Mobile Ad Monetization for Games | Christian Calderon
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Delivered at Casual Connect USA 2016. Ad monetization is a relatively mysterious activity for most startups, and has become increasingly more important for a majority of developers these days. Ketchapp has launched hundreds of titles that have been played by over 500 million people around the world. Join this session with Ketchapp's chief revenue officer Christian Calderon to discover how startups can be more effective in their monetization strategies.
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Mobile Ad Monetization for Games | Christian Calderon
- 1. Monetization for Game Startups Christian Calderon Chief Revenue Officer Ketchapp
- 2. Who am I?
- 3. Ketchapp Rank 2014 2015 2016 YTD 1 Google Apple Apple 2 Apple Facebook Tencent 3 Facebook Google Google 4 Tencent Tencent Facebook 5 Gameloft Gameloft 6 King Electronic Arts Baidu 7 Disney Electronic Arts 8 Electronic Arts Baidu King 9 LINE Corporation King Gameloft 10 LINE Corporation Cheetah Mobile Source: AppAnnie
- 4. Overview • What’s going on in the market • Terms you should know • Ad monetization landscape • What to look for in a partner • Business development tactics to improve revenue • Product features to improve revenue
- 5. The mobile ads market 0% 5% 10% 15% 20% 25% 30% 0 0.5 1 1.5 2 2.5 3 2014 2015 2016 2017 2018 Growth% SmartphoneUsers(Billions) Smartphone Penetration Smartphone users % change 0% 20% 40% 60% 80% 100% $0 $20 $40 $60 $80 $100 $120 $140 2014 2015 2016 2017 2018 %Growth MobileAdSpend($Billions) Mobile Ad Spend Mobile % Growth 0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 3.5x 4.0x 4.5x 2014 2015 2016 2017 2018 Spend Growth / User Growth Spend / User Growth $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 2014 2015 2016 2017 2018 SpendperUser($USD) Mobile Ad Spend per User Spend Per User
- 6. The mobile ads market 0% 5% 10% 15% 20% 25% 30% 0 0.5 1 1.5 2 2.5 3 2014 2015 2016 2017 2018 Growth% SmartphoneUsers(Billions) Smartphone Penetration Smartphone users % change 0% 20% 40% 60% 80% 100% $0 $20 $40 $60 $80 $100 $120 $140 2014 2015 2016 2017 2018 %Growth MobileAdSpend($Billions) Mobile Ad Spend Mobile % Growth 0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 3.5x 4.0x 4.5x 2014 2015 2016 2017 2018 Spend Growth / User Growth Spend / User Growth $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 2014 2015 2016 2017 2018 SpendperUser($USD) Mobile Ad Spend per User Spend Per User
- 7. The mobile ads market Developers, don’t undervalue your worth!
- 8. Ad monetization metrics and terminology • Impression: each time an ad is fetched and it is countable • CPM: cost per thousand impressions • Calls: the number of times you request an ad impression • Fill Rate: % of calls that serve an ad impression • Adoption rate: unique ad engagements / unique users • Ads ARPDAU: average revenue per daily active user for ads • Retention: daily cohorted user retention • Ads LTV: lifetime value from ads • CTR: click-through-rate • CVR: conversion rate • ATTAV: average time to ad view
- 9. Ad monetization metrics and terminology Freemium Economics By Eric Seufert
- 10. Ad landscape
- 17. Mediation technology Should you use mediation?
- 20. Mediation technology Mediation Demand Source 1 Demand Source 2 Demand Source 3 Demand Source 4 Demand Source 5 Demand Source 6 Demand Source 7 Demand Source 8 Demand Source
- 21. Mediation technology Mediation Demand Source 1 $20.00 Demand Source 2 $9.00 Demand Source 3 $18.00 Demand Source 4 $25.00 Demand Source 5 $14.00 Demand Source 6 $14.00 Demand Source 7 $21.00 Demand Source 8 $10.00 Demand Source eCPM
- 22. Mediation technology Mediation Demand Source 1 $20.00 Demand Source 2 $9.00 Demand Source 3 $18.00 Demand Source 4 $25.00 Demand Source 5 $14.00 Demand Source 6 $14.00 Demand Source 7 $21.00 Demand Source 8 $10.00 Demand Source eCPM
- 23. Mediation technology • Mediation is good • Algorithms are different, it’s important to understand them • Technology should improve over time • Not real time--reporting APIs are too slow • New entrants are entering the market • Incumbents are improving tech to compete against each other • Important to understand how mediation partners make money – it’s actually pretty hard for them – and each mediation partner has a different revenue model
- 24. Demand sources How many demand sources should you integrate?
- 31. Evaluating the best demand partner Demand Tech Biz
- 32. Choosing the best demand partner: biz • What’s the revenue share? • Are they open to CPM guarantees and floors? • Can they throw in user acquisition? • Will they offer buyouts? • What does your dedicated account team look like? • Will they let you make modifications? • Can you build a relationship with the partner? Biz
- 33. Choosing the best demand partner: tech • Test the SDK before you sign • Is there a serverside integration? • Do they support your game engine? • Is the documentation up to date? • Is it flexible enough to make modifications? • How’s the tech on the demand side? • What items are they passing in their reporting API? • How often can you hit the reporting API? Tech
- 34. Evaluating demand • You don’t want too many SDKs in your app • Does the demand partner have a sizeable salesforce? • What types of advertisers? Is there brand demand and performance demand? • How much are advertisers spending? D1 D2 P2 Q1 S1 P1
- 35. Ad Units Banner Interstitial Rewarded Video
- 36. Ad Units: banner ads Banner Cons • The Industries most unpopular ad unit • Not as performant • Lower CPM Pros • High adoption • High revenue Potential
- 37. Ad Units: interstitial ads Interstitial Cons • Intrusive if improperly integrated • Medium CPM • High CPM (for playables and video) Pros • High adoption • High revenue Potential
- 38. Ad Units: rewarded video ads Rewarded Video Cons • The Industries most unpopular ad unit • Lower Adoption Pros • High revenue potential • High CPM
- 39. Ad Units: other… • Native has had much higher adoption outside of games • Standardized ad formats have proven demand • Some ad units can offer higher CPM, why is the CPM higher? does it hurt retention? Other…
- 41. Tactics: first impression CPM + adoption Adoption (%) CPM($) First Impression Revenue
- 42. Product feature: multi-ad format • Stack by Ketchapp • Currency rewarded to players for watching a video • Banner unit during gameplay • Interstitial served if rewarded video was not activated • Combines multiple ad formats for a simple, fun, and thoughtful ad experience Multi
- 43. Product feature: daily reward re-roll • Two Dots by Dots • Daily prize served to every player • Create a compelling prize to increase adoption rate • Combine the high adoption rate with a high first impression CPM Rewarded Video
- 44. Product: multiplier high frequency re-roll • Doomsday Clicker by Pik Pok • Monetization mechanic tied to a core game loop within the game • Monetization mechanic speeds up progression in a core way • You can re-roll the multiplier • Combines high frequency ad viewing with higher CPM ad format in a fun way Rewarded Video
- 45. Product: hourly rewards • Nonstop Knight by Flaregames • Monetization mechanic is a function of progression • Coins, tokens and consumables available through rewarded videos every 3 hours • Need resources to upgrade your knight to progress through the game Rewarded Video
- 46. Product: native • Pele by Cosi Productions • Incorporates native format as a function of level progression • Impressions served every second with every kick at every level • Realistic and beautifully incorporated into the background like an actual soccer game • High deal value and cash component Native