PeopleFun uses Firebase to boost monetization and LTV
US-based developer PeopleFun is one of the top creators of casual mobile games, including titles like Wordstacks, Word Chums, and Wordscapes — the #1 word game on iOS and Android. Founded in 2011, PeopleFun reaches more than 29M monthly active users across 236 countries.
With 4.5M daily active users, Wordscapes is one of PeopleFun's most successful games. That's why the team wanted to make sure they were making the most of their monetization strategy, which included a combination of ads and in-app purchases.
The game is predominantly ad-monetized, but PeopleFun knew that serving rewarded ads to everyone might discourage some users from making future in-app purchases. To optimize their strategy for the highest lifetime value (LTV) and avoid cannibalization, they needed a way to serve rewarded ads only to those players who were unlikely to make an in-app purchase in the next seven days.
Having previously used Firebase solutions like Crashlytics, the team turned to Firebase Predictions to optimize their monetization with the right balance of ads and in-app purchases. PeopleFun used Predictions to create user segments based on predicted behavior and identify users who weren't likely to make an in-app purchase in the next seven days. Those users were shown more rewarded video ads, while the users likely to make a purchase were not.
Their strategy worked. Using Firebase Predictions, PeopleFun was able to boost their overall monetization and increased the lifetime value of Wordscapes players by +5% on iOS and +1% on Android. Bolstered by their success, PeopleFun plans to roll out the same strategy across their entire portfolio of games.
5% - increase in LTV on iOS
1% - increase in LTV on Android
"We are constantly walking a tightrope to find the right balance between IAP initiatives and ad monetization initiatives to generate the highest total LTV. Firebase Predictions helped us find the right balance by letting us offer our non-payers more rewarded video opportunities without hurting our monetization."
- Carol Miu, Chief Product and Analytics Officer, PeopleFun