Game Development Reference
In-Depth Information
However, because advertisers are charged by impressions or click-throughs
rather than installs, this approach can end up being an expensive way to
acquire users.
When it comes to attracting and retaining users, one Facebook install ad
is about as effective as three banner ads, which is about as effective as thirty
incentivized ad installs from an offer wall or similar.
7.5 Advertising Efficiently
In Chapter 5, we briefly mentioned a few important values you should use to
measure the efficiency of your chosen advertising mechanisms. Let's refresh:
CTR: Click-Through Rate
The number of people who click on an ad, divided by the number of people
who see it. For example, if 100,000 people see an advertisement, and 400 of
them click on it, the ad has a CTR of 0.4 percent. By understanding the relative
CTR of different ads, developers and publishers can increase the efficiency of
their marketing. Because the cost for an ad is fixed (based on a bidding pro-
cess with Facebook), it's important to carefully study the CTR of a potential ad
before “going wide” with it and to make sure the ad you choose has the best
CTR possible. Typical Facebook advertisements are reported as having CTRs of
between 0.04 percent and 0.14 percent.
CVR: Conversion Rate
How many of those who try your product actually take the next step and buy
it? For example, if 400 people click on an ad for your game and get as far as the
install screen, but only 20 end up installing the game, then your CVR is 5 per-
cent. Although it may seem counterintuitive that anyone would click on an ad
for an installer and not follow through with the install, experience tells us this
is often—if not usually—the case. (Why would they have clicked on the ad if
they weren't interested?) In fact, only about 50 percent of the people who click
on an ad end up following through with the install.
CPI: Cost per Install
A measure of the total marketing cost divided by the number of total installs.
For example, if you bought 10 million impressions at $1 each, and 2 million
people installed the game, then your total advertising cost would be $10 mil-
lion, and your CPI would be $5.
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