Refining and consolidating your strategy

1. Overview

The iterative evaluation cycle

In order to monetize effectively for the long term, you must always be learning from your customers and your data, be willing to test new methods, and not assume that what has worked in the past will work forever.

In this tutorial you'll:

• Identify how to gather and interpret the data on your monetization

• Devise a qualitative monetization research questionnaire

• Reflect on ways to refine your strategy (video)

• Apply your understanding answering some reflection questions on a case study

2. Gathering data on your monetization

As with any element of running a business, you always need to start with your customer.

This means you need to gather data, and lots of it. This data can come in many forms, but at a broad level it includes both quantitative and qualitative data.

Let's start by exploring different kinds of quantitative data you can gather to support iterative evaluation.

3. Gathering quantitative data

Quantitative data is data expressed in a numerical form. Some of this data will come from evaluating your own metrics, but it can also be useful to look outside of your game. Understanding how ads have been implemented in similar games to yours can help you identify where to start with evaluating your success.

Compare your download numbers

You can begin by identifying the games in your category with the highest download numbers. Download numbers are an easy data point to gather because they are reported within a range directly on the game’s app store page for each respective platform (for example,Apple App Store and the Google Play Store). Having a look at these numbers gives you a good source of who is succeeding. Understanding why they are succeeding requires deeper evaluation...

Compare your revenue numbers

It can also be helpful to identify the games in your category with the highest revenue. There is detailed industry research available for a price through leading sources like AppAnnie or Apptopia. Tools like these can provide competitive insight into which ad networks have been integrated by specific games, what the download trends have been for those games, and directional guidance on how much revenue these games are generating.

Evaluating the data

If you discover that a successful game in your category implemented a certain ad network at a particular point in time, and you can cross-reference that against their revenue spiking over the same period, you might deduce that using the network increased incremental revenue for that game. You may then investigate integrating with them for your own game.

Another example of the insight you can gather here is that if a game similar to yours runs all of their ads through networks which specialize in rewarded video, it’s likely to be a clear indicator of the value of that particular ad format for your own game.

You should note that more specific research around the typical CPMs you should expect from ads tends to be limited. This is because the market changes constantly and there many underlying variables impacting this, including:

• Your game type

• Your player attributes

• Ad formats

• Fluctuating advertising demand

• Seasonality

Any research you do should be a supplement to testing in your own live game, and not a replacement for it.

4. Gathering qualitative data: Competitor analysis

Qualitative data is non-numerical data. In addition to some of the more robust (and potentially costly) research, a simple online search of guides detailing the appropriate formats and stages of your game to implement monetization methods can be extremely helpful as well. For example, interstitials ads are a bit more invasive than other formats, so including them at level changes in your game is likely more acceptable to a user than implementing this format at a crucial point of gameplay.

Alternatively, a hypercasual puzzle game may find banner ads suitable since they take up minimal screen space and don’t disrupt gameplay. Take some time to download and play comparable games yourself, in order to get a better sense of what seems to be working for game developers further along in their journey.

Specifically, pay close attention to:

• Which formats are used

• The stage(s) of the game where each format is used

• How ads and IAP are used together, if this applies to the game

5. Gathering qualitative data: User interviews

If you can, arrange regular interviews with your users. You are so close to the details of your game that it can be easy to miss clear flaws for the player, especially in terms of how your monetization tactics impact their gameplay.

You can identify some clear action items to evaluate which may have an immediate impact by asking users questions like:

• How does the user engage with your IAP and ad touchpoints?

• Do they think these touchpoints are well-integrated in the game?

• How could the touchpoints be improved?

You can also use questionnaires to gather this data. You can use the sample interview questionnaire in the tutorial materials as a starting point. Sending this type of questionnaire to your users in a format where you can easily collect responses, such as Google Forms, works very well.

Now that you have defined what kinds of data you will need to collect, let’s consider how to interpret this data.

6. Interpreting the data

As you explored in previous tutorials once you have begun monetizing, you’ll start collecting data. The key types of metrics to evaluate areare:

1. Monetization metrics

1. Gameplay metrics

1. Performance and technical stability metrics

It may be tempting to overemphasize the monetization metrics when deciding what’s working and what’s not. However, it is crucial to evaluate all three areas in order to ensure you are keeping your players happy, as they are ultimately your underlying source of revenue regardless of where it gets recorded.

7. Interpreting the data: Monetization metrics

The most straightforward metrics for your monetization efforts are the metrics directly linked to each specific tactic.

For ads, this includes the following metrics:

• Impression volume: the number of times an ad displays in your game over a given time period

• eCPM: the effective cost per thousand impressions paid to you

• Fill rate: the percentage of time in which an ad serves at a specific price point

• Revenue: a function of all of these metrics.

All of these monetization metrics should constantly be evaluated to see where optimizations can be made.

8. Interpreting the data: Gameplay metrics

As mentioned earlier, your players are always the true source of your revenue, so even if your monetization metrics are doing well, it’s important to know that it is not at the expense of your players’ satisfaction. Keeping players in your game allows for more opportunities to monetize for the long term.

Pay close attention to retention rates and time spent in your game per user in order to get an accurate read on whether ads may be harming gameplay. The best way to evaluate this is to launch your game without ads in order to establish a baseline of how users behave in the absence of ads.

Any variance against that baseline should give you greater insight into changes you have made. Your internal reporting or most third party analytics providers will be able to provide this information. Here are five key gameplay metrics that you should monitor:

• Player retention: the rate in which players return to your game over a certain period of time

• Time spent: the average amount of time a player spends in your game during a single session

• Player progression: how far a player, on average, makes it through your game

• Purchases (if using IAP): which items are popular purchases, and in what quantities

• Churn points: levels or stages of your game that have a high rate of players disengaging and leaving

In some cases where ads complement gameplay, like rewarded video for instance, you may even find that your gameplay metrics improve. This is the most effective way to generate momentum as both your user base and revenue per user increase in parallel.

9. Interpreting the data: Performance and technical stability stats

It’s important to know how various monetization implementations are affecting the health of your game. Do they cause your game to crash unexpectedly? Or lag during gameplay?

Sometimes this can happen due to overloading a game with many large SDKs or other technical integrations, effectively “bloating” the game. Keeping your game lightweight by avoiding unnecessary integrations can help reduce this risk. Unnecessary integrations may include ad networks which aren’t delivering much revenue or analytics partners who you no longer have the resources to use as much as you initially anticipated.

Additionally, monitoring key performance and stability stats like crash rates, load times, or network errors, is something that should be done on an ongoing basis.Ideally, you will have dashboards with this data accessible to all relevant stakeholders within your organization.

You should also pay close attention when adding new components which could create unnecessary “weight” in your game, so you are aware of what may need to be removed.

10. Refining your strategy

After you have closely evaluated your monetization, gameplay and performance metrics, you may find that a few areas require a change of direction. This is normal. Examples of possible issues include the following:

• Certain ad types may be resonating more or less with your users than expected.

• The places in your game where you have implemented ads may be suboptimal, or might interfere with other aspects of your game.

• Monetization partners may be over or under-delivering relative to your expectations.

You may also find that you are leveraging too many different strategies and partners, and need to consolidate in order to have a more stable application with better gameplay and easier management.

Top level monetization strategies for your game, such as your core KPIs and business model, shouldn’t change very frequently. However, the tactics behind them may frequently change in order to keep your game growing and catering to your target players.

You may be thinking: how much monetization is too much? Let's meet the experts and find out what they say!

11. Ask the experts!

Would you like to hear more from an expert?

In the video below, watch Cathal and Illya, both Unity monetization experts, discuss:

1. How much monetization is too much?

12. Explore a case study

For some insights into how others have capitalized on effective monetization strategy and implementation, let’s explore a specific case study.

Next Games used rewarded video ads to increase player lifetime value in two of their key titles: Compass Point: West, and AMC’s The Walking Dead: No Man’s Land.

Here are the key highlights from their monetization efforts:

• 75-to-80% of player base actively opting-in to watch ads

• Drives $0.06 average revenue per player per day

• A positive experience keeps players coming back for more

Next Games was very focused on growing their Average Revenue Per Daily Active User (ARPDAU), as this metric allowed them to see the holistic value derived by an individual user, on average, across both revenue sources (ads and IAP).

They didn’t just move their primary target metrics of ARPDAU and ad revenue. Next Games also ensured that their players stayed in the game at the same rate as they did prior to implementing their strategy, enabling their efforts to compound over time with a holistic approach to gameplay and monetization.

13. Case study reflection

Take a moment to reflect on Next Games case study.

How did Next Games create optimal player experience?

Next Games planned carefully and integrated their ads seamlessly in order to purposefully maintain their retention rate.

How did Next Games ensure the ad integration process worked positively for all involved?

Instead of a rush job to integrate the ads, their success was grounded in making sure the developer, player and advertiser all benefited from their ads integration style.

How did Next Games ensure watching rewarded ads was fun for the players?

They integrated ads into the storylines and core loop mechanics of their games, so the ads didn’t feel out of place or intrusive. They were a natural aspect of gameplay.

14. Consolidate your understanding

Now that you’ve learned the basics, you’re ready to put them into action. Let’s summarize the key points to take with you as you start monetizing.

Make monetization an integral part of your game design

As much as possible, think about monetization during your game design, not after it is complete. The more you can natively integrate monetization methods within your users’ core gameplay, the stronger your foundations for long-term success.

Know your customer

Make sure you understand what your customers want, through both qualitative and quantitative research. At the end of the day, your customers are your underlying source of revenue regardless of the specific monetization tactics you employ. Keeping them happy and engaged is the most important thing.

Know your options

There are many options out there covering a variety of monetization needs. Some you may be able to build yourself, some through your game development platform, some from third party providers. Do your research to identify what is most appropriate for you, given the different costs and benefits.

Test and iterate

What worked in the past won’t always work in the future. Everything that can be tested should be tested, but your time and resources may well be limited. Decide in advance what you should be testing on an ongoing basis, so that you always have a measure of the health of your strategies and tactics.

Technology and your customers change, and so should you

Monetization is a rapidly changing landscape. There are always new tech providers emerging with capabilities built to solve problems you may not have even known needed solving. Stay up to date with these changes, as well as how your players are engaging with your game and other games, in order to truly know how to deliver value to them.

15. Summary

In this tutorial you have:

• Identified how to gather and interpret the data on your monetization

• Devised a qualitative monetization research questionnaire

• Reflected on ways to refine your strategy

• Applied your understanding answering some reflection questions on a case study

In the next tutorial you’ll consolidate your monetization knowledge by taking a quiz.

After you complete the quiz you'll:

• Review the main takeaways of this course in the summaries

• Identify what to learn next

• Identify some practical next steps

• Be introduced to extra resources to keep on learning and growing your game

• Reflect on monetization techniques for a small team to implement

You’ve nearly completed this stage of your monetization learning journey!