'Best practices to deliver Lifetime Value Optimization' - Kaya Taner at App Promotion Summit Berlin

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

Who is talking?
Kaya Taner
CEO & Co-Founder
AppLift
70 people+, offices in
Seoul, Berlin and San
Francisco
Acquiring millions of
users per month for
150+ games

2

The 3 waves of paid User
Acquisition
Top
charts
Goal

Lowest
CPI

ROI
positive

High
volume
CPI

LTV > CPI

Pricing

Top
position
Flat fee

SDKs

No SDK

Many
SDKs
Non-incent
2012

Few SDKs

Ad type Incentivize
d
2011


aCPI

Non-intrusi
ve
2013+
3

How to buy ROI positive
traffic

Tracking
setup

App Store
optimization


Traffic buying

4

Tracking setup
Campaign
tracking
Attribution of
installs to paid
and non-paid
channels

In-game
tracking
Tracking of in-app
events to measure
and analyze user
behavior

Methods:
Fingerprint,
IDFA/Android ID

Players:

Players:

Common identifier needed to match channels with
in-app behavior

5

KPI‘s for in-game
tracking
ROI-positive User Acquisition
Retention
 Day 1, 7, 30
 DAU
 DNU

Monetizati
on

Engagement
 Average time
in app /
session
 Total daily
sessions /
DAU

Virality
• K-factor (viral
growth rate
per-user
•
•

Trackable: Social
Media, Referrals,
Invites etc.
Non-trackable: Word
of Mouth

 ARPU = total revenue / # users
 ARPPU = total revenue / #
paying users
 Monetization rate = % of users
that made in-app purchases


6

The in-game KPI‘s in the
User‘s Lifecycle


traffic
Tracking
setup

App Store
optimization

Traffic buying

eBook on Mobile Games Marke

Available for free download on

www.AppLift.com


8

traffic

Tracking
setup

App Store
optimization


Traffic buying

9

Find the right traffic
sources
It is critical to understand and identify
the best traffic sources for your target
your users
In app
In game
Mobile Web


10

Address the users
appropriately
Find the best performing way to reach
the audience and address your potential
new users
• Performance based
Pay for new gamers on a risk-free CPI,
optimize the channels based on eCPI
• + Non-incentivized
Understand if a higher chart position really
pays off or if a sustained campaign has
better returns
• + Non-intrusive (detailed)
Ensure that your game is presented in the


11

Examples of non-intrusive
integrations
Tailor the use of ads and promotions 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

12

Understand the real cost
of your acquired users

CLV >
eCPI

eCPI takes into account all the costs induced by the
acquisition of one user as well as free installs
• Fixed costs
• Setup costs
• “Free”
promotions

• Virality (K-factor)
• Additional
organic installs

Modeling CLV

CLV
RDk = retention rate on day k
ARPDAUk = Average revenue per daily active user
on day k

Retention
60%
40%
20%
0%


What does this mean for your launch
timeline?

4 weeks
before
submission
Integrate
install
tracking
SDK and
in-game
tracking
SDK

2 weeks
before
launch

Set up
campaigns
with traffic
partners
●
Prepare
creatives
●
Set up
tracking
●

●

Game is
live!
●

●

Review
in-game
events
Optimize
eCPI‘s for
traffic
source and
estimate

Talk to us
Kaya Taner
CEO & Co-Founder
kt@applift.com

Download eBook at
www.applift.com


BACKUP


17

Identify ROI positive
channels
Sour
ce

CPI

K-Facto
r

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 selection
accordingly
You can scale your user acquisition with ROI
positive channels

18

Wave 1: Buy a chart
position
“Can you guarantee a chart
position?”


19

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


20

Wave 3: Buy ROI positive
traffic
“I will only pay as much as
the user is worth in my
game!”
 Track the quality
 CPI adjusted based on
quality delivered


21

Examples of non-intrusive
integrations


22

'Best practices to deliver Lifetime Value Optimization' - Kaya Taner at App Promotion Summit Berlin

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