Monday, December 8, 2008

In game advertisment - more details

After you finished marketing the game , and thousands of people play your game each day, how much money will you get from advertising?

There are common measurements for advertisement pay.
  • CPC - how much money will you get per ad click (not view , but the rare actual click). This is less used.
  • eCPM - how much money will you get for 1000 ad-views. This number mainly depends on your target-audience. As lots of publishers want to advertise to the US market , the eCPM for US target will be relatively high, however if most of your target audience is in a remote village in Africa , there are good chances that no one will want to advertise to them and thus the eCPM value will be zero.
    So , what eCPM can you reach? gamesjacket will guarantee a minimum of 0.5$ , which is quite high. Mochiads will not give you a guarantee. It can be a bit more than that , but also a lot less (In the middle-east its around 0.11$)
To give real numbers , lets finish with an example: Lets say your game is quite nice and had one million ad views. With 0.5$ eCPM it means 500$. With 0.1$ eCPM it means 100$.
Pocket money , at best.
Very good games (the "blockbusters") can be played tens of millions of times ( by a million or so unique players) and thus can reach thousands of dollars. But thats really blockbuster games. One example is "Desktop tower defense" which reached a 9 million games per-month for the first few months. But even these numbers will only give you 4500$ a month with a small game life-span.
There are few blockbusters that had even a bigger user base , but the numbers are not substaintly higher than the desktop-tower-defense example.

The obvious conclusion from these numbers is that in-game advertisement is only suitable for very small budget games , typically a week to a month overall development time.
Sponsership can add few hundered dollars on top of this , but the real money comes from a completely different monetizing solution. Instead of "play-for-free" solution , there is the unoriginal, old fashioned model of play a demo for free and buy the full game for 9.99$.

Lets assume, on average , the user plays the game 10 times (this means s/he load the flash game 10 times , no matter how much game-over/new-game sessions there are in each game load).
1000 views = 100 unique-players = 0.5$ of advertisment (with high eCPM).
  • 100 players * BuyPercent * 10$ = 0.5$
  • BuyPercent = 0.5 / (10*100) = 0.0005 (*100 for percentage) = 0.05%
This means that if 0.05% of the players will buy the game , you will get the same money as in advertisment.
But if 1% of the players will but it , you will get 20 times more.
For one million views (100,000 unique players) , this difference can be between 500$ to 10,000$. For a blockbuster , this number can be ten-folds high.

Note that I don`t know what is the percentage of players which eventually buy the game , but big companies like oberon-media successfully use this model , so it probably closeer to the 1% than to the 0.05%

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