Delivered at Casual Connect Tel Aviv 2016. Ad monetization is a strategically important part of the mobile gaming revenue mix, and many developers are implementing ad monetization loops in impressive ways that not only drive significant revenues but increase player retention and IAP conversion. In this session, Eric will discuss the current state of mobile video advertising and then identify and deconstruct several different ad monetization loops from successful mobile games.

1. Ad monetization design
patterns in free-to-play
games
Eric Benjamin Seufert
Heracles

2. Who I Am
Partner,
Heracles
Owner,
Mobile Dev Memo
Author,
Freemium Economics
Formerly:

3. Agamemnon
● Analytics tool for mobile
user acquisition
● In closed beta currently
Beta code for CC TLV
attendees:
CCTLV123
http://troy.agmnn.co

4. State of the App Economy

5. Growth of mobile advertising
continues unabated.

6. Growth of mobile advertising
continues unabated.

7. Growth of mobile advertising
continues unabated.

8. Growth of mobile advertising
continues unabated.
FB 10Q (Q2 2016)

9. Growth of mobile advertising
continues unabated.
GOOG 10Q (Q2 2016)

10. Video is driving this growth...

11. Video is driving this growth...

12. Video is driving this growth...

13. Video is driving this growth...

14. Video is driving this growth...

15. ...and networks / publishers are
facilitating this with new formats and
tools.

16. ...and networks / publishers are
facilitating this with new formats and
tools.

17. ...and networks / publishers are
facilitating this with new formats and
tools.

18. ...and networks / publishers are
facilitating this with new formats and
tools.

19. ...and networks / publishers are
facilitating this with new formats and
tools.

20. ...but we’re still very much in the Wild
West. Good information is hard to
come by.

21. And fraud is rampant.

22. App Monetization in 2016

23. The App Monetization Opportunity
with Video

24. The App Monetization Opportunity
with Video
● Tap into growing video advertising budgets on
mobile;

25. The App Monetization Opportunity
with Video
● Tap into growing video advertising budgets on
mobile;
● Leverage eyeballs into revenues by supplying
inventory to ever-increasing demand for mobile
placements;

26. The App Monetization Opportunity
with Video
● Tap into growing video advertising budgets on
mobile;
● Leverage eyeballs into revenues by supplying
inventory to ever-increasing demand for mobile
placements;
● Prepare for programmatic direct future marketplace
with API- and backend-driven ad serving.

27. The App Monetization Dilemma with
Video

28. The App Monetization Dilemma with
Video
How to monetize users with ads that don’t displace
their attention from your app...

29. The App Monetization Dilemma with
Video
How to monetize users with ads that don’t displace
their attention from your app...
...yet still convert well enough to maintain viable
CPMs.

30. The App Monetization Imperative with
Video

31. The App Monetization Imperative with
Video
Build engaging mobile advertising experience on
mobile that is integrated natively, brings value to the
customer, and is served with intent.

32. The App Monetization Imperative with
Video
Build engaging mobile advertising experience on
mobile that is integrated natively, brings value to the
customer, and is served with intent.
Ads must be:

33. The App Monetization Imperative with
Video
Build engaging mobile advertising experience on
mobile that is integrated natively, brings value to the
customer, and is served with intent.
Ads must be:
● Native;

34. The App Monetization Imperative with
Video
Build engaging mobile advertising experience on
mobile that is integrated natively, brings value to the
customer, and is served with intent.
Ads must be:
● Native;
● User-initiated (pull, not push);

35. The App Monetization Imperative with
Video
Build engaging mobile advertising experience on
mobile that is integrated natively, brings value to the
customer, and is served with intent.
Ads must be:
● Native;
● User-initiated (pull, not push);
● Integrated seamlessly into content (not a distraction
from app’s use case).

36. App Monetization Design
Patterns

37. Ads in the Content Channel

38. Ads in the Content Channel
Seamless integration of ads alongside native content
created opportunity for high number of impressions /
session

39. Ads in the Content Channel
Canonical Example:
Facebook Newsfeed

40. Ads in the Content Channel
Instagram

41. Ads in the Content Channel
Rovio Content Channel

42. Rewarded Video as a Content Driver

43. Rewarded Video as a Content Driver
Rewarded video serves as the primary driver of
content delivery, eg. content is mostly unlocked via
video rewards in the app’s (mostly games) core use
case

44. Rewarded Video as a Content Driver
Flip Diving

45. Rewarded Video as a Content Driver
Nonstop Knight

46. Rewarded Video as a Content
Accelerator

47. Rewarded Video as a Content
Accelerator
Video rewards increase the pace at which content is
unlocked or at which progression in the app’s core use
case is permitted.

48. Rewarded Video as a Content
Accelerator
Flip Diving

49. Brand Placements as a Content
Extension

50. Brand Placements as a Content
Extension
Branded ad placements extend the available content in
the app. Brand advertisements take the form of native
content.

51. Brand Placements as a Content
Extension
Facebook
LINE App

52. Brand Placements as a Content
Extension
Crossy Road

53. Thanks!
eric@hrcls.co
hrcls.co
@eric_seufert