volker dresse (quaid media), white nights 2015
TRANSCRIPT
Advertising your apps on TVIs it worth it ?
ByVolker Dressel General Manager/CEO Quaid Media
ABOUT US
Quaid Media, is part of freenet digital, a subsidiary of the Freenet Group (FNTN.DE), Germany’s largest independent telecom provider.
With offices in Berlin and Los Angeles, freenet digital has over a decade of experience driving user acquisition in mobile.
It looks like we’re in a Red Ocean
What is a red ocean?
“Red ocean companies try to outperform their rivals to grab a greater share of existing demand. As the
market space gets crowded, prospects for profits and growth reduce. Products become commodities and cut
throat competition turns the ocean bloody red”.Extracted from Kim & Mauborgne, 2005. Blue Ocean Strategy. Boston. Harvard Business School Publishing
$15
Reality - Increasing CPIs
$26$20
Are we in a red ocean?
Companies are chasing the same whales
“Over 60% of Mobile Game Revenues are from just 0.13% Of Players”
Swrve, September 2014
Ouch! Companies keep hitting their customers in the same place – time and
time again.
Where we used to be
• Just get them in
• Customers churned
• Little retention strategy
• What’s attribution?
• No monetization of non-paying customers
• Limited monetization options
• No in-house analytics capability in dev houses (we just want to make great games!)
Where we have to be now
• Detailed analytics with focus on ARPU, LTV, ARPPU and ingame-behavior
• Focus on attribution
• Focus on retention
• Focus on the whales
• Myriad of monetization options for non-payers – incentivized, video, banners, offer walls & more
• Sophisticated in-house analytics capabilities
Houston - we have a problem
• CPI going up
• Crowded advertising ecosystem with massive overlap and arbitrage
• Companies chasing the same tiny pool of customers
• Can’t be sure of always being able to hit the same high value customers
• Ad formats likely maximized
Where do we find new customers?
A revolution in app marketing is underway
• There were no app ads in the 2014 Super Bowl compared the three in 2015
• Supercell, Machine Zone and UCool - spent around $15 million to reach the 112 million US viewers at a cool cost of $4.5 million per 30-second slotthat three developers made the same decision for the first time this year
• King has paid to have 11 different TV spots air more than 34,000 times since the beginning of 2014 (iSpot.tv)
• Supercell paid for 4,500 spots
• Innogames announced 2700 Spots to be aired
• This is more than the combined TV spend by Microsoft on Xbox and Sony on PlayStation
2014/2015 TV app advertising in numbers
• Heroes Charge - 3,891,879 Youtube views and 702,000 shares
• Game of War - 8,020,526 Youtube views and 14,908 shares,
• Clash of Clans - 50,976,690 Youtube views and 71,116 social actions.Source: iSpotTV
The 2015 Super Bowl ‘halo effect’
Why should I consider using TV for my app marketing?
TV builds brands like nothing else
Research in 2012 by the Institute of Practitioners in Advertising in its paper 'Advertising effectiveness: the long and short of it' found that TV is the most effective way to build a brand.
TV Remains A Powerful Ad Medium
IN BILLION U.S. DOLLARS
TV ADVERTISING SPENDING IN THE UNITED STATES FROM 2011 TO 2018
The timeline presents television advertising spending in the United States from 2011 to 2013, as well as a forecast until 2018. eMarketer projected that the expenditure would amount to 68.54 billion U.S.
dollars in 2014.
TV has unbeatable reach
You can reach 71% of people in a day on commercial TV, within a week you can reach 93% and within a month, 98% - no other medium can better(Source: BARB)
Campaigns including TV are 35% more effective than those without.
TV can also boost branded search by up to 35%
TV can deliver huge uplift in tweets and
YouTube views
TV has a positive halo effect on other channels
TV is now affordable!
It's perfectly possible to run a targeted ad for the same or even less than the
minimum campaign budget many mobile advertising agencies demand.
The affordability myth
TV drives people to search for items
TV IS A MAJOR CATALYST FOR SEARCH
Case StudyMEDIA MIXSTRATEGY GAME
Target Markets : UK
Spend : $40k US
Timing : Burst I 10/15-10/18; Burst
II 11/1-11/2
Effective CPI : $3.61
“Strong performance matching solid CPI with very good monetization”
– Game Publisher
Overall iOS Store not ranked 544Games iOS Store 590 133
Games-Simulation iOS Store 105 26Games-Strategy iOS Store 62 12
Overall Amazon not ranked 191Games Amazon not ranked 285
Games Google Play not ranked 317Strategy Google Play 36 16
Case Study 2
Overall iOS Store 205 70Games iOS Store 178 34
Games-Puzzle iOS Store 28 8Games-Board iOS Store 9 4
Overall Amazon 129 29Games Amazon 83 22
“Our first UA TV campaign with Quaid drove really helped amplify our marketing message…”
– Game Publisher
STATION MIXPUZZLE GAME
Target Markets : US
Spend : $50k US
Timing : Burst I 12/26 – 12/31
Effective CPI : $2.77
1. TV is an old medium – but it still works.2. TV's offers large reach at once and build brand
equity !3. TV is affortable and you can drive your
Rankingpositions!4. We will see much greater investment of
mobile games in TV advertising 2015
Summary
