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Ads in Mobile Apps and Gamges 101 @ NDC Oslo 2015

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There are several ways to monetize mobile apps and games. Depending on the platform advertising is either number one or two. However, just slapping ads onto your app is a sure way to degrade user experience without reaping the benefits of this powerful monetization instrument. This session will cover the basics you should know about advertising with focus on mobile apps and games. Learn to understand the industry jargon, its hidden secrets and tips & tricks to make ads work for you.

Published in: Mobile
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Ads in Mobile Apps and Gamges 101 @ NDC Oslo 2015

  1. 1. Ads in Mobile Apps and Games 101 Alan Mendelevič Founder & CEO AdDuplex alan@adduplex.com @ailon
  2. 2. Alan Mendelevich @ailon 15+ years development experience Founder & CEO of AdDuplex
  3. 3. Empowering developers to help each other grow. • free advertising for your apps • utilize 100% of your ad space • 10,000+ apps, more than 1 billion ad impressions a month www.adduplex.com The largest cross-promotion network for Windows Phone and Windows Store apps
  4. 4. Everybody loves ads! Right? Right!?
  5. 5. App monetization models Advertising is the most popular on some platforms, important on all
  6. 6. Why would I want to monetize with ads?
  7. 7. No one buys apps anymore
  8. 8. Minimal impact on game design (as opposed to F2P) * do not confuse with visual/graphic design
  9. 9. Monetize the long tail in addition to in-app purchases (Freemium, F2P, premium features) only 1-2% of users will ever make an IAP
  10. 10. Gateway to IAPs IAP to remove ads
  11. 11. Not only for monetization
  12. 12. Jumpstart your new titles App #1 App #2 App #3 New app
  13. 13. Cross-promote with other publishers
  14. 14. Mobile Advertising Terminology Primer
  15. 15. Ad types
  16. 16. Banners • Largest provider choice • Don’t interfere with the flow • Take up screen real estate
  17. 17. Full screen ads Interstitial image ads Video ads Playable ads • Good user engagement • Don’t take up real estate during gameplay • Can’t show too often (needs a natural pause) • Can be “heavy”
  18. 18. Offer walls • Can be user initiated • Show multiple ads • choice for the user • diluted for advertisers
  19. 19. Native ads • Look like content • Can be non-intrusive (e.g. replace field ads in sports game) • Hardly accessible to indie developers
  20. 20. Ad providers Ad networks Ad exchanges, mediators Direct deal marketplaces
  21. 21. Basic terms • Impression ad displayed to user once • Click user tapped on the ad • CTR – click-through rate percentage of impressions resulting in clicks on the ad • IR – install rate percentage of clicks resulting in app installation
  22. 22. Ad pricing models • CPM Cost per mille (thousand impressions) • CPC Cost per click • CPI Cost per install • CPA, CPL, etc. Cost per action, lead, etc.
  23. 23. KPIs for Advertisers
  24. 24. CTR – click-through rate Percentage of ad impressions resulting in clicks perfecting ad copy and campaign targeting Improve by
  25. 25. IR – install rate Percentage of clicks resulting in app installation (for app/game advertisers) perfecting store listing, ad copy relevance (sometimes at the expense of CTR) Improve by
  26. 26. CPI – cost per install For app/game advertisers increasing both CTR and IR Improve by
  27. 27. ROI – return on investment Based on “deeper” internal metrics acquiring better users cheaper (trial & error, previous experience) Improve by
  28. 28. KPIs for Publishers Just 2 things you actually care about
  29. 29. eCPM Effective CPM – any ad sales model converted to CPM
  30. 30. CPC → eCPM 𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 = 𝐶𝐶𝐶𝐶𝐶𝐶 × 𝐶𝐶𝐶𝐶𝐶𝐶 × 1,000 Example: • CPC = $0.10 • CTR = 1% (0.01) 𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 = $0.10 × 0.01 × 1,000 = $1
  31. 31. CPI → eCPM 𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 = 𝐶𝐶𝐶𝐶𝐶𝐶 × 𝐶𝐶𝐶𝐶𝐶𝐶 × 𝐼𝐼𝐼𝐼 × 1,000 Example: • CPI = $1 • CTR = 1% (0.01) • IR = 10% (0.1) 𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 = $1 × 0.01 × 0.1 × 1,000 = $1
  32. 32. Fill rate A concept most developers are not familiar with
  33. 33. Fill rate – percentage of ad requests resulting in ad impression Requests made Ads received • Almost never 100% for a single ad provider • Can vary dramatically based on the region and other factors • Smaato: “Worldwide, the average ad network fill rate was 10% in Q3 2011”
  34. 34. Mitigating low fill rate Ad Provider 1 Ad Provider 2 Ad Provider N Cross promotion or “house ad”
  35. 35. Last step – something with 100% fill rate • House ads – ads for your other apps or services, “public service” ads • Cross-promotion ad for a partner publisher • Cross-promotion network
  36. 36. When monetizing with ads pay attention to…
  37. 37. Some providers may calculate eCPM disregarding the fill rate Impressions Clicks CPC eCPM 1,000 10 $0.1 $1 Requests Impressions Clicks CPC eCPM 2,000 1,000 10 $0.1 $0.5 VS
  38. 38. Real life example Microsoft pubCenter Google AdMob Actual fill rate adjusted eCPM = $421.96/2,423.53 = $0.17 (data available, but not reported explicitly) Actual fill rate adjusted eCPM = $98.65/1,302.563 = $0.08 (explicitly reported as Request RPM) Source: Imran Shafiq - https://danglingneuron.wordpress.com/2015/06/10/windows-phone-ad-network-review-part-2/
  39. 39. It is incorrect to directly compare eCPM for different ad types $1 eCPM $5 eCPM VS
  40. 40. Can you control minimum bid? Otherwise you may end up selling your space for pennies
  41. 41. Why wouldn’t I monetize with ads?
  42. 42. Arguments against ad monetization • Religion, allergy, etc. • Rarely/short running apps • Negative effect on UX (as any other attempts to monetize ) • Extra permission requirements/privacy concerns • High revenue unpredictability • Optimizing ad revenue takes time and effort
  43. 43. Not many good reasons, actually…
  44. 44. Thank you! Alan Mendelevič Founder & CEO AdDuplex alan@adduplex.com @ailon download the book at http://adplx.co/eBookAds

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