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How to Acquire High Quality
Users for Social Commerce Apps
Gregory Kennedy | VP of Marketing, TapSense
App Marketing Challenge
•    Millions of apps in the store
•    Distributions models fragmented
•    Market is extremely competitive



     TapSense is solving the app discovery problem
What is Working
•    Consumers love apps and ad inventory increasing
•    Paid distributed provides consistent results
•    High quality acquisition methods – Beyond CPI
Conversion tracking graveyard
•    Too many small players
•    Confusing and complex
•    Customers just want a system that works
Announcing Our New Product
M3 Cloud
•  Conversion tracking for mobile apps
•  Mobile to web tracking of purchases
•  Optimize campaigns to revenue
•  Cohort analysis

                     24 / 7 Online
                   reporting gives
                    you the latest
                       data about
                   your marketing
                     performance
Out of the Box Channel Support

Channel Name         Conversion Tracking    iOS Monthly Unique Reach


    Apps Channel     YES                    200 Million +


    Facebook         YES                    150 Million +


    Google / Admob   YES                    90 Million +


    PayPal Media     YES                    30 Million +


    UberMedia        YES                    40 Million +


    Others           Integration Required
iPhone User Demographics (Forrester)
   •         250 Million sold and 80% of them in the US
   •         56% are aged 23 to 45
   •         Even Split Male / Female
   •         Avg annual household income $105,200 (NBC News $77,220)
   •         Clustered in affluent metros: SF, LA, NY, SEA, ATL, CHI, etc.




h"p://techcrunch.com/2012/09/26/forrester-­‐iphone-­‐app-­‐users-­‐young-­‐and-­‐wealthy-­‐android-­‐app-­‐users-­‐skew-­‐older/	
  
Why Advertise?
It’s the only way to get consistent and
measureable results, that will grow your business.
And mobile is significantly cheaper than PC

                                             TapSense                    Google Adwords        PC Display Banners



           Avg. CPC                       $0.05 to $0.40                        $1.04                $0.35



           Avg. CTR                            2.43%                            0.40%                0.05%



   Avg. Conversion Rate                      7% to 11%                          5.30%                0.6%



 Avg. Cost per Conversion                       $3.46                          $19.74                $58.3


Averages based on TapSense Platform Data and Tapsense Research from publicly available data.
The Winning Strategy for Retail
Move your web business to mobile, and acquire
high value users for cheap.
This Opportunity Won’t Last Forever
•  TapSense avg. monthly CPC has almost doubled YoY
•  Acquisition costs for high quality users are going up

         Current Rates          Expected Monthly Volume

         iPhone CPC $0.15       45M + Clicks


         iPhone CPC $0.10       15M to 45M Clicks


         iPhone CPC $0.05       0 to 15M Clicks
Consumers Love to Shop From Their Smartphone
   •         16.3% of 2012 Black Friday sales came from mobile
   •         Up a full 20.7% from 2011




h"p://tech.fortune.cnn.com/2012/11/25/apple-­‐ipad-­‐black-­‐friday/	
  
“A whopping 56% of all of Fab’s
revenue in the U.S. was via our
mobile apps on Christmas in the
U.S. — a new single day record.”

Jason Goldberg,
CEO of Fab
10 Mobile Acquisition Best Practices for Retail
Ten Acquisition Best Practices for Retail

1. Optimize to Revenue not CPD
  Revenue          ROI     CreaGve	
  Name         Installs   Ad	
  Spend      CPD


  $4,506.06	
     96.0%   iPhone	
  CreaGve	
  A    650       $4,693.94	
     $7.22	
  



  $3,542.69	
     74.7%   iPhone	
  CreaGve	
  B    1044      $4,743.98	
     $4.54	
  



  $3,231.67	
     72.9%   iPhone	
  CreaGve	
  C    741       $4,431.32	
     $5.98	
  



  $2,433.91	
     46.9%   iPhone	
  CreaGve	
  D    953       $5,193.40	
     $5.45	
  
Ten Acquisition Best Practices for Retail

2. Provide a Clear Mobile Value Proposition
             Low Performer            Top Performer
             Pinterest has            Provides clear
             limited appeal for       value proposition
             this audience            with iPad user
Ten Acquisition Best Practices for Retail

3. Plan for Seasonality
                          •    Christmas Day
                          •    Black Friday
                          •    Cyber Monday
                          •    Back to School
                          •    Fall Fashion
                          •    Chinese New Year
Ten Acquisition Best Practices for Retail

4. Make Acquisition Part of Larger Strategy




These ads show good alignment between acquisition and
larger marketing efforts.
Ten Acquisition Best Practices for Retail

5. Keep Ad Copy and Messaging Simple
Ten Acquisition Best Practices for Retail

6. Use Cohort Analysis to Identify Trends
                                 Example: identify best
                                 performing channels
                                 return on revenue
Ten Acquisition Best Practices for Retail

7. Use Internal Business Data to Drive Marketing
  •  Feature popular entry level items in advertisements
  •  Use product variety to interest new users
  •  Know your customer purchase cycle and advertise around it
Ten Acquisition Best Practices for Retail

      8. Focus on Quality and Scale
                                                             TapSense                                    Source A      Source B   Source C

                   Avg. CTR                                        1.5%                                     0.05%       0.33%      0.81%

                   Avg. CVR                                      1.88%                                       1.0%        18%       0.89%

                   Avg. CPA                                       $5.72                                      $6.24       $4.5      $7.59

                      Spend                                   $179,530                                    $27,791       $9,243    $30,010

                Conversions                                      33,821                                      4,456      2,043      3,949

        TapSense was the only channel that delivered high quality
        users at scale.



Blinded	
  campaign	
  data	
  from	
  TapSense	
  campaigns	
  that	
  ran	
  over	
  a	
  15	
  day	
  period.	
  
Ten Acquisition Best Practices for Retail

9. Test and Optimize Your App Store Page
Ten Acquisition Best Practices for Retail

10. Find Partners Who Speak Your Language

                       TapSense Solution for Mobile Retail
                       •  Conversion Tracking
                       •  Optimize to Revenue
                       •  Cohort Analysis
                       •  Acquire Shoppers not Users
Contact Us:
Gregory Kennedy
P 415.341.5762
E gregory@tapsense.com

www.tapsense.com

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Business Insider, Social Commerce Summit, TapSense

  • 1. How to Acquire High Quality Users for Social Commerce Apps Gregory Kennedy | VP of Marketing, TapSense
  • 2. App Marketing Challenge •  Millions of apps in the store •  Distributions models fragmented •  Market is extremely competitive TapSense is solving the app discovery problem
  • 3. What is Working •  Consumers love apps and ad inventory increasing •  Paid distributed provides consistent results •  High quality acquisition methods – Beyond CPI
  • 4. Conversion tracking graveyard •  Too many small players •  Confusing and complex •  Customers just want a system that works
  • 5. Announcing Our New Product M3 Cloud •  Conversion tracking for mobile apps •  Mobile to web tracking of purchases •  Optimize campaigns to revenue •  Cohort analysis 24 / 7 Online reporting gives you the latest data about your marketing performance
  • 6. Out of the Box Channel Support Channel Name Conversion Tracking iOS Monthly Unique Reach Apps Channel YES 200 Million + Facebook YES 150 Million + Google / Admob YES 90 Million + PayPal Media YES 30 Million + UberMedia YES 40 Million + Others Integration Required
  • 7. iPhone User Demographics (Forrester) •  250 Million sold and 80% of them in the US •  56% are aged 23 to 45 •  Even Split Male / Female •  Avg annual household income $105,200 (NBC News $77,220) •  Clustered in affluent metros: SF, LA, NY, SEA, ATL, CHI, etc. h"p://techcrunch.com/2012/09/26/forrester-­‐iphone-­‐app-­‐users-­‐young-­‐and-­‐wealthy-­‐android-­‐app-­‐users-­‐skew-­‐older/  
  • 8. Why Advertise? It’s the only way to get consistent and measureable results, that will grow your business.
  • 9. And mobile is significantly cheaper than PC TapSense Google Adwords PC Display Banners Avg. CPC $0.05 to $0.40 $1.04 $0.35 Avg. CTR 2.43% 0.40% 0.05% Avg. Conversion Rate 7% to 11% 5.30% 0.6% Avg. Cost per Conversion $3.46 $19.74 $58.3 Averages based on TapSense Platform Data and Tapsense Research from publicly available data.
  • 10. The Winning Strategy for Retail Move your web business to mobile, and acquire high value users for cheap.
  • 11. This Opportunity Won’t Last Forever •  TapSense avg. monthly CPC has almost doubled YoY •  Acquisition costs for high quality users are going up Current Rates Expected Monthly Volume iPhone CPC $0.15 45M + Clicks iPhone CPC $0.10 15M to 45M Clicks iPhone CPC $0.05 0 to 15M Clicks
  • 12. Consumers Love to Shop From Their Smartphone •  16.3% of 2012 Black Friday sales came from mobile •  Up a full 20.7% from 2011 h"p://tech.fortune.cnn.com/2012/11/25/apple-­‐ipad-­‐black-­‐friday/  
  • 13. “A whopping 56% of all of Fab’s revenue in the U.S. was via our mobile apps on Christmas in the U.S. — a new single day record.” Jason Goldberg, CEO of Fab
  • 14. 10 Mobile Acquisition Best Practices for Retail
  • 15. Ten Acquisition Best Practices for Retail 1. Optimize to Revenue not CPD Revenue ROI CreaGve  Name Installs Ad  Spend CPD $4,506.06   96.0% iPhone  CreaGve  A 650 $4,693.94   $7.22   $3,542.69   74.7% iPhone  CreaGve  B 1044 $4,743.98   $4.54   $3,231.67   72.9% iPhone  CreaGve  C 741 $4,431.32   $5.98   $2,433.91   46.9% iPhone  CreaGve  D 953 $5,193.40   $5.45  
  • 16. Ten Acquisition Best Practices for Retail 2. Provide a Clear Mobile Value Proposition Low Performer Top Performer Pinterest has Provides clear limited appeal for value proposition this audience with iPad user
  • 17. Ten Acquisition Best Practices for Retail 3. Plan for Seasonality •  Christmas Day •  Black Friday •  Cyber Monday •  Back to School •  Fall Fashion •  Chinese New Year
  • 18. Ten Acquisition Best Practices for Retail 4. Make Acquisition Part of Larger Strategy These ads show good alignment between acquisition and larger marketing efforts.
  • 19. Ten Acquisition Best Practices for Retail 5. Keep Ad Copy and Messaging Simple
  • 20. Ten Acquisition Best Practices for Retail 6. Use Cohort Analysis to Identify Trends Example: identify best performing channels return on revenue
  • 21. Ten Acquisition Best Practices for Retail 7. Use Internal Business Data to Drive Marketing •  Feature popular entry level items in advertisements •  Use product variety to interest new users •  Know your customer purchase cycle and advertise around it
  • 22. Ten Acquisition Best Practices for Retail 8. Focus on Quality and Scale TapSense Source A Source B Source C Avg. CTR 1.5% 0.05% 0.33% 0.81% Avg. CVR 1.88% 1.0% 18% 0.89% Avg. CPA $5.72 $6.24 $4.5 $7.59 Spend $179,530 $27,791 $9,243 $30,010 Conversions 33,821 4,456 2,043 3,949 TapSense was the only channel that delivered high quality users at scale. Blinded  campaign  data  from  TapSense  campaigns  that  ran  over  a  15  day  period.  
  • 23. Ten Acquisition Best Practices for Retail 9. Test and Optimize Your App Store Page
  • 24. Ten Acquisition Best Practices for Retail 10. Find Partners Who Speak Your Language TapSense Solution for Mobile Retail •  Conversion Tracking •  Optimize to Revenue •  Cohort Analysis •  Acquire Shoppers not Users
  • 25. Contact Us: Gregory Kennedy P 415.341.5762 E gregory@tapsense.com www.tapsense.com