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How to Set Your Currency Conversion Ratio

Posted on
September 7, 2023
  •  
By
Michael Lundberg

When onboarding an offerwall, setting your currency conversion ratio for the first time is key to maximizing your revenue and keeping your economy stable. Once your offerwall is live, testing different ratios and tracking incremental uplift will help ensure your ratio is profitable.

Publishers often face the challenge of determining an optimal currency conversion ratio. By establishing a fair and consistent ratio on all monetization streams, publishers can increase their revenue and user satisfaction. If you’re looking to establish your currency conversion ratio, keep reading for key considerations and the best methods to keep your game economy stable. 

What is a currency conversion ratio?

The currency conversion ratio is the amount of your hard currency that a user receives for completing an offer. In RevU's platform, you set this rate by defining the amount of in-game currency offered per $1 of revenue that the user’s action earned.

Establishing the value of a single unit of currency

When setting your currency conversion ratio, it’s important to ensure that a single unit of your hard currency holds the same value regardless of origin. The goal is for your currency to maintain consistent value to level the playing field, foster user trust, and maximize your potential earnings. 

If you’re just starting out, you can begin by looking at user purchase behavior in the in-app purchase (IAP) store. While looking at the gems per dollar of your $1 package might seem correct, most offers on RevU pay well over $1. You can use a weighted average to determine the overall currency ratio for your IAP economy which will keep your economy aligned if mirrored on your offerwall.

Cost Gems Purchases per Month Gems per Dollar
$1 100 5000 100
$5 600 3000 120
$10 1400 2500 140
$20 3200 1800 160
Totals Gems Sold: 11,560,000 Gross Revenue: $81,000 Avg Gem/Dollar: 143

Looking at this example of IAP sales, you can see that using the weighted average of gems per dollar is higher than what the $1 pack offers and the offer payout will be undervalued if the overall sales history isn’t accounted for.

Setting a currency ratio for your offerwall 

Many publishers will simply use the IAP store currency ratio as their conversion ratio across the board. However, to maximize engagement, it is beneficial to set a higher conversion ratio for your offerwall. The in-app stores charge up to 30% in fees so that for every dollar a user spends, the publisher only receives 70 cents. When setting up an offerwall, the publisher retains the full value of a dollar in relation to the currency conversion rate setting. In the scenario above, if $1 equals 143 gems in the IAP store, the equivalent value of your currency on your offerwall would be approximately 204 gems when accounting for store fees. 

A higher currency ratio on the offerwall encourages players to engage more frequently and drives interest in higher-paying offers. Consequently, this increased engagement benefits the publisher’s earnings and user retention. Importantly, by increasing the conversion ratio to match IAP net of fees, publishers do not disrupt the in-game economy, as the rates are still aligned with the IAP ratio.

Getting paid more quickly 

Another factor to consider is payout timing, which is typically more favorable for RevU publishers. Different monetization channels have varying payout periods. For instance, the app store usually pays on a Net 45 basis and many ad networks pay on a Net 60 basis, while RevU operates on a Net 30 basis. Increasing your currency ratio on RevU’s offerwall can help shift revenue towards offers and alleviate cash flow issues caused by longer payment terms.

Continual testing and optimization

It’s highly recommended that you continually review your economy and test changes to the conversion rate. By analyzing the effects of currency ratio changes, you can gain valuable insights into their revenue impact and evaluate the overall economy. Continual testing is key to finding the ideal conversion rates that balance user expectations, revenue goals, and long-term engagement. Create multiple walls on RevU and A/B test settings!

Commonly asked questions:

Can I align the currency ratio across different geos?

Yes, the currency conversion ratio is based on USD, but with RevU’s platform, you can set the ratio separately per geo or geo tier. If your currency value varies based on the player’s local currency, you can adjust the ratio for your offerwall by geo, which will maximize the engagement rates and keep your in-game economy aligned globally.

Can I scale conversion rates with user progress? 

Certain gaming genres, such as social casino apps, implement a currency system that scales based on user progress through the game. For example, $1 may buy 1000 coins at Level 1, but by Level 100, $1 may buy 10,000 coins. This currency scaling gives the player a sense of accomplishment as they advance through the game. 

RevU enables currency ratios to scale as the player progresses through the game in order to maintain consistent purchasing power throughout the user's lifetime. This prevents the value of the currency from being diluted and offers a great incentive for players to continue playing. 

Conclusion

Setting currency conversion ratios is a critical aspect of app monetization that requires careful consideration. By analyzing user purchase behavior, adapting to local economies across the globe, and scaling rates with user progress, publishers can create a fair and engaging ecosystem that benefits both their revenue and user satisfaction.

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