making money on mobile: acquisition, retention, monetization

making money on mobilejohn@warp.ly

who✓involved in big data and distributed computing

since 2004 [CERN LHC]✓passionate in real-time data processing, especially

in advertisement technology✓strong background on theory of algorithms and computational complexity

✓involved in performance marketing since 2007

what

mobile is where your customers are

source: emarketer.com

source: gartner.com

x

Time vs. Revenue Spend

on Mobile and Internet

Mobile Devices Sold vs. PCs

Many companies make the mistake of utilizing the same approach for different verticals. But there is no Silver Bullet in Mobile Marketing.

Warply usesdifferent approachesfor different verticalsOur vision is to give back mobile marketing it’s lost prestige and be part of establishing the next generation of marketing professionals with focus on real-world KPI’s, ROI and above all non-intrusive responsible communication.

mobile monetization on verticals

fragmented landscape

new ad formats

call them native ad formats

new campaign objectives

loyalty in a mobile first world✓in the next couple of years your mobile phone will essentially

become your wallet

✓mobile will be the most personal item you have, associated directly with your purchase behavior

✓mobile will be in all your customer’s pocket and present in all their priority moments

✓mobile programmatic media buying revolutionizes the way we buy media, providing the option to target, segment and re-target our audience

the mobile acquisition problem• saturated and overpriced: your competitors are games, fortune

500 companies that monetize mobile and more games, and more awesome games!!! (CPA>$2.5)

• adverse selection problem: apps are only selling clients that they don’t monetize, so in return you are buying users that provenly are not spending on mobile

• targeting and traffic quality: traffic acquisition and user tracking systems are fragmented and hard to monitor

the mobile retention problemMonths Since

User Acquisition

100%45%24%14%7%4%

0

36912

1

iOS and Android User Retention

source: blog.flurry.com

Solving it, should be your First Mobile App StrategyRetention is one of the biggest challenges of mobile apps today, as “65% of people stop using them three months after install”

customer lifecycle value in plain english • prediction of the net profit attributed to the entire future relationship with a customer.

• retention rate is the key element in increasing your business CLV

• there are numerous models that involve past ARPU or statistical future prediction models that are more accurate

• mobile provides the ideal channel for both impulse buying and training your customers into a habit purchase behavior

the only formula you need to know

CLV > CPA* Customer

Lifetime Value* Cost Per Acquiring a new

Customer

this translates into revenue

Installs xMonthly Active Users

=

Monthly Average

Revenue Per User

x =

Monthly Active Users

Monthly Retention

%

used by all major players

hacking customer lifecycle value

customer spending with

mobile CRM

customer spending without mobile CRM

time

aver

age

reve

n ue

per

user

• customer lifecycle value mostly refers to the future, therefore this is something we can easily influence through mobile channels• monthly churn rate is probable the most important factor you need and can change• communicate just before your customers are about to perform a purchase

acquisition lifecyclead network CRM

max spending

Total Revenue

brand spending

2$ Acquisition Cost from

acquisition

Total Spend

for acquisition

50% of CLV increase

Your CRM’s Mobile Loyalty Extension

bridges for:

the solution Contextual Targeting Target users based on their location, past behavior, purchase habits and personality.

Real-Time Messaging Push messaging gives the ability to communicate with your customers just right at the point of sales or even before they even realize that they need to perform a purchase

EngagementDeliver rich and engaging communication, ask your customers to play games, participate in competitions and perform loyalty actions

target and segment

Facebook Demographics

API CallsCustom Tagging and behavioralprofiling

Geolocation/ GeofencingTarget using full

scope of facebook demographics through the embedded facebook connect

Take advantage of existing user data by integrating into your CRM or database or set up automatic campaigns based on preconfigured Business Intelligence rules.

Set up consumers personas derived from user behavior inside the APP and based on interaction with previous campaigns

Send campaigns to specific geographical areas (geolocation) OR create a radius around your point of interest and trigger the campaign as soon as the user walks in (geofencing).

two ways of communication push vs. pull

Push messagesDeliver value to your best customers, right on their home screens. Push is a proven, proactive way to drive engagement with your app and your brand.

Silent PushDeliver campaigns in the inbox without waking up the users device

With Push notifications you receive a pop up message and a sound with the APP logo that gets hosted in the notification tray and as soon as you click on it:•It wakes up the APP•You get a rich HTML5 landing page that can host any content

inbox for brand messaging and habit creationYour New Direct Communication Channel!

Train your users to return into the app periodically to check for new updates.

Implement the Inbox in your APP without having to change the Design

Control when and for how long Users

can see Campaigns in their Inbox

modes of engaging your customersReach all app users to provide even more engaging experiences.

Video ads Downloads Sweepstakes Coupons Feedback Game Social currency Special content Second screen

native vs web inbox

modes of interacting with your customers

One-time Registration

Physical and Virtual Goods

Apple Passbook Integration

Voucher Codefor the Offer Time/PlaceDependencies

Scanned Material

Proof of Presence

Mobile Wallet Support

Perform purchases and redeem coupons directly though the application

Case Studies

increase transactions

Drive in-app transactions up to 40%Warply uses messaging within context to incentivize users to perform specific actions and provides them with one-click interactions. This approach significantly increases impulse buys and transactions in general

increase engagement

Increase engagement by 500% Warply targeting capabilities enable you to target users based on their interaction with the app. Therefore you are able to communicate with users that have churn or reward the most active ones.

increase spendingIncrease average spending by 200% Warply is widely used in finance and m-commerce apps across the world. Our recent case studies indicate that the same customer increase average spending just after installing the app!

increase repetition

Increase repetition by 240% Warply helps app owners communicate frequent app content updates through personalized messages based on past behavior or interests.

increase foot traffic

Increase foot traffic by 1000% Warply mobile engagement campaigns reward users that perform the actions they are asked, like entering a store or interacting with a POS

Deep link and let an app invoke another, providing seamless user flowInitiate a user action from a push session or a banner ad in a third party app. Take customer retention into a new level with deep linking capabilities like warply://user/68331 or warply://flight_id/2331200

Deep linking

how it works in gaming • appointment dynamics to increase user retention

• players only buy in-app consumables when they think that this saves time!

• Monitor your users and engage them when they are idle (when in toilet :p or in the subway)

• avoid limits on your CLV (avoid $4.99 buy all bundle if possible)

• repetition mode, game farms/publishers and development of new versions of the same gameplay

Go AheadCommunicate with your clients in their context!

visit us: http://warp.ly

like us: https://facebook.com/warply

mail us: info@warp.ly

a new standard for engagement & monetization