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harprasad

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Reply with quote  #1 
What is your average CPI . How much should one spend on advertisements ? Is chartboost worth it ?
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plicatibu

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Reply with quote  #2 
The CPI may either be a variable or fixed value. It depends upon the kind of campaign you're running.

I don't recommend you run campaigns like pay per view. Usually you will expend a lot of money for each install.

I'd prefer a pay per install campaign where I'm able to set a fixed amount to pay per install. In this case you will know the CPI upfront.

Also, take care about ad providers where they can adjust the CPI (some have an option to optimize you campaign for installs - it means they will rise the value as much as needed in order to give you priority).


IMHO you should first determine what is the expected revenue each user will provide you prior to invest in paid advertisement.

For instance, let's say that, in average, your users use your app for 3 months and then they uninstall it.

Also, let's assume that these users will generate (again - an average value) $0.03 each one (include all type of revenues - ads, in-app- purchases, donations, etc).

From this value you will know for sure that you cannot expend more that $0.03/install, otherwise you're loosing money. Even if it the CPI were equals to ARPU (average revenue per user) it's not a good idea to expend in advertisement. Chances are you will not even break even because something may happen and your ARPU may get below the calculated value (it's an estimation after all).

And don't be fooled by the idea that to buy installs from poor countries (Tier 3) is better than buying installs from the rich ones (Tier 1) because you will get much more downloads.

Indeed it's true that for the same amount of money you can buy much more installs from poor countries than the rich ones (some times you can get 10x more installs). But the value you will earn from users of these poor countries is much less the value paid for users from rich countries.

For instance, compare the RPM paid for ads shown to users from USA as the RPM paid when users are from Brazil (my country), from China or from Thailand.


Do these maths and only after that put you money on table.

And from my experience, one should not expend money buying installs for apps and games whose revenue is solely based on advertisement.

One never gets his/her money back. Never ever.

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Grumpy

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Reply with quote  #3 
I'd echo what pilcatibu says. For iOS, at least, to get any decent organic growth from advertising you need to get into the overall leaderboards (top 150). To do this you need 10,000s of installs on a single app store in a single day. If you were to try and do this on the US app store, you'd be looking at ~$20,000-$50,000? So unless you're willing to drop that kind of cash (and if you are, do your research well), assume you won't get much organic uplift - assume 1 paid install = 1 download. (You might get a bit of organic uplift, but you probably won't).

Therefore the amount you spend on CPI should be lower than your ARPU. Everything plicatibu says about countries is spot on. It's also worth noting that when you're calculating your ARPU to work out what countries make up your current player-base, if you have lots of low tier countries than your ARPU may be higher if you start advertising in the USA. How much higher, obviously, is something that won't be immediately clear.

Personally I'd be very wary about advertising. I feel it's something that small companies and indies fail to do well. Big companies will have people working for them who spend all their days working this stuff out, cutting deals with ad companies and meticulously improving their game's ARPU by delving carefully into its stats and finding weak points. This isn't something most of us have the time to do, and as we're competing against companies who can, you're at a massive disadvantage. 

I've not had any really good experience advertising (and I've tried a few times, and spent a bit of money on it).
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