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Need help with the 'free to play' model

Discussion in 'Unity Ads & User Acquisition' started by cephalo2, Apr 29, 2019.

  1. cephalo2

    cephalo2

    Joined:
    Feb 25, 2016
    Posts:
    263
    I'm switching over to a f2p model after failing at outright app selling. However, I'm finding there is an overwhelming amount of information that needs to be learned to make this work. Is there an active community out there somewhere that I could get involved in and learn from?

    Right off the bat I'm struggling with user acquisition costs. Even if I have to pay $0.01 per user, this might be too high to break even. I'm sure I'm doing this all wrong.
     
    cephalo2, Apr 29, 2019
    #1

  2. mikaisomaa

    mikaisomaa

    Unity Technologies

    Joined:
    Sep 14, 2015
    Posts:
    365
    Please take a look at our best practices -section, here: https://unityads.unity3d.com/help/resources/best-practices

    If you pay 0.01$ for a user who stays in the game for a month and watches 20 ads and buys a 1$ item at a chance of 1% - acquiring that user has paid off and it makes sense to keep paying at this rate.

    ROAS (return on advertiser spend) = user lifetime value / cost of acquiring user
    As long as ROAS is above 1 - you can keep spending in user acquisition since you keep getting your money back. Do note however that you need these:

    1) user retention
    2) users spending on IAP and/or watching ads

    Make sure that you have something that retains users. Then add funnels for your users to convert to IAP or view ads in appropriate placements. Then test this integration design (e.g. in a soft launch) to evaluate average LTV of your users. After you know the LTV - you know how much you can afford to bid for acquiring users.
     
    mikaisomaa, May 6, 2019
    #2