ad-based strategies for app monetization: native ad units

Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com

Kaya Taner– 11/21/2013

App Monetization through native ad units


CEO & Co-Founder AppLift

70 people, offices in Seoul, Berlin and San Francisco

Acquiring millions of users for150+ games

Monetizing the mobile trafficof 1000+ partners

2

Kaya Taner

Who is talking?

Kaya Taner– AppLift – Berlin | San Francisco | Seoul – www.applift.com 3

The app value chain

Development User Acquisition Monetization


Main mobile monetization models

Advertising (ad offers)

• Monetization of high volumes of non-monetizing users s

• Need to be implemented carefully (risk of UX disruption/user dropout)

Free apps with in-app purchases

• In 2013, 90% of iOS apps are free

• Soon 70% of all mobile games revenue (Flurry)

• By 2017, 48% of app store revenue will come from IAPs worldwide, up from 11% in 2012 (Gartner)

Paid apps with in-app purchases and/or advertising

• In most cases, not recommendable

Paid apps

• Hard to promote


Share of revenue of monetization models in the US

Advertising

Revenue

IAP Revenue

from Free Apps

App Store

Revenue

IAP Revenue

from Paid Apps

Paid Revenue (5%)

23%

77%

71%

24%

Source: Flurry, Distimo


Share of users completing IAP

• 97% of users do not monetize through IAP

• Represents a huge opportunity to boost revenues by about 20-30%

Source: Flurry


Ad monetization - overview

Banner ads

• Non-rewarded

• Intrusive

• High amountof impressions

• Low CTRs

• Low eCPMs

• CPC

Admob, iAD etc

Offerwalls

• Rewarded ads

• High user value

• Very lowamount ofimpressions

• High eCPMs

• CPA

• SponsorPay, SupersonicAdsTapjoy

Interstitial ads

• Non-rewarded

• Ratherintrusive

• Lower amountof impressions

• Medium eCPMs

• CPC, CPI

Most networks, Chartboost

Video ads(rewarded)

• Rewarded

• High user value

• High eCPMs

• Very lowamount ofimpressions

• CPV, CPI

AdColony, Vungle


Understanding eCPM

eCPM (eCPC, Impressions, CTR)

• CTR (and CR)• CPC

• Impressions


Maximising the level of user engagement

Classic Banners

(borrowed from theweb)

StaticInterstitials

Video Ads

eCPM

Average

CTRs

1 USD

5 USD

10 USD

0.5% 5

%

10%

Offerwalls


The old and new world of ads

Traditional

Innovative

User impact Value adding

Ad format

ParadigmRetention monetization

TRADEOFFMonetization AND

retention

Intrusive

Standard

eCPM Low-mid high

Native


Pull vs. Push: towards non-disruptive native ads

In order to make the advertisement as little intrusive as possible, the users need toexperience it as being pulled by them rather than pushed upon them.

There are three main points to focus on to achieve this:

• Optimizing the ad placement and trigger• Maximizing the level of user engagement with the ad (how it is shown)• Embed the Ad into the UX so it is perfectly and symbiotically integrated

with the content


Native ads

Ad placement and trigger

Ad placement

Fully align into the UX/UI

Tweak to the right look and feel

Trigger

Natural trigger

User-triggered

Engagement

Engagement

User interacts with the ad

Perception rather as contentthan advertising

E.g. Mini games


Maximising the level of user engagement

Classic Banners

(borrowedfrom the web)

StaticInterstitials

Video Ads

High-Engagemnt

Native Ads

Level of

ad integration

in the app

Level of in-app user

engagement


Optimizing ad placement and trigger

Example:

“More Games”

button

Users trigger

the ad themselves


Example 1 – game, natural trigger

Tailor the use of ads and promotions to your product, gameplay and enrich the user experience


Example 1 – game, natural trigger

- average CTR’s of 19%,

- Conversion rates of 3.5%

- Average eCPMs of 10USD (across basket of games):



Example 2 – non-game, user-trigger

- average CTR’s of 13%,

- Conversion rates of 16%

- eCPM’s of 33 USD



Additional high-engagement native ad unitexamples

• Scratch screens

• Slot machines

• Gifts to open

• Shooting targets

User completes an action

User feels the action as part of theapp‘s UX

Perceives the ad as the result of thisaction


Ingredients for native ads

• LookStreamline the design of the ad to your app to embed it naturally into the UI

• Non intrusive placementPlace the ad in subtle way for the user- Natural breakpoint within the game- Self-trigger

• Interactivity/PlayfulnessEngage the user through interaction with the ad

Best way to monetize your audience through native ads


Talk to us

Kaya TanerCEO & Co-Founder

[email protected]

www.applift.com

ad-based strategies for app monetization: native ad units

Technology

adbased monetization

iap monetization

ad trigger

ad unit

mobile games5

mobile gamespaid apps

engagement ad placement

mobile traic