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Using Data For Expansion Planning
Target Summit
About us
Rich, scarce, and
actionable insights
on the performance
and user behaviors
of mobile apps
Intelligence Layer
3
Proprietary and
rigorous science
using statistical,
machine learning,
and NLP
algorithms
Source Layer
We use data to build a window into the mobile app economy
Public
store data
Confidential
developer data
Anonymized
user device data
Modelling Layer
+ =
4
Gaming:
Travel & Navigation:
Sports / Kids / Food:
News / Reference / Education:
Social / Music / Entertainment:
Health & Fitness / Finance:
E-commerce & Shopping:
Our Backbone: 22,000 Feeds from 1,400 Top Partners
● “UberEats outpaces Deliveroo
downloads by a factor of 3x in April”
● “Pokemon Go earned revenue declined
45% month-over-month in May”
● “The US market for music streaming
apps represented ~30% of the global
total. The Top 3 services earned >60%
of their global downloads in the US”
Our Data Powers a Comprehensive Intelligence Platform
5
Keyword Intelligence
App Store Keyword
Optimization
App Intelligence
Competitive Benchmarking
& Tracking
Market Intelligence
Market Sizing, Screening,
and New Entrant Detection
Today’s Workshop
Scenario
● An ambitious and entrepreneurial group of vegan cross-fit’ers have decided to branch
out and launch their own app company, focused on their favorite new hobby meditation
& mindfulness
● They are confident they can build a high quality app. They know the problem, they know
the solution, and they have a revolutionary marketing hook….
7
8
Inspiring!
● The genius of the idea has landed them a $1m seed round from a top VC, and they are
finally ready to launch the app
● It took them longer than expected (and more of the VC $) to get to launch, and they only
have $100k in UA budget to work with
● Within 12 months they need to demonstrate $500k of revenue in their initial markets to
successfully raise a series A
7 Minute Mindfulness! (Watch out 8Fit)
9
So how will they get there?
11
Not like this….
12
They need a data-informed expansion strategy
1. What is my total market opportunity?
2. Who am I competing against?
3. Which geographic region(s) should I target first?
4. What targets should I set to achieve my goal, given my marketing budget?
5. Which keywords should I use to maximize organic discoverability and conversion?
Assumptions:
Global, Apple only in year 1, will focus on mindfulness & meditation, not
entering adjacencies of fitness and/or nutrition
Data-Driven Expansion Strategy
13
What is my total market
opportunity?
Assumptions:
Market is niche and growing. Existing players likely have better unit
economics/marketing firepower. New entrants likely to come in over time.
Data-Driven Expansion Strategy
14
Who am I competing against?
Assumptions:
Don’t have budget for full localization or marketing launches. Need to find a
good combination of sizeable and fast growing markets for this segment.
Which geographic region(s) should
I target first?
Data-Driven Expansion Strategy
15
Assumptions:
Let’s do a bit of back-of-the envelope calculations...
What targets should I set to achieve
my goal, given my marketing
budget?
Data-Driven Expansion Strategy
16
Here we need a bit of (very simplified) funnel math...
17
● Target next-twelve-month revenue: $500k
● My monetization? Freemium, subscription at $10/month
● Assume that 1% of users will convert to paid, with an average subscription length of 5
months = CLV of $50
● To reach $500k, you need 10k paying users with an average $50k CLV. Assuming the 1%
paid conversion you need 1 million downloads
● How does that stack up to the overall market opportunity?
● Comps are earning in total 600k downloads per month...
Based on your comp set and the 4 target markets
18
Country Monthly Downloads
USA 400k
UK 100k
Canada 50k
Australia 50k
Total 600k
Based on your comp set and the 4 target markets
● 600k/month * 12 months = 7.2m per year (assumes any market growth is eaten up by
new entrants)
● So you need:
1m downloads for me / 7.2m for everyone =
~15% market share (on average per month), to achieve your target
19
● Assuming your performance in the US will dictate your overall
performance, 15% share would mean 60k downloads per month, or
roughly 2k per day.
● Where do you need to be in the ranks in order to achieve this?
Based on your comp set and the 4 target markets
20
Let’s think about user acquisition
21
● What’s it cost to acquire a user in the target market?
● Let’s head to Chartboost: https://www.chartboost.com/insights/
● Paid:
○ I have $100k marketing budget, and it costs me $3.50 to acquire a user…
○ I need 60k downloads a month in the US to meet my plan….
○ I can spend my entire marketing budget and only acquire 50% of my budgeted
users, in a single month!
Let’s think about user acquisition
22
Let’s think about user acquisition
● Organic:
○ Of course you need a great product, word-of-mouth, an offline/desktop strategy,
etc...
○ Featuring: Remember Mind Journey? Looks like their featurings delivered 80k of
downloads - that’s 1 month of your plan!
○ ASO: you will need to have done the basics with ASO right to capitalize on any
opportunity for organic visibility and discoverability via search
23
Which keywords should I use to
maximize organic discoverability
and conversion?
Data-Driven Expansion Strategy
24
Assumptions:
Leverage the work your competitors have already done to get into the game
initially, and optimize over time.
● Using data to inform an expansion strategy gives you benchmarks and sanity checks on
your plans that are critical for expectation setting
● The analysis is easily performed and can be done at low cost with minimal time invested
● In the competitive (and increasingly expensive) world of mobile apps, you have to look
for opportunities to outperform others that have more funding / a more established
brand / a better monetizing product / etc...
● You can use all the internal analytics tools, have great engagement on push notifications,
have a conversion rate on your ads, but without a view into market intelligence data you
are flying blind
Conclusion
25

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Using App Market Data To Fuel Mobile Growth

  • 1. Using Data For Expansion Planning Target Summit
  • 3. Rich, scarce, and actionable insights on the performance and user behaviors of mobile apps Intelligence Layer 3 Proprietary and rigorous science using statistical, machine learning, and NLP algorithms Source Layer We use data to build a window into the mobile app economy Public store data Confidential developer data Anonymized user device data Modelling Layer + =
  • 4. 4 Gaming: Travel & Navigation: Sports / Kids / Food: News / Reference / Education: Social / Music / Entertainment: Health & Fitness / Finance: E-commerce & Shopping: Our Backbone: 22,000 Feeds from 1,400 Top Partners
  • 5. ● “UberEats outpaces Deliveroo downloads by a factor of 3x in April” ● “Pokemon Go earned revenue declined 45% month-over-month in May” ● “The US market for music streaming apps represented ~30% of the global total. The Top 3 services earned >60% of their global downloads in the US” Our Data Powers a Comprehensive Intelligence Platform 5 Keyword Intelligence App Store Keyword Optimization App Intelligence Competitive Benchmarking & Tracking Market Intelligence Market Sizing, Screening, and New Entrant Detection
  • 7. Scenario ● An ambitious and entrepreneurial group of vegan cross-fit’ers have decided to branch out and launch their own app company, focused on their favorite new hobby meditation & mindfulness ● They are confident they can build a high quality app. They know the problem, they know the solution, and they have a revolutionary marketing hook…. 7
  • 9. ● The genius of the idea has landed them a $1m seed round from a top VC, and they are finally ready to launch the app ● It took them longer than expected (and more of the VC $) to get to launch, and they only have $100k in UA budget to work with ● Within 12 months they need to demonstrate $500k of revenue in their initial markets to successfully raise a series A 7 Minute Mindfulness! (Watch out 8Fit) 9
  • 10. So how will they get there?
  • 12. 12 They need a data-informed expansion strategy 1. What is my total market opportunity? 2. Who am I competing against? 3. Which geographic region(s) should I target first? 4. What targets should I set to achieve my goal, given my marketing budget? 5. Which keywords should I use to maximize organic discoverability and conversion?
  • 13. Assumptions: Global, Apple only in year 1, will focus on mindfulness & meditation, not entering adjacencies of fitness and/or nutrition Data-Driven Expansion Strategy 13 What is my total market opportunity?
  • 14. Assumptions: Market is niche and growing. Existing players likely have better unit economics/marketing firepower. New entrants likely to come in over time. Data-Driven Expansion Strategy 14 Who am I competing against?
  • 15. Assumptions: Don’t have budget for full localization or marketing launches. Need to find a good combination of sizeable and fast growing markets for this segment. Which geographic region(s) should I target first? Data-Driven Expansion Strategy 15
  • 16. Assumptions: Let’s do a bit of back-of-the envelope calculations... What targets should I set to achieve my goal, given my marketing budget? Data-Driven Expansion Strategy 16
  • 17. Here we need a bit of (very simplified) funnel math... 17 ● Target next-twelve-month revenue: $500k ● My monetization? Freemium, subscription at $10/month ● Assume that 1% of users will convert to paid, with an average subscription length of 5 months = CLV of $50 ● To reach $500k, you need 10k paying users with an average $50k CLV. Assuming the 1% paid conversion you need 1 million downloads ● How does that stack up to the overall market opportunity?
  • 18. ● Comps are earning in total 600k downloads per month... Based on your comp set and the 4 target markets 18 Country Monthly Downloads USA 400k UK 100k Canada 50k Australia 50k Total 600k
  • 19. Based on your comp set and the 4 target markets ● 600k/month * 12 months = 7.2m per year (assumes any market growth is eaten up by new entrants) ● So you need: 1m downloads for me / 7.2m for everyone = ~15% market share (on average per month), to achieve your target 19
  • 20. ● Assuming your performance in the US will dictate your overall performance, 15% share would mean 60k downloads per month, or roughly 2k per day. ● Where do you need to be in the ranks in order to achieve this? Based on your comp set and the 4 target markets 20
  • 21. Let’s think about user acquisition 21 ● What’s it cost to acquire a user in the target market? ● Let’s head to Chartboost: https://www.chartboost.com/insights/
  • 22. ● Paid: ○ I have $100k marketing budget, and it costs me $3.50 to acquire a user… ○ I need 60k downloads a month in the US to meet my plan…. ○ I can spend my entire marketing budget and only acquire 50% of my budgeted users, in a single month! Let’s think about user acquisition 22
  • 23. Let’s think about user acquisition ● Organic: ○ Of course you need a great product, word-of-mouth, an offline/desktop strategy, etc... ○ Featuring: Remember Mind Journey? Looks like their featurings delivered 80k of downloads - that’s 1 month of your plan! ○ ASO: you will need to have done the basics with ASO right to capitalize on any opportunity for organic visibility and discoverability via search 23
  • 24. Which keywords should I use to maximize organic discoverability and conversion? Data-Driven Expansion Strategy 24 Assumptions: Leverage the work your competitors have already done to get into the game initially, and optimize over time.
  • 25. ● Using data to inform an expansion strategy gives you benchmarks and sanity checks on your plans that are critical for expectation setting ● The analysis is easily performed and can be done at low cost with minimal time invested ● In the competitive (and increasingly expensive) world of mobile apps, you have to look for opportunities to outperform others that have more funding / a more established brand / a better monetizing product / etc... ● You can use all the internal analytics tools, have great engagement on push notifications, have a conversion rate on your ads, but without a view into market intelligence data you are flying blind Conclusion 25