Ad LTV – How to Measure It and Why – Slides from Gamecamp March 2019

Header image with an ad symbol and text suggesting that you should change something in your ad LTV measurement strategy

Wanted to share the slides we made from my recent talk at Gamecamp by Google. This presentation includes some unique insights based on our own data.

Note:  If you get sick of the auto-play – there is a pause button and you can then flip through the slides at a more reasonable pace.

So in short the presentation covers 4 topics:

  1. Trends in ad monetization
  2. How to calculate ad LTV
  3. Why is it critical to calculate Ad LTV even for IAP focused companies
  4. What are Ad Whales and how you can target them

Trends in ad monetization

There were 3 main trends we discussed. The first 2 are noticeable – we can confirm that ad revenue is on the rise and we also noticed a big increase in eCPM when looking at the last 5 quarters for both Interstitial and Rewarded Videos.

More interestingly, we see an opportunity for ad-focused games that are not so hyper-casual. While hyper-casual is becoming more and more crowded by the minute, there are games doing extremely well with ads these days that are not so hyper but still quite casual. They attract better demographics for ads and present an opportunity.

slide from the presentation suggesting that hyper casual is over hyped while there are opportunities to create ad focused games with arpdau in other genres

How to calculate Ad-LTV?

In this part of the talk, I explained some of the secret sauce in ad LTV measurement. To get an in-depth explanation you can ask for a demo from the website or with the button below:

READY TO SEE A DEMO OF SOOMLA?

Important to know about ad LTV – there is a lot of misinformation in the market so it’s critical to:

  1. Make sure the solution can track installs, advertiser identity and bid levels
  2. Make sure the vendor is 100% focused on ad LTV
  3. Decrease misaligned interests by choosing an unbiased 3rd party vendor

Why is ad LTV critical even for IAP focused publishers?

The importance of ad LTV for publishers who make a lot of ad revenue is obvious. However, even for IAP focused apps who only make 15%-20% from ads there is a big advantage from measuring ad LTV. The important piece here is that 15%-20% might not seem like a very significant part of revenue. But an increase of 15%-20% in LTV and CPI can translate to 100% traffic growth. You can read more about it in the Kongregate study in our blog.

Kongregate: Double Your Traffic by Tracing Ad LTV

Ad Whales – How to find and target them?

Finally, the topic of ad whales was briefly covered in the presentation as well. Every app has ad-whales and it’s important to know who they are as it will unlock a range of marketing activities. The relevant case study we did is with Nanobit and you can download it here.

Finally – if you got to the end of my post you should already be quite convinced that it’s a good idea to talk to us. SOOMLA’s ad revenue measurement is 100% publisher oriented and the most accurate unbiased data source in the market.  If you want to get a demo of the platform – you can do it with the button below.

READY TO SEE A DEMO OF SOOMLA?

 

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