Empire & Puzzles: 260.3% Conversion Rate Growth with AppLovin Playable Ads

Introduction

Empire & Puzzles is a popular mobile game that uniquely combines the match-3 puzzle genre with RPG elements, strategy, and hero collection. With millions of players worldwide, the game offers engaging gameplay and deep content. Despite its success, the team faced several marketing challenges in the competitive mobile gaming market.

The Challenge

Empire & Puzzles approached us with a specific problem: their advertising campaigns on Applovin Ads were not delivering the desired results. Despite successfully attracting users through other channels (Instagram Native – 42.68% of traffic, Facebook Native – 34.09%), the share from Applovin Ads was less than 1% of the total traffic, and the results on this platform were unsatisfactory.

Key Issues on Applovin Ads:

1. Low Performance Metrics:

2. Problem: The metrics on Applovin Ads were significantly below industry averages, indicating low effectiveness of advertising campaigns on this platform. A low CTR meant that the ads were not attracting users' attention, a low CVR indicated that those who clicked rarely installed the app, and a low IPM showed that the total number of installs per 1,000 impressions was insufficient.
3. High CPI on Applovin Ads:

• CPI (Cost Per Install): $3.20 (which is 9.2% higher than the average on other channels and 20.8% higher than the industry average CPI of $2.65).
• Average CPI on other channels: $2.93

4. Problem: The high cost of user acquisition made investments in Applovin Ads inefficient and reduced the profitability of marketing expenses.
5. Low Quality of Acquired Audience from Applovin Ads:

• D1 Retention (Day 1 Retention): 20% (versus 27% on average from other channels and a goal of 35%)
• ARPU (Average Revenue Per User) over 7 days: $0.35 (versus $0.42 on other platforms and a goal of $0.60)

6. Problem: Users acquired through Applovin Ads were not only expensive but also less valuable, as they were less likely to return to the game and generated less revenue.

Causes of the Problems:

• Use of Standard Advertising Formats: The client used regular banners and video ads, which did not highlight the unique features of the game and failed to attract the audience's attention on Applovin Ads, where interactive formats are more effective.
• Non-Optimized Settings within Applovin Ads DSP: Lack of precise targeting and personalization led to ads being shown to an unsuitable audience, reducing the effectiveness of campaigns.
• High Competition on the Platform: Without an innovative approach and the use of advanced advertising tools, the game was lost among many other offerings.

Strategic Solution

To address these challenges, we proposed a focused strategy specifically targeting Applovin Ads:

1. Implementation of Interactive Playable Ads on the Applovin Ads Platform.
2. Optimization of Internal Settings within Applovin DSP to Improve Ad Quality and Targeting.

Why Choose AppLovin Playable Ads?

• Interactivity: Allows users to experience gameplay before installing, increasing engagement and pre-qualifying leads.
• High Engagement: Market data indicates that Playable Ads can boost CTR by 45% and conversion rates by 32%.
• Differentiation: Interactive creatives highlight the game's uniqueness, attracting a higher quality audience.

Developing the Creative Strategy

We developed two main interactive creatives:

1. "Dragon Battle" Playable Ad

• Objective: Instantly grab attention and showcase thrilling gameplay.
• Structure:
  • 0-3 seconds: Dramatic dragon appearance to create surprise.
  • 4-10 seconds: Tutorial of the match-3 mechanic, allowing user interaction.
  • 11-15 seconds: Victory and reward scene to evoke satisfaction.
• Results:
  • Reduced bounce rate by 42%.
  • 68% of users completed the tutorial.
  • Achieved a 15.2% conversion to install.

2. "Heroes Squad" Playable Ad

• Objective: Highlight hero collection depth and strategic elements.
• Structure:
  • 0-4 seconds: Presentation of unique heroes and abilities.
  • 5-15 seconds: Demonstration of combat system and hero interactions.
  • 16-20 seconds: Showcase of progression and character upgrades.
• Results:
  • Increased user interest by 55%.
  • Achieved a 72% completion rate.
  • Reached a 17.8% conversion to install.

Interactive creatives were integrated into the case study, allowing readers to see how they engage users and contribute to results.

Campaign Results

Improved Key Performance Metrics

Enhanced Quality of Acquired Users

Increased ROI (Return on Investment)

Analysis of Success and Scaling

Key Success Factors

1. DSP Integration:
   • Expanded Reach: By connecting to various ad exchanges, we attracted new audiences.
   • Precise Targeting: Leveraged user behavior data to deliver ads to the most relevant segments.
   • Cost Optimization: Automated ad purchasing via DSP reduced user acquisition costs.
2. Interactive Creatives:
   • Higher Engagement: The Playable Ads format drew more attention and stimulated interaction.
   • Pre-Qualified Audience: Users who experienced the game before installing were more likely to remain active and monetize.
   • Showcased Game Uniqueness: Creatives highlighted key features, helping to stand out among competitors.
3. Technical Optimization:
   • Faster Loading Times: Reduced ad load times decreased bounce rates.
   • Optimized File Sizes: Reached users with varying internet speeds.
   • Increased Frame Rates: Improved visual appeal and overall ad impression.

Scaling the Success

• Geographic Expansion:
  • United States: Deepened audience segmentation using DSP for further install growth.
  • Europe and Asia: Adapted creatives and targeting to local nuances, expecting a 35-50% increase in installs.
• Developing New Formats:
  • Video and Rich Media: Leveraged new ad formats via DSP to enhance engagement.
  • Cross-Platform Campaigns: Extended to other devices and platforms to broaden reach.

Recommendations and Next Steps

Short-Term Actions

1. Enhance DSP Utilization:
   • Analysis and Optimization: Continuous monitoring of metrics and real-time strategy adjustments.
   • Expand Partnerships: Connect with new ad exchanges and networks to increase reach.
   • Personalize Creatives: Use DSP data to create more relevant and personalized ad messages.
2. Continue Developing Interactive Creatives:
   • Create New Scenarios: Develop additional Playable Ads highlighting different game aspects.
   • Test and Optimize: Conduct A/B testing of creatives to boost effectiveness.
3. Technical Improvements:
   • Integrate Analytics: Deeply analyze user behavior post-ad interaction.
   • Enhance User Experience: Further optimize ad speed and quality.

Long-Term Strategy

1. Innovate with DSP:
   • Implement Artificial Intelligence: Use AI for predictive analytics and campaign optimization.
   • Leverage First- and Third-Party Data: Integrate additional data sources to improve targeting and personalization.
2. Expand to New Markets:
   • Localization and Cultural Adaptation: Use DSP capabilities to target new regions, considering local specifics.
   • Collaborate with Local Platforms: Integrate with regional ad networks via DSP.

Conclusion

By implementing Playable Ads on the AppLovin Ads platform and leveraging our expertise in DSP, we significantly improved the marketing performance of Empire & Puzzles. We reduced user acquisition costs, increased campaign efficiency, and attracted higher-quality users, leading to increased revenue and ROI.

Key Achievements:

• Reduced CPI by 43.7% through optimized ad buying via DSP and interactive creatives.
• Improved Key Performance Metrics (CTR, CVR, IPM), surpassing industry averages.
• Enhanced Retention and Monetization, positively impacting LTV and overall profitability.
• Expanded Reach and Improved Targeting using DSP, strengthening the game's market position.

Takeaways:

• Integrating Advanced Technologies (DSP and Playable Ads) into marketing strategy is crucial for success in a competitive environment.
• Personalization and Precise Targeting via DSP increase campaign effectiveness and improve the quality of acquired users.
• Continuous Optimization and Innovation are necessary to maintain and enhance achieved results.