Mastering AEO mobile games strategies is the definitive solution for developers facing high churn rates and low monetization in 2026. By leveraging App Event Optimization (AEO) on TikTok, you can bypass low-quality installs to target dedicated players likely to purchase or level up, driving a potential ROAS uplift up to 300% in optimized cases. In this blog post, we break down the mechanics of AEO, a step-by-step setup guide, and advanced tactics to maximize user quality for your game.
Quick Summary:
- App Event Optimization is the essential strategy for 2026 Hybrid Casual games to filter high-value users amidst market saturation and privacy constraints.
- A robust technical foundation with MMP integration enables the algorithm to balance between shallow events for learning and deep events for profitability.
- Understanding the distinction between AEO for user frequency and VBO for purchase value is critical for maximizing ROAS at different growth stages.
- Scaling requires a combination of authentic raw gameplay creatives and automated solutions like Smart+ campaigns to unlock profitable new audiences.
What is App Event Optimization (AEO)?
App Event Optimization (AEO) for mobile games is a specialized acquisition strategy that prioritizes user quality over quantity. Instead of simply chasing downloads, it focuses on identifying and targeting players who are statistically likely to complete specific post-install actions, such as finishing a tutorial or purchasing an in-game item.
Building on this core concept, TikTok AEO is a performance-based bidding strategy designed to deliver ads to these high-value users within the TikTok ecosystem, optimizing for actions beyond just the initial install.
To understand the mechanics, we must look at TikTok’s O-CPM (Optimized Cost Per Mille) algorithm. Unlike standard install campaigns, this system leverages machine learning to analyze thousands of real-time signals, such as video watch time and past conversion behaviors. It calculates the precise probability of a user performing your chosen event (e.g., Level Achieved) and dynamically adjusts the bid, ensuring your budget targets high-intent players rather than just casual downloaders.
Consequently, for AEO mobile games campaigns to function effectively, they require a seamless flow of data between the app and the ad network. This is typically managed through a Mobile Measurement Partner (MMP) or the TikTok Pixel, which feeds event data back to TikTok, allowing the algorithm to learn and refine its targeting in real-time.
Comparing AEO and Value-Based Optimization (VBO)
While AEO excels at finding users who perform specific actions, Value-Based Optimization (VBO) goes a step further by targeting users likely to generate the highest Return on Ad Spend (ROAS).
The table below outlines the key differences:
| Feature | App Event Optimization (AEO) | Value-Based Optimization (VBO) |
| Optimization Goal | Maximize the number of specific events (e.g., Purchases). | Maximize the total value of events (e.g., Gross Revenue). |
| Target Audience | Users are likely to make any purchase, regardless of amount. | High-value users predicted to spend significantly. |
| Best For | Hybrid-casual games or apps building a base of paying users. | Mid-core/Hard-core games maximizing ROAS from high spenders. |
| Data Requirement | Requires ~50 unique events per week to stabilize. | Requires significant historical purchase value data to predict LTV. |
| Cost Strategy | Cost Cap (CPA) or Lowest Cost. | Minimum ROAS (Min. ROAS) or Highest Value. |
Specifically, AEO is often the stepping stone to VBO. At Mega Digital, we recommend a phased approach: start with AEO to build a solid volume of paying users and feed data to the pixel.
Once your account has accumulated enough purchase value history, transition to VBO to specifically hunt for high-LTV players who drive the majority of your revenue.
How to Set Up AEO Campaigns for Mobile Games on TikTok
This below the way to set up AEO Campaigns for Mobile Games on TikTok detail:
- Integrate your MMP: Ensure your Mobile Measurement Partner (such as AppsFlyer, Adjust, or Singular) is correctly linked to your TikTok For Business account.
- Verify the Data Pipeline: Confirm that event data is successfully flowing from your app to TikTok via the TikTok Pixel or MMP Postbacks.
- Access Ads Manager: Once the connection is verified, proceed to the TikTok Ads Manager to begin campaign creation.
Selecting the Right Optimization Events
Choosing the correct trigger from the list of AEO key events for mobile games is crucial. If you choose an event that is too deep (e.g., Purchase $100 Package), the algorithm may not receive enough signals to learn. Conversely, if the event is too shallow (e.g., Open App), the user quality may not improve.
Below is a breakdown of specific event types to guide your strategy:
| Event Type | Keyword Intent & Strategy | Best For |
| AEO Registration Event | Targets users likely to create an account immediately after install. | Games requiring login (MMORPGs) or apps building a verified user base. |
| AEO Tutorial Complete | Targets players who engage enough to finish the onboarding process. | New games need to filter out “accidental installs” and ensure basic engagement. |
| AEO Level Complete | Targets users who reach a specific milestone (e.g., Level 5, Level 10). | Hybrid-casual games focused on retention and ad revenue (IAA). |
| AEO Add to Cart App | Targets users who show purchase intent (e.g., clicking on a Gem Pack) but haven’t paid yet. | Mid-core games optimizing the mid-funnel before pushing for hard purchases. |
| AEO Purchase Event | The gold standard. Targets users statistically predicted to spend real money. | Mature games optimizing for ROAS and LTV. |
Bidding Strategies for AEO Success
There are two bidding strategies for AEO: Cost Cap, which controls efficiency, and Lowest Cost, which maximizes volume within budget.
- Lowest Cost: TikTok aims to get the maximum number of event completions for your budget. This is ideal for the Discovery Phase when you don’t yet know the average Cost Per Action (CPA).
- Cost Cap: You set a specific bid (e.g., willing to pay $5 per Purchase). TikTok will try to keep the average CPA below this amount. This is crucial for maintaining profitability but can limit delivery if the bid is too low.
Ideally, developers should start with Lowest Cost to establish a baseline CPA. Once consistent data is gathered, usually after 50 conversion events, switch to Cost Cap to tighten control over ROAS.
Best Practices for AEO Creatives on TikTok
The three most effective creative categories for AEO mobile games are Gameplay-focused videos, UGC-style testimonials, and Skit-based narratives.
Showcase Authentic Gameplay
Show, don’t just tell. If you are optimizing for Level Completion, show the satisfaction of clearing a difficult level. Avoid misleading cinematic trailers that don’t reflect actual gameplay, as these lead to high drop-off rates post-install. Instead, focus on Raw Gameplay:
- Visual Cues: Include visible UI elements to prove it’s real footage, building trust with the viewer.
- Immersive Touch: Add a hand cursor overlay mimicking a finger tapping the screen. This helps the viewer visualize themselves playing and interacting with the game mechanics.
For instance, in the Alphabet Shooter: Rocket case study, Mega Digital addressed the challenge of inconsistent creatives by developing dedicated horizontal video templates that perfectly matched the game’s landscape mode. By scaling these gameplay-centric creatives and aligning them with Smart+ campaigns, we stabilized ROAS and successfully scaled the budget by 400%.
Build Trust with UGC
Use real humans reacting to the game to build trust and a native feel on the TikTok platform. To maximize conversion, follow the Hook-Body-CTA framework:
- The Hook (0-2s): Grab attention immediately with a bold statement or reaction such as “I found a glitch!”, or “This level is impossible!”.
- Native Features: Utilize TikTok-native features like Green Screen, Text-to-Speech voiceovers, or trending sounds to make the ad feel like organic content rather than a polished commercial.
Leverage Fail and Win Scenarios
Leverage the psychological urge to correct mistakes or achieve mastery.
- The Fail Trigger: Show a player failing a simple task or puzzle repeatedly. This triggers the competence gap, making viewers think, “I can do better than that”, driving them to download immediately to prove it.
- The Win Trigger: Alternatively, showcase a satisfying win (e.g., a massive combo, clearing a chaotic screen, or obtaining a rare item) to appeal to players seeking stress relief and gratification.
Common Mistakes to Avoid When Running AEO Campaigns
Even seasoned marketers can fall into traps that derail AEO performance. Avoiding these common mistakes can save your budget and accelerate the learning phase:
- Selecting an Event with Insufficient Data: The TikTok algorithm typically needs at least 50 conversions per week per ad group to pass the learning phase. Choosing a deep event like “Purchase Level 50 Pack” too early often leads to campaign stagnation. Start with shallower events like “Tutorial Complete” to build data density first.
- Setting Cost Caps Too Low: While controlling CPA is important, setting a bid significantly below the market average will result in zero delivery. Start with a bid slightly higher than your target to ensure delivery, then optimize downwards.
- Creative Fatigue: Running the same winning creative for weeks will inevitably lead to a performance drop. AEO targets specific user behaviors, and once that pool is exhausted, you need fresh angles (hooks, visuals) to unlock new segments.
- Ignoring the Learning Phase: Making drastic changes to bids or targeting within the first 3-4 days resets the algorithm. Patience is key; allow the system to stabilize before optimizing.
Advanced Strategies to Scale Mobile Games with AEO
Scaling AEO campaigns requires a combination of audience expansion, leveraging Pangle placements, and utilizing Automated Creative Optimization (ACO) to combat ad fatigue.
Expand Reach Using Pangle Placements
TikTok’s audience network, Pangle, is incredibly effective for mobile games, especially in markets like SEA and Brazil. It allows you to serve ads to users in other gaming apps, who are already in a gaming mindset. By extending your campaign inventory to Pangle, you can tap into a broader ecosystem of gamers without significantly increasing your CPA.
Leverage Broad Targeting to Uncover Hidden Audiences
Unlike MAI where you might target specific interests, for AEO, try leaving the targeting Broad (no interest targeting). Trust the AEO algorithm to find the users based on the event signals. Often, the algorithm finds high-value users in segments you wouldn’t expect. Removing restrictive targeting layers gives the machine learning model the freedom it needs to find the most efficient conversions.
Accelerate the Learning Phase with Shallow Events
To scale, an ad group needs to generate at least 50 conversion events within 7 days. If you are struggling to hit this, consider moving the event up the funnel (e.g., from Purchase to Add to Cart or Checkout Initiated) to increase signal volume. Once the campaign passes the learning phase with these shallower events, you can gradually optimize for deeper, more valuable actions.
Utilize Smart+ Campaigns for Automated Scaling
Smart+ is TikTok’s fully automated solution that optimizes targeting, bidding, and creative delivery simultaneously. For developers facing market saturation, Smart+ can unlock new inventory and audience segments that manual campaigns might miss.
Another prime example of effective scaling is seen in our work with XGame Studio for the TikTap Challenge. Facing unstable ROAS and market saturation, Mega Digital helped the client implement a Smart+ strategy with tROAS bidding instead of basic install campaigns. This strategic shift optimized for user value and retention, resulting in a 20% increase in retention rate and achieving break-even by Day 4.
For comprehensive insights on advanced scaling and performance benchmarks, refer to our Vietnam Gaming Outlook 2025 report.
Key Metrics to Measure AEO Campaign Success
To accurately evaluate your AEO campaigns, look beyond just CPI.
- ROAS (Return on Ad Spend): The north star metric. For AEO Purchase, aim for 20–50% D0 ROAS for casual games, leading to 5–15% D7 based on industry benchmarks.
- Retention Rate (D1, D7): AEO for “Level Complete” or “Tutorial” should yield significantly higher retention than MAI.
- CPA (Cost Per Action): Ensure your CPA is lower than the LTV of that specific action.
- Tools: Utilize your MMP dashboard (AppsFlyer/Adjust) for attribution and TikTok Ads Manager for campaign-level insights.
FAQs about AEO Mobile Games
A general rule of thumb is to set your daily budget to at least 20–30x your target CPA (based on TikTok recommendations). This gives the algorithm enough room to experiment and pass the learning phase.
Yes, Apple’s privacy changes limit data sharing. However, TikTok has integrated closely with SKAdNetwork (SKAN). To run AEO on iOS, you must configure your conversion value schema in your MMP to map events to SKAN values. TikTok’s system now supports SKAN 4.0, allowing for better coarse-grained value optimization.
Yes. While AEO is often associated with In-App Purchases, it is equally effective for ad-monetized games. Instead of optimizing for “Purchase”, you should select engagement-based events like “Level Achieved” or “Retention”. This helps acquire users who play longer and consume more ads, thereby increasing your overall Ad LTV compared to standard install campaigns.
Conclusion
To sum up, AEO mobile games strategies are essential for developers looking to move beyond vanity metrics and build a sustainable, profitable user base. By understanding the distinction between installs and events, selecting the right triggers, and pairing them with engaging TikTok-native creatives, you can significantly improve your game’s retention and revenue.
If you are looking to unlock the full potential of TikTok Ads for your mobile game, having the right partner is crucial. Mega Digital provides high-quality TikTok Agency Accounts and expert performance marketing services tailored for the gaming industry. Contact us today to start optimizing your player quality.
