The 7 Sins ofMobile AdMonetization

Presented By: Tanvi KapoorProduct Marketing Manager

Agenda– Introduction

– Ad Monetization – The Seven Deadly Sins

– Q&A

And mobile advertising is growing

There are primarily 3 ways of making money from mobile apps

2012 2013 2014 2015 2016

57.382.8

127.7167

211.3

6.6

9.1

11.1

12.5

13.4

Paid-For Downloads Free Downloads

Mobile App Store Downloads (in Billions)

1 Paid App Downloads 2

IAP in Numbers2013

5%

17%

2%

Average Conversion Rate in 2012-13

Share of App Store Revenues

Average Conversion Rate in 2017

3 AdvertisementsIn-App Purchases

2012 2013 2014 2015 2016

9.7 11.413.5

17.2

24.5

Mobile Ad Revenues(in USD Billion)

Data collected from each user interaction is extremely valuable

While watching

TV

Lying in bed

Commuting During outings

ShoppingPlaying

~250 data points/user/month

3 bn+ input data points

in 24hrs

The mobile is a very personal device

Advertisers are getting more ROI

Helping advertisers reach their objectives by reaching

With the right message

At the right time

In a relevant context

In the right location

Their target consumers

With a compelling experience

…And more targeted

Advertising basics : Metrics that matter

eCPM

Revenue

Impression

Fill Rate

CTR

Refresh Rate

Ad Monetization – Seven Deadly SinsPhoto credit: Flickr/xchanttelx

1. Believing Inventory is Homogenous

17 Deadly Sins of Ad Monetization

Believing Inventory is Homogeneous Developers don’t tend to categorize their inventory.

Solution• Know your premium inventory• Distribute your inventory appropriately+10%

Understand the value of your inventory

App LaunchPlacements

Reserve this premium inventory for House Ads

In-AppAdvertising

Advertising At Natural Break Points

Reserve in-game ad slots for non-intrusive ad units

Use Interstitials at natural break points like a score board

2. Sending Low Quality Signals

27 Deadly Sins of Ad Monetization

Sending Low Quality SignalsData, Data, Data.

Solution• Cleaner signals result in better targeting• Lat/Long, Country, State, City,

Demographics, Keywords, App Category+20%

Data is what makes your inventory valuable to an advertiser

Telco/Device Content Behavioral Context RetargetingGeo Targeting Demographic

Telco

Manuf.

Model

OS

Country

City

Zip

Geo Fencing

Gender

Education

Language

Multicultural

Auto

Finance

Music

Weather

Shoppers

Movie Buffs

Travelers

Moms

Home

Office

Holiday Weekend

Clickers

App Owners

News

Site visitors

GamesHousehold Financials

3. Ignoring User Profiles

37 Deadly Sins of Ad Monetization

Ignoring User ProfilesKnow when and what to show. More exposure != $$

Solution• Work with a partner who takes

the user profile into account• Create flexible streams for a

custom experience

+15%

Leverage each user profile differently

Who is the user?

Competitive Gamer?

Casual/Achiever?

Socialite?

Non Paying User?

Acquire similar users

Promote Level Ups, VG and Assists

Go Viral withSocial Taunts

Monetize throughAds

Travel Enthusiasts

New Mothers

Gaming Enthusiasts

In-Market for Cars

And show the most relevant ad to your non-paying users

4. Ignoring Usage Behavior

47 Deadly Sins of Ad Monetization

Ignoring Usage BehaviorMonetize with ads but not at the cost of losing your users

Solution• Analyze how many times you

show an ad to a user during a session +10%

Control the experience for your users

PLACEMENT

• For casual games, place interstitials every 2-3 levels, for midcore games – after every level

• For PvP games, the best placement is after a turn is over and in general during passive screens

FREQUENCY

• Measure usage statistics to ensure in-session retention rate does not drop faster than the user engagement rate with the ad unit

TIMING

• If avg user time on your app is 5 mins, the best time to show an interstitial is just before they leave the app – for example at 4 mins. This ensures you are able to monetize the users while maintaining the interaction flow

VARIETY

• Work with a partner who will allow ad rotation at adequate refresh intervals and ensures the advertisements are rotated for your site. This helps manage ad fatigue and prevents ad blindness.

5. Not Adopting New Ad Trends

57 Deadly Sins of Ad Monetization

Not Adopting the Latest Ad TrendsDevelopers tend to not update their apps with new formats

Solution• Keep up to date with the flavor

of the season• Advertisers will focus their

spends on the best performing ad format

+15%

In-app experience is key for ad monetization

Custom Interstitials with Frames

Custom Interstitials with Animations

Video Ads

Banners Interstitials Custom Ads Video Ads

Average CTRs x

8X

12X

18X

6. Not Choosing the Right Partner

67 Deadly Sins of Ad Monetization

Not Choosing the Right PartnerHow many networks can you partner with? The more you

add, the heavier your app will be.

Solution• Use a Mediation Partner• Choose networks with a

combination of scale and performance

+20%

Demand diversity is essential for performance

Entertainment

CPG & Retail

Finance

Travel

Telecom

Auto

News & Directories

7. Ignoring Industry Evolution

77 Deadly Sins of Ad Monetization

Ignoring Industry EvolutionThinking the new OS does not affect you is a deadly sin

Solution• Update your SDKs!• Optimize for newer platforms• Keep up with App Store policies +10%

What is happening in the industry

Automatic app updates to ensure 100% of your customers have your update

64 bit processor support. More bits, More power, Better Games

Deprecation of UDID and MAC address

Questions?

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Thank You

www.inmobi.com

TANVI KAPOORE: tanvi.kapoor@inmobi.com