michael oiknine: media app summit

FROM DOWNLOAD TO DOMINATION

Engaging Mobile App Users with Analytics and Targeting

Michael OiknineCEO, Apsalar

michael@apsalar.com

THE MOBILE MINDSHARE WAR LEADS TO…

Used Weekly

Rarely Used

Used Daily

Discovery Problem

Engagement Problem

Install

1.3MM+ Apps in iOS & Android App Stores1.3MM+ Apps in iOS & Android App Stores

… AN ENGAGEMENT PROBLEM

Average Sessions Per App Decreases by 20% Per User

for Each Additional App Installed

Average Sessions Per App Decreases by 20% Per User

for Each Additional App Installed

… AND UNSUSTAINABLE ECONOMICS

Do Not Monetize

RetargetingAttribution

Analytics

In-App & LTV

Analytics

Audience Targeting

MARKETERS MUST EFFECTIVELY CONTROL THE FULL USER LIFECYCLE

AnalyzeAcquire

ACQUIRE

98%+ of users spend nothing or very little in apps

ALL USERS ARE NOT CREATED EQUAL

+56% CPI Increase on iOS since January+70% CPI Increase on Android

MANY ACQUISITION METHODS ARE EXPENSIVE -YET DON’T LEAD TO PAYING USERS

ACQUIRE THE RIGHT USERS FOR YOUR APPS

Get The Right Mobile App Users

Reach As Many Users As Possible

• Build highly targeted audiences

• Acquire paying & engaged users

• Anytime, anywhere• Leverage partnerships with 3rd

party exchanges, networks, RTB platforms

Blind Ad Network

Incentivized Instal ls

AudienceTargeting

Retargeting Exist ing Users

Budget $500 $500 $500 $500

Cost Per Install $3 to $5 $0.5 to $1 $2 $1

Users 100 1,000 250 500

% of Paying Users

Less than 2%

Less than 1% More than 10%

More than 10%

Paying Users 2 10 25 50

Sample ROI -90% -75% +75% +100%

NOT ALL ACQUISITION SOURCES ARE CREATED EQUAL- ILLUSTRATION

AUDIENCE TARGETING DRIVES PAYING USERS

Target Lookalike Audience

ANALYZE

Find out using mobile analytics

NICE! YOU HAVE USERS AND THINK THEY’RE ENGAGED… OR ARE THEY?

QUESTIONS YOU SHOULD BE ABLE TO ANSWER

1. Who are my high value users?

4. What’s the retention rate of my users?

2. What’s the lifetime value of my users?

5. What’s the ROI across each of my acquisition sources (ex. Facebook)?

3. How are changes in my app affecting revenue, engagement & monetization?

DAUs/MAUs

Retention & Churn

Engagement Index

11 22 33 44

Lifetime Value

User Acquisitio

n ROI

55

ACTIONABLE METRICS YOU SHOULD BE TRACKING

WHY• Basic measure of loyalty for mobile games• Approximation of how many days per

month a monthly active user is engaged with your app

• Use to benchmark against other games

HOW• You can obtain DAU and MAU data from a

mobile-specific analytics provider

METRIC #1: DAU/MAU

WHY• DAUs/MAUs do not fully equal loyalty• Retention rate can decrease while

DAU/MAUs increase

HOW• Examine how long your users stay active• Use daily retention cohort analysis

METRIC #2: RETENTION & CHURN

WHAT IS A COHORT? MEASURING PERFORMANCE OF USERS OVER TIME

Retention Rate

Retention Rate Evolution

Retention Rate Evolution

DAILY COHORTS ARE USED TO MEASURE EFFECT OF IN-APP CHANGES ON RETENTION

WHY• Engaged app users are much more likely

to spend money within your app

HOW• Using an Engagement Index, you can

define what to tag as an engagement event and how much weight/value you want to place on each

• Use daily engagement cohort analysis

METRIC #3: ENGAGEMENT

Action Engagement Index Weight

Buy Virtual Good 100 points

Add Virtual Item to Shopping Cart

80 points

Viewed virtual item 70 points

Registered credit card 65 points

Sharing achievement on Facebook

60 points

Reached a certain level 50 points

DEFINING ENGAGEMENT EVENTS - SAMPLE

Each event can be assigned your own engagement value, creating an Engagement Index

– Examples: Search Product = 3 points, Check Price = 5 points

ENGAGEMENT INDEX IS A BETTER FORM OF KPI

Engagement Index

USE COHORTS TO MEASURE EFFECT OF IN-APP CHANGES ON ENGAGEMENT

Engagement Evolution

WHY• Measure the total revenue an active user

generates within your apps

HOW• Automatically assign revenue events• Use funnels to optimize conversions• Use cohorts to track changes in user

spend

METRIC #4: LIFETIME VALUE (LTV)

Each event can be assigned with revenue to monitor ARPU

– Example: Purchase Gold Coins = $0.99

MEASURE REVENUE, ARPU & CORRELATE WITH ENGAGEMENT

TRACK REVENUE TO BETTER UNDERSTAND USER SPEND BEHAVIOR

View by segmentsView by segments

Events across all applications can be selected as steps or a goalEvents across all applications can be selected as steps or a goal

View by Conversion/Engagement/RevenueView by Conversion/Engagement/Revenue

USE FUNNELS TO MONITOR CONVERSIONS

ARPU by Cohort

ARPU Evolution

ARPU Evolution

USE COHORTS TO MEASURE EFFECT OF IN-APP CHANGES ON REVENUE

WHY • Learn which acquisition sources provide

the best return on investment for your marketing dollars

HOW• Measure effectiveness with referral

tracking attribution • Tie back to LTV using cohort analytics

METRIC #5: USER ACQUISITION ROI

TRACK THE EFFECTIVENESS OF YOUR ADVERTISING SPEND

ARPU by Acquisition Channel

ARPPU/LTV Evolution

ARPPU/LTV Evolution

USE COHORT TO OPTIMIZE AD BUDGET BY LTV GENERATED

REMARKET

NOW THAT I’M MEASURING LTV…HOW DO I INCREASE IT?

REMARKET TO USERS TO INCREASE REVENUE

USE CAMPAIGNS TO MAXIMIZE CUSTOMER LTV

Reactivate Complete Promote

• Bring high value users back to your app

• Direct users to complete an abandoned purchase

• Cross-promote your apps & products

Any – Any Fish Tank user in the United States or using Android or that has completed Level 2 or that has spent more than $2.00

Any – Any Fish Tank user in the United States or using Android or that has completed Level 2 or that has spent more than $2.00

All – Fish Tank 2 users in France and using an iPhone and have finished the tutorial and have an engagement score greater than 65

All – Fish Tank 2 users in France and using an iPhone and have finished the tutorial and have an engagement score greater than 65

DEFINING YOUR BEST AUDIENCES IS KEY TO REMARKETING SUCCESS - EXAMPLE

SUMMARY & NEXT STEPS

RetargetingAttribution

Analytics

In-App & LTV

Analytics

Audience Targeting

MARKETERS MUST EFFECTIVELY CONTROL THE FULL USER LIFECYCLE

AnalyzeAcquire

• Provider of Free 360O Analytics– Campaign Referral Measurement– In-App Analytics Including

• Audience Management & Segmentation• Real Time Cohorts• Real Time Funnels• Automated Revenue And LTV Tools

• Audience Targeting & Retargeting Product In Beta

• San Francisco-Based• Founded in 2010, VC-backed

OVERVIEW OF APSALAR

APSALAR ANALYTICS HELPED MOTION MATH DOUBLE CONVERSIONS TO PAID

~2x

APSALAR AUDIENCES DELIVER PAYING USERS

2%

15%

~8x

APSALAR POWERS THE WORLD’S TOP APPS

QUESTIONS?

michael@apsalar.com

http://apsalar.com