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#FactOrFiction: Users Acquired Through Video Ads Deliver Higher LTV Than Other Ad Formats

Posted on December 26, 2014
By Aksha Kini

In our #FactOrFiction weekly blog series, we’ll take a prevalent assumption in the mobile gaming world, and separate fact from fiction, with insights from data. Got a myth that needs some busting? Tweet it to us or post it on our Facebook page and we’ll have our experts look at it!

THE ASSUMPTION:

Users acquired through video ads deliver higher Lifetime Value(LTV) than other ad formats

Nothing showcases your game’s features better than a video trailer. Just like movie trailers are popular with movie buffs, your game’s trailer does the job of showing off your game’s features, characters, sounds and graphics, leaving your users in anticipation. This sets in a belief that video ads drive more engaged users, that end up spending a lot of time, and even money, on your app. In other words, video ads are expected to deliver higher quality users as compared to other ad formats like static interstitials. But is this hypothesis a right one to make? Let’s find out!

THE EXPERIMENT:

Advertisers define LTV in broadly two dimensions- retention and purchase. Retention is measured in terms of levels cleared or how active the player is. Purchase, on the other hand, is a measure of the number and the amount of purchases a user makes in the app, and applies to apps that offer in-app purchases.

We took multiple advertisers on our network, and analyzed the LTV on these two dimensions for each one of them. To understand the numbers in depth, we’ll share data for two of the most popular apps on our network. The overall result is the extrapolation of the same.

App A- A highly popular strategy game measuring retention rate

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For a popular strategy game, we saw a 13% increment in the retention rate of users driven by video ads, as compared to other high performing ad formats on the network.

App B- A popular farm building game measuring purchase value

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Video ads generated  60% more revenue than users driven by other ad formats, consistently over a month.

FACT OR FICTION?

Do we need to say? Video Ads is the clear winner when it comes to LTV. Not only does it perform better as an ad format, but the users delivered end up being loyal, are more engaged, and are more likely to spend on your app.

Need an ad format that delivers on your ROI expectation like no other? Try video ads.

Fill the form, and one of our mobile experts in your region will get in touch with you shortly.



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