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Ad-Based VS IAP:

UA Strategies
KEREM ALEMDAR

UA MANAGER
Ad-Based vs. IAP: UA Strategies!
Why are they so
different?
Ad-based
IAP
Differences on Creation Phase
Production
Proctuction Phase
1 - Focuses more on meta game play and content

2 - Long term retention
3 - Conversion rates

4 - Avg. 1 year
1 - Focuses on core game play

2 - Short term retention
3 - Ad spaces and session times

4 - Avg. 2 months
IAP monetization;
Ad monetization;
Soft Launch - UA
Ad monetization;



- General IR and Volume Predictions

- Representative CPM countries for your main markets

- Erosion calculations
- LTV predictions for the base global launch bids

- Avg. 2 months

IAP monetization;



- Conv. rates on different Tiers

- Identifying your audience types and deciding on targeting

- LTV Predictions for ROAS targets 

- Avg. 6 months

Global Launch
Erosion calculations for Ad-based
User Age vs Arpdau for IAP
UA - Methodologies
Bidding Methodologies
for Ad-based titles bid targets;



- Affected Retention metrics (Day 7 - 14 - 28).

- Affected by the general eCPM fluctuation (holiday sessions etc.).

- Affected by your DAU.

- Affected by other advertisers.

for IAP titles bid targets;



- Affected Conv. Metrics.

- Affected by ROAS.

- Affected by customer satisfaction.

- Affected by in-game maintenance.

Bidding Methodologies
for Ad-based titles bid targets;



- LT x Arpdau - Margin = bCPI

- LT x Arpdau x Virality fac. - Margin = CPI

for IAP titles bid targets;



- Avg. Covn. Value x Conversion Rate - Margin= bCPI

- bCPI + Org. Revenue per install= CPI
Bidding Methodologies
for Ad-based;



- Based on last T-60 to T-30 Retention Data
- Based on last avg. 7 Days Arpdau

- Based on seasonality and market

for IAP ;



- Based on last T-28 to T-7 Spending Curves
- Based on T-11 to T-4 conv. rate

- Based on historical data

- Based on desired payback time
Targeting Methodologies
for Ad-based titles;



- Broad Targeting

- No value differences based on Audiences
- Retention normalizes after certain Volume
- Differentiating Device base LTV is hard
for IAP titles;



- Audiences has different value

- Differentiating Device base LTV is easy

- Fluctuates by other games UA strategies

Creative Optimisation Methodologies
for Ad-based titles;



- IR is the main optimization metric

- Generic and Gameplay Focused
- Low effect on in-game metrics
- Saturation is fast
for IAP titles;



- ROAS is the main optimization metric

- Different ad concepts attracts different Audience Types

- Saturation is slow
- Localizations are important
Unknown Advantages of Ad-based
Using Both Monetizaiton Models
Takeaways…
Return on investment Short Long
Revenue per User Low High
Production Time Short Long
UA Optimisations Based on LT Base on Roas
Maintenance Low High
Business Model B2B B2C
Ad-Based IAP
Thank You!

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Ad-Based vs. IAP: UA Strategies!

  • 1. Ad-Based VS IAP:
 UA Strategies KEREM ALEMDAR
 UA MANAGER
  • 3. Why are they so different? Ad-based IAP
  • 4. Differences on Creation Phase Production
  • 5. Proctuction Phase 1 - Focuses more on meta game play and content
 2 - Long term retention 3 - Conversion rates
 4 - Avg. 1 year 1 - Focuses on core game play
 2 - Short term retention 3 - Ad spaces and session times
 4 - Avg. 2 months IAP monetization; Ad monetization;
  • 6. Soft Launch - UA Ad monetization;
 
 - General IR and Volume Predictions
 - Representative CPM countries for your main markets
 - Erosion calculations - LTV predictions for the base global launch bids
 - Avg. 2 months
 IAP monetization;
 
 - Conv. rates on different Tiers
 - Identifying your audience types and deciding on targeting
 - LTV Predictions for ROAS targets 
 - Avg. 6 months

  • 9. User Age vs Arpdau for IAP
  • 11. Bidding Methodologies for Ad-based titles bid targets;
 
 - Affected Retention metrics (Day 7 - 14 - 28).
 - Affected by the general eCPM fluctuation (holiday sessions etc.).
 - Affected by your DAU.
 - Affected by other advertisers.
 for IAP titles bid targets;
 
 - Affected Conv. Metrics.
 - Affected by ROAS.
 - Affected by customer satisfaction.
 - Affected by in-game maintenance.

  • 12. Bidding Methodologies for Ad-based titles bid targets;
 
 - LT x Arpdau - Margin = bCPI
 - LT x Arpdau x Virality fac. - Margin = CPI
 for IAP titles bid targets;
 
 - Avg. Covn. Value x Conversion Rate - Margin= bCPI
 - bCPI + Org. Revenue per install= CPI
  • 13. Bidding Methodologies for Ad-based;
 
 - Based on last T-60 to T-30 Retention Data - Based on last avg. 7 Days Arpdau
 - Based on seasonality and market
 for IAP ;
 
 - Based on last T-28 to T-7 Spending Curves - Based on T-11 to T-4 conv. rate
 - Based on historical data
 - Based on desired payback time
  • 14. Targeting Methodologies for Ad-based titles;
 
 - Broad Targeting
 - No value differences based on Audiences - Retention normalizes after certain Volume - Differentiating Device base LTV is hard for IAP titles;
 
 - Audiences has different value
 - Differentiating Device base LTV is easy
 - Fluctuates by other games UA strategies

  • 15. Creative Optimisation Methodologies for Ad-based titles;
 
 - IR is the main optimization metric
 - Generic and Gameplay Focused - Low effect on in-game metrics - Saturation is fast for IAP titles;
 
 - ROAS is the main optimization metric
 - Different ad concepts attracts different Audience Types
 - Saturation is slow - Localizations are important
  • 18. Takeaways… Return on investment Short Long Revenue per User Low High Production Time Short Long UA Optimisations Based on LT Base on Roas Maintenance Low High Business Model B2B B2C Ad-Based IAP