As developers and entrepreneurs, we have mountains of data.
Data that could change your business and move it forward. However, there is so much data that it’s overwhelming in some cases. Life force you, in some cases, to ignore it. But that’s the wrong path to follow! You wish data that is actionable and moving your revenue forward.
The freemium model was one of the reasons to a huge disruption in the data world. We see it clearly in the gaming market. For game developers, the need to understand users through data is particularly acute. In the past 2 years, we learn that everyone is a gamer: there were 1.78B gamers worldwide as of August [Source] and the number keep moving up. Since we are talking here on free installation, we do need to make money after the users installed our game. It will be good
Now, because users act differently the foundation of any monetization strategy should be your analytics.
There will be segments in your userbase that will:
- Pay for In-App Purchases
- Click on ads
- Engage with certain types of ads (e.g. full-screen video)
A custom monetization strategy for each user means you are maximizing your revenue. There are few (new) tools in AdMob to help you to do this. It’s call ‘audience aware’ because it will tailored the right solution to the right user at the right time.
AdMob’s In-App Purchase House AdIf you use these Ads format it will help you grow your overall IAP revenue and create new revenue streams. In the photo above you can see an app where only 3% of users make purchases – that’s a common industry scenario (in the good cases).
Those 3% of users are loyal and engaged and enjoy playing the game. There may be items in your game that will help them progress to the next level, but they don’t know about them. You can create an IAP House Ad and promote a particular item to them to buy. The smart thing is that AdMob uses Google algorithms and machine learning to only show those ads to users who are likely to buy.
AdMob does that work for you, you don’t have to show everyone the same ad. For the rest of your users (97%) who won’t make a purchase, you can show them a regular network ad, creating a new, incremental revenue stream for your game.
Korean Developer Gaming Case Study
Here is another good case study to learn from.
The 2 experiments were:
- We showed an arbitrary sample of users an IAP offer wall. That offer wall was seen 145k times and the developer made $107. On average 1000 impressions yielded $0.74 in sales.
- We showed the same offer, but this time only showed it to users that our algorithms predicted would be a spender. The results were great. We showed the offer wall only 6K times of which the developer made $140. On average 1000 impressions yielded $24
What can you do with the 139K impressions that you’re NOT showing an IAP offer wall? If this developer chose to put an AdMob ad, we estimate they would have made $587. Which is 5x+ over the ‘simple’ way of offering Ads to these gamers.
How to do it?