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Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com

Kaya Taner– 28/11/2013

Best practices to deliver LTV: Insights on generating ROI-positive traffic for free-to-play mobile games

Part of


 CEO & Co-‐Founder AppLi2

 70 people+, offices in Seoul, Berlin and San Francisco

 Acquiring millions of users per month for 150+ games

2

Kaya Taner

Who is talking?

Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com 3

The 3 waves of paid User Acquisi<on

Top charts Lowest CPI

ROI posi<ve

2011 2012 2013+

Pricing Flat fee CPI aCPI

SDKs No SDK Many SDKs Few SDKs

Ad type IncenPvized Non-‐incent Non-‐intrusive

Goal Top posiPon High volume LTV > CPI


How to buy ROI posi<ve traffic

Tracking setup App Store opPmizaPon Traffic buying


Tracking setup

Common iden<fier needed to match channels with in-‐app behavior

Campaign tracking

 A[ribuPon of installs to paid and non-‐paid channels

 Methods: Fingerprint, IDFA/Android ID

 Players:

In-‐game tracking

 Tracking of in-‐app events to measure and analyze user behavior

 Players:


KPI‘s for in-‐game tracking

ROI-‐posiPve User AcquisiPon

RetenPon Engagement Virality

MonePzaPon

  Day 1, 7, 30   DAU   DNU

  Average Pme in app / session

  Total daily sessions / DAU

•  K-‐factor (viral growth rate per-‐user

•  Trackable: Social Media, Referrals, Invites etc.

•  Non-‐trackable: Word of Mouth

  ARPU = total revenue / # users   ARPPU = total revenue / # paying users   MonePzaPon rate = % of users that made in-‐app purchases

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The in-game KPI‘s in the User‘s Lifecycle




eBook on Mobile Games Marke<ng Available for free download on

www.AppLiT.com


Find the right traffic sources

It is cri<cal to understand and iden<fy the best traffic sources for your target your users In app In game Mobile Web


Address the users appropriately

•  Performance based

Pay for new gamers on a risk-‐free CPI, opPmize the channels based on eCPI

•  + Non-‐incen<vized Understand if a higher chart posiPon really pays off or if a sustained campaign has be[er returns

•  + Non-‐intrusive (detailed) Ensure that your game is presented in the best possible way

Find the best performing way to reach the audience and address your poten<al new users


Examples of non-‐intrusive integra<ons

If done right, non-intrusive ads can show average CTR’s of 13%, Conversion rates of 16% and result in eCPM’s of 33 USD for the publisher

Tailor the use of ads and promo<ons to your product, gameplay and enrich the user experience


Understand the real cost of your acquired users

eCPI takes into account all the costs induced by the acquisiPon of one user as well as free installs

CLV > eCPI

•  Fixed costs •  Setup costs •  “Free” promoPons

•  Virality (K-‐factor) •  AddiPonal organic

installs


Modeling CLV

RDk = reten*on rate on day k ARPDAUk = Average revenue per daily ac*ve user on day k

0% 10% 20% 30% 40% 50%

D1 D3 D5 D7 D9 D11 D13 D15 D17 D19 D21 D23 D25 D27 D29

Reten<on

CLV


What does this mean for your launch <meline?

4 weeks before submission •  Integrate install tracking SDK and in-‐game tracking SDK

2 weeks before launch •  Set up campaigns with traffic partners

•  Prepare crea<ves •  Set up tracking

Game is live! •  Review in-‐game events

• Op<mize eCPI‘s for traffic source and es<mate CLV


Talk to us

Kaya Taner CEO & Co-‐Founder [email protected]

Download eBook at www.appliT.com


BACKUP


Iden<fy ROI posi<ve channels

Source CPI K-‐Factor eCPI CLV D1 – Ret. Level Comp. …

1 $1.90 1.06 $1.79 $1.64 32% 17%

2 $2.10 1.02 $2.06 $2.01 41% 10%

3 $2.50 1.01 $2.48 $2.37 39% 21%

4 $2.70 1.23 $2.20 $2.87 54% 49%

5 $1.80 1.12 $1.61 $1.97 52% 46%

6 $1.90 1.04 $1.83 $1.64 37% 23%

7 $1.50 1.08 $1.39 $1.74 49% 42%

Matching the eCPIs with every channels individual CLV will allow you to adjust the CPIs and channel selecPon accordingly You can scale your user acquisi<on with ROI posi<ve channels


Wave 1: Buy a chart posi<on

“Can you guarantee a chart posi<on?”


Wave 2: Buy volume on CPI

“Give me as many installs as possible for this CPI!”   No tracking beyond the install   CPI adjusted based on happiness

with volume


Wave 3: Buy ROI posi<ve traffic

“I will only pay as much as the user is worth in my game!”   Track the quality   CPI adjusted based on quality

delivered


Examples of non-‐intrusive integra<ons

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