As technology evolves, so too does advertising. Mobile advertising is one of the most effective ways to reach consumers–if you know how to use it.
Unless you’ve been living in a cave without wifi since the mid-90s, you’re well aware that the internet is powered by advertising. Ad revenue is what drives many of our favorite websites, and serves as the primary way that many content creators make a living. In our always-online world, any good advertising campaign has to keep the mobile audience in mind. However, that’s not as simple as shrinking down desktop ads to squeeze them into a smaller format; mobile advertising requires modern tactics that encourage engagement.
What is mobile advertising?
Mobile advertising is a subset of mobile marketing that’s 30% more effective than traditional internet ads. It delivers targeted ad content specifically designed for devices like smartphones and comes in a variety of formats including mobile web, in-app advertising, and more. As technology evolves, new strategies for reaching customers on mobile are constantly being developed.
Why is mobile advertising important?
Traditional advertising methods like television commercials and static desktop messages don’t have nearly the reach that they used to. By the end of 2017, more than 22.2 million adults in the US cut the cord, eschewing traditional commercial-based cable for streaming services.
Additionally, these same consumers are spending most of their internet time on their phones and tablets, rather than desktops and laptops. According to a report from MetrixLab, “mobile now represents a majority of digital media consumption,” with time spent on these devices outpacing the daily screen time given to computers.
To further drive home the importance of mobile advertising, nearly 80% of Americans owned smartphones as of early 2018. That’s a lot of eyeballs on those screens–it would be foolish not to tailor advertising campaigns to reach them.
What are some examples of mobile advertising?
Just like with any form of advertising, mobile ads can come to life in a variety of different ways. Here are a few of today’s most commonly used types:
- Native ads: Used by big players like Twitter, Facebook, Reddit, and more, native ads are designed to look just like the surrounding content. They take some skill to execute, as they must match their environment in design and tone, but they’re a good way to garner attention without being intrusive.
- Interstitial ads: Interstitials tend to take up the whole screen, but the trade-off is that they appear during natural pauses in an app’s usage. When used effectively, they have a higher click-through rate than traditional banner ads.
- Video ads: Video ads aren’t mutually exclusive with interstitials, native ads, and other forms of mobile advertising. If you’ve spent any length of time surfing the web or scrolling through apps in the last few years, you must have noticed the pivot to video happening almost universally. Video ad spending is expected to reach $103 billion by 2023.
Are there any best practices for mobile ads, particularly when video is used?
- Keep it brief: When it comes to video ads, shorter is better. Viewership dramatically drops off after the 30-second mark. The actual length you should shoot for varies by platform, as users have different expectations on different sites or apps. Be sure to grab attention in those first few seconds–and get your branding in then, too.
- Don’t interrupt: When it comes to interstitials, timing is everything. These shouldn’t be popping up as soon as an app opens or when a user tries to leave, nor should they be triggered after every action within the app. You’ll have to find natural places to utilize these; one of the most effective uses of interstitials is having them pop up between levels of mobile games.
- Banners are over: Any old-school internet user will be familiar with banner ads, those messages running across the top of the screen. While these ads can still be found in mobile formats, they shouldn’t take up too much of your campaign’s resources, as the average click-through rate is around 0.06% (and many of those might be accidental). Instead, focus on more modern approaches to getting the mobile consumer’s attention.
- Invest in targeting: Finally, target your ads wherever possible, using geographic location, search history, or any other data you have access to. This increases the odds that what you’re selling will reach the people who actually need it. And keep in mind that mobile users spend far more time in apps than browsing mobile web pages.
Keeping up with mobile trends and advertising best practices can be hard work, but you don’t have to do it alone! For more information on all things mobile advertising and marketing, reach out to our talented team of pros at Tapjoy.
Mobile advertising campaigns come in a multitude of formats and payment structures. Brand advertisers in particular have found success with a unique model known as Cost-Per-Completed-View advertising. Want to learn more? Check out “What is CPCV Advertising?”
Games Workshop and Fighting Fantasy co-founder Ian Livingstone will summarize 40 years of game industry trends in a Tapjoy-sponsored event.
Advertising Week Europe starts on Monday, and we have a special guest we can’t wait to show off. On March 19th, Tapjoy will introduce a talk with Ian Livingstone, co-founder of Games Workshop and a legend among game creators for all platforms.
As part of “The Power of Play”, Livingstone will summarize 40 years within the games industry — from tabletop roleplaying to the growth of mobile platforms. While recounting these experiences, he’ll explore the impact of digital technologies on consumer habits, business models, and interactive narratives.
Livingstone has been referred to as a “Patient Zero” of the UK’s gaming industry, and we’re inclined to agree with that assessment. While living with flatmates Steve Jackson and John Peake, the trio founded Games Workshop and went on to define much of the nation’s gaming culture. In its early years, Games Workshop brought us the Warhammer Fantasy and Warhammer 40,000 franchises, each of which remains impressively popular today. Livingstone was also one of the personalities responsible for bringing a little game called Dungeons & Dragons to Europe, proving the skepticism of distributors wrong.
Yet Livingstone’s creative achievements go beyond Games Workshop. He and Steve Jackson partnered once again to create the Fighting Fantasy role-playing gamebooks — a creative reworking of the concepts behind Dungeons & Dragons and the Choose Your Own Adventure series. Livingstone himself personally wrote much of its 59-volume run, the most popular of which have been re-published by Scholastic. Outside of writing, Livingstone transitioned into video games when he became the president and CEO of Eidos Interactive. During his tenure, he secured several major gaming franchises, including Lara Croft: Tomb Raider and Hitman.
Tapjoy’s “The Power of Play” is just one event taking place at Advertising Week Europe, a marketing convention that highlights trends, challenges, and technologies behind our industry. The event will be located on the By The Numbers Stage at London’s Picturehouse Central on March 19, 2019 at 2:20 pm. We hope to see you there!
Looking for engaging perspectives from mobile influencers? Take a look at our recent conversation with IAB’s Susan Borst.
Cost per install (CPI) is among the most widely used pricing metrics for marketing mobile games and apps.
You could have the most engaging, innovative, and revolutionary marketing campaign at your fingertips, but in the end installs are what matter most to mobile app marketers. That’s why cost per install — CPI — is among the most important KPIs a mobile marketer can measure. When entire advertising campaigns are based around this metric, we refer to it as CPI marketing. To find out why it’s relevant to you, read on!
What does CPI stand for?
In this context, CPI stands for “cost per install”, and should not be confused with the identical acronym for “cost per impression”. While marketing campaigns can exist for both, cost per install has become the dominant approach for the mobile advertising industry.
CPI is calculated by dividing ad spend by the total number of app installs generated by the associated campaign. This provides you with a baseline cost to acquire a single user.
How do CPI marketing campaigns work?
CPI marketing campaigns use a pricing model built around install efficiency. Under this model, advertisers only pay for users that install the app after seeing an ad promoting it. Since CPI campaigns only charge advertisers for confirmed installs, marketers only pay for real users, and are able to protect their budgets.
While the benefits of CPI marketing are more straightforward than other pricing models, there are many details that determine its effectiveness. Any one of the following variables could have a massive influence on your ROI:
Install location by country: Individual CPIs vary wildly depending on the country they’re sourced from. The general rule of thumb is that established, wealthy economies like China or the United States demand higher rates, while emerging economies like Brazil or India have lower ones.
Device platform: Android and iOS apps generate contrasting CPIs as well. Many studies have found that that worldwide, Apple users are willing to spend more on IAPs than Google users, which equates to a higher average cost-per-install.
Advertising network: Each media source will offer a different rate for deploying advertisements. Social media platforms tend to have the highest rates for their visibility, while other networks vary cost by services offered.
App Category and Genre: The specific category and genre of your app can dramatically influence the overall CPI. For example, mobile games tend to have a higher CPI than other app categories, while certain gaming genres like casino games can demand above-average CPIs as well.
Getting the most from CPI marketing
Calculating your CPI is simple enough, but generating the highest ROI for your spend will require other strategies. When running a new campaign, consider the following:
Campaign targeting: One benefit of CPI marketing is that it’s easier to identify key audiences, even among niche users. Use marketing strategies to target your core audience, and be prepared to adjust as new audiences become interested in your app.
Optimize and scale your campaign: Analyze your campaign performance and target KPIs, then optimize to meet your core strengths. You’ll want to go beyond ad creative or platform considerations to optimize for country and region, and choose ad networks that reach engaged audiences.
Don’t forget about other metrics: CPI is immensely significant when measuring the impact of your ad spend, but it’s not the only KPI to keep in mind. Keep an eye on metrics like CPA, ROAS, and other indicators for engaged users.
The value of CPI marketing
CPI marketing became a standard mobile advertising pricing model for a reason. It can better identify and target specialized audiences, measure interest in your app, and ensure ad spend is directed towards guaranteed installs. As such, it has inherent value for mobile marketers across all app categories and shouldn’t be underestimated.
If you need help maximizing your ROI while minimizing your CPI, reach out to the marketing pros at Tapjoy today.
Want to better understand the financial bottom line of your advertisements? Check out our article, “What is ROAS?” for a deep dive into measuring the effectiveness of mobile marketing campaigns.
As the VP of Mobile for the Interactive Advertising Bureau (IAB), Borst is highly aware that mobile isn’t just the future of online advertising: it has become the industry’s present-day reality. When Tapjoy reached out to discuss her experiences, she offered more insights than we could contain in a single article. Here’s part one of our discussion.
What We Learned:
Storytelling Is A Mobile Marketing Game Changer – Recent changes to native advertising, content marketing, and social media suggest that storytelling is the way forward for mobile brands.
Mobile’s Priority Should Be To Thrive, Not Just Grow – For years, the priority for IAB was largely to support growth. For 2019 and beyond, the IAB mission is to empower the media and marketing industries to thrive in the digital economy.
Thanks so much for chatting with us! Can you tell us about IAB and your role within the organization?
IAB is a digital trade organization with over 700 members that sets standards and guidelines for the digital advertising industry. I lead the IAB Mobile Marketing Center of Excellence, which is an independent unit that sets the IAB mobile agenda. We work closely with various committees as well as the Data and Video Centers of Excellence and IAB Tech Lab to ensure that our strategic imperatives answer real industry needs.
How does IAB and IAB Tech Lab work together?
Our shared goal, whether it’s IAB or IAB Tech Lab, is to ensure that the digital industry continues to thrive. For a long time our mission was to help it grow. Growth is not an issue anymore. We know mobile is a significant driver of that.
What we need to do now is address pressing issues, which vary depending on the business needs at-hand. Ad blocking, viewability, measurement, and so on. Today, there’s a lot of focus on public policy and privacy, starting with GDPR and moving into California Consumer Privacy Act. IAB has a dedicated office in DC advocating on behalf of the industry, it’s super important. We have a dedicated website that is a great resource for everything and is up to date.
IAB is constantly publishing compelling, actionable content for mobile marketers. What are some of the most interesting insights you’ve been able to surface?
Ohhh, that’s a big question. Every initiative is important. We lean on our Mobile, Data and Video Centers of Excellence Board members so much because there’s lots we could potentially talk about. We need to focus in on the things that really matter. That’s why member engagement is critically important to us. And the participation in these various Boards, committees, and councils is, in fact, the number one benefit members tell us they get from joining IAB.
On the topic of Opt-in Value Exchange, an IAB working group came together to develop a comprehensive playbook to help brands and their agencies understand this emerging format that is being used across the digital ecosystem, from games, music and dating apps/sites, and even in OTT. There is existing research that shows that consumers generally like, and even prefer, these type of ads. What we need to prove is that they’re also paying attention to the ad. On that front, the issues on the research side are:
What kind of ad are you talking about?
What category are you talking about?
Does this apply to non-gaming apps such as music or OTT?
Is it a new brand versus an existing brand?
Is the creative good?
Is the creative not good?
All these points are going to factor in. After all, if a brand has a 30-second TV commercial, is that really what consumers really want to see while playing a mobile game or while listening to their favorite music streaming service? We need to think about the consumer experience and what they are expecting in different mobile environments.
What are the most impactful mobile trends you’ve seen emerge during your time at IAB? Are there any important trends we’ve only just started to recognize?
I think one of the biggest game changers is the role of storytelling, which manifests itself in things like native advertising, content marketing, and social media in general. Ad spend on social media has exploded in just the past five to six years. Influencer marketing is exploding. So is the use of user-generated content in a host of ways. The emphasis on storytelling is about brands trying to engage with consumers in more authentic and relatable ways. These are all areas that IAB has addressed them in some way, shape, or form with educational pieces designed to help the buy-side understand their options and best practice considerations.
I think in terms of what’s on the horizon, definitely voice recognition is something that should be on the radar. It’s there. It’s still early in the game from an advertising perspective. But as we see more home device adoption, voice will be a game-changer. We’ll start to see some action this year, but we’re probably looking five, ten years for it to truly realize its potential.
Check in with Tapjoy in the near future for the rest of our conversation with Susan Borst. In the meantime, brush up on your mobile fundamentals with “What Is In-App Marketing?”, a deep dive into strategies and tips for developing your own unique in-app campaigns.
The CPV model is beneficial to advertisers, as they can be sure they’re only paying when video ads get watched.
As any good ad exec knows, video marketing is key in today’s mobile-first, high-tech environment. The rise of video advertisements has the industry moving away from a traditional CPM structure, in which ads are a set price, regardless of how many people interact with them. Instead, many advertising pros are turning to CPV marketing, which ensures that they only pay for ads people actually look at.
But what exactly does that mean, and why is it useful? Follow along as we take you through the ins and outs of CPV marketing.
What does CPV stand for?
CPV is short for “cost per view.” In other words, it’s a method of marketing in which advertisers only pay for videos that are actually watched, which is advantageous for them. It’s a good arrangement when making sure your advertising budget goes as far as possible.
Of course, what qualifies as a “view” varies depending on the source. For example, Google defines a view as 30 seconds (or the duration of the video, if the ad is shorter than half a minute). Twitter’s view duration is much shorter: about “two seconds of play time with at least 50 percent of the video on the screen,” according to Ad Age. The reason for such variances is that users interact with different platforms in entirely different ways, and as a result they expect the time ads require to reflect this. This is important to keep in mind when crafting a video ad campaign.
Why is CPV marketing beneficial?
One reason CPV marketing is so beneficial to advertisers is that they know they’re getting their money’s worth out of a good video ad campaign. Measuring success (and price) by views provides an immediate metric into how ads are performing, what tactics are working, and what areas need attention. It’s not as risky as more traditional ad payment structures. If views aren’t actually being successfully delivered, the advertiser doesn’t end up paying for something that nobody is watching.
As Ad Age points out, with marketers duking it out for consumers’ ever-shortening attention spans, every view matters. As a result, the quality of ads and ad placement rises as well. “Performance advertisers are turning to CPV for a variety of factors… Performance advertisers are able to obtain high-quality users by paying for just a view in front of premium traffic, giving them a competitive advantage when battling for inventory.”
Now that you know more about CPV marketing, that knowledge should help fuel your next big ad campaign. Need more information about all things mobile advertising? The experts at Tapjoy are standing by and ready to help.
Want to learn more about ad campaign types? Check out our post, “What Is CPCV Advertising?” to learn why cost-per-completed-view is the right choice for many entertainment marketers.
Tapjoy’s Steve Wadsworth thinks mobile ads are driving a creative resurgence unseen since the 1960s.
Tapjoy’s Steve Wadsworth is quite a busy guy. He’s actively transitioning from CEO to Chairman of the Board, but that hasn’t stopped him from sharing new thoughts about a major resurgence of ad creative — something Steve believes was inevitable thanks to mobile technologies.
“When the internet came along in the 1990s, advertisers saw it as a chance to reach more consumers more cost-effectively than ever before,” Steve explained in a recent Forbes article. “Advertising became more about volume and efficiency than branding and creativity, and as programmatic automation took over, as it has throughout the last decade, that divide only deepened.”
To Steve, this dynamic was a stark contrast to the Mad Men-styled golden age of advertising in the 1950s and 60s. Brands had far more freedom to experiment with ad creative, and while not every advertisement worked, those that did were engaging and memorable.
Yet Steve’s experiences with Tapjoy led him to believe a new golden age is underway. While his full article explores this trend in detail, we’d like to highlight a few key examples:
Smartphone hardware opens new technological possibilities
The standard magazine or television set doesn’t come with touchscreens, accelerometers, or gyroscopes. Yet the standard smartphone includes all of these technologies — and in the hands of advertisers, they are remarkable creative tools.
“There remains a blue-sky opportunity for marketers willing to push technical boundaries to develop high-impact, high-engagement ads for their products,” Steve says. “It takes an intimate understanding of brand identity and a comprehensive grasp of technology. But that particular combination is becoming more common as a growing number of digital-first millennials grow in their careers, bringing with them a wealth of environmental knowledge that can be brought to bear on the modern advertising landscape.”
More creative formats, more creative flexibility
Mobile advertising is unique because advertisers do not have to rely on a single creative format. Interactive videos, rich media, playables, and other creatives can all be used alongside each other and target specific audiences.
“When consumers can tap, swipe, pinch, flip and do a number of other maneuvers with their screens to interact with ad content, there’s no end to the ways that advertisers can engage their audiences,” Steve notes. “And while some advertisers are using rich media ads in basic yet effective ways, such as to showcase a carousel of their product images, others are using them to offer mini-games and other types of unique content experiences that are so engaging they almost don’t feel like ads.”
TV is passive, but mobile apps drive interaction
The vast majority of advertising was passively consumed until quite recently. With the debut of new creative formats mentioned above, the interactive potential of advertising has grown immensely.
“With mobile about to surpass TV for consumers’ time spent, apps are becoming a primary vehicle for ad delivery,” Steve explains. “While TV is a completely passive experience, mobile apps — and mobile games in particular — require consumers to interact with the content, making it a much more active, engaging experience. We’ve found that mobile gamers are nearly twice as likely to feel engaged and three times as likely to feel focused when compared to users of social media apps.”
You can read the full article for more of Steve’s thoughts, but one thing is clear: we’ve only just scratched the surface of what mobile ad creative can accomplish.
What is ROAS, and what does it mean for your marketing campaign’s success? Find out in our latest article!
What is rewarded video?
Rewarded video is an ad format that allows the audience to decide whether or not they want to watch a video in exchange for rewards such as in-app currency, bonuses, or other premium content. Rewarded video can be integrated into mobile games and apps by publishers as a way to monetize their app. It is also a highly effective way for brands to engage with their desired audience through video.
Rewarded videos can be deployed within your apps using a variety of methods — such as through offerwalls or native integrations — provided users are given the opportunity to opt-in to the viewing experience. This unique style of value-exchange advertising makes rewarded videos an ideal method for monetizing apps that benefit players, developers, and advertisers alike while ensuring the best possible user experience.
Why use rewarded video?
Unlike most traditional forms of mobile advertising, rewarded video benefits both the user and the publisher. The format encourages users to engage with in-app placements as a means of accruing virtual goods and/or currency, while its opt-in nature ensures interactions take place at a convenient time. Developers and advertisers benefit from standard app monetization features, which are maximized by regular interactions with retained users.
Developers and publishers that implement rewarded videos have seen the following measurable benefits:
- Increased engagement and session time – After a single rewarded video engagement, a higher percentage of users are likely to spend more time engaged with the app due to the fact that they have accrued digital currency that permits engagement with premium content.
- Increased ad revenue – Rewarded video doesn’t just increase overall ad revenue, it tends to provide one of the highest eCPMs for app developers and publishers, though rates depend largely on audience location. In the US, Tapjoy rewarded videos generate an average eCPM of $14.50. This is thanks largely to the fact that Impressions are delivered to users who expect to view content rather than being surprised by it.
- Higher conversion and IAP spend – After gaining premium content from rewarded videos, a higher volume of players are more willing to purchase in-game currency and bonuses due directly to the fact that they’ve been able to sample premium content and effectively qualify its value.
- Better retention – Properly implemented, rewarded video placements can become a core aspect of an game or apps primary engagement loop. When paired with optimal cooldowns, rewarded videos can be used to foster scheduled engagement habits, leading to improved retention metrics across the board.
How can you implement rewarded videos?
The Tapjoy SDK contains comprehensive video advertising capabilities for developers, including interstitial and rewarded video formats. Developers and publishers looking to implement rewarded videos in their apps can take advantage of our plug and play solutions today and start generating more ad revenue.
Interested in learning more? Get in touch!
Mobile users are spending more time in mobile apps than the mobile web, but in-app advertising budgets have been slow to reflect the change. Are you missing out on potential optimizations?
A recent study from PubMatic and Forrester, and summarized by The Drum, suggests that mobile marketers could be wasting a material portion of their budgets on mobile web ads.
The study’s authors surveyed 336 advertisers to reveal that while mobile advertising spend is on the rise, the division between in-app and mobile web does not align with how mobile users are spending their time. Most marketers surveyed are operating at a near even split between mobile web and mobile in-app spending, which may not be the ideal choice when it comes to reaching their audience.
Studies like this one consistently show that users spend far more time in-app than mobile web site — around 90% more in most cases — meaning that marketers are over-investing in mobile web ads, missing out on potential optimizations.
“What we’re finding…is a lot of [buyers’] systems and metrics are still tied to the desktop environment,” Paulina Klimenko, senior vice-president of business development and general manager of mobile at PubMatic, told The Drum. “They’re still thinking cookies. They’re still thinking cost-per-click… We’re suggesting that buyers and advertisers need to adjust to the new realities of the app environment and rethink how they measure, adjust their reporting systems and move away from that cookie mentality.”
The study also revealed that despite the dated platform choices, mobile marketers are taking advantage of a diverse array of modern advertising models:
Meanwhile, marketers increasingly see value with in-app advertising, especially in programmatic formats. 68% of respondents prefer programmatic in-app advertising, and 59% use open exchanges. This is a trend advertisers are picking up on, and we’re curious to see where these opportunities will take us.
What is Cost-Per-Completed-View Advertising, and why is Tapjoy one of the few networks to offer it? Find out in our latest article!
ROAS, or return on advertising spend, is an important metric that effective marketers need to know.
In the world of mobile advertising, there are so many metrics by which one measures success. Along with tracking active users, clicks, and views, ROAS is critical to understanding the effectiveness of marketing campaigns, especially as they relate to the overall success of a business. Is your head swimming with yet another acronym to memorize? Not to worry, we’re here to help!
What does ROAS mean?
In the marketing world, ROAS is an acronym that’s short for “return on advertising spend.” In other words, it’s a metric that lets you know how effective your advertising efforts are and how much revenue your ads are achieving. In the mobile world, this often refers specifically to the amount of revenue generated by in-app purchases, advertising impressions, and app subscriptions. This revenue is often measured across user segments, or specific groups of users known to have been acquired through advertising networks or campaigns. By grouping users according to their source, recording the cost associated with acquiring them, and subtracting it from the revenue they’ve generated, mobile marketers are given a clear look into how their choices impact the company’s bottom line.
Knowing your ROAS is an important part of any modern marketing campaign. If your return on ad spend is meeting or exceeding expectations, it’s a good indicator that your strategy is paying off. On the other hand, a low ROAS is a sign that something’s not working and needs to be retooled.
How is ROAS calculated?
It’s a simple formula: revenue generated by customers resulting from ads divided by the cost of those same ads. For example, if a recent advertising campaign brought in $10,000 after spending $2,000 on ads, that’s an $8,000 or 500% return on that investment. It’s often written as a ratio, which in this case would be 5:1. For every dollar spent on advertising, five dollars were generated in revenue.
If this concept sounds familiar, it’s because ROAS shares similarities with return on investment (ROI). However, ROI is more of a “big picture” metric, typically used to measure effectiveness of an entire project. ROAS, on the other hand, is designed to evaluate specific advertising initiatives and is typically limited to the first day an ad started running, to the last day a resulting user churns out of the app. It’s also calculated differently than ROI, so it’s important not to confuse the two.
How is ROAS tracked?
Of course, to determine such a specific metric, you’ll need to know where users are coming from, how they’re engaging with your campaigns, and how much revenue each segment is generating. That’s where mobile attribution comes in! Mobile attribution is defined by Localytics as “the process of tracking where users learn of your app and connecting them to key actions in their journey towards becoming customers.” In other words, it lets you know what aspects of your advertising campaign are the most successful and which platforms are driving the biggest return on ad spend.
Using a variety of internal tools, such as user agents, IP addresses, and timestamps, marketers can take a deep dive into their engagement stats to determine what ad strategies are driving the most success. Over time, marketers can build up enough data across multiple networks and/or campaigns to make meaningful comparisons between them. By figuring out where your users are coming from, how they interact with various ads, and how they behave after install, you can figure out where and how your advertising budget is best spent.
What constitutes a successful ROAS and how can I improve mine?
Keep in mind that every business is different and marketing pros need to tailor their goals and expectations accordingly. However, there are some guidelines available for those interested in maximizing their ROAS.
According to Disruptive Advertising, a good rule of thumb for ROAS is:
If your ROAS is below 3:1, rethink your marketing. You’re probably losing money.
At a 4:1 ROAS, your marketing is turning a profit.
If your ROAS is 5:1 or higher, things are working pretty good.
Other sources echo the general rule of shooting for a 4:1 return on advertising spend.
Naturally, getting to a successful ratio is easier said than done. There’s no single foolproof way to max out ROAS, but once you’ve calculated this metric and figured out how effective your ad campaign is, you can start looking at other factors.
Is your messaging consistent across all platforms?
Are the ads optimized for mobile and desktop?
Is your timing on point or are you missing out because your advertisements are being broadcast during low traffic times like holidays?
In one case study, marketers tested A/B landing page variants to see which approach consumers responded to, eventually taking their conversion rates from 12% to 20%. Again, every company and every campaign is different, but good marketing pros will be able to work with your brand and raise that ROAS.
Measuring the success of advertising campaigns can be intimidating, but knowing what metrics to look for goes a long way towards turning a profit. Want to know more about ROAS and successful ad strategies? The marketing pros at Tapjoy are ready to help with all of your engagement and monetization needs.
Want to learn more about how to implement a sophisticated and effective mobile monetization strategy? Check out our article, “What is ARPPU?” for a deep dive into understanding average revenue per paying user.
Mobile game monetization hit new record highs in 2018 as battle royale and hyper-casual games competed for supremacy.
In the mobile marketing world, this is the time of year when most networks crunch their 2018 statistics to get a big-picture view of our industry. As marketers, that means we’re spoiled for exciting reading material, with a multitude of new reports that highlight interesting perspectives and insights. Of these studies, few are more comprehensive than App Annie’s 160-page “The State of Mobile 2019”, which analyzes every trend and app category and offers detailed predictions for the future.
We at Tapjoy were especially excited to read App Annie’s take on mobile gaming, which saw a tumultuous 2018 with the rise of two prominent genres: hyper-casual and battle royale. Here are some key gaming insights that are worth highlighting:
Mobile games monetization is on the rise
Monetization in the mobile games space continues to show year-on-year growth, reaching record heights yet again for 2018. In fact, mobile gaming remains the fastest growing sector of all gaming markets, including consoles, PC, Mac, and handheld platforms. Games currently account for 74% of all consumer spend within apps stores, with China, the US, and Japan controlling 75% of that spend. Mobile gaming is expected to reach 60% of total market share in 2019.
Players love battle royale and hyper-casual games
While mobile gaming is growing faster than console gaming, in terms of actual titles they aren’t so different. The hugely successful battle royale genre leapt from console to mobile platforms thanks to games like Fortnite, PUBG Mobile, Rules of Survival, and Free Fire. Battle royale games did exceptionally well in Chinese, Japanese, and South Korean markets that reflect a competitive online gaming culture. Meanwhile, hyper-casual games continued to top the charts thanks to Voodoo’s impressive app library.
Mobile success stories are shared between gaming incumbents and newcomers
2018 proved there’s room for both established games and up-and-coming apps to succeed. App Annie’s measurements of monthly active users revealed that Pokemon GO and Candy Crush Saga are still going strong years after their initial release. Meanwhile, new releases like PUBG Mobile and Helix Jump gained massive user bases during their 2018 launch windows.
Domestic growth in China was limited, but overseas markets are seeing higher results
China’s mobile games industry is facing a period of uncertainty while the nation considers its stance on game licensing regulations, which has limited domestic year-on-year growth to 4% compared with 2017. When combined with overseas markets, however, a different picture emerges. Non-APAC gaming markets have seen significant growth for Chinese publishers, with the Americas seeing notable gains of 140%. License approvals for new game titles will resume in 2019, so domestic and overseas growth is expected to continue moving forward.
We’d like to tip our hats to the folks at App Annie, who generated a fascinating and engaging summary of mobile marketing in 2018. You can download the full report to find more insights across every mobile app genre and category.
Want to brush up on more mobile app marketing fundamentals? Check out “What Is In-App Marketing?” and take a deep dive into tips for developing your own unique campaigns.