Three Mobile User Acquisition Megatrends for 2017

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


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?


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

N1

N2

N3PMD






Ad Networks

N1

N2

N3PMD

Marketing Team






Ad Networks

N1

N2

N3PMD

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;


• 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;


• 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.

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[email protected]@eric_seufert

Thank You!

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