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182% ROI Case Study

In this case study post I will show you exactly how in 30 days, $483.04 was turned into $1368.83 which came out to a 182.79% ROI

Let’s start out by just confirming what 182% ROI (Return on Investment) is…

You put up X amount (the investment) and use that cash to make a return. Pretty Simple right? Sure is.

Easy to get the 182% ROI? Not so much.  If it is, email me so we can work together :)

Now let’s see what it looks like at a few different levels in terms of an upfront investment and your return using 180% percent for easier math.

  • At $100 investment = 180% ROI = $280 Revenue Generated.
    • So $280 Rev – $100 Invest = $180 Profit!
  • At $500 investment = 180% ROI = $1,400 Revenue Generated.
    • So $1,400 Rev – $500 Invest = $900 Profit!
  • At $1,000 investment = 180% ROI = $2,800 Revenue Generated.
    • So $2,800 Rev – $1,000 Invest = $1,800 Profit!
  • At $10,000 investment = 180% ROI = $28,000 Revenue Generated. So $28,000 Rev – $10,000 Invest = $18,000 Profit!

So now that you have some examples you might be wondering what the investment is for, how the revenue is generated, and where the profit comes from. Let’s jump in and I’ll explain how in 30 days $483.04 was turned into $1368.83 which came out to a 182.79% ROI.

  1. The Investment was: Facebook Mobile Install Ads to game
  2. The Return was Ad revenue generated in this game using video ads
  3. The Profit was the difference of ad spend and ad revenue

 

1.) Here was the Facebook ad campaign the was acquiring users at $.94:

(this campaign was at $.67 for a long time until we started going after more high value users)6

 

2.) Here was the revenue generated:77

 

3.) Here is the ROI screen shot:88

 

A few things to note.

  • $.94 installs for a game are not crazy cheap, but they were for a casino game which is earning more than $.94 per app install. Specifically, earning $2.64 per app install.
  • Look at the math in #’s 1 & 2.  The paid app installs campaign for one game in 30 days resulted in 517 installs. The revenue was $1368.83.  So if you take $1368.83 / 517 = $2.64 ARPU (Average Revenue Per User)
  • The Organic downloads improve with the more paid installs driven so organic downloads are not counted because they basically stop when paid traffic (installs) are not driven.
  • Let me confirm. When no paid traffic is being sent to the app page (with Facebook ads) the organic downloads almost disappear. When paid traffic is ramped up, organic downloads go up which are treated as bonus installs. These are most likely achieved with social sharing of the ad and temporary boosted rankings.

 

What does this mean?

  • Any Installs that can be driven for less than the Average Revenue Per User (ARPU) is profit.
  • The ARPU is very high compared to other games.
  • Downloads and Revenue are a result you can control by your ad spend instead of just hoping for downloads
  • If acquisition cost per install is lowered then the profits would increase dramatically

 

Case Study Details: 

  • Who: Todd Smith (Me)
  • Why: We use our own products. This game is based off our multi theme casino game, Mega Jackpot Slots
  • When:  Data Sample taken 12-26-17 to 01-26-17

 

Products / Services Used:

 

Summary:

  • This month we are on track to bump up our ad spend to $1500-$2000 and keep profits consistent.
  • I’d like to get to the $10,000 a month level in ad spend soon. Hopefully it looks something like:
    • At $10,000 investment = 180% ROI = $28,000 Revenue Generated. So $28,000 Rev – $10,000 Invest = $18,000 Profit!
  • Remember that I started at less than $100 per month in ad spend and then worked up to $500 and so on. It didn’t / doesn’t happen over night and that’s a good thing. You learn as you go and if you didn’t then things would get ugly pretty quick. Unless someone (me) can show you how it’s done.

 

The Multiplier:

  • It starts to get fun when you take profits from a previous month and apply that new *increased ad spend budget (created from your profits) and leverage it for more.
  • So instead of using $10,000 in ad spend, now I can use $18,000. With that $18,000 @ 182% ROI = $50,775 Rev – $18,000 ad spend = $32,775 Profit. Then the next month you take that and so on..
  • Of course you will need some money to cover the start up and bridge the gap of payouts, but remember, I started with less than $100 per month in ad spend.  So if you can do that, then you can start up.

 

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