Monday, June 22, 2015

Ads in Mobile Apps and Gamges 101 @ NDC Oslo 2015

Ads in Mobile Apps and Gamges 101 @ NDC Oslo 2015


There are several ways to monetize mobile apps and games. Depending on the platform advertising is either number one or two. However, just slapping ads onto your app is a sure way to degrade user experience without reaping the benefits of this powerful monetization instrument. This session will cover the basics you should know about advertising with focus on mobile apps and games. Learn to understand the industry jargon, its hidden secrets and tips & tricks to make ads work for you.
Published in: Mobile

Transcript

  • 1. Ads in Mobile Apps and Games 101 Alan Mendelevič Founder & CEO AdDuplex alan@adduplex.com @ailon
  • 2. Alan Mendelevich @ailon 15+ years development experience Founder & CEO of AdDuplex
  • 3. Empowering developers to help each other grow. • free advertising for your apps • utilize 100% of your ad space • 10,000+ apps, more than 1 billion ad impressions a month www.adduplex.com The largest cross-promotion network for Windows Phone and Windows Store apps
  • 4. Everybody loves ads! Right? Right!?
  • 5. App monetization models Advertising is the most popular on some platforms, important on all
  • 6. Why would I want to monetize with ads?
  • 7. No one buys apps anymore
  • 8. Minimal impact on game design (as opposed to F2P) * do not confuse with visual/graphic design
  • 9. Monetize the long tail in addition to in-app purchases (Freemium, F2P, premium features) only 1-2% of users will ever make an IAP
  • 10. Gateway to IAPs IAP to remove ads
  • 11. Not only for monetization
  • 12. Jumpstart your new titles App #1 App #2 App #3 New app
  • 13. Cross-promote with other publishers
  • 14. Mobile Advertising Terminology Primer
  • 15. Ad types
  • 16. Banners • Largest provider choice • Don’t interfere with the flow • Take up screen real estate
  • 17. Full screen ads Interstitial image ads Video ads Playable ads • Good user engagement • Don’t take up real estate during gameplay • Can’t show too often (needs a natural pause) • Can be “heavy”
  • 18. Offer walls • Can be user initiated • Show multiple ads • choice for the user • diluted for advertisers
  • 19. Native ads • Look like content • Can be non-intrusive (e.g. replace field ads in sports game) • Hardly accessible to indie developers
  • 20. Ad providers Ad networks Ad exchanges, mediators Direct deal marketplaces
  • 21. Basic terms • Impression ad displayed to user once • Click user tapped on the ad • CTR – click-through rate percentage of impressions resulting in clicks on the ad • IR – install rate percentage of clicks resulting in app installation
  • 22. Ad pricing models • CPM Cost per mille (thousand impressions) • CPC Cost per click • CPI Cost per install • CPA, CPL, etc. Cost per action, lead, etc.
  • 23. KPIs for Advertisers
  • 24. CTR – click-through rate Percentage of ad impressions resulting in clicks perfecting ad copy and campaign targeting Improve by
  • 25. IR – install rate Percentage of clicks resulting in app installation (for app/game advertisers) perfecting store listing, ad copy relevance (sometimes at the expense of CTR) Improve by
  • 26. CPI – cost per install For app/game advertisers increasing both CTR and IR Improve by
  • 27. ROI – return on investment Based on “deeper” internal metrics acquiring better users cheaper (trial & error, previous experience) Improve by
  • 28. KPIs for Publishers Just 2 things you actually care about
  • 29. eCPM Effective CPM – any ad sales model converted to CPM
  • 30. CPC → eCPM 𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 = 𝐢𝐢𝐢𝐢𝐢𝐢 × πΆπΆπΆπΆπΆπΆ × 1,000 Example: • CPC = $0.10 • CTR = 1% (0.01) 𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 = $0.10 × 0.01 × 1,000 = $1
  • 31. CPI → eCPM 𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 = 𝐢𝐢𝐢𝐢𝐢𝐢 × πΆπΆπΆπΆπΆπΆ × πΌπΌπΌπΌ × 1,000 Example: • CPI = $1 • CTR = 1% (0.01) • IR = 10% (0.1) 𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 = $1 × 0.01 × 0.1 × 1,000 = $1
  • 32. Fill rate A concept most developers are not familiar with
  • 33. Fill rate – percentage of ad requests resulting in ad impression Requests made Ads received • Almost never 100% for a single ad provider • Can vary dramatically based on the region and other factors • Smaato: “Worldwide, the average ad network fill rate was 10% in Q3 2011”
  • 34. Mitigating low fill rate Ad Provider 1 Ad Provider 2 Ad Provider N Cross promotion or “house ad”
  • 35. Last step – something with 100% fill rate • House ads – ads for your other apps or services, “public service” ads • Cross-promotion ad for a partner publisher • Cross-promotion network
  • 36. When monetizing with ads pay attention to…
  • 37. Some providers may calculate eCPM disregarding the fill rate Impressions Clicks CPC eCPM 1,000 10 $0.1 $1 Requests Impressions Clicks CPC eCPM 2,000 1,000 10 $0.1 $0.5 VS
  • 38. Real life example Microsoft pubCenter Google AdMob Actual fill rate adjusted eCPM = $421.96/2,423.53 = $0.17 (data available, but not reported explicitly) Actual fill rate adjusted eCPM = $98.65/1,302.563 = $0.08 (explicitly reported as Request RPM) Source: Imran Shafiq - https://danglingneuron.wordpress.com/2015/06/10/windows-phone-ad-network-review-part-2/
  • 39. It is incorrect to directly compare eCPM for different ad types $1 eCPM $5 eCPM VS
  • 40. Can you control minimum bid? Otherwise you may end up selling your space for pennies
  • 41. Why wouldn’t I monetize with ads?
  • 42. Arguments against ad monetization • Religion, allergy, etc. • Rarely/short running apps • Negative effect on UX (as any other attempts to monetize ) • Extra permission requirements/privacy concerns • High revenue unpredictability • Optimizing ad revenue takes time and effort
  • 43. Not many good reasons, actually…
  • 44. Thank you! Alan Mendelevič Founder & CEO AdDuplex alan@adduplex.com @ailon download the book at http://adplx.co/eBookAds
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