App monetization shouldn’t come at the expense of user experience. In fact, when done right, it can actually enhance both user engagement and enjoyment. In this presentation, originally presented by Tal Shoham at Casual Connect Kyiv, learn actionable ways to improve ad engagement and usage rates, and how to better understand The Golden Ratio of ads within your app. Understand how the virtuous cycle of monetization can turn your app into a successful, sustainable business (with happy users).

1. Closing the loop
Enhancing user experience
with Rewarded ad-monetization
Casual Connect Kiev, October 2017
Tal Shoham
VP International Business Development,
ironSource

2. Changing the focus
Ad
Monetization
Revenue
Attention for
IAPs
Attention Ad
Monetization
IAP
Revenue
Revenue Attention

3. How we analyze
IAP metrics
● % of paying users
● Retention rate
● Churn rate
● Average session duration
● ARPU / ARPDAU / ARPPU
● Type of reward - virtual goods
● Timing
● Minnows / Dolphins / Whales

4. How we analyze
IAP metrics
● % of paying users
● Retention rate
● Churn rate
● Average session duration
● ARPU / ARPDAU / ARPPU
● Type of reward - virtual goods
● Timing
● Minnows / Dolphins / Whales
Rewarded Ad Monetization Metrics
● ER / UR
● Retention rate
● Churn rate
● Average session duration
● ARPU / ARPDAU / ARPDEU
● Type of reward
● Timing
● Minnows / Dolphins / Whales

5. Engagement Rate and Usage Rate
Engagement Rate Usage Rate
6 Videos
100%
Users
40%
Users
1,000,000 DAU * 40% ER = 400,000 daily engaged users
400,000 * 6 (UR) = 2,400,000 daily video impressions

6. App A App B

7. 7.0
6.0
5.0
4.0
3.0
2.0
1.0
53% 7
Engagement
Rate
Usage Rate
50%
40%
30%
20%
10%
App A
7.0
6.0
5.0
4.0
3.0
2.0
1.0
12% 3
Engagement
Rate
Usage Rate
50%
40%
30%
20%
10%
App B
7.0
6.0
5.0
4.0
3.0
2.0
1.0
6
Engagement
Rate
Usage Rate
50%
40%
30%
20%
10%
Casino
subcategory average
31%
6X

8. How to improve
ER and UR?
Placement
● Test alternative placements - from storefront to natural breaks
in the app
● Maximise the ad’s visibility, discoverability with minimal number
of clicks for user
Reward
● How important is the currency to playing the game?
● Different currencies for each ad unit
User Flow
● Is the ad product integrated at the optimal trigger points?
● Ad units should be available exactly when users need rewards
Traffic Driver
● Where are your traffic drivers located?
● Are the traffic drivers clear and self explanatory?
● Give them a consistent look & feel

9. The Power of
Exponential Rewards

10. Case Study
Not Doppler
● Smart rewarding scheme matches in-game
economy for their game Earn To Die 2
● Video reward system adapted to player’s
in-game progress with exponential inflation
for upgrades in the app
● Benefits
○ Engagement rate increased to 25% - 38%
○ Earn to Die 2’s ER went above subcategory
average
UR increased from 4.5 to 6
● Engage Rate between 25% and 38% ● Market Benchmarks
Oct Nov
10%
20%
30%
40%

11. Boost ARPDAU with
New Ad Placements

12. Case Study
Fiveamp
● Wanted to boost monetization and ad
engagement without disrupting user
experience
● Added additional placement of RV
● Enhanced ad appeal and visibility by
offering users the choice between 1
reward, or watching an ad and receiving 3
● Benefits
○ ARPDAU increased x2.5
○ 165% increase in revenue
○ 94% boost to ER
Earnings Before Additional Placement Earnings with the Additional Placement
Revenue
Jumps 165%
● Revenue Growth

13. Segmentation
Not all users are equal, so don’t
treat them like they are

14. 1 2 3
Paying vs. non-paying
users
Engaged with ads
vs. non engaged
users
Custom in-app event
i.e. Level 5 reached

15. Impressions
*
User quality for
advertisers
IPM
Implementation -
Placements, Flow
Engagement Rate
Usage Rate
(Imp/engaged user)
Visibility
Attractiveness
Timing
Alignment with virtual economy
eCPM
Revenue =

16. Thank You