Video

App Monetization, Video

Blog header image - what's inside the advertising black box - video snaps from casual connect panel
Last Casual Connect in Tel-Aviv introduced many interesting lectures and panels. However, this is the one when ad-networks secrets got revealed. These are the top 9 moments of the panel presented in an easy video navigation tool.

 

Panel Participants

Lior Shiff – Co-founder and ex-CEO, Product Madness

Guy Tomer – Co-founder and CMO, TabTale

Niko Vouri – Co-founder and COO, Rocket Games

Yaniv Nizan – Co-founder and CEO, SOOMLA

Noam Neuman – VP Mobile Strategy at Matomy

Fernando Pernica – Mobile Monetization at Ad-Colony

Minute 5:29 – The Secret Guage

Lior asks Fernando whether there is a way for ad-networks to dynamically manipulate rev-share rates for publishers and create periods where they are more competative. Can you gues the answer?

Minute 12:06 – What Surprised Yaniv

Lior asks Yaniv what surprised him the most when lifting the hood of the black box. Not all app users are made equal apparently.

Minute 14:30 – When Ad Networks get Naughty

Guy tells the story about an ad-network that didn’t play by the rules and showed inappropriate ads to kids user audience.

Minute 32:11 – Brands – Friend or Foe

When a big change comes along you can either get defensive or find the opportunities that change creates. While the entrance of brands to mobile ads makes buying users harder it creates new monetization opportunities that translates back into the ability to place more competitive CPI bids.

Minute 33:09 – Is there an Unbiased Mediation?

Why is the ownership of mediaiton by ad-networks a problem? Bias and lack of transparency come into play here.

Minute 35:54 – Ad Networks’ Transparency

Guy explains that regardless of their various attempts to get more data from the ad-networks they still couldn’t get granular data and even aggregated data is sometimes tough.

Minute 37:07 – Lack of Transparency is a Double Edged Sword

Fernando explains how mediation is a black box for the ad-networks and how the lack of transparency goes both ways.

Minute 39:53 – Are There Ad Whales?

Lior is asking Yaniv and Guy whether or not Ad Whales exist. Guy explains that he can’t track it today but Yaniv is answering with precision: “We have seen $124 generated by a single user”.

Minute 45:43 – How Would You Leverage Ad LTV Data

Yaniv is asking Niko what would he do differently if he had the power to know. Niko explains how granular ad revenue data can impact their user acquisition decisions.

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Video

china_-_casual_connect02

In this video from the recent Casual Connect in Tel-Aviv, Omer Kaplan from Iron Source is giving some highly valuable lessons about the China market. If you are part of the mobile gaming industry, you must have spent a considerable amount of time thinking about this market. It’s already the biggest and it’s also the fastest growing. There are still lots of opportunities there and lots of money coming in and out of it.

China In vs. China Out

One of the interesting distinctions made in the presentation is that there are two ways to work with the China Market:

  • China In – trying to bring western products and apps into China
  • China Out – helping successful Chinese companies gain distribution in other companies (mostly referred to as Overseas by Chinese).

The path that Iron Source took is to start with the China Out and only then try to go China In. The presentation also includes some useful tips about what’s required in order to be interesting for Chinese companies in the China Out model. One of the interesting observations is that the companies who are looking to spread out of China are the ones that already dominated that market. It means that they are massive companies with hundreds of millions of users and they are looking for opportunities that move the needle. If you don’t have that level of scale (hundreds of millions of users) you will probably not be able to be a good partner for these giants.

For the full lecture – see the video below.

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App Monetization, Video

5 in app advertising tips based on the session that Christian Calderon, CRO of Ketchapp gave at Postback

In a recent talk at Postback event, Christian Calderon gave a very interesting presentation about Ketchapp’s approach to in app advertising. Christian recently joined the Ketchapp team after leading Dots monetization for about 2 years. There is a lot to be learned from him so if you have 15 minutes – I highly recommend viewing this video.

 

FREE REPORT – VIDEO ADS RETENTION IMPACT

 

Mobile ad spend per user is growing

Companies who are condiering in app advertising as a source of monetization should study this chart closely. If you felt like CPMs were high in the last 12 months. This chart says it will increase by almost 2x in the next 3 years.

the mobile ads market forecasts says that average ad spend per mobile users will increase almost 2x in the next 3 years

Mediation is a “must have” not a “nice to have”

In his talk, Calderon explains that mediation is the way to aggregate demand and create a competitive situation between the ad networks. This is important in order to maximize your yield. To learn about the pros and cons of the top mediation platform refer to this comparison.

Advertisers pay more for the 1st impression and eCPM decays after

This is an important point to understand. Since eCPM levels are driven by performance and conversion rates, the first impression is usually paying a lot more than the 10th impression. Smart buyers like Machine Zone are focusing on the first impression and are willing to pay premium CPMs for that one. To analyze eCPM decay for your app you need a specialized tracking tool like SOOMLA TRACEBACK.

CPM decay means that the first impression a user sees in the day is the one that will yield the most revenue and the revenue for subsequent impressions drops

Adoption rate (aka Opt-in rate) is linear with revenue

Adoption rate or Opt-in rate is how many users out of your daily active users get to see ads. In other words, how many 1st impressions you have. Calderon hints that in both Dots and Ketchapp focusing on the opt-in rate is part of the secret sauce to high yield from your in app advertising.

Focusing on adoption rate or opt-in rate means that you are getting more 1st impressions and optimizing your in app advertising
Improving the adoption rate requires 2 things:
  • Good ways to measure it in different segments so you can identify opportunities and track progress
  • Iterating and testing new ideas that are focused on increasing the adoption rate

Understanding the business side of of in app advertising is critical

The last tip that we can learn is that ad-based monetization requires more than just plugging the ads SDK and waiting for the revenue to come. There is much to be achieved by developing a relationship with the ad providers, tweaking the deals you are getting and negotiating with them. In his slides, he explains that there are 3 pieces that makes a good ad-partner and one of them is their ability to work with you and get you the deals you need.
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App Monetization, Video

Increase your video revenue by matering opt in ratio and getting more users to convert to rewarded video advertising

Rewarded Video is a big trend these days in mobile games. For many games the video revenue has become the main source of income. The opt-in ratio is a factor that is mostly overlooked and could help you maximize this opportunity.

What is opt-in ratio?

This important factor is one of the best kept secrets of the studios who have spent a great deal of effort optimizing their rewarded video revenue. Opt-in ratio means the number of users who opted to see rewarded videos out of the total number of users that day. Another way to look at it – what are the chances a single user will click on the button to watch videos. It is a form of conversion rate.

How much it can increase my video revenue?

In most game this ranges between 20% and 40%. Focusing on this parameter alone can double your revenue from the rewarded video channel simply because more users will be generating revenue for you. For example, if you have 100,000 DAU today and 20% opt-in ratio it means you are monetizing 20% of your users. Increasing that to 40% will result in twice as many users who are contributing revenue to your game.

Measuring your opt-in ratio

There are a few ways to measure opt-in ratio. If you have an analytics platform, you can set-up events to be sent every time a user clicks to see a video ad. You then need to set up a custom funnel in your analytics platform to track how many users had that event fired. Alternatively, you can use SOOMLA Traceback to measure this for you with no need to add any code or set up any funnels in your analytics dashboard.

Improving the opt-in ratio

Once you start measuring this ratio, you want to create an iterative improvement process where you try different things and constantly track the improvements until the goal is reached. Depending on your game design, here are a few things you may want to try:

  • Introducing rewarded video as part of the tutorial or to get the initial starting bonus
  • Placing prompts in key moments where the user needs an extra boost to receive this boost in return for watching a video
  • Targeting users who didn’t opt-in by showing them prompts

These are just ideas to try. You should come up with more and test them until you reach the goal of 40% opt-in.

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App Monetization, Video

Rewarded video ads means that the user gets in-game currency but the publisher only gets paid on install
Video advertising is hot in the mobile app ecosystem today. Everyone is talking about it and many app developers are doing it. Even more so in mobile games. The rewarded video format especially is becoming popular by the hour and even Facebook and Google are moving into the space according to latest rumors.

What is rewarded video advertising

Video ads can be shown to users in different places inside the app. If the app has video content, the video ads can appear as a pre-roll. In other situations, the ads can appear in a natural breakpoint. A very popular option these days is to allow users to opt-in to the ad by offering something in return – a reward. This practice of giving a something in return for watching an ad is sometimes referred to as value exchange. The user gets some benefit in the app that is normally a premium feature in exchange for the value created for the advertiser by the user watching the ad. In games, the premium feature is mostly in-game currency.

Developers give the reward when video ad is shown

From the developer standpoint, they are giving the reward to the user instead of selling it for money. For example, a game might credit the user 5 precious gems in return for watching a video ad. The ad-network SDK is usually providing a call back function that lets the developer know that the video view is completed and the developer writes a code to give the reward.

Developers don’t get paid when a reward is given

Here is the loophole – the developer might expect to get paid in return for the precious gems he is giving away. However, that’s not happening. Most of the video ad-networks are not paying for video views at all. They are paying a share of the revenue they are making which means the developer is getting paid mostly for installs that the video might be driving. If the video is interesting, if the user likes the app, downloads, installs and opens it. Only then the developers get paid. Not for his users watching the videos and not for giving away his premium features for free.

Transparency and clarity are a big deal

Some app developers might be ok with this loophole since some of the views generate clicks and some of the clicks generate installs and eventually the developers do earn money. However, the fact that many developers are not aware of this is alarming and shows that ad-networks are not being transparent enough about their practices.

Impact on optimization and paid marketing

The most important impact on the game developers is that they lose sight of what revenue is generated by what users. This is critical for in-game optimization, for mediation decisions and for marketing ROI analysis.

If you’re monetizing with rewarded videos it’s important to know the Ad revenue per user. Check out SOOMLA Traceback – Ad LTV as a Service.

Learn More

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App Monetization, Video

image

There is nothing more boring in mobile apps than the Remove Ads button. At least that was the case until recently. The least expected place for innovation just re-invented itself. I have seen the option to watch a single video ad to remove ads in one app and then in another. When I saw it the 3rd time I realized there is a trend here and I’m sure others will quickly adopt this new standard.

Watching 1 Video Ad Equals an Ad Free Session

You can see an examples of what it looks like in the games Blocky Football and Tiltagon:

unnamed (2)

tiltagon-ads

 

 

 

 

 

 

 

 

The prompt gives the user choice between paying $1.99 to remove ads permanently or watching a video to remove them temporarily.

Similar approach has been implemented by Spotify that offers a 30 minute ad free session in return for watching 1 video ad.

sponsored-session-lg

 

 

 

 

 

 

 

 

 

 

It’s all about user choice

These ads are likely to become more and more popular since they give users choices. Some users don’t mind the ad interruptions while others might prefer to focus their ad experience in a short time and be done with it. It also signifies a more open and transparent approach to ads. Publishers are telling their users “look we need to get paid to continue making games, it’s your choice how to help us”.

 

If you are interested in accurately measuring the impact of innovative placemtns it’s important to know the Advertising revenue per user. Check out SOOMLA Traceback – Ad LTV as a Service.

Learn More

 

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App Monetization, Unity, Video

Video ads report from unity. Image showing a player with a phone and an offer to show a video.

We all know that Video is one of the biggest trends of the last years in mobile gaming. Now there is a study that confirms it. Unity recently put together a report based mainly on surveys of users and game makers. The report shows how dominant Video ads are today and the trend seems to get stronger even.

Key points from the in-game advertising report:

  • 71% of the users said they prefer Video Ads as the way to ‘pay’ for the game
  • After adding rewarded video – 86% of developers saw increase or no change in IAP, 68% saw increase or no change in retention and only 14% saw any negative impact at all
  • When surveying studios of 5 to 20 people – 90% said they are adding rewarded video ads in their next title

You can download the full report here (after filling out a signup form).

Interpretation of the video ads report

This report demonstrates a trend we are all aware of and was covered in a recent article in this blog – More ads in mobile games. Unity is making an effort to highlight the trend as their advertising business is becoming a substential part of their business and they are positioned as one of the key players in the video space. This is the reason behind them investing in such a report.

For developers, I believe most of them know already about the availability of rewarded video so there is no big news here.

Related – video ad LTV attribution

With the trend of advertising becoming a significant part of mobile app revenues it is important to start measuring ad LTV more precisely. Today most game publishers divide the daily ad revenue by the daily active users to reach ARPDAU number. However this method assumes all users are the same and each user is contributing the average amount of revenue. In reality, some users are interacting more with the ads, clicking and installing the advertised apps. Since mobile campaigns today are mostly paying on CPI basis, there is a big difference in ad revenues between different users in the app. Accurately calculating the LTV per user, cohort and segment is becoming a key skill for game developers these days.

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App Monetization, Video

In game advertising is on the rise

Last February I had the pleasure to MC one of the most interesting tracks at Casual Connect Amsterdam. The lectures in the track clearly demonstrated a trend that I’m not sure all of you are aware of – the trend of high profile games that are adding in game advertising.

If you download the financial reports of public companies like Zynga you would realize that they are relying more on ad revenue compared to IAP. King also announced that they are making technology investments in bringing ads back into their games.

I’m including 3 videos from the track I was hosting. All 3 lectures reflect the trend from different angles.

Successful In-Game Advertising: The Secret Sauce for Monetization | Tammy Levy

In this video, Tammy discusses 3 case studies by Kontagent where the company was able to significantly increase the game revenue by introducing ads. The games studied are: Adventure Capitalist, Epic Skater and Bullet Boy. The lecture also gives tips for smart integration of in game advertising inside the game and highlights the key elements to focus on.

Why Mobile Video is a Game Changer | Tal Shoham

Tal is heading the video adverting business at Supersonic. In his talk, he shares insights learned from integrating videos into the game “Hopeless” by uPopa. One of the interesting things to learn is that the rewarded video ads actually increased IAP revenue according to the study they did.

Developing Your Game with Monetization in Mind | Panel

Last is the panel with Anton @ Huuuge, Jami @ Futureplay and Philipp @ Wooga. All 3 described the trend of growing their ad revenue. Anton mentioned that even though social casino games don’t normally put ads, Huuuge games are now driving 50% of their revenue from in game advertising. Jami mentioned that Futureplay sees about 75% of the revenue from ads in their Idle games. In response to the question about ARPDAU, Anton mentioned that they have been seeing numbers as high as $0.4 in US during Q4.

 

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Tips and Advice, Video

6_Tips_Panel_Participation

I recently had the opportunity to be a panelist in an industry conference. I have attended panels before and I have given many talks at conferences, but participating in a panel was a new thing, until October this year when the organizers of Casual Connect asked me to join a panel about data and analytics.

Here are 6 things I learned while preparing, participating and reviewing the video in retrospect.

#1 – Know the Questions in Advance

Very few people can wing their first panel appearance. Imagine getting the question only during the session while the audience is waiting for your response and the spotlights pointed on you. This is a lot of unnecessary pressure. Most likely the panel moderator will be happy to share the questions in advance and even iterate on them with you if you have feedback.

#2 – Disagree at least once

Panels can get really boring if everyone agrees on everything and says the same things. You can see Daniel disagreeing with me and Garrett on minute 7:30 and then in the last 10 minutes Ilja and myself arguing against re-engagement in gaming while Daniel takes the other side.

#3 – Prepare Examples that are Easy to Visualizethis-disturbing-image-of-a-chinese-worker-with-close-to-100-iphones-reveals-how-app-store-rankings-can-be-manipulated

A lot of times expert discussions can become too complicated for an audience to follow. Having an example that is easy for the audience to visualize helps you keep the audience engaged and is much more memorable. In minute 20:48 I’m leveraging the fact that most of the audience has already seen the image of an Asian person sitting in front of hundreds of mobile devices and installing apps on them to make an example of how SOOMLA can detect fraud better than anyone else.

#4 – Use Sound Bytes

Get a few sentences prepared that people can immediately agree with and easily memorize. For SOOMLA the best ones would have been:

  • It’s smarter to look at data from hundreds of games than to look at data from only a single game.
  • If 50% of the revenue is driven by whales, you should spend half your time analyzing that audience specifically.

I actually failed to deliver these sound bytes during the session although at minute 10:40 I had a pretty good opportunity to deliver the first one.

#5 – Use Acronyms to Encapsulate Systems or Processes

Audiences really like it when you give them an easy way to remember a new system, process or method. Using an acronym and explaining what the letters stand for, will get people writing your words down. An example that is relevant to SOOMLA would be: “The segments that game publishers should focus on: S – social whales that can bring you viral distribution, W – whales – these are the people who pay in your game, F – freeloaders which should be monetized with ads. The acronym to remember is SWF.” Unfortunately, I couldn’t find the opportunity to use this acronym in the discussion. I promise to do better on my next panel.

#6 – You Don’t Have to Answer the Question You were Asked

Sometimes it’s better to answer the question you wanted to be asked. At the end of the day most people would not remember the question anyway. Especially if your answer was good. At minute 2:45, I was asked “tell us something not many people know about your company.” I replied with a shameless pitch – given that we are a startup it’s likely to assume that not many people have heard about what we do so it was sort of answering the question, but not really what the moderator expected.

Measuring Success

The success of a panel is not easy to measure, but one way to gauge it is by how many people queued up for questions after. In this case, I can say that I did pretty well based on that queue, but I still know there are quite a few things I’ll do better in my next panel.

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Plugins, Tips and Advice, Unity, Video

(1200x600) Top 10 Unity Video PluginsUsers like videos. It’s no coincidence that video game has the word video in it. From video ads to video sharing – videos are essential to user retention. They keep users entertained, engaged, and interested. Videos will improve your game’s fun-factor and bring in more loyal users. Let’s take a look at 10 Unity Video Plugins that can make this happen.

 

FREE REPORT – VIDEO ADS RETENTION IMPACT

 

Kamcord

 

Price Supported Platforms Category
Free
Unity iOS Android
Video Recording

Kamcord allows users to record game play and share it on social media. Their website displays featured videos that come from games using Kamcord. In July 2013, Trial Xtreme, a game using Kamcord had 139 million recordings and 122,000 videos shared on social media. Notable games with Kamcord include My Talking Tom and Clash of Clans.

Everyplay

Price Supported Platforms Category
Free
Unity Cocos2dx iOS Android 
Video Recording

Unity acquired Everyplay from Applifier in 2014. Much like Kamcord, Everyplay allows users to record game play and share on social media. Users enjoy sharing these videos with friends in order to encourage them to begin playing the game. The possibility for extra exposure on social media means developers can receive more free organic installs. More installs means more revenue for developers. Notable games using Everyplay include Bad Piggies, Pixel Gun 3D, and Geometry Dash. Everyplay also intends to launch an online community with discussions, videos, and video discovery this fall.
prime31

Price Supported Platforms Category
$75
Unity iOS 
Texture

Prime 31 offers a video plugin called LiveTexture. This integration allows developers to use videos as textures for different objects in games. The video can be pre-defined or come directly from the user’s camera. The possibility for camera usage means developers can create augmented reality style game plays using LiveTexture.

Easy Movie Texture

Price Supported Platforms Category
$45
Unity iOS Android 
Texture

Easy Movie Texture is a more affordable solution to do what LiveTexture can do. It does not explicitly include a live camera texture, but it does support .mp4 playback on Android. Developers can select the time a video will start playing, customize the dimension of the video and set it as a texture for objects in a game. This tool is useful for developers that want to create cross platform games that utilize dynamic textures. The use for this plugin can range from placing a TV in a game to having a video texture simulate a changing sky. Developers can find creative ways to use this plugin to create engaging games.

UChromaKey

Price Supported Platforms Category
$25
Unity iOS Android 
Video Effects

UChromaKey Allows for the possibility of a green screen effect. It features fullscreen effects and the ability to add chromakey to materials that are lit or unlit. It also includes camera source handling. It is a good addition to a game that may want to incorporate a type of augmented reality or a fun Photo Booth option. The opportunities with chromakey in mobile games are not completely explored and could potentially allow for some interesting and engaging user experiences.

Video Glitches

Price Supported Platforms Category
$10
Unity iOS Android 
Video Effects

Sometimes a normal video is not enough. Developers might want to add creative effects to videos in games. Video Glitches is not the usual video plugin that simply allows for video playback or video ads. This plugin allows videos and scenes in games to look purposely messed up. It reminds me of this video when the pc bot tries to wake up again in the end. This plugin can be used to simulate messed up video transmissions or display a view from the perspective of a broken camera. The possible uses for this plugin are up to the developer – ideal for a Sci-Fi or Horror game.

Youtube Player

Price Supported Platforms Category
$25
Unity iOS Android windows
Video Streaming

This plugin allows users to view YouTube videos within a game. It will return an .mp4 video that can be displayed wherever the developer chooses in the app. It allows video searching functionality. Users can search for videos, channels, and set category filters. This is useful if you want to incorporate funny videos and extra interesting content into your game.

AdColony

Price Supported Platforms Category
Free
Unity iOS Android air
Video Ads

AdColony prides themself on their .13 second load time for ads. They serve video ads that can be integrated in games to reward users. Video ads served with AdColony have the highest retention rate on Android. Many developers have a strong incentive to advertise with video ads. Users that come to a game from a video ad are 13% more likely to be retained and twice as likely to make a purchase when compared to other users. Video ads have the potential to make developers millions of dollars. Crossy Road made 1 million dollars in only 45 days in video ads. They have since made a total of over 10 million dollars.

Vungle

Price Supported Platforms Category
Free
Unity Cocos2dx iOS Android aircorona
Video Ads

Vungle serves personalized video ads to different users. According to their website, no two users should be exposed to the same ads. Vungle focuses on creative ad serving with a specialty around rewarded ads. Rewarded ads are a good opportunity to keep users engaged in a game while rewarding them with resources to continue playing. Integrating Vungle in your game will give you an opportunity to monetize by giving other companies exposure. Moreover, they can also help you obtain users if you choose to advertise with them. Ads in mobile games for other mobile games are more likely to be clicked than ads for other products.

Applovin

Price Supported Platforms Category
Free
Unity iOS Android amazon
Video Ads

A data report by AppsFlyer in May 2015, found that AppLovin has the highest performance in 30 day user retention on iOS. Applovin’s high quality video advertisements encourage users to stay for longer periods of time. They pay developers only 15 days after each month. Moreover, AppLovin provides developers a dashboard that shows information on ad delivery in real time. This will in turn, allow developers to efficiently deliver ads.

The term “video” in relation to mobile games is vague. However, videos are an integral part of mobile and platform games. Developers should include videos in their game whether they are in the form of ads, live camera recordings, or funny YouTube cat videos. Videos improve user engagement and provide interesting and memorable user experiences. Not to mention they will contribute to a game’s “stickiness” factor as they retain and obtain users.

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SOOMLA - An In-app Purchase Store and Virtual Goods Economy Solution for Mobile Game Developers of Free to Play Games