Wood Nuts & Bolts Puzzle achieved sustainable growth with a hybrid monetization strategy

ABI Studio leveraged AppLovin’s holistic growth suite to seamlessly transition their puzzle app from ad-monetized to ads-plus-IAPs — and quickly topped the charts as a result.

Category

Gaming

Marketing Objective

User Acquisition

Wood Nuts & Bolts Puzzle

ABI Studio

Background

ABI Game Studio, a subsidiary of Onesoft, is a leading game publisher with over 150 titles on Google Play and the App Store — several of which have ranked #1 in the US.

Location

Hanoi, Vietnam

Company Size

100+

Founded

2010

Wood Nuts & Bolts Puzzle

ABI Studio

The Challenge

Diversifying Wood Nuts & Bolts Puzzle’s revenue streams with IAPs

ABI Studio’s game app, “Wood Nuts & Bolts Puzzle,” became popular shortly after being released. With this success came a wave of similar apps — threatening ABI Studio’s ability to scale the app, which relied on in-app ads for monetization. To help differentiate the app from competitors, ABI Studio analyzed user activity data to determine if a hybrid monetization model might be feasible.

From their experience publishing and scaling hybrid games, the ABI Studio team knew that user bases that frequently engage with rewarded videos are more likely to make in-app purchases. This means that rewarded impressions per daily active user (IMPDAU) can be a key indicator of an app’s potential to succeed with hybrid monetization. They noticed that Wood Nuts & Bolts Puzzle’s rewarded video IMPDAU was above the threshold that indicated users would be likely to make in-app purchases.

Acting on this data, ABI Studio incorporated IAPs into the game, starting with the ability to play without interstitial ads for a period of time and expanding to more IAPs such as tickets that can be used to buy advantages in the game. To optimize their approach, ABI Studio tested strategies such as dynamic pricing based on engagement.

Now monetizing with IAPs and ads, ABI needed to implement a UA strategy that would enable them to scale multiple types of users — those who buy IAPs along with those who generate revenue through ads.

The Solution

ABI Studio uncovered valuable user segments with AppDiscovery by running multiple campaign types

ABI Studio’s UA strategy initially centered on an Ad ROAS campaign targeting users likely to generate ad revenue. After introducing IAPs in Wood Nuts & Bolts Puzzle, ABI Studio used AppDiscovery to test several campaign types to uncover new, complementary user segments.

They launched a Blended ROAS campaign targeting users who’d generate revenue either by making in-app purchases, engaging with ads, or both. In its second week, the campaign’s payer rate was already 7x that of the Ad ROAS campaign.1 The Blended ROAS campaign also improved overall ROAS, delivering 20% higher D7 ROAS compared to the Ad ROAS campaign.2 ABI Studio noticed a large increase in the ratio of in-app purchase revenue as well as an increase in growth rate, prompting them to shift more budget to the Blended ROAS campaign.

Next, they launched a Cost Per Event (CPE) campaign targeting users who would reach a certain level in the game. This campaign significantly improved retention — to more than double the rate of the Blended ROAS campaign and 4x that of the Ad ROAS campaign.3 They also launched an IAP ROAS campaign that delivered a payer rate more than 80x that of the Ad ROAS campaign, significantly boosting the number of users who make in-app purchases.4

The Ad ROAS campaign, meanwhile, continued to deliver substantial scale and the highest initial ROAS of ABI Studio’s campaigns — 19% higher D0 ROAS than their other campaigns.5

To inform their AppDiscovery campaigns’ goals, ABI Studio leveraged MAX features such as the Cohort Report to analyze retention rates and revenue per install. This ensured they were setting ambitious, achievable goals that would guide AppDiscovery’s AI in optimizing for maximum returns. ABI Studio partnered closely with their AppLovin growth expert to monitor performance and optimize their UA budget allocation across campaigns.

The Results

Wood Nuts & Bolts Puzzle rocketed up the charts while improving retention and ROAS

Results stats
ABI Studio’s Ad ROAS campaign delivered huge scale — more than 8x month over month8 — which helped propel Wood Nuts & Bolts Puzzle to the #1 Free Game spot on iOS.

Expanding beyond Ad ROAS campaigns to adopt a multi-campaign strategy helped ABI Studio sustain success for their hybrid casual app.

ABI Studio’s AppDiscovery campaigns delivered different subsets of users with complementary growth curves. The Ad ROAS campaign delivered the highest initial ROAS and matured soon after launching. The blended ROAS and IAP ROAS campaigns, meanwhile, showed the fastest and most sustained growth, leading ABI Studio to invest more in them.

Compared to before the multi-campaign strategy was implemented, D7 retention improved 32% and D30 payer rate improved 25%.

In Summary

Skyrocketed up the charts quickly

With AppDiscovery as its primary UA source — accounting for more than half the app’s install volume — Wood Nuts & Bolts Puzzle became the #1 Free Game in the App Store.

Achieved holistic growth with a multi-campaign strategy

ABI Studio leveraged a mix of campaign types to acquire complementary subsets of users to improve overall retention, ROAS, and unique purchasers.

AppLovin is one of our key sources for acquiring high-value paying users.

Our partnership with AppLovin has accelerated ABI’s growth, thanks to their campaigns’ ability to target high-quality users. We are particularly impressed with the performance of our blended ROAS and day-7 ad ROAS campaigns, which have helped us scale and maximize our UA budget.

Cuong Pham
Chief Marketing Officer

1AppLovin: iOS, Mar 25–31, 2024
2AppLovin: iOS, May 6–12, 2024
3 AppLovin: iOS, Mar 25–31, 2024
4AppLovin: iOS, Mar 25–31, 2024
5AppLovin: iOS, April 2024
6Sensor Tower: iOS Free Games ranking, Feb 2, 2024
7AppLovin: iOS, Jan 2024 to May 2024
8AppLovin: iOS, Dec 2023 to Jan 2024

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