three mobile user acquisition megatrends for 2017
TRANSCRIPT
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Three UA Megatrends in
2017Eric Benjamin Seufert
Pocket Gamer ConnectsLondon, January 16 2017
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Who I am
Heracles Mobile Dev Memo Freemium Economics
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Presentation Structure
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Presentation Structure1) Current State of App Economy;
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Presentation Structure1) Current State of App Economy;2) Review of UA Megatrend
Predictions, 2016
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Presentation Structure1) Current State of App Economy;2) Review of UA Megatrend
Predictions, 2016;3) UA Megatrend Predictions, 2017.
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Presentation Structure1) Current State of App Economy;2) Review of UA Megatrend
Predictions, 2016;3) UA Megatrend Predictions, 2017.
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Current State of the App Economy
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Current State of the App Economy• Tech giants own considerable mobile
audience and that audience is growing;
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Current State of the App Economy
Source: Nielsen
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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
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Current State of the App Economy- Many of these apps are
ad channels and / or third-party content distribution channels.
*******
Source: Nielsen
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Current State of the App EconomyGoogle Maps is an ad channel and / or third-party content distribution channel?
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Current State of the App Economy
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Current State of the App Economy• Tech giants own considerable mobile
audience and that audience is growing;• Tech giants are turning their apps into
content consumption platforms;
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Current State of the App Economy
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Current State of the App Economy
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Current State of the App Economy• Tech giants own considerable mobile
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.
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Source: SensorTower
Current State of the App Economy
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Current State of the App Economy
Source: Flurry
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Current State of the App Economy
Source: comScore
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Current State of the App Economy
Source: eMarketer
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Current State of the App Economy
Source: eMarketer
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Presentation Structure1) Current State of App Economy;
2) Review of UA Megatrend Predictions, 2016;
3) UA Megatrend Predictions, 2017.
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Review of UA Megatrend Predictions, 2016
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Review of UA Megatrend Predictions, 20161) Growth of the Simultaneous Second
Screen;
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Review of UA Megatrend Predictions, 20161) Growth of the Simultaneous Second
Screen;2) Shift to Managed Services;
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Review of UA Megatrend Predictions, 20161) Growth of the Simultaneous Second
Screen;2) Shift to Managed Services;3) Growth of multi-device attribution.
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Presentation Structure1) Current State of App Economy;2) Review of UA Megatrend
Predictions, 2016;3) UA Megatrend Predictions, 2017.
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Megatrend #1: Proliferation of New Native Ad & Content Distribution
Channels
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Proliferation of New Native Ad & Content Distribution Channels
Existing Paradigm:
Content Platform
Ad Clicks
Mobile App Platform
Advertising Revenue
30% Fee on Platform Revenues
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Proliferation of New Native Ad & Content Distribution Channels
Emerging Paradigm:
Content Platform
Mobile App Platform
Advertising Revenue
30% Fee on Platform Revenues
Platform Revenue Share
Advertising Revenues
Ad Clicks
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Proliferation of New Native Ad & Content Distribution Channels
Emerging Paradigm:
Content Platform
Mobile App Platform
Advertising Revenue
30% Fee on Platform Revenues
Platform Revenue Share
Advertising Revenues
?
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Proliferation of New Native Ad & Content Distribution Channels
What does this look like?
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Proliferation of New Native Ad & Content Distribution Channels
What does this look like?
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Megatrend #2: AdTech Consolidation
Delivers Full-Stack Marketing Tools
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AdTech Consolidation Delivers Full-Stack Marketing Tools
• Many developers rely on patchwork marketing infrastructure comprised of many 3rd party tools:
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AdTech Consolidation Delivers Full-Stack Marketing Tools
Data Warehouse (S3, etc.)
Data Visualization Tool (Tableau, etc.)
Attribution Platform
Ad Network Cost Aggregation Platform
Ad Networks
N1
N2
N3PMD
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AdTech Consolidation Delivers Full-Stack Marketing Tools
Data Warehouse (S3, etc.)
Data Visualization Tool (Tableau, etc.)
Attribution Platform
Ad Network Cost Aggregation Platform
Ad Networks
N1
N2
N3PMD
Marketing Team
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AdTech Consolidation Delivers Full-Stack Marketing Tools
Data Warehouse (S3, etc.)
Data Visualization Tool (Tableau, etc.)
Attribution Platform
Ad Network Cost Aggregation Platform
Ad Networks
N1
N2
N3PMD
Marketing Team
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AdTech Consolidation Delivers Full-Stack Marketing Tools
• 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;
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AdTech Consolidation Delivers Full-Stack Marketing Tools
Source: Results International
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AdTech Consolidation Delivers Full-Stack Marketing Tools
• Many market segments are challenging and hyper-competitive, new business only possible via poaching clients, race to the bottom on cost;
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AdTech Consolidation Delivers Full-Stack Marketing Tools
• 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.
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Megatrend #3: Segmentation of Ad
Inventory by Industry / Sector
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Segmentation of Ad Inventory by Industry / Sector
• Grouping of app types around inventory pools based on natural overlap of interests;
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Segmentation of Ad Inventory by Industry / Sector
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
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Segmentation of Ad Inventory by Industry / Sector
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
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Segmentation of Ad Inventory by Industry / Sector
• 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;
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Segmentation of Ad Inventory by Industry / Sector
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
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Segmentation of Ad Inventory by Industry / Sector
• NOTE: This segmentation is soft. Every type of app is & will continue to be advertised everywhere;
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Segmentation of Ad Inventory by Industry / Sector
• 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.