The Growth Loop:

How Ad Monetization and

User Acquisition Will Merge
in 2019
 What makes a game a good business?

Retention? LTV? CPI? IPM?

What makes a game a good business?

LTV > CPI

across many apps

What makes a game a good business?

My Game My Market
LTV Advertiser eCPM

Retention ARPDAU CPI IPM

My Game
LTV = Retention & ARPDAU
Ad LTV → ARPDAU

A. B.
Implementation of ad units Waterfall management
● RV / OW implementation
● Interstitial frequency
● Banners?
 Ad Unit Types

System-initiated ads User-initiated ads

(Interstitials, Banners) (Rewarded Video, Offerwall)

Improve ARPDAU
Improve ARPDAU
Improve retention
Risk retention
Risk IAP
LTV → ARPDAU → Ad unit implementation

Best practices ● Different reward from IAP but valuable

Rewarded ● Diversified places and items

Video ● Timing - clean, natural pauses

● Visible and clear

● Dynamic (exponential)
LTV → ARPDAU → Ad unit implementation

Best practices ● Hard currency

Offerwall ● Main screen, store

● Exchange rate

● Pop-ups / double credit promotion

LTV → ARPDAU → Ad unit implementation

Best practices ● Frequency

Interstitial ● Format

● X-button

● # of clicks
LTV → ARPDAU → Waterfall management

Waterfall ● Multiple instances

Management ● Squeezing vs. latency

● eCPM range optimization

● Fill-rate optimization

● In-app bidding
○ No Latency
○ Better competition
○ No operation costs
My Market
eCPM = IPM x CPI
Advertiser eCPM

A. B.
Creatives (IPM) CPI
● Type ● Measure the right LTV
● Diversity ● Based on ROAS
● Localization ● Source level
● Refreshment frequency ● Waterfall position
● Constant adjustments
Advertiser eCPM → IPM → 1. Creative types

Win Rate (IPM)

Advertiser eCPM → IPM → 2. Creative diversity

Always challenge your

current creatives

Look for IPM-scale improvement

Advertiser eCPM → IPM → 3. Localization

Localization Works

30% 18%

IPM increase IPM increase

in China in France
Advertiser eCPM → IPM → 4. Refreshment

Follow the creative cycle

Growth Maturity Design Renewal Localization

n
D esig tion
New za
Lo cali

Old
D esig
n
Spend

Time
Advertiser eCPM → IPM → 4. Refreshment

IPM per number of views for a specific user New creatives

minimize drop in
IPM by

16%
Advertiser eCPM

A. B.
Creatives (IPM) CPI
● Type ● Measure the right LTV
● Diversity ● Based on ROAS
● Localization ● Source level
● Refreshment frequency ● Waterfall position
● Constant adjustments
Advertiser eCPM → CPI → 1. Measuring the right LTV
Advertiser eCPM → CPI → 1. Measuring the right LTV
Advertiser eCPM → CPI → 1. Measuring the right LTV

Predict LTV
the right way
● IAP and UAR LTV curves
behave differently

● Important to define the

right combined LTV curve
Advertiser eCPM → CPI → 1. Measuring the right LTV

Different ROAS goals needed for different geos

Advertiser eCPM → CPI → 2. Bid based on ROAS

Retention isn’t $
Average # of imp isn’t $

$ is $
Advertiser eCPM → CPI → 3. Bid per source

Dynamic bid
per title
● 8% of the titles generate
28% of the network installs
because they use granular
bidding

● 80% of these titles are

using our automatic bid
optimizer
Advertiser eCPM → CPI → 4. Know your position

First position impact on reach

~40%
of users watch
only 1 video
Advertiser eCPM → CPI → 4. Know your position

First position impact on IPM IPM drops by

5%
with each position
Advertiser eCPM → CPI → 5. Constantly update

Constantly ● Quality of source can change

update ● New sources

● Competition is also changing

Product Automation
Monetization
● User Ad Revenue - instance level
● User IAP revenue - PIE
● Automated ROAS curve
○ Country
Marketing
● Bid per source calculation
● New apps - taxonomy
ROAS
Goal
● Considering ARPDAU trend
● Considering ROAS curve
Thank You