ALL ABOUT ADS! Joe Gruender, Mochi Ads Guy Mr. Shen, Game Developer / Player & Mochi Employee JULY 26 TH , 2011
All About Ads
Jan 21, 2015
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ALL ABOUT ADS! Joe Gruender, Mochi Ads Guy
Mr. Shen, Game Developer / Player & Mochi Employee
JULY 26TH, 2011
“ALL I NEED TO KNOW IS I PUT MOCHI’S CODE IN MY GAME, AND I EARN MONEY.”
KNOWING HOW IT ALL WORKS WILL HELP YOU UNDERSTAND: ! WHY CERTAIN ADS ARE BEING SERVED INTO YOUR GAME ! AD TERMINOLOGY & DEFINITIONS ! WHY THE AD MARKET FLUCTUATES
WHY SHOULD YOU CARE?
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! ADS ! SUBSCRIPTIONS ! E-COMMERCE (INCLUDING MICRO-TRANSACTIONS)
WHAT DRIVES REVENUE ON THE INTERNET?
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! ONLINE VIDEO ADS CONTINUE TO BE THE FASTEST-GROWING FORMAT, WITH AN INCREASE OF MORE THAN 52% PREDICTED THIS YEAR. SOURCE: HTTP://WWW.EMARKETER.COM/ARTICLE.ASPX?R=1008431)
! TO FUND ONLINE-VIDEO SPENDING, MANY PREDICT TO CANNIBALIZE DISPLAY ADVERTISING AND SOME EXPECT TO MOVE AS MUCH AS 5% OF TELEVISION BUDGETS. SOURCE: HTTP://WWW.REELSEO.COM/VIDEO-ADVERTISING-FASTER-GROWTH/
! SOME 62% OF MARKETERS WILL MIGRATE TV AD DOLLARS TO DIGITAL VIDEO, BASED ON THE BELIEF THAT THE MEDIUM DELIVERS A MORE POSITIVE ROI, COMPARED WITH 47% OF AGENCIES AS THEY ATTEMPT TO FOLLOW THEIR TARGET AUDIENCE SOURCE: HTTP://WWW.IDGKNOWLEDGEHUB.COM/BLOGS/?P=8007
ADS DRIVING THE INTERNET
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US ADVERTISING MARKET
Source: http://www.businesswire.com/news/home/20110413006052/en/IAB-Reports-Full-Year-Internet-Ad-Revenues-2010
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DIFFERING PHILOSOPHIES AROUND ADVERTISING ! TWO CAMPS:
! Ads are evil and should be abolished. ! Ads make me money, so I can keep building the things I love.
GETTING PHILOSOPHICAL
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TWO TYPES OF ADVERTISERS WHO WANT YOUR BUSINESS ! BRANDING ! REMNANT
ADS MAKE ME MONEY…..
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BRANDING ADVERTISERS: ! FOCUS ON EDUCATING GAME PLAYERS OF THEIR BRAND, PRODUCT
NAME ETC. ! GROWING ONLINE PRESENCE ! REPURPOSING EXISTING OFFLINE VIDEO CONTENT. ! HOST INITIATED VIDEO WITH HOST INITIATED VIDEO. ! HIGH BUDGETS AT GREAT ECPMS ! GREATER CONSUMER INTERACTIONS
! BrandBoost ! Watch&Win
WHO WANTS TO BUY YOUR INVENTORY
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! REMNANT ADVERTISERS: ! Are looking for inexpensive, high volume opportunities ! Have growing budgets
! Don’t have long term commitments ! Ability to self manage inventory
! VAST (trusted partners only) ! Ad server integration ! Self-Serve Platform
WHO WANTS TO BUY YOUR INVENTORY
More on Branding & Remnant advertisers later
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MAKING A GREAT AD PLATFORM EVEN BETTER BY: ! IMPROVING AD QUALITY ! LOCALIZING SALES EFFORTS ! IMPROVING ADS REVENUE
MOCHI’S FOCUS
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IN THE LAST 24 MONTHS: ! WE’VE SHUT DOWN THE MANY TYPES OF UNDESIRABLE, BUT
LEGAL ADS.
! WE’VE INSTITUTED BETTER QUALITY CHECKS ! Human review ! Roughly 10% of all submitted ads are denied.
! Challenges ! IP target ! Proxy servers ! Misleading landing pages
QUALITY
http://www.mochimedia.com/adv-guidelines.html 11
MOCHI IS FOCUSED ON CREATING HIGH VALUE / HIGH REVENUE GENERATING PARTNERSHIPS IN STRATEGIC MARKETS ! CURRENT SUCCESS
! US/UK/CA ! Western Europe ! North America / W. Europe / AU/NZ
! CONTINUING EFFORTS ! Latin and South America ! Asia (non-Chinese) ! China
LOCALIZED SALES
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THINGS WE’RE DOING TO INCREASE DEVELOPER REVENUES: ! BETTER MONETIZE GLOBAL MARKETS (LEVERAGING NEW
PARTNERSHIPS IN W. EUROPE, TURKEY AND AUSTRALIA) ! LOOKING FOR PARTNERS IN LATIN AND SOUTH AMERICA ! EXPLORING NEW AD PRODUCTS
! Watch&Win ! BrandBoost ! ScoreAds ! Others soon in late Q3
IMPROVING REVENUE
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! PRE-ROLL ADS / TIMED ADS ! SCORE ADS ! CLICK-AWAY ADS ! CUSTOM ADS
MOCHI ADS PRODUCTS
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PRE-ROLLS / TIMED ADS: ! CPM/CPC ! SKINNED VIDEO/VIDEO/FLASH/STATIC IMAGES ! 90% OF OUR INVENTORY
MOCHI ADS PRODUCTS, CON’D
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CLICKAWAY ADS: ! CPC BASED ADS ONLY. ! NO VIDEO ! LOWER ECPM BUSINESS – SELF-SERVE PLATFORM ! 10% OF INVENTORY ! PROFITABLE EXCEPTIONS – OF COURSE.
MOCHI ADS PRODUCTS, CON’D
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SCORE ADS: ! CPM/CPC ! FLASH / STATIC IMAGES ! OPT-IN ! FREQUENCY CAPPED 2 VIEWS EVERY X MINUTES ! ADDITIONAL REVENUE STREAM
MOCHI ADS PRODUCTS, CON’D
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CUSTOM ADS: ! DEVELOPER SETS A MINIMUM ECPM BENCHMARK FOR MOCHI
TO SERVE PAID ADS, OTHERWISE DEVELOPER’S OWN STATIC IMAGE RUNS.
! NO REVENUE
MOCHI ADS PRODUCTS, CON’D
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I GET A HIGHER ECPM USING “X”…ECPM != REVENUE ! ECPM IS A METRIC, IT ISN’T SOMETHING YOU CAN SPEND.
REVENUE IS SOMETHING YOU CAN SPEND. ! ASK YOURSELF: “AT THE END OF THE DAY, WHAT’S GOING TO
MAXIMIZE YOUR REVENUE?”
ECPM V. REVENUE
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CPM? REVENUE? QUÉ? ! CPM VS CPC VS. CPA
! CPM favors the developer (and Mochi). ! CPC is middle ground. ! CPA favors the advertiser.
ECPM != REVENUE, CON’D
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THE PLAYERS: ! GUARANTEED INVENTORY BUYERS ! REMNANT INVENTORY BUYERS
THE INFRASTRUCTURE: ! SALES (SOMEONE HAS TO DO IT) ! AD APPROVALS ! ADS ARE CALLED ! ADS ARE SERVED
BEHIND THE SCENES: ADS ECO-SYSTEM
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GUARANTEED INVENTORY BUYERS ! DEFINITION: PARTIES THAT BUY A GUARANTEED IMPRESSION GOAL
BETWEEN A START AND AN END DATE. TYPICALLY, THESE ADVERTISERS ARE INTERESTED IN SHARE OF VOICE (SOV), REACH AND FREQUENCY.
! TYPES ! “Branders” – agencies
! Driving consumer awareness. Think McDonalds, X-Men movie trailers ! WANTS TO REACH A TARGET AUDIENCE
! At Mochi, we use game categories as a proxy for user demographic information. For example, we know from comScore that puzzle games skew towards mature women (e.g. Moms), while Fighting games tend to attract a more male audience.
THE PLAYERS: GUARANTEED INVENTORY BUYERS
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REMNANT INVENTORY BUYERS ! DEFINITION: PARTIES WHO BUY INVENTORY WITH A FOCUS ON
PRICE. START AND END DATES, DEMOGRAPHICS ARE NOT AS MUCH A FOCUS AS PERFORMANCE.
! TYPES: ! “Arbitragers”
! Customers who make a living on the thin margin between the buy rates and sell rates. These players need cheap inventory in huge amounts. Think Gamevance.com downloads.
! Traffic Drivers” ! Customers, who have their own website, typically game portals or iphone apps
developers, and need to drive eyes as cheaply as possible. ! Video Ad networks
! Ad networks who look to buy inexpensive inventory to run video banners
THE PLAYERS: REMNANT INVENTORY BUYERS
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SALES DEALS ARE DONE BY ! MOCHI SALES FOLKS ! MOCHI AUTHORIZED REPRESENTATIVES ! MOCHIADS SELF-SERVE ! PREFERRED AD NETWORK PARTNERSHIPS
INFRASTRUCTURE: SALES
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ADS ARE SERVED INTO YOUR GAMES VIA: ! MOCHI SITE SERVING ! AN XML CONNECTION TO BRANDERS’ AD SERVERS ! CUSTOM AD SERVER INTEGRATION
INFRASTRUCTURE: GETTING ADS IN YOUR GAME
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PROS: • Great for guaranteeing an ad impression for a play of your game • Coupled with LiveUpdates is a great technology for updating your game
across the internet as well as encrypt it for security • Easy to implement
DIFFERENT TYPES OF ADS: PRE-LOADER AD
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CONS: • From a player standpoint, it does force an ad impression for a play of your
game and some ads have a required time limit • If the game is hacked in any way and LiveUpdates is removed, then the
advertisement will also be removed.
DIFFERENT TYPES OF ADS: PRE-LOADER AD
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PROS: • Excellent alternative for Pre-Game Ad • Unobtrusive – player is not forced to wait for anything • Even if LiveUpdates are removed, these advertisements are not tied into the
code and will stay inside your game
DIFFERENT TYPES OF ADS: CLICK-AWAY AD
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CONS: • 300x250 ad space required that cannot be rotated, skewed or obstructed in
any way • Lower eCPM as higher, richer media based ads are not passed through
Click-Away Ad displays
DIFFERENT TYPES OF ADS: CLICK-AWAY AD
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PROS: • Excellent alternative for Pre-Game Ad • Even if LiveUpdates are removed, these advertisements are not tied into the
code and will stay inside your game
DIFFERENT TYPES OF ADS: INTERLEVEL AD
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CONS: • Player will be forced to wait a period of time (like a Pre-Game Ad) before
being able to progress with the game • A bit more obtrusive than a Click-Away ad as it takes over the screen
DIFFERENT TYPES OF ADS: INTERLEVEL AD
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Ad Type PROs CONs
Pre-‐Game Ad • Richer media ads capabili3es (ex: Flash, video, etc.) meaning higher eCPM
• Compa3ble with Mochi Media’s LiveUpdates Service
• Easy to implement (one line of code)
• Hacked games removing LiveUpdates also removes the ad
• Forces a predetermined wait 3me for each 3me the game is loaded
• Takes over whole game stage
Click-‐Away Ad • Unobtrusive • Can be integrated into the game
stage how the developer sees fit • If LiveUpdates are removed, Click-‐
Away Ads will s3ll work
• Generally lower eCPM than pre-‐game ads
• 300x250 minimum space required for ad
Inter-‐Level Ad • Placed at natural breaks of the game; does not force an ad when the game starts
• If LiveUpdates are removed, Inter-‐Level Ads will s3ll work
• Forces a predetermined wait 3me for each 3me ad is shown
• Takes over whole game stage
MR. SHEN’S SUMMARY
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FIN
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