Three Mobile User Acquisition Megatrends for 2017

transcript

Three UA Megatrends in

2017Eric Benjamin Seufert

Pocket Gamer ConnectsLondon, January 16 2017

Who I am

Heracles Mobile Dev Memo Freemium Economics

Presentation Structure

Presentation Structure1) Current State of App Economy;

Presentation Structure1) Current State of App Economy;2) Review of UA Megatrend

Predictions, 2016

Predictions, 2016;3) UA Megatrend Predictions, 2017.

Current State of the App Economy

Current State of the App Economy• Tech giants own considerable mobile

audience and that audience is growing;

Source: Nielsen

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 EconomyGoogle Maps is an ad channel and / or third-party content distribution channel?

audience and that audience is growing;• Tech giants are turning their apps into

content consumption platforms;

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.

Source: SensorTower

Source: Flurry

Source: comScore

Source: eMarketer

Presentation Structure1) Current State of App Economy;

2) Review of UA Megatrend Predictions, 2016;

3) UA Megatrend Predictions, 2017.

Review of UA Megatrend Predictions, 2016

Review of UA Megatrend Predictions, 20161) Growth of the Simultaneous Second

Screen;

Screen;2) Shift to Managed Services;

Screen;2) Shift to Managed Services;3) Growth of multi-device attribution.

Megatrend #1: Proliferation of New Native Ad & Content Distribution

Channels

Proliferation of New Native Ad & Content Distribution Channels

Existing Paradigm:

Content Platform

Ad Clicks

Mobile App Platform

Advertising Revenue

30% Fee on Platform Revenues

Emerging Paradigm:

Content Platform

Mobile App Platform

Advertising Revenue

Platform Revenue Share

Advertising Revenues

Ad Clicks

Emerging Paradigm:

Content Platform

Mobile App Platform

Advertising Revenue

Platform Revenue Share

Advertising Revenues

What does this look like?

Megatrend #2: AdTech Consolidation

Delivers Full-Stack Marketing Tools

AdTech Consolidation Delivers Full-Stack Marketing Tools

• 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

Marketing Team

Ad Networks

Marketing Team

• Many developers rely on patchwork marketing infrastructure comprised of many 3rd party tools;

• M&A in mobile AdTech strong in 2016, especially acquisitions by Asian buyers;

Source: Results International

• Many market segments are challenging and hyper-competitive, new business only possible via poaching clients, race to the bottom on cost;

• Huge appetite for fully-integrated toolsets from developers.

Megatrend #3: Segmentation of Ad

Inventory by Industry / Sector

Segmentation of Ad Inventory by Industry / Sector

• Grouping of app types around inventory pools based on natural overlap of interests;

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

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

• Grouping of app types around inventory pools based on natural overlap of interests;

• Some inventory has been bid up beyond reach of certain types of apps;

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

• NOTE: This segmentation is soft. Every type of app is & will continue to be advertised everywhere;

• But these groupings will draw performance divisions between inventory sources for different app types.

http://hrcls.co

eric@hrcls.co@eric_seufert

Thank You!