How Choosing the Right Formats and Placements Can Supercharge Your Game Revenue | Nadav Ashkenazy

1. Monetization
deep dive
Enhancing UX and Ad revenue
29–31 May 2018 | London

2. The Gap
IAPIAP
Ad
Monetization
Ad
Monetization
Share of Revenue / Impact Share of Attention / Sophistication

3. Part 1
Rewarded Ads (User initiated)

4. Rewarded Ads - The Magic Ad Unit
Great
eCPMs
(= great revenue source)
Great
UX

5. Rewarded Ads - The Magic Ad Unit
Definitely doesn’t hurt
retention
Definitely doesn’t hurt
session length
Important to make
sure it doesn’t
cannibalize IAP

6. Rewarded Ads - The Magic Ad Unit
Definitely doesn’t hurt
retention
Definitely doesn’t hurt
session length
Important to make
sure it doesn’t
cannibalize IAP
Can actually
improve it by
~10% - 25%
Can actually
improve it by
10% - 30%
Can actually
improve it by
0 - 8%

7. Bottom line:
Start with maximizing rewarded ads

8. Rewarded Ads Equation
= What to measure

9. Maximizing Revenue - WHAT KPIs? Publisher Network
Impressions
*
Bids
Implementation -
Placements, Flow
Engagement Rate
Usage Rate
(Imp/engaged user)
Visibility
Attractiveness
Timing
Alignment with virtual economy
eCPM
IPM
Creatives
Targeting
Relationship (granular bidding,
post-install events,
suppression…)
Revenue =

10. Engagement Rate and Usage Rate
6 Videos a day
100%
Users
40%
Users
1M DAU 400K EU
2.4M
impressio
ns
=
Usage Rate

11. Session Depth and its Effects
Imp IPM
1st 6
2nd 5
3rd 4.6
4th 4.1
5th 3.5
6th 3
7th 2.75
8th 2.5
9th 2.25
10th 2
· Sum of RV IPM · Sum of playable IPM

12. Benchmarks
and Targets
= Where to aim for

13. DAU ⇨ Impressions
Engagement Rate
At least 30%
aim for 50%
Usage Rate
At least 4
aim for 8
Total imp/DAU rate
At least 1.2
aim for 4

14. Impressions ⇨ Revenue
IPM
At least 3
aim for 5
tier 1 / tier 3

15. Strategy
= How to get there

16. Rewarded Video Strategy
● Ads from Day 1
● Reward
○ Part of the game’s core economy
○ Soft / hard currency
○ Valuable but different from IAP
○ Dynamic
○ Diversified
● Timing
○ Clean environment
○ End of session
○ User and Advertiser - view and engagement

17. Rewarded Video Strategy
● Visibility
○ What share of users is even aware?
○ Engagement Rate affects twice!
○ Awareness (pop ups?)
● Clarity
○ Does the user understand?
○ Intro page
● Capping and pacing
○ Maximize LTV
○ Cannibalization as a risk?

18. ● IAP?
○ Reward Vs IAP currency
○ Caping and Pacing
○ Segmentation (reward amount?)
○ Maximize total LTV (ads, retention, IAP)
Rewarded Video Strategy
Testing, Testing, Testing - Data-driven decisions

19. Offerwall

20. Offerwall?
User Initiated ad unit
(rewarded) - great UX
and effects
Wall of offers that
users can complete for
rewards
Publisher gives reward
only when get paid
(According to exchange rate
you define)

21. Offerwall
Much longer process
for the user
(> 90% CPE)
Definitely not part of
the game flow
(unlike what RV should be)
Average revenue and
reward per completion -
$3 (unlike 2c in RV)
Alternative payment
method!
(your 2nd store)
● Store, main screen
● Hard currency
● Awareness - pop ups, DCP

22. OW - Benchmark & Target
Engagement Rate
At least 5%
aim for 10%
Usage Rate
At least 1.2
aim for 2
OW/RV revenue
(ARPDAU) rate
At least 40%
aim for 80%

23. Part 2
System Initiated Ads
(Interstitials, banners, native)

24. System Initiated Ads
50% of users won’t pay,
and won’t engage with
rewarded ads
Display ads – the only
way to monetize them
(+ incremental revenue for the
rest)

25. System Initiated Ads
With no strong virtual
economy (= weak IAP &
Rewarded) - System Initiated
becomes the main
monetization option
Can hurt UX, impact
retention & session
length, and affect
probability to purchase
Potential risks

26. How to smartly use system initiated ads
● Timing / Placements - when user finish to play, breaks
● Frequency / capping - average session length / 3.
● Format - rewarded interstitial? X button? # of clicks
● ARPU / LTV decision - (ARPDAU Vs Retention) - data driven
decision!
○ Segmentation - non paying non rewarded

27. What does good
Implementation
look like?

28. RV - 3 placements
Free Reward
Main screen, reward is changing
(Time Warp, MegaBucks), pace -
every 2 hours
Free Reward
Main screen, fixed with a timer,
reward is 4 hrs Boost, cap to 6
impressions a day
Speed boost
Main screen, timer clock, reward
is speed boost, cap to 3
impressions a day

29. What Does Good Implementation Look Like?

30. OW - 2 Placements Gold - Hard Currency
Main Screen Free gold Store Free gold

31. What does good implementation look like?
● Place - approachable and visible - Helps ER
● Simplicity - clear call to action, explanation page - Helps ER
● Reward - interesting and valuable - Helps ER + UR
● Available in high quantity (10-12 imp a day) – Helps UR
● Dynamic rewarding - keeps the ER + UR in good values
● User flow - a convenient time to make an install - Helps IPM
○ End of session, not the beginning
● Reward type - soft currency for RV, hard for OW
○ Make it fun, don’t apologise

32. Summary
● More than a revenue tool - can improve many of your
most important KPIs!
● Requires love, attention, professionalism
● Know what KPIs to monitor, what GOALS to set,
and HOW to get there

33. User-Level
Data
● Your ad revenue is generated by:
○ 40% of your users that generate
impressions
(if heavy on rewarded)
○ 0.5% of the engaged users that make an
install (Average IPM is 5)
● Where did these users come from? Do you pay
the right price for the right sources? Do you
really know your ROAS per source?
● Do you adjust your ad monetization strategy to
different users’ segments?

34. Source A Source B Source C
14D Average IAP ARPU $0.4 $0.55 $0.2
14D Average Ad ARPU $0.3 $0.42 $0.525
14D Average Total ARPU $0.7 $0.97 $0.725
Source A Source B Source C
14D Average IAP ARPU $0.4 $0.55 $0.2
14D Imp/User 20 28 35
Geo Revenue per Imp 1.5¢ 1.5¢ 1.5¢
14D Average Ad ARPU $0.3 $0.42 $0.525
14D Average Ad ARPU $0.7 $0.97 $0.725
What should you have?
Source A
Source B
Source C

35. Source A Source B Source C
14D Average IAP ARPU $0.4 $0.55 $0.2
30% Ads Boost $0.12 $0.165 $0.06
14D Average ARPU $0.52 $0.715 $0.26
AD LTV based UA strategy
● Segment of users by payers / engaged with OW /
Engaged with RV / nothing
● Segment of users by: > $50 ad LTV / $10<X<$50 ad LTV /
0<x<$10 ad LTV / 0 ad LTV
For UA
For
Monetization

36. Questions?