UNITY ADS ⟶ GUIDE TH E GU I DE TO MOBILE GAME M O N E T I Z AT I O N S T R AT E G I E S A step-by-step guide on how to monetize your players W H AT ’ S I N S I D E How do you ensure that the game you are developing is going to find its audience and be a success? With Unity, developers can create, operate, and monetize their games with solutions that support game development lifecycle from end-to-end, including the crucial steps of monetizing and engaging those players. We put together this guide to detail all of the tactics you can use to help grow your game. © 2022 Unity Technologies —2 CO N T E N TS © 2022 Unity Technologies Best monetization practices 4 Metrics and KPIs to evaluate 9 5 organic tips for player engagement 13 Key takeaways 15 Additional resources 16 —3 Success for a game is more than just a big launch – it’s about stability. This means figuring out a way to monetize your game. Keep the following best practices in mind: → Incorporate ads seamlessly into your game to enhance the player experience and not hinder it. → Offer valuable and relevant things to your players balanced for where they are in the game. → Think long term and optimize for lifetime value of your players. The type of game you are making will likely determine which monetization strategy you start with. As it is the most prevalent format, this guide will focus on strategies for free-to-play games. Let’s take a look. © 2022 Unity Technologies —4 T M O N E T I Z AT I O N P R AC T I C E S → B E S T M O N E T I Z AT I O N P R AC T I C E S → B E S T M O N E T I Z AT I O N P R AC T I C E S → B E S T B E S T M O N E T I Z AT I O N PR ACTICES I N -A P P A DV E RT I S I N G (IAA) The way IAA works is that, as a game creator, you can create different ad “placements” within your game, such as between levels, at the bottom of the screen, or when the game first loads. Once you have identified these placements, often called “surface points”, advertisers bid to get their ads in the spots you have allocated. You can use many different formats of advertising, like: © 2022 Unity Technologies BANNER ADS R E WA R D E D V I D E O S One of the longest-serving mobile game advertising forms, banner ads place static or animated image ads above or around a game. These are video ads in game that reward players for watching. What rewards would players value most? Is it an extra life or a crossword clue? Whatever it is, use it to your advantage. INTERSTITIAL ADS O F F E R WA L L An ad that appears during gameplay at a predetermined break. These ads typically appear during natural break points during gameplay such as between levels or activities. Lists multiple “offers” that users can complete in exchange for in-app currency. —5 It’s best to evaluate which of these formats might fit into your game. For example, you can use banners inside each level, offer a reward (like an extra life) for watching a video if a player is running out of lives, and show an interstitial ad between levels. Follow industry best practices to ensure you won’t disrupt the player experience. W H AT S H O U L D YO U R A D F O R M AT M I X LO O K L I K E ? Average weekly revenue for single vs. multiple ad formats implemented Single ad format Double ad format $6,000 $4,000 Word Trivia Strategy Sports Simulation Role-playing Racing Puzzle Hypercasual Casual Board Arcade Adventure Action $0 Casino $2,000 Card Weekly revenue (USD) $8,000 Game genre © 2022 Unity Technologies —6 IN-APP P U R C H A S E S ( I A PS) IAPs allow you to offer your players additional content and features like extra lives, digital goods, and virtual currency, directly within your app for a fee. There are two main types of in-app purchases: → Consumable: Consumables are something that a player “consumes” once and then needs to repurchase, like an extra life or health. → Non-consumable: Non-consumables are things that aren’t consumed by the player, but give them more value, like removing ads, unlocking levels, or vanity items such as skins. Despite IAP revenue growth, only a small percentage of your players will make in-app purchases. IN 2021, REVENUE FROM ADS GREW ALMOST 30%, WITH IN-APP PURCHASES GROWING +3 1 .9 % YOY According to the Unity Mobile Insights Report*, a maximum of 1.8% of daily active users (DAU) make purchases. IAP revenue Total revenue growth YoY growth Ad revenue growth 0% 10% 20% 30% 40% Source: Unity Gaming Report, 2022 *Source: Mobile Insights 2022: Growth and Monetization Report, page 28 © 2022 Unity Technologies —7 D E T E R M I N E W H AT WORKS FOR YO U R G A M E A N D P L AY E R S If your game is more hypercasual (like an arcade game or word game) then in-app advertising (IAA) is generally the primary monetization model used. If your game is more strategy-based (like a roleplaying game or action) then in-app purchases (IAPs) such as better weapons or advanced levels make more sense and can even enhance gameplay. Depending on your genre, certain ad units are better than others. Source: Mobile Insights 2022: Growth and Monetization Report, page 27 IAA vs. IAP revenue per genre IAA revenue percentage IAP revenue percentage 23.41% Action Adventure 76.59% 24.30% 75.70% Arcade Board 69.73% Card 30.27% 53.52% 46.48% Casino 23.81% 76.19% Casual Game genre 32.90% 67.10% 36.71% 63.29% Hypercasual 94.09% Puzzle 74.82% 25.18% Racing 73.36% 26.64% Role-playing 80.94% 19.06% Simulation 65.28% 34.72% Sports 43.57% 56.43% Strategy 70.58% 29.42% Trivia 40.52% 59.48% Word 80.16% 0% 5.91% 25% 50% 75% 19.84% 100% Percentage © 2022 Unity Technologies —8 The best way to think about your success is to be as data driven as possible. So how do you know which metrics and KPIs to track? LONG TERM METRICS REVENUE MEASUREMENT How much are people spending in your game, and how can you better optimize your revenue? There are typically two main ways to look at revenue metrics that can help you determine long term success. Average revenue per daily active user (ARPDAU): ARPDAU is a staple metric that helps tell the overall monetization health of your game for IAA, IAPs, or both by looking at the daily ad revenue per daily active user. If you look at your ARPDAU over time, you can see the impacts that any monetization changes might have made and can optimize based on what’s working. Lifetime value (LTV): Shows the total days a player spends in a game, multiplied by ARPDAU. For example, if a player on average stayed for 10 days and active users spent an average of 50 cents per day, their LTV was $5. LTV is important because it can help project how much revenue an average player could generate over their entire time they play your game. © 2022 Unity Technologies —9 RICS AND KPIS → METRICS AND KPIS → METRICS AND KPIS → METRICS AND KPIS → METRICS AND KPIS → MET METRICS AND KPIS TO E VA L U AT E 4 T I P S F O R I N C R E A S I N G A R P DAU A N D LT V © 2022 Unity Technologies T RY D I F F E R E N T A D F O R M AT S A N D PL ACEMENTS TEST DIFFERENT P R I C E TA RG E T S A N D G E O LO C AT I O N S See which ones convert the most for you. If you can increase the amount of times people click on the ad or how many times a video is watched, it will increase your overall revenue. Test various segmentations of prices and geolocations to see how differentiated players interact with your monetization. OPTIMIZE R E WA R D E D V I D E O DIVERSIFY DEMAND SOURCES Offering a valuable reward to your players that can help them progress or level-up in your game can be really beneficial for your player. The more networks you allow to bid for your ad space through a mediation solution will lead to higher bids or demand from advertisers. It’s important to use a mediation partner who consolidates many of these sources to reduce the time and effort you spend while maximizing your exposure to advertisers. — 10 USER RETENTION The second example is user retention. Are people returning to play your game? To really understand what’s working and what’s not, you can group players by cohorts based on time frames such as day 1 retention, day 3, day 7, day 30, and so on – to be able to spot patterns within those time frames. Some of the retention metrics to measure are: → Daily active users (DAUs): Number of users active on your app within a day (new plus returning users) → Weekly active users (WAUs): Number of users using your app within a week → Monthly active users (MAUs): Number of users on your app within a month A DS I M P ROV E RETENTION Without ads With ads D1 26.3% 22.98% D7 6.64% 8.27% D30 2.88% 3.42% SHORT TERM METRICS TAC T I C A L A D K P I S You’ll also want to monitor the performance of your ads on a more daily basis to help drive efficiency. Some metrics to measure are: → Fill rates: Ad fill rate is a metric that helps measure ad network performance. This represents all the times your ad was served out of all ad requests to an ad server. → Impressions: The number of times a player saw your ad. © 2022 Unity Technologies — 11 4 T I P S TO E N H A N C E YO U R OV E R A L L M O N E T I Z AT I O N S T R AT E GY U N D E R S TA N D YO U R P L AY E R S BALANCE IAA AND IAPS The more details you have about who your player base is, the higher the bids you’ll be able to attract from advertisers. Using Unity Analytics, you can analyze your players, find patterns in behavior, and see where the opportunities are to monetize them intelligently. As we mentioned earlier, since a small number of players make in-app purchases, running in-app ads in parallel can help drive revenue. This will ensure that over the long term, you grow your revenue and player base concurrently. FOCUS ON LIFETIME VA L U E A N D RETENTION TEST AND OPTIMIZE It’s important to keep your players active in your game to ensure they are staying engaged and returning to play. If done correctly, showing ads helps improve player retention. © 2022 Unity Technologies Make sure you are constantly testing to see how players respond. Player behavior and the ad landscape is constantly changing, so make sure you’re constantly evolving to best suit your player’s needs. — 12 Now that we know the top monetization strategies and metrics, let’s take a look at how you can organically keep your players engaged. © 2022 Unity Technologies — 13 ANIC TIPS → ORGANIC TIPS → ORGANIC TIPS → ORGANIC TIPS → ORGANIC TIPS → ORGANIC TIPS → ORGANIC 5 ORGANIC TIPS FOR INCREASING P L AY E R ENGAGEMENT 1 . R E WA R D P L AY E R S E A R LY O N You want your players to feel like they’ve accomplished something, and celebrating small wins is a powerful way to get players thinking about coming back. Many games offer daily rewards to incentivize players to come back each day. Try giving out many small rewards instead of one big reward as this creates a frequent feedback loop, habituating players to coming back. 2 . A S K YO U R P L AY E R S The key to increasing retention is to know your players, understand their preferences, and their playing habits. While analytics will help, you can also simply ask your players what they like or don’t like. You can create an exclusive group, like an “advisory council” or “beta program” for players of yours to opt in to giving you feedback. You would be surprised at how willing people are to tell you what they think if you just ask them. 3. PERSONALIZE THE EXPERIENCE Use data to personalize the game experience as much as you can. This is especially important during those moments of the game crucial for retention, like the onboarding experience. Try understanding what your players are working towards in your game to help incentivize them to advance their progression. 4 . G E T T O T H E G A M E P L AY F A S T You have only one chance to make a first impression. Make sure your game loads quickly and the sign-up process is quick and easy. Ask yourself: Do players really need this information? Do they need it at this stage? Can players play my game offline? How quickly can I get people to the first level? You can A/B test several elements to find what gets people playing as quickly and effortlessly as possible. 5 . G I V E P L AY E R S A S E N S E O F P R O G R E S S Give players a sense of progress, and they’ll be more likely to want to finish. Using visual cues like progress bars, milestones, and other indicators can encourage players to stay. © 2022 Unity Technologies — 14 K E AWAY S → K E Y TA K E AWAY S → K E Y TA K E AWAY S → K E Y TA K E AWAY S → K E Y TA K E AWAY S → K E Y TA K E AWAY S K E Y T A K E A W AY S Creating, operating, and monetizing a game isn’t easy, but with these ideas for providing valuable player experiences while monetizing your base, you’re well on your way to building a successful mobile game business. Remember these five guiding principles. © 2022 Unity Technologies H AV E A N E X P E R I M E N TA L MINDSET BE AUTHENTIC AND T R A N S PA R E N T The entire process of growing your game successfully revolves around having an experimental mindset. Come up with a hypothesis and validate it through tests. Eventually, through tweaking, you’ll find what works for you and your players. When thinking about monetization activities, it can be easy to try and game the system in your favor. Take the time to put in the work, and whenever you’re communicating with your players, make sure to be authentic and transparent. U S E DATA TO CO N S TA N T LY OPTIMIZE T R E AT Y O U R P L AY E R S WELL Data is your friend. It will help you validate your assumptions, find patterns, and spot what needs to be tweaked. Developing a mobile game isn’t something you set and forget. It’s something that you continuously improve over time through tests. Personalize the experience for them, be mindful of their time, and do everything for them to have as good of an experience with your game as possible. — 15 ADDITIONAL RESOURCES GROW AND MONETIZE YO U R G A M E Unity Ads gives you the tools to help drive your revenue and retention growth goals. Whether you’re a game creator, advertiser, or both, you can get the expertise needed to support your monetization strategy. Learn more © 2022 Unity Technologies — 16 ABOUT UNITY Unity (NYSE: U) is the world’s leading platform for creating and operating real-time 3D (RT3D) content. Creators, ranging from game developers to artists, architects, automotive designers, filmmakers, and others, use Unity to make their imaginations come to life. Unity’s platform provides a comprehensive set of software solutions to create, run and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. For more information, please visit unity.com A B O U T T H E DATA The data in this guide is drawn from the Unity Gaming Services portfolio of products, and specifically games that use monetization and user acquisition services. It leverages original data from 28B+ ads served each month, 168M average users reached each day, and 235M+ average monthly installs. It also looks at 46M+ average monthly in-app purchases (IAPs) enabled by Unity. We take data privacy seriously and have omitted and anonymized information from this report that would individually identify any single game, developer, or game creator. Games are broken out into publicly available categories as defined on the iOS and Google Play stores where available. The data shown in the charts and graphics are original to Unity. © 2022 Unity Technologies — 17 unity.com