'Best practices to deliver Lifetime Value Optimization' - Kaya Taner at App Promotion Summit Berlin

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

Kaya Taner– 28/11/2013

Best practices to deliver LTV:Insights on generating ROI-positive traffic for free-to-play mobile games

Part of


CEO & Co-Founder AppLift

70 people+, offices in Seoul, Berlin and San Francisco

Acquiring millions of users per month for 150+ games

2

Kaya Taner

Who is talking?

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

The 3 waves of paid User Acquisition

Top charts

Lowest CPI

ROI positive

2011 2012 2013+

Pricing Flat fee CPI aCPI

SDKs No SDK Many SDKs

Few SDKs

Ad type Incentivized

Non-incent Non-intrusive

Goal Top position

High volume

LTV > CPI


How to buy ROI positive traffic

Tracking setup

App Store optimization Traffic buying


Tracking setup

Common identifier needed to match channels with in-app behavior

Campaign tracking

Attribution of installs to paid and non-paid channels

Methods: Fingerprint, IDFA/Android ID

Players:

In-game tracking

Tracking of in-app events to measure and analyze user behavior

Players:


KPI‘s for in-game tracking

ROI-positive User Acquisition

Retention Engagement Virality

Monetization

Day 1, 7, 30 DAU DNU

Average time in app / session

Total daily sessions / DAU

• K-factor (viral growth rate per-user

• Trackable: Social Media, Referrals, Invites etc.

• Non-trackable: Word of Mouth

ARPU = total revenue / # users ARPPU = total revenue / #

paying users Monetization rate = % of users

that made in-app purchases 6


The in-game KPI‘s in the User‘s Lifecycle



Tracking setup


eBook on Mobile Games Marketing

Available for free download on

www.AppLift.com



Tracking setup



Find the right traffic sources

It is critical to understand and identify the best traffic sources for your target your users

In appIn gameMobile Web


Address the users appropriately

• Performance basedPay for new gamers on a risk-free CPI, optimize the channels based on eCPI

• + Non-incentivizedUnderstand if a higher chart position really pays off or if a sustained campaign has better returns

• + Non-intrusive (detailed)Ensure that your game is presented in the best possible way

Find the best performing way to reach the audience and address your potential new users


Examples of non-intrusive integrations

If done right, non-intrusive ads can show average CTR’s of 13%, Conversion rates of 16% and result in eCPM’s of 33 USD for the publisher

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


Understand the real cost of your acquired users

eCPI takes into account all the costs induced by the acquisition of one user as well as free installs

CLV > eCPI

• Fixed costs• Setup costs• “Free”

promotions

• Virality (K-factor)• Additional

organic installs


Modeling CLV

RDk = retention rate on day kARPDAUk = Average revenue per daily active user on day k

0%

20%

40%

60%

Retention

CLV


What does this mean for your launch timeline?

4 weeks before submission

● Integrate install tracking SDK and in-game tracking SDK

2 weeks before launch

● Set up campaigns with traffic partners

● Prepare creatives

● Set up tracking

Game is live!

● Review in-game events

● Optimize eCPI‘s for traffic source and estimate CLV


Talk to us

Kaya TanerCEO & Co-Founder

[email protected]

Download eBook at www.applift.com


BACKUP


Identify ROI positive channelsSource

CPI K-Factor

eCPI CLV D1 – Ret.

Level Comp.

…

1 $1.90 1.06 $1.79 $1.64 32% 17%

2 $2.10 1.02 $2.06 $2.01 41% 10%

3 $2.50 1.01 $2.48 $2.37 39% 21%

4 $2.70 1.23 $2.20 $2.87 54% 49%

5 $1.80 1.12 $1.61 $1.97 52% 46%

6 $1.90 1.04 $1.83 $1.64 37% 23%

7 $1.50 1.08 $1.39 $1.74 49% 42%Matching the eCPIs with every channels individual CLV will allow you to adjust the CPIs and channel selection accordingly

You can scale your user acquisition with ROI positive channels


Wave 1: Buy a chart position

“Can you guarantee a chart position?”


Wave 2: Buy volume on CPI

“Give me as many installs as possible for this CPI!”

No tracking beyond the install

CPI adjusted based on happiness with volume


Wave 3: Buy ROI positive traffic

“I will only pay as much as the user is worth in my game!”

Track the quality CPI adjusted based on

quality delivered


Examples of non-intrusive integrations

'Best practices to deliver Lifetime Value Optimization' - Kaya Taner at App Promotion Summit Berlin

Business

Transcript of 'Best practices to deliver Lifetime Value Optimization' - Kaya Taner at App Promotion Summit Berlin