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Optimizing User Acquisition for a Portfolio - Eric Seufert - Casual Connect Amsterdam

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Optimizing User Acquisition for a Portfolio

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Optimizing User Acquisition for a Portfolio - Eric Seufert - Casual Connect Amsterdam

  1. 1. Optimizing User Acquisition for an App Portfolio Eric Benjamin Seufert Casual Connect Amsterdam February 2016
  2. 2. Who am I? Mobile Dev Memo Freemium Economics VP of User Acquisition & Network Engagement
  3. 3. Why build an App Portfolio?
  4. 4. Why build an App Portfolio? • People are spending more time on mobile but are downloading fewer apps;
  5. 5. Why build an App Portfolio? • People are spending more time on mobile but are downloading fewer apps; • As a result, it’s getting more expensive to advertise (new) apps to (new) people;
  6. 6. Why build an App Portfolio? • People are spending more time on mobile but are downloading fewer apps; • As a result, it’s getting more expensive to advertise (new) apps to (new) people; • This trend is not expected to abate. And because mobile gaming is hit-driven, having a game for players now to cross-promote into a hit later is a form of hedging;
  7. 7. Why build an App Portfolio? • Given an increasingly competitive market for advertising impressions, it makes sense to draw heavily on cross promotion for new launches:
  8. 8. Why build an App Portfolio? • Given an increasingly competitive market for advertising impressions, it makes sense to draw heavily on cross promotion for new launches: – Hedging benefit: mix of spot price (current CPMs) and forward prices (cross promoted users acquired earlier);
  9. 9. Why build an App Portfolio? • Given an increasingly competitive market for advertising impressions, it makes sense to draw heavily on cross promotion for new launches: – Hedging benefit: mix of spot price (current CPMs) and forward prices (cross promoted users acquired earlier); – Building a multi-game user lifecycle increases overall “network” LTV (vs. single- game LTV);
  10. 10. Why build an App Portfolio? • Given an increasingly competitive market for advertising impressions, it makes sense to draw heavily on cross promotion for new launches: – Hedging benefit: mix of spot price (current CPMs) and forward prices (cross promoted users acquired earlier); – Building a multi-game user lifecycle increases overall “network” LTV (vs. single- game LTV); – Adverse selection: As biggest, richest companies acquire large marketshare, they become less willing to sell ads (at least to their “good” players).
  11. 11. Why build an App Portfolio? • Smooth revenues out across game lifecycles:
  12. 12. Why build an App Portfolio? • Smooth revenues out across game lifecycles: Source: Mobile Dev Memo (Applying Portfolio Theory to Mobile Games, http://mobiledevmemo.com/applying-portfolio-theory-mobile-games/)
  13. 13. Why build an App Portfolio? • Smooth revenues out across game lifecycles: Source: Mobile Dev Memo (Applying Portfolio Theory to Mobile Games, http://mobiledevmemo.com/applying-portfolio-theory-mobile-games/)
  14. 14. Also, portfolio theory. • Diversifying revenue base with different game genres / themes can protect against sentiment shifts in the market
  15. 15. Also, portfolio theory. • Diversifying revenue base with different game genres / themes can protect against sentiment shifts in the market – For more, see Applying Portfolio Theory to Mobile Games http://mobiledevmemo.com/applying-portfolio-theory- mobile-games/
  16. 16. How to do it?
  17. 17. How to do it? 1) Release more than one game;
  18. 18. How to do it? 1) Release more than one game; 2) Be strategic about cross promotion.
  19. 19. Be strategic about cross promotion 2 Examples from Rovio’s UANE team:
  20. 20. Be strategic about cross promotion 2 Examples from Rovio’s UANE team: 1) Optimized, programmatic ad serving;
  21. 21. Be strategic about cross promotion 2 Examples from Rovio’s UANE team: 1) Optimized, programmatic ad serving; 2) Rich content ad portal.
  22. 22. Optimized, programmatic ad serving
  23. 23. Optimized, programmatic ad serving Showing the right ad:
  24. 24. Optimized, programmatic ad serving Showing the right ad: Built a Bayesian optimizer that serves ads based on performance, aggregated around:
  25. 25. Optimized, programmatic ad serving Showing the right ad: Built a Bayesian optimizer that serves ads based on performance, aggregated around: - Origin game; - Country of player; - Player device type; - Player profile (proprietary behavioral data).
  26. 26. Optimized, programmatic ad serving Algorithm based on article published 2 years ago: http://mobiledevmemo.com/bayesian-bandits- testing-mobile-apps/ Game (ad impression) Ad Server Player Data What’s the best ad to serve this player based on what we know about them? Ad Did the player click on the ad? Yes or No Update performance data for this player profile based on click / no click
  27. 27. Optimized, programmatic ad serving Results:
  28. 28. Optimized, programmatic ad serving Results: For some games, outbound installs more than doubled;
  29. 29. Optimized, programmatic ad serving Results: For some games, outbound installs more than doubled; Significantly reduced manual effort required to traffic ads (since the algorithm does the ad selection).
  30. 30. Rich content ad portal
  31. 31. Rich content ad portal Showing better ads:
  32. 32. Rich content ad portal Showing better ads: Give players the ability to opt into ads, make ad placements feel like native content, allow for rich content ad types.
  33. 33. Rich content ad portal
  34. 34. Rich content ad portal Results:
  35. 35. Rich content ad portal Results: Huge increase in total cross promo impressions Huge increase in cross promo downloads Huge increase in App Store conversion rate Moderate decrease in average CTR
  36. 36. Thanks! MobileDevMemo.com @eric_seufert

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