Wave
3:
Buy
ROI
posi<ve
traffic
“I
will
only
pay
as
much
as
the
user
is
worth
in
my
game!”
 Track
the
quality
 CPI
adjusted
based
on
quality
delivered
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
21

22. Examples
of
non-­‐intrusive
integra<ons
Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com
22