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Eric Seufert - State of the App Economy: 3 Opportunities and 3 Challenges
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Transcript of Eric Seufert - State of the App Economy: 3 Opportunities and 3 Challenges
State of the App Economy:3 Opportunities and
3 ChallengesEric Benjamin Seufert
Online Marketing RockstarsMarch 3rd, 2017
• Tech giants own considerable mobile audience and that audience is growing;
Current State of the App Economy
- 8 / 10 of the most used apps (in terms of unique audience) owned by Facebook & Google;
- “Legacy” apps like Facebook, YouTube, Gmail still growing at >10% YoY.
Source: Nielsen
Current State of the App Economy
- Many of these apps are ad channels and / or third-party content distribution channels.
*******
Source: Nielsen
Current State of the App Economy
Google Maps is an ad channel and / or third-party content distribution channel?
Current State of the App Economy
• Tech giants own considerable mobile audience and that audience is growing;
• Tech giants are turning their apps into content consumption platforms;
Current State of the App Economy
• Tech giants own considerable mobile audience and that audience is growing;
• Tech giants are turning their apps into content consumption platforms;
• Increased consumer engagement / spending on mobile continues to drive advertising budgets.
Current State of the App Economy
Facebook is at the center of much of this growth, pushing new innovations in video and other mobile placements;
Current State of the App Economy
Challenge / Opportunity: Making sense of proliferation of
new platforms for user engagement / content
consumption.
When every device is connected, every device appears to be a platform on which to develop & reach a new audience:
3 Challenges & Opportunities in 2017
When every device is connected, every device appears to be a platform on which to develop & reach a new audience:
3 Challenges & Opportunities in 2017
• Tech media sometimes uncritically promotes all emerging platforms as ascendant “next big thing”;
3 Challenges & Opportunities in 2017
• Tech media sometimes uncritically promotes all emerging platforms as ascendant “next big thing”;
3 Challenges & Opportunities in 2017
• Tech media sometimes uncritically promotes all emerging platforms as ascendant “next big thing”;
• New platforms are appealing (first mover advantage, lack of price discovery, etc.) but developers need to be able to discern hype & time deployment correctly.
3 Challenges & Opportunities in 2017
OPPORTUNITY: Opportunities to reach new audience emerge constantly as connected devices proliferate and create platforms;
CHALLENGE: Difficult to know which platforms will truly reach scale, and being early same as being wrong.
3 Challenges & Opportunities in 2017
Challenge / Opportunity: As mobile video advertising surges, attribution and ROI
calculation becomes problematic.
3 Challenges & Opportunities in 2017
• Many developers rely on patchwork marketing infrastructure comprised of many 3rd party tools:
Data Warehouse (S3, etc.)
Data Visualization Tool (Tableau, etc.)
Attribution Platform
Ad Network Cost Aggregation Platform
Ad Networks
N1
N2
N3PMD
3 Challenges & Opportunities in 2017
Data Warehouse (S3, etc.)
Data Visualization Tool (Tableau, etc.)
Attribution Platform
Ad Network Cost Aggregation Platform
Ad Networks
N1
N2
N3PMD
Marketing Team3 Challenges & Opportunities in 2017
Data Warehouse (S3, etc.)
Data Visualization Tool (Tableau, etc.)
Attribution Platform
Ad Network Cost Aggregation Platform
Ad Networks
N1
N2
N3PMD
Marketing Team3 Challenges & Opportunities in 2017
3 Challenges & Opportunities in 2017
• Shifting to video complicates this further because clicks / installs aren’t attributable;
3 Challenges & Opportunities in 2017
• Shifting to video complicates this further because clicks / installs aren’t attributable;
• Formats such as Facebook Live / Influencer Campaigns can be totally contextual;
3 Challenges & Opportunities in 2017
• Shifting to video complicates this further because clicks / installs aren’t attributable;
• Formats such as Facebook Live / Influencer Campaigns can be totally contextual;
• Probabilistic models help advertisers match clicks / installs to campaigns.
OPPORTUNITY: Continued popularity of video on mobile creates endless new opportunities for audiences to be reached (sometimes cheaply);
CHALLENGE: Fuzzy attribution makes it difficult for advertisers to understand ROI.
3 Challenges & Opportunities in 2017
3 Challenges & Opportunities in 2017
• The biggest mobile advertising platforms are becoming siloed, both in terms of tool offerings and inventory offerings;
Existing / Old Paradigm:
Inventory Pool
Mobile Gaming Advertisers
Mobile Commerce Advertisers
Dating App Advertisers
Mobile Gaming Publishers
Dating App Publishers
Mobile Commerce Publishers
Ad Networks / Native Inventory Sources
3 Challenges & Opportunities in 2017
Emerging Paradigm:
Mobile Gaming Advertisers
Mobile Gaming Publishers
Dating App Advertisers
Dating App Publishers
Mobile Commerce Advertisers
Mobile Commerce Publishers
& travel, etc.
Brand Advertisers
& travel, etc.
Retail Advertisers
3 Challenges & Opportunities in 2017
3 Challenges & Opportunities in 2017
• The biggest mobile advertising platforms are becoming siloed, both in terms of tool offerings and inventory offerings;
• Owned inventory platforms have created vertical-specific inventory pools;
Ad Networks / Exchanges
Owned Inventory
● Retail;● Brand;● Mobile
commerce;● High-LTV /
High-CTR Games.
● Intent-based advertising (travel, in-store retail).
● Brand;● Youth-oriented
retail;● Entertainment.
● Games;● Finance
3 Challenges & Opportunities in 2017
• NOTE: This segmentation is soft. Every type of app is & will continue to be advertised everywhere;
3 Challenges & Opportunities in 2017
OPPORTUNITY: Platform-specific tools and inventory help advertisers reach appropriate audiences more efficiently;
CHALLENGE: Walled gardens create scaling difficulty for advertisers. Analytics / infrastructure “lock in” can limit growth.
3 Challenges & Opportunities in 2017