Monetization Deep Dive Enhancing User Experience and Ad Revenue 

The Gap IAP IAP Ad Monetization Ad Monetization Share of Revenue / Impact Share of Attention / Sophistication 

Part 1 Rewarded Ads (User initiated) 

Rewarded Ads - The Magic Ad Unit Great eCPMs (= great revenue source) Great UX 

Rewarded Ads - The Magic Ad Unit Definitely doesn’t hurt retention Definitely doesn’t hurt session length Important to make sure it doesn’t cannibalize IAP 

Rewarded Ads - The Magic Ad Unit Definitely doesn’t hurt retention Definitely doesn’t hurt session length Important to make sure it doesn’t cannibalize IAP Can actually improve it by ~10% - 25% Can actually improve it by 10% - 30% Can actually improve it by 0 - 8% 

Bottom line: Start with maximizing rewarded ads 

Rewarded Ads Equation = What to measure 

Maximizing Revenue - WHAT KPIs? Publisher Network Impressions * Bids Implementation - Placements, Flow Engagement Rate Usage Rate (Imp/engaged user) Visibility Attractiveness Timing Alignment with virtual economy eCPM IPM Creatives Targeting Relationship (granular bidding, post-install events, suppression…) Revenue = 

Engagement Rate and Usage Rate 6 Videos a day 100% Users 40% Users 1M DAU 400K EU 2.4M impressions = Usage Rate 

Session Depth and its Effects Imp IPM 1st 6 2nd 5 3rd 4.6 4th 4.1 5th 3.5 6th 3 7th 2.75 8th 2.5 9th 2.25 10th 2 · Sum of RV IPM · Sum of playable IPM 

Benchmarks and Targets = Where to aim for 

DAU ⇨ Impressions Engagement Rate At least 30% aim for 50% Usage Rate At least 4 aim for 8 Total imp/DAU rate At least 1.2 aim for 4 

Impressions ⇨ Revenue IPM At least 3 aim for 5 tier 1 / tier 3 

Strategy = How to get there 

Rewarded Video Strategy ● Ads from Day 1 ● Reward ○ Soft / hard currency ○ Valuable but different from IAP ○ Dynamic (exponential) ○ Diversified ● Timing ○ Clean environment ○ End of session ○ User and Advertiser - view and engagement 

Rewarded Video Strategy ● Visibility ○ What share of users is even aware? ○ Engagement Rate affects twice! ○ Awareness (pop ups?) ● Clarity ○ Does the user understand? ○ Intro page 

● IAP, Capping and pacing ○ Reward type Vs IAP currency ○ Caping and Pacing - to avoid risk ○ Segmentation (reward amount?) ○ Maximize total LTV (ads, retention, IAP) Rewarded Video Strategy Testing, Testing, Testing - Data-driven decisions 

Offerwall 

Offerwall? User Initiated ad unit (rewarded) - great UX and effects Wall of offers that users can complete for rewards Publisher gives reward only when get paid (According to exchange rate you define) 

Offerwall Much longer process for the user (> 90% CPE) Definitely not part of the game flow (unlike what RV should be) Average revenue and reward per completion - $3 (unlike 2c in RV) Alternative payment method! (your 2nd store) ● S tore, main screen ● Hard currency ● Awareness - pop ups, DCP 

OW - Benchmark & Target Engagement Rate At least 5% aim for 10% Usage Rate At least 1.2 aim for 2 OW/RV revenue (ARPDAU) rate At least 40% aim for 80% 

Part 2 System Initiated Ads (Interstitials, banners, native) 

System Initiated Ads 50% of users won’t pay, and won’t engage with rewarded ads Display ads – the only way to monetize them (+ incremental revenue for the rest) 

System Initiated Ads With no strong virtual economy (= weak IAP & Rewarded) - System Initiated becomes the main monetization option Can hurt UX, impact retention & session length, and affect probability to purchase Potential risks 

How to smartly use system initiated ads ● Timing / Placements - when user finish to play, breaks ● Frequency / capping - average session length / 3. ● Format - rewarded interstitial? X button? # of clicks ● ARPU / LTV decision - (ARPDAU Vs Retention) - data driven decision! ○ Segmentation - non paying non rewarded 

What does good Implementation look like? 

RV - 3 placements Free Reward Main screen, reward is changing (Time Warp, MegaBucks), pace - every 2 hours Free Reward Main screen, fixed with a timer, reward is 4 hrs Boost, cap to 6 impressions a day Speed boost Main screen, timer clock, reward is speed boost, cap to 3 impressions a day 

What Does Good Implementation Look Like? 

OW - 2 Placements Gold - Hard Currency Main Screen Free gold Store Free gold 

What is good there? ● Place - approachable and visible - Helps ER ● Simplicity - clear call to action, explanation page - Helps ER ● Reward - interesting and valuable - Helps ER + UR ● Available in high quantity (10-12 imp a day) – Helps UR ● Dynamic rewarding - keeps the ER + UR in good values ● User flow - a convenient time to make an install - Helps IPM ○ End of session, not the beginning ● Reward type - soft currency for RV, hard for OW ○ Make it fun, don’t apologise 

Summary ● More than a revenue tool - can improve many of your most important KPIs! ● Requires love, attention, professionalism ● Know what KPIs to monitor, what GOALS to set, and HOW to get there