This document discusses the benefits of building an app portfolio rather than focusing on individual apps. It notes that as people download fewer apps, advertising costs are rising, so cross-promoting within a portfolio of apps can help reduce acquisition costs. Building a portfolio also smooths out revenue across game lifecycles and protects against market sentiment shifts. The document recommends releasing multiple games and taking a strategic approach to cross-promotion, such as using optimized ad serving based on player data and creating a rich content ad portal to improve ad quality and engagement.

1. Optimizing User Acquisition for an
App Portfolio
Eric Benjamin Seufert
Casual Connect Amsterdam
February 2016

2. Who am I?
Mobile Dev Memo
Freemium Economics
VP of User Acquisition & Network Engagement

3. Why build an App Portfolio?

4. Why build an App Portfolio?
• People are spending more time on mobile but
are downloading fewer apps;

11. 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;

13. 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;

15. 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:

17. 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);

18. 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);

19. 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).

20. Why build an App Portfolio?
• Smooth revenues out across game lifecycles:

21. 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/)

22. 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/)

23. Also, portfolio theory.
• Diversifying revenue base with different game
genres / themes can protect against sentiment
shifts in the market

24. 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/

25. How to do it?

26. How to do it?
1) Release more than one game;

27. How to do it?
1) Release more than one game;
2) Be strategic about cross promotion.

28. Be strategic about cross promotion
2 Examples from Rovio’s UANE team:

29. Be strategic about cross promotion
2 Examples from Rovio’s UANE team:
1) Optimized, programmatic ad serving;

30. Be strategic about cross promotion
2 Examples from Rovio’s UANE team:
1) Optimized, programmatic ad serving;
2) Rich content ad portal.

31. Optimized, programmatic ad serving

32. Optimized, programmatic ad serving
Showing the right ad:

33. Optimized, programmatic ad serving
Showing the right ad:
Built a Bayesian optimizer that serves ads based
on performance, aggregated around:

34. 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).

35. 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

36. Optimized, programmatic ad serving
Results:

37. Optimized, programmatic ad serving
Results:
For some games, outbound installs more than
doubled;

38. 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).

39. Rich content ad portal

40. Rich content ad portal
Showing better ads:

41. 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.

42. Rich content ad portal

43. Rich content ad portal
Results:

44. 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

45. Thanks!
MobileDevMemo.com
@eric_seufert