Platzi Conf Live - Josh Curtis - Mobile Games Monetization - Chartboost
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Josh Curtis gave a presentation on mobile game monetization through free-to-play models and advertising. He began with an overview of the large and growing mobile games industry. He then discussed best practices for making viral games, including in-app purchases, high replay value, user-generated content, and established brands. Key metrics for monetization success are ARPPU, eCPM, impressions, click-through rate, and install rate. Different ad formats like banners, videos, and playable ads can drive varying revenue. Successful monetization requires choosing the right ad formats, understanding users, and continuous testing and optimization.
Platzi Conf Live - Josh Curtis - Mobile Games Monetization - Chartboost
- 1. Mobile Games: F2P Monetization Josh Curtis BD Evangelist - Latin & North America josh@chartboost.com Social Media: joshfcurtis Dic, 2016 PlatziConf Live
- 2. Josh Curtis BD Evangelist - Latin & North America josh@chartboost.com | Social Media: @joshfcurtis 300,000+ Games 1 Billion MAUs
- 3. 3 3 Agenda 1. Industry Overview 2. Make Viral Games 3. Key Monetization Metrics 4. Ad Monetization: Formats & Best Practices 5. Key Takeaways
- 5. 3 5 Industry Size Source: NewZoo, April 2016
- 6. 3 6 Industry Size Source: NewZoo, April 2016
- 7. 3 7 $655 Million+ and Growing for Mobile Game Ad Revenue in US (2017) Source: NewZoo, April 2016
- 8. 3 8 50% of Ad Revenue from DATA: Chartboost Advertising, May 2016 50% 50% United States Rest of World
- 9. 3 9 65% of advertising money 35% 65% iOS Android DATA: Chartboost Advertising, May 2016
- 10. 3 10DATA: Game Sessions Americas is 50/50-ish Europe is Android Asia: it depends But platform varies widely by 51% 49% Americas 62% 38% EMEA 47% 53% APAC
- 11. 11 How to: Make viral games people want to play
- 12. 12 Influencers & everyday gamers can show & share items to get people excited about investing in the game. In-App Purchase Perks
- 13. 13 Stream-first has become a genre by itself. Today’s games need to be designed to be viewed, not only played. High Replay Value
- 14. 14 Competitive and Cooperative Multiplayer Games These games are made for streaming, offering unique scenarios to keep viewers sharing & coming back for more.
- 15. 15 User-Generated Content Make it easy to inspect or view the content; this lets the viewer feel special and get a shoutout.
- 16. 16 Established IP / Brand A strong story allows influencers and gamers to create a special bond with the characters, which keeps users excited to play and share.
- 17. 17 Social Meme / Phenomenon Tapping into a social meme is a great way to get free publicity and virality, mobile game players & others will be searching the keywords and excited about the theme already.
- 18. 18 Design a Viral Game 3) User Gen Content 4) Competitive & Co-Op 2) High Replay Value 1) IAP: In-App Purchases 5) Established IP or Social Meme
- 19. Key Metrics for Monetization
- 20. 3 20 Monetization has 2 key components AdvertisingIAP ARPPU eCPM 95-991-5% ARPPU ($) $ 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
- 21. 3 21 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
- 22. 3 22 Example Calculation: Daily Revenue DAUs 50,000 Impressions 100,000 Ratio Impressions / Uniques 2:1 eCPM ($) $10 per Thousand Impressions Revenue $1,000 CONCLUSION For $1,000 / Day, 100,000 Impressions If 2:1 ratio of impressions / uniques: 50,000 Users REVENUE GOAL: $1,000 / DAY eCPM ($) x Impressions (#) = $ Revenue $
- 23. 3 23 eCPM is a Variable Ratio 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
- 24. Ad Monetization
- 25. 3 25 DATA: Chartboost Advertising, US, May 2016
- 26. 3 26 Mobile banners Lower eCPM Take up visual & interaction space Usually not “pretty” Can work well for certain apps
- 27. 3 27 Static interstitials Medium eCPM Adaptable look & feel Can be natural between levels High Volume of Inventory
- 28. 3 28 Animated GIFs Medium to High eCPM Adaptable look & feel Interstitial but with some cinematic experience Relatively new format
- 29. 3 29 Interstitial Video Ads High eCPM Can be entertaining Opportunity to demonstrate or describe gameplay Can be skippable Offers rewarded ad opportunity
- 30. 3 30 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.)
- 31. 3 31 Playable ads High eCPM User can experience game already in ad Very easy to update and optimize
- 32. 3 32 Native ads Non intrusive Natural part of gameplay Variable eCPM More Manual to Code In
- 33. 3 33 eCPM User experience Var eCPM $8 - 15 $6 - 14 $7 - 13 $5 - 10 $2 - 6 DATA: Chartboost Advertising, US, May 2016 $0.50 - $1
- 34. 3 34 Source: Slideshare 2016 Use the Right Ad Format for your Game!
- 35. 3 35 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
- 36. 3 36 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
- 37. 3 37 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
- 38. Thank You! Josh Curtis BD Evangelist, Latam & US josh@chartboost.com LinkedIn: joshfcurtis Twitter: joshfcurtis