How To Get Low CPI High Value Users Via Mobile Ad Networks by Naghi Prasad
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Transcript of How To Get Low CPI High Value Users Via Mobile Ad Networks by Naghi Prasad
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How to get low CPI and High Value Users via mobile ad networks
Naghi Prasad
Co-Founder, Deep Forest Media
March 2014
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Agenda
• Introduction to paid user acquisition
• Measure Life Time Value of Users
• Increase Life Time Value of users
• Decrease the cost of acquiring high value users
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User Acquisition Dilemma
• Increasingly, revenues and downloads are decoupling. • Rage of Bahamut is not a top 500 iOS app by download but #14 app in revenue in US, DARPU ~$0.80!
• Clash of Clans – one of the top grossing iOS apps is not even in top 50 in downloads
Getting the right user is the game!!
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Net positive return on users
• Life Time Value (LTV) of user
• Profit per user. = LTV – CPI
Cannot optimize for what you don’t measure
Measure
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LTV Calculation – Too Late to Affect Ad Campaign
Days
Leading Indicators for LTV prediction
LTV and Leading Indicators Measure
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Increase LTV
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Freemium versus paid apps
• Freemium is the dominant model • Is Freemium a good model for your app?
• Paid apps are hard to get through paid acquisition
Reduce costs
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Campaign types
• CPI • Minimal risk • Hard to get, at volume
• CPC • Conversion risk still on the advertiser
• CPM • Maximum risk; maximum reward • Willingness to experiment and take losses.
Reduce costs
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Supply Sources
• Over 100 supply sources • Native platforms (Facebook, ….) • Ad Networks • RTB Exchange
• Types of inventory • Native platforms • Incentivized vs non-‐incentized • Video (incented video, non-‐incented install vs non-‐incented video) • Pay per Engagement • Rich Media
Reduce costs
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Retargeting
• Very useful technique for mature apps • RTB exchanges ideal for this • Work with a platform that keep your data siloed and targets on
your behalf.
• Any kind of data advantage you have falls in this bucket.
Reduce costs
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Deep Forest Media
Easy § One click
buying
Transparent § One-stop unified
reporting
Automated § Algorithmic
spend optimization
advertisers mobile users