An ad buyer ran AppLovin next to six other channels for one client and shared every number. Here's what he found, and what it means for the ads you put inside a game.
12 moTo profit on AppLovin, against 2 to 3 on Facebook and Instagram
The scoreboard
AppLovin came in behind the big three, and still made money.
He used to think app traffic was junk too. Then he saw enough advertisers converting on it to stop excluding it on sight. His client, a student loan forgiveness service, is exactly the kind of offer that can pull someone out of a game.
ChannelROASConversionsROAS
Facebook and Instagram384 conversions412%
YouTube149 conversions391%
Google Display, no apps142 conversions292%
TikTok99 conversions194%
Snapchat52 conversions159%
AppLovin117 conversions118%
MNTN (connected TV)55 conversions93%
Google Display, apps only42 conversions55%
One month of data for one client, pulled from Google Analytics on a first-click basis. AppLovin had been running for 3 to 6 months at this point. Treat it as a case study, not a benchmark.
Before you buy
Decide if the channel fits you first.
AppLovin is the biggest mobile ad network, and it runs video inside game apps. That reach comes with a high entry price and a tough audience, so the first four lessons are about whether to go in at all.
01
Test cheap before you pay the minimum
AppLovin asks for $20,000 a month to start. Google Display Network can reach game apps with no minimum, so you can see whether that traffic converts for you first.
The fixPut game-app placements in their own Google Display campaign with a capped budget. Scale on AppLovin only if it converts.
02
Stop writing off app clicks as junk
Accidental taps happen more on phones, but as he puts it, you're not really paying for a click. You're really just paying for an impression. What counts is whether the people who see the ad engage and buy. The average mobile game player is 40.
The fixJudge the placement on conversions and ROAS, not on how many taps look accidental.
03
The offer has to beat the game
An ad that interrupts play mostly annoys people. It works for things they haven't seen before, like a toothbrush that brushes your teeth for you, products up to about $500, or a new service such as student loan forgiveness.
The fixIf your product wouldn't surprise someone mid-game, leave this channel for later.
04
Go in with margin to spare
AppLovin converts below the big platforms, so it pays when they already beat your break-even by a wide gap. His example: you need 500% ROAS to profit, and you're getting 800% on YouTube and 1,000% on Facebook.
The fixIf you're only just breaking even on your main channels, make those more efficient first.
The ad itself
Ask the ad for one thing.
A player can close your ad in a second. Once they've left the game, you finally have time to talk. These two lessons are about getting them there.
05
Keep it short and leave a question open
Ads that explained the new law behind loan forgiveness did worse than a simple line: you can get your loan forgiven, and others already have. The vague version made people want to find out more.
The fixMake the click the ad's only job. Do the explaining on the page it lands on.
06
Remarket on every network you can
Retargeting people who already visited is quite hard to not make money on, even inside apps where cold traffic is weaker. Most buyers need several touches before they buy.
The fixPut warm audiences in front of more ads before you chase new reach. Frequency beats reach.
What this means for your creative
“Once you got them off of the app, away from playing the game, now you have time to communicate with them.”
Guaranteed PPC
Most of these lessons land on the creative. The ad gets a player to tap, and the page they land on does the explaining. That's why we build the ad, the end card, and the landing page as one connected test, then improve it from purchase data.
In his words, 90% of the results come from feeding data into the system. The last four lessons are about measuring honestly while it learns.
07Walk the ROAS target upAppLovin lets you set a ROAS target, but set it too high and you get no impressions. Start at 50%, then move to 100% and 150% as the algorithm learns what works.The fixPlan for 6 to 12 months to reach the target you actually want.
08Expect the first months to lose moneyHis AppLovin ROAS was about 20% in month one and 118% three to six months in. Facebook and Instagram turned profitable in 2 to 3 months. AppLovin took about 12.The fixSpend only what you could keep spending for a year if nothing sold.
09Compare channels on the same rulerEvery platform takes credit for sales another one drove. He pulled all of these numbers from Google Analytics on a first-click basis, so no sale was counted twice.The fixPick one neutral source of truth before you move budget between channels.
10Don't let one channel carry the businessIf more than 30% of your revenue is coming from one source, you're in a really precarious situation. One suspension can stop everything overnight. His goal is five or six channels, some on a maintenance budget.The fixAdd channels one at a time as each one plateaus, and keep the weaker ones ticking over.
Want in-game ads that earn the tap?
Book a call and name three rivals. We'll read your live ads against theirs: what you all say, who's on screen, and what's lasting.