Ad monetization 101
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App Economy & its funky Metrics ♫ Ad Mone(za(on 101 Carole Wai Hai, BI Consultant @Fyber Sep. 2015
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Transcript of Ad monetization 101
App Economy & its funky Metrics ♫ Ad Mone(za(on 101
Carole Wai Hai, BI Consultant @Fyber Sep. 2015
Disclaimer
The views expressed in this presentaLon are only my own and do not represent the views of my employer Fyber or its parent company RNTS.
Alternate pitch for family and friends: Do you like free Apps?
At Fyber we provide the technology for Apps like Crossy Road to deliver ads that
allow them to keep the app free.
Who I am?
2007 2008 2010 2011 2014
France China USA Germany
Alternate pitch for family and friends: Do you like free Apps?
At Fyber we provide the technology for Apps to deliver ads and stay free.
App Economy Life Cycle
AcquisiLon Engagement RetenLon MoneLzaLon
MarkeLng Product
In-‐App Purchase
Premium Apps
Freemium Apps
What if you have the greatest game in the world and no one knows about it? Then you only have the greatest games in the world that no-‐one knows about. Nick Berry, Facebook Data ScienFst Acquisi6on ! Make your game discovered. Engagement + Reten6on ! Measure how great is your game indeed.
Ad MoneLzaLon
SubscripLon
App Economy Funnel Metrics
Industry numbers: Up to 1 out of 20 users will moneLze via IAP. (Among them, 44% will do so a]er the 10+ sessions.) ! SLll, you need to moneLze the 95% remaining traffic. Ad Revenue can generate non-‐negligible added income.
20% from Ads
80% from IAP
Users vs IAP spending Users
Revenue Distribu(on example: Glu Games
Freemium & MoneLzaLon
Ad MoneLzaLon Landscape
Rewarded Ads Non Rewarded Ads Ad Format
Which Ad Networks?
Offer Wall
Ad MoneLzaLon Landscape
What Ad Format?
Rewarded Video Inters((al
Rewarded Ads Non Rewarded Ads
A B C
Ad MoneLzaLon User Flow
Ex: Rewarded Video
User plays Game
See ‘watch a video for free coins’
Click to watch the video
Finish the Video and earn coins
AdverLser pays the publisher.
Ad MoneLzaLon User Flow
Notes: To Engage with an Ad: User choose via opt-‐in to see the ad. To Complete an Ad: User complete requested acLon to receive virtual currency.
Rewarded Video
User Engagement
Ad Comple(on
User Conversion
Ad Impression
Session Request (Publisher)
Fill (Ad Network)
Publisher Revenue
Revenue
Sessions Sessions / DAU
Impressions / Engaged Users
Avg CompleFon / CompleFng Users
Considering Users Considering Inventory
Ad Impressions
Ad CompleLons
Daily AcLve Users
Engaged Users
ConverLng Users
Ad MoneLzaLon Funnel Metrics
Rewarded Video
eCPM
ARPDAU
ARPPU (Ads)
Jelly Crush DAU: 100,000 Impressions: 500,000 ConverLng Users: 25,000 Revenue: 2,500 eur eCPM: 5 eur ARPDAU: 0,025 eur ARPPU: 0,10 eur
ARPDAU=Revenue/DAU eCPM=Revenue/Impression*1000 ARPPU=Revenue/Conver(ng Users
Ad MoneLzaLon Metrics Monitoring Rewarded Video US iOS
In this order check: -‐ DAU -‐ Revenue -‐ Impressions -‐ ConverLng users
Important drop in Revenue!
ARPDAU
ARPPU eCPM
Which Metrics? Criteria: Best price for your inventory + no waste
Ad MoneLzaLon Benchmarking Ad Networks
Rewarded Video US iOS
Ad Network A eCPM: 4 eur Fill rate: 90% 90 *4 = 360 eur
Ad Network B eCPM: 5 eur Fill rate: 70% 70 * 5 = 350 eur
Ad Network C eCPM: 6 eur Fill rate: 60% 60 * 6 = 360 eur
Bonus quesLon: Should you just pick one Ad Network and just sLck with it? NoLon of Depth of inventory and Cascade.
Test Ad Network with 100,000 Requests each:
• Fyber gives you free apps. • Ad MoneLzaLon is a must. • eCPM is important to measure inventory value, but also think ARPDAU and ARPPU (Ads).
• Fill Rate is important to benchmark Ad Networks. • You also probably want to work with several Ad Networks, so a mediaLon tool is a good soluLon.
Key Take Away
DefiniLons & Acronyms ♫ DAU (Daily Ac(ve Users): number of user using your app on a given day. Avg Sessions Per User: Sessions/DAU. how many Lmes per day a user opens your app, in average. Avg Ad View Per Engaged User: Impressions/Engaged Users. Of users engaging with ads, how many do they see per day, in average. Avg Comple(on Per Conver(ng User: CompleLons/ ConverLng Users. Of users compleLng offers, how many offers to they complete per day, in average. ARPDAU (Average Revenue per DAU): Revenue/DAU eCPM = revenue/impression *1000 ARPPU (Average Revenue Per Paid User) : Revenue/ConverLng Users. Here ‘paid users’ are users generaLng revenue via adverLsement. Engagement Rate: Engaging Users / DAU Fill Rate: Fill / Request
Reference ArLcles ♫ hops://blog.kissmetrics.com/must-‐have-‐mobile-‐metrics/ hop://blog.adduplex.com/2015/01/slides-‐ads-‐in-‐mobile-‐apps-‐and-‐games-‐101.html hop://www.slideshare.net/EricSeufert/eric-‐seufert-‐gdc-‐2014-‐profitably-‐launching-‐jelly-‐splash-‐to-‐1-‐a-‐markeLng-‐postmortem hop://www.pocketgamer.biz/comment-‐and-‐opinion/61879/niccolo-‐de-‐masi-‐on-‐whale-‐behavior/ hop://www.mediapost.com/publicaLons/arLcle/166102/loyalty-‐not-‐the-‐hard-‐sell-‐drives-‐in-‐app-‐purchase.html hop://gamesauce.org/news/2014/03/03/nick-‐berry-‐growth-‐hacking-‐casual-‐connect-‐video/
