How to get low CPI and High Value Users via mobile ad networks

Naghi Prasad

Co-Founder, Deep Forest Media

March 2014

2  

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    

3  

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!!

4  

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  

5  

LTV Calculation – Too Late to Affect Ad Campaign

Days  

Leading Indicators for LTV prediction

LTV and Leading Indicators Measure  

6  

Increase LTV

7  

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  

8  

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  

9  

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  

10  

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  

11  

Deep Forest Media

Easy § One click

buying

Transparent § One-stop unified

reporting

Automated § Algorithmic

spend optimization

advertisers mobile users