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Ads in Mobile
Apps and
Games 101
Alan Mendelevič
Founder & CEO
AdDuplex
alan@adduplex.com
@ailon
Alan Mendelevich
@ailon
15+ years development experience
Founder & CEO of AdDuplex
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
Everybody loves ads!
Right? Right!?
App monetization
models
Advertising is the most popular on
some platforms, important on all
Why would I want to monetize
with ads?
No one buys
apps anymore
Minimal
impact on
game design
(as opposed to F2P)
* do not confuse with visual/graphic design
Monetize the long tail
in addition to in-app purchases
(Freemium, F2P, premium features)
only 1-2% of users will ever make an IAP
Gateway to IAPs
IAP to remove ads
Not only for
monetization
Jumpstart your new titles
App
#1
App
#2
App
#3
New
app
Cross-promote
with other
publishers
Mobile Advertising
Terminology Primer
Ad types
Banners
• Largest provider choice
• Don’t interfere with the flow
• Take up screen real estate
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”
Offer walls
• Can be user initiated
• Show multiple ads
• choice for the user
• diluted for advertisers
Native ads
• Look like content
• Can be non-intrusive (e.g. replace field
ads in sports game)
• Hardly accessible to indie developers
Ad providers
Ad networks
Ad exchanges, mediators
Direct deal marketplaces
Ads in Mobile Apps and Gamges 101 @ NDC Oslo 2015
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
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.
KPIs for
Advertisers
CTR – click-through rate
Percentage of ad impressions resulting in clicks
perfecting ad copy and campaign targeting
Improve by
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
CPI – cost per install
For app/game advertisers
increasing both CTR and IR
Improve by
ROI – return on investment
Based on “deeper” internal metrics
acquiring better users cheaper (trial & error, previous experience)
Improve by
KPIs for Publishers
Just 2 things you actually care about
eCPM
Effective CPM – any ad sales model
converted to CPM
CPC → eCPM
𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 = 𝐶𝐶𝐶𝐶𝐶𝐶 × 𝐶𝐶𝐶𝐶𝐶𝐶 × 1,000
Example:
• CPC = $0.10
• CTR = 1% (0.01)
𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 = $0.10 × 0.01 × 1,000 = $1
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
Fill rate
A concept most developers are not familiar with
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”
Mitigating low fill rate
Ad Provider 1
Ad Provider 2
Ad Provider N
Cross promotion or “house ad”
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
When
monetizing
with ads pay
attention
to…
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
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/
It is incorrect to directly compare
eCPM for different ad types
$1
eCPM
$5
eCPM
VS
Can you control minimum bid?
Otherwise you may end up
selling your space for pennies
Why wouldn’t
I monetize
with ads?
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
Not many
good reasons,
actually…
Thank you!
Alan Mendelevič
Founder & CEO
AdDuplex
alan@adduplex.com
@ailon
download the book at
http://adplx.co/eBookAds

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Ads in Mobile Apps and Gamges 101 @ NDC Oslo 2015