DESIGNED TO WINHow to Monetize Users and Enhance Experience in Your Game

Infrastructure for in-app

video advertising

2Infrastructure for In-App Video Advertising

A LITTLE ABOUT US

Jahed Momand

Sr. UX Designer

Contact Vungle: monetize@vungle.com

Michal Pilawski

VP of Product

3Infrastructure for In-App Video Advertising

85%

72%

62%(93% per game)

THE PRICE MOST CONSUMERS ARE WILLING TO PAY

4Infrastructure for In-App Video Advertising

BUT ADVERTISERS PAY THEIR BILLS

49%

46%

7%

Infrastructure for In-app Video Advertising

ADVERTISING CAN BE HELPFUL

6Infrastructure for In-App Video Advertising

BUT IT MOSTLY INTERRUPTS FUN AND CREATES NOISEK

ESSE

LS K

RA

MER

Ad

vert

isin

g fo

r P

eop

le W

ho

D

on

’t L

ike

Ad

vert

isin

g

Infrastructure for In-app Video Advertising

THE AVERAGE AMERICAN SEES 5,000 ADS A DAY

8Infrastructure for In-App Video Advertising

AND WE LEARN TO IGNORE ALL OF THEM

Click-through rate in 1994: 74%

Click-through rate in 2006: 26%

Click-through rate in 2014: 0.05%

Click-through rate in 2014: 0.38%

WEB

MOBILE

9Infrastructure for In-App Video Advertising

THE ADVERTISING INDUSTRY COMBATS THIS WITH DECEPTION

10Infrastructure for In-App Video Advertising

FOR WHICH WE COINED A TERM: NATIVE ADVERTISING

11Infrastructure for In-App Video Advertising

OR BY INSERTING ADS WHEN WE ARE MOST ENGAGED

12Infrastructure for In-App Video Advertising

THESE INTERRUPTIONS CAN REALLY ANNOY YOUR PLAYERS

13Infrastructure for In-App Video Advertising

ALTERNATIVE: PERMISSION MARKETING

Permission marketing is about

creating value for consumers,

so they actually voluntarily

engage with ads.

Anticipated Personal Relevant

14Infrastructure for In-App Video Advertising

EXAMPLES OF PERMISSION MARKETING

Virgin Atlantic Blog Dollar Shave Club Viral Video

15Infrastructure for In-App Video Advertising

Example of Permission Marketing in GamesPERMISSION MARKETING IN ZOMBIE CATCHERS

16Infrastructure for In-App Video Advertising

PERMISSION MARKETING IN ZOMBIE CATCHERS

17Infrastructure for In-App Video Advertising

IN-APP VIDEO ADS EXTENDED USER SESSION LENGTH BY 25%

18Infrastructure for In-App Video Advertising

ADVERTISING CAN ACTUALLY BE A FEATURE OF A GAME

Sources: Electronic Arts, Wildtangent, IHS, Macrovision, Strata, Wall Street Journal

86% prefer free games with ads over paid games without ads

71% prefer games with opt-in ads over games without

94% increase in the no. of visitors to in-game store

19Infrastructure for In-App Video Advertising

STARS FRAMEWORK FOR TURNING ADS INTO FEATURES

Scene

Trigger

Action

Reward

Seed

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ORIGIN OF THE STARS FRAMEWORK

Combined experience of advising 100s of mobile games

Research in game design, psychology, HCI and behavioral economics

21Infrastructure for In-App Video Advertising

Scene: event or placement within your

game where ads will provide value to the

consumer.

From a cutscene or event scene, a

sequence in a video game that is not

interactive, a break in the gameplay.

CHOOSE THE RIGHT SCENE FOR THE AD

22Infrastructure for In-App Video Advertising

MAKE SURE YOU REACH ENOUGH PEOPLE

23Infrastructure for In-App Video Advertising

DON’T BREAK THE FLOW OF THE GAME

Resolution

Climax

Crisis

Story Progress

Commercial Break Cliffhanger model

Ads interrupt at the peak of crisis to keep

viewers’ attention on the screen during

the commercial break.

24Infrastructure for In-App Video Advertising

TARGET PERIODS OF REST OR WAITING

Resolution

Climax

(Final Boss)

Crisis

(Boss Fight)

Story Progress

STARS model

Ads shown at natural breaks when

players rest after particularly intensive

challenge or wait for resources to be

replenished .

25Infrastructure for In-App Video Advertising

PROVIDE VALUE WHERE PLAYERS NEED IT MOST

26Infrastructure for In-App Video Advertising

Trigger is a cue for a player to take actionTRIGGERS ARE CUES FOR PLAYERS TO TAKE ACTION

Video Monetization Platform for Apps

EXTERNAL TRIGGERS ATTRACT ATTENTION AND ENCOURAGE ACTION

28Infrastructure for In-App Video Advertising

INTERNAL TRIGGERS ARE EMOTIONS: SEEKING PLEASURE AND AVOIDING

PAIN

Avoid boredom:

waiting, loading time

Relief frustration:

reward after a loss

29Infrastructure for In-App Video Advertising

2S WAIT7% of customers lost

5S WAIT22% of customers lost

20S WAIThalf of customers lost

30Infrastructure for In-App Video Advertising

MAKE SURE THE EXPERIENCE IS GREAT

• SPEED

• QUALITY

• DESIGN

• RELEVANCE

31Infrastructure for In-App Video Advertising

IT IS NOT ONLY ABOUT CURRENCY

Social Rewards Access Rewards Progression Rewards

32Infrastructure for In-App Video Advertising

SOCIAL REWARDS HELP PLAYERS FEEL ATTRACTIVE, IMPORTANT AND

INCLUDED

33Infrastructure for In-App Video Advertising

ACCESS REWARDS HELP PLAYERS DISCOVER AND UNLOCK UNIQUE

CONTENT

34Infrastructure for In-App Video Advertising

PROGRESSION REWARDS HELP PLAYERS PROGRESS IN THE

GAME

Scarcity Luck (Variable Reward) Require Significant Effort

35Infrastructure for In-App Video Advertising

PLANT A SEED FOR MORE MONETIZATION

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STARS FRAMEWORK REVIEW

Scene

Trigger

Action

Reward

Seed

Infrastructure for In-app Video Advertising

Thank you

…

38

MEET THE SPEAKERS!

Join us tonight from 6-8pm @ Oola(RSVP in back)

Ben BearVP, Sales

Colin BehrVP, Business Development

and International

Michal PilawskiVP, Product

Jahed MomandSr. UX Designer

Infrastructure for In-app Video Advertising

Q&A

Questions?