Credit Line

Until ad networks raise their game and figure out how to use the financial information widely available to them to evaluate credit risk in a much more dynamic way, structural inefficiencies in the ecosystem will continue to persist. This hurts not only their own ads business, but also curtails the growth of app and game publishers and their ability to maximize the opportunities available to them using paid UA channels.

When it comes to user acquisition (UA) — and any digital marketing for that matter — Facebook is indispensable. The social media giant is one half of the duopoly. Paired with Google, eMarketer estimates that Facebook will remain dominant in the UK digital advertising market,” with a forecasted share of 63.4% compared to 62.7% last year.” Facebook rules the UA roost, but app and game developers regularly max out their credit lines with Facebook. Why? Because when you find something that works, you stick with it. 

In our interview with Steve Hovagimyan, CFO of Penn Interactive and Jump Ramp Games, he shares how to calculate ROAS and what a CFO wants to see, how to finance an effective UA campaign and finally what metrics you should hit before hiring a CFO.

In the early days, app and game developers rely on their credit cards for advertising spend to acquire users. As they start to grow and scale, they can become eligible for lines of credit from the large ad networks like Facebook and Google.