Presentation from App Growth Summit NYC 2018

1. Preparing for The Age of
Algorithmic Marketing
Segmentation
Calculating User Value

2. -Enter The Age of Algorithmic
Marketing-
(Interests > Potential Value)

3. Old Segmentation: Target Surface-
Level Traits
• Top-level
• Geographic (country, state, city)
• Platform, device (iOS/Android, phone/tablet)
• Mid-level
• Network (display vs search)
• Interest (word games)
• Keywords (word games)
• Demographic (age/gender)
• Lower-level
• Lookalike (purchasers)
• Remarketing (installed not purchased)

4. Segment Campaigns by Surface-Level Traits
Geo
Demo
Interests
Behavior
Jeff Bezos
successful
businessman
($$$$$$$$$$)
US
Male, 50-60
Likes the
Washington post
Subscriber
Joe Schmo aspiring
businessman ($$):
US
Male, 50-60
Likes the Washington
Post
Ads-Supported

5. Surface Level Relevance
Wordscapes user A
• Likes word games
• Searches for [word
games]
Ad Relevance: 10/10
Wordscapes user B
• Likes traveling
• Searches [flights to
new York]
Ad Relevance: 2/10

6. New Segmentation: Target by
Potential Value
• Top-level
• Geographic (country,
state, city)
• Platform (iOS/Android)
• Mid-level
• Campaign objective
(Installs, Event)
• Lower-level
• Lookalike (purchasers)
• Remarketing (installed
not purchased)
• Deprecated
• Top-level
• Device
• Mid-level
• Network
• Interest
• Demo
• Keyword

7. Segment Campaigns by User Value
Installs
Lookalike + Installs
Event
Lookalike +
Event
Value
Joe Schmo
aspiring
businessman ($3)
Jeff Bezos
successful
businessman
($50)
LTV/Bid: $3
LTV/Bid: $50

8. Segmentation: Event (New User)
Event Optimized
Campaign
Sign Up (LTV/Bid:
$5)
Trial
LTV/Bid: $8
Partial Usage
(LTV/Bid: $6)
Full Usage
(LTV/Bid: $10)
Purchase:
LTV/Bid $15
Once (LTV/Bid:
$10)
Multiple
(LTV/Bid: $20)

9. Purchase Event ($15 LTV,
CAC $10)
Lookalikes +
Purchase Event
($20 LTV, CAC $12)
Value ($50
LTV, CAC $30)
Segmentation: Audience
(Remarketing)
Bid: $5
Bid: $20
Bid: $8

10. -How To Determine LTV/Value-

11. Step 1: Cohort Report

12. Step 2: Cohort Maturation &
Index Creation

13. Step 3: Benchmark-Based
Maturation Forecasting
• R (M1 = 0.16996+1.39473*Week0)

14. Step 4: Explore (Frontier Analysis)

15. Step 4 (Frontier Analysis)
0%
5%
10%
15%
20%
25%
30%
$- $5.00 $10.00 $15.00 $20.00 $25.00
WEEK0 ROAS
0
1000
2000
3000
4000
5000
6000
7000
8000
$- $5.00 $10.00 $15.00 $20.00 $25.00
VOLUME
$.5-$10 $10-$20Sweet Spot

16. Questions?