SlideShare a Scribd company logo
The Reason Behind Yahoo’s Purchase of
Flurry
Background to App Discovery
Global mobile ad-spendispredictedtoincrease 75% to $31.45bn as users are now spendingover
50% of theirdigital time onmobile apps. Thisnotonly showsthe importance developersare placing
on app marketingbutalsothe difficultyof doingso.Witha brokenappstore resultinginthe top6
techbrands (Facebook,Google,Apple,Yahoo,Amazon,Ebay) owningnine of the tenmostused
apps,occupyingover75% of user’stime,thisleaveslittleroomforup-and-comingappdevelopers&
large traditional brands.
Lack of Cookie Support & 3rd
Party Audience Data
Additional problemssuchasa lackof cookie supportandthirdparty audience dataonmobile have
resultedinburgeoning acquisitioncosts.AsCPM’shave startedtorise,conversionratesare still
laggingbehind. Itlooksonthe surface like alotof acquisitionisblind,apray& sprayapproach to
findingthe rightusers,withlittle hope of makinga positive ROI.
UserProfiling
All isnot lostthough,forseveral yearscompaniessuchasFacebook&Flurryhave beenbusy
collectingaudience data,buildingupdetailed3rd
partyuserprofiles: seeingwhatappspeople use,
howtheyuse them,and whothey’re friendswith. ThisdatahasenabledFacebooktocharge $0.50
CPC andstill produce the lowestCPIsinthe industry. Twitterisalsogoingdownthe same route,
usingreal-time sentimentbasedonkeywords.
Yahoo PurchasesFlurry
Yahoo hasfor yearsbeen seenasa dyingbehemoth,butsuddenlyspurredintoactionbya
recalcitrantMarissaMeyer determinedtobringYahooback to life,orat leastbuyYahoo’swayto
success,haspurchasedFlurry,a pure-playmobile appanalyticsprovider.
The sale cost hundredsof millionsof dollars,andeventhoughbyall accountsFlurrywasloss-making
and debt-ridden,andlackingscale comparedtorivals, itsaudience datapropositionwasseenasa
goldengoose byYahoo,badlylookingtobolsteritsmobileproposition.
Flurry’sdatahas the potential tobe a game changer.Its Trojan horse product(Flurryanalytics)
servesavast array of app developersinreturnforbeingable toutilisetheiraudience data&profile
theirusers.Thiscan make the differencebetweenYahoo sellinginventoryat$2 CPMvs an enriched
datasetproducingresultscosting$20 CPM.
Whilstthiswill notbe sufficientforYahootocatch Google & Facebookonmobile,itisanimportant
stepinthe rightdirection,andalsothe reasonwhyYahoovaluedFlurryat hundredsof millionsas
opposedtotensof millions.
The Value of Audience Data
To put thingsintoperspective,acampaignwithoutaudience datawill probablyachieve a1-2% click
to downloadrate,anda large drop-off post-downloaddue touninterestedusers.Butif youknew
exactlywhoyouwere targeting,the appstheyhave ontheirphone,andhow oftentheyuse them,
thenyoucouldpotentiallydouble notjustyourconversionrate butalsoin-appengagementrate,
ultimatelyleadingtogreaterrevenue. Whilst,MobAd’stestsof Flurryhave notyieldedsuchpositive
resultsyet,whichbeliesstill howearlyonthe propositionis,itislikelywhencombinedwithYahoo’s
back-enddatato reallyhave the potential tooutperformrival exchangessuchasMopub andNexage
still reliantonDSPsactingwithoutdetailedaudience insight,andpotentiallyleadtoa greatershare
of publishersmovingto Flurry/Yahooto monetise their inventory.
In anyevent,thisisa highlysignificantmove forYahooandprovides anotheruseful stepintothe
pure-playmobile world,whichitseekstogrow into,toensure notjust itsfuture revenues,but
possiblyalsoitslong-termexistence.
http://www.emarketer.com/Article/Driven-by-Facebook-Google-Mobile-Ad-
Market-Soars-10537-2013/1010690#sthash.nRo9JdTI.dpuf

More Related Content

What's hot

Mobile app marketing - Latest Trends 2016
Mobile app marketing - Latest Trends 2016Mobile app marketing - Latest Trends 2016
Mobile app marketing - Latest Trends 2016
TargetingMantra
 
Facebook em Portugal 2014
Facebook em Portugal 2014Facebook em Portugal 2014
Facebook em Portugal 2014
Diogo Da Silva
 
Customer engagement on mobile application research
Customer engagement on mobile application researchCustomer engagement on mobile application research
Customer engagement on mobile application research
Mohammad Emrul Hassan Emon
 
Mobile App Marketing 101
Mobile App Marketing 101Mobile App Marketing 101
Mobile App Marketing 101
Digital Vidya
 
AdColony User Acquisition Survey - Q1 2015
AdColony User Acquisition Survey - Q1 2015AdColony User Acquisition Survey - Q1 2015
AdColony User Acquisition Survey - Q1 2015
AdColony
 
The Successful App Cycle - Jun 2020 v1.7
The Successful App Cycle  - Jun 2020 v1.7The Successful App Cycle  - Jun 2020 v1.7
The Successful App Cycle - Jun 2020 v1.7
Bilal Zaheer
 
Big Brand Strategies for Mobile App Marketing
Big Brand Strategies for Mobile App MarketingBig Brand Strategies for Mobile App Marketing
Big Brand Strategies for Mobile App Marketing
Scott Valentine, MBA, CSPO
 
How To Succeed With Rewarded Video Ads
How To Succeed With Rewarded Video AdsHow To Succeed With Rewarded Video Ads
How To Succeed With Rewarded Video Ads
InMobi
 
A Bunch of Random Facts about Facebook Ads
A Bunch of Random Facts about Facebook AdsA Bunch of Random Facts about Facebook Ads
A Bunch of Random Facts about Facebook Ads
Wishpond
 
AdColony App Install Marketing Survey — Q3 2016
AdColony App Install Marketing Survey — Q3 2016AdColony App Install Marketing Survey — Q3 2016
AdColony App Install Marketing Survey — Q3 2016
AdColony
 
5 Factors Affecting Mobile In-app Monetization_MobileDay2017
5 Factors Affecting Mobile In-app Monetization_MobileDay20175 Factors Affecting Mobile In-app Monetization_MobileDay2017
5 Factors Affecting Mobile In-app Monetization_MobileDay2017
Loan Lala
 
Get jar digital now! preso
Get jar digital now! presoGet jar digital now! preso
Get jar digital now! preso
Patrick 'Mad' Mork
 
Business Briefing
Business BriefingBusiness Briefing
Business Briefing
Amanda Nuttall
 
User Engagement In Extraordinary Times - Marketing For Post-COVID-19 World
User Engagement In Extraordinary Times - Marketing For Post-COVID-19 WorldUser Engagement In Extraordinary Times - Marketing For Post-COVID-19 World
User Engagement In Extraordinary Times - Marketing For Post-COVID-19 World
MoEngage Inc.
 
What users want from mobile - Equation Research - July 2011
What users want from mobile  - Equation Research - July 2011What users want from mobile  - Equation Research - July 2011
What users want from mobile - Equation Research - July 2011
Romain Fonnier
 
Kohl's Mobile User Acquisition
Kohl's Mobile User AcquisitionKohl's Mobile User Acquisition
Kohl's Mobile User Acquisition
Zen Cachola
 
Vietnam 2021: Build Effective Engagement Strategies for App Growth
Vietnam 2021: Build Effective Engagement Strategies for App GrowthVietnam 2021: Build Effective Engagement Strategies for App Growth
Vietnam 2021: Build Effective Engagement Strategies for App Growth
CleverTap
 
After The Download: Keeping Them Engaged Using 1:1 Marketing
After The Download: Keeping Them Engaged Using 1:1 MarketingAfter The Download: Keeping Them Engaged Using 1:1 Marketing
After The Download: Keeping Them Engaged Using 1:1 Marketing
FollowAnalytics
 
Mobile marketing tips & tricks - faces of content
Mobile marketing   tips & tricks - faces of contentMobile marketing   tips & tricks - faces of content
Mobile marketing tips & tricks - faces of content
Faces of Content
 
The beginners-guide-to-mobile-advertising-analytics updated
The beginners-guide-to-mobile-advertising-analytics updatedThe beginners-guide-to-mobile-advertising-analytics updated
The beginners-guide-to-mobile-advertising-analytics updated
Suthasinee Lieopairoj
 

What's hot (20)

Mobile app marketing - Latest Trends 2016
Mobile app marketing - Latest Trends 2016Mobile app marketing - Latest Trends 2016
Mobile app marketing - Latest Trends 2016
 
Facebook em Portugal 2014
Facebook em Portugal 2014Facebook em Portugal 2014
Facebook em Portugal 2014
 
Customer engagement on mobile application research
Customer engagement on mobile application researchCustomer engagement on mobile application research
Customer engagement on mobile application research
 
Mobile App Marketing 101
Mobile App Marketing 101Mobile App Marketing 101
Mobile App Marketing 101
 
AdColony User Acquisition Survey - Q1 2015
AdColony User Acquisition Survey - Q1 2015AdColony User Acquisition Survey - Q1 2015
AdColony User Acquisition Survey - Q1 2015
 
The Successful App Cycle - Jun 2020 v1.7
The Successful App Cycle  - Jun 2020 v1.7The Successful App Cycle  - Jun 2020 v1.7
The Successful App Cycle - Jun 2020 v1.7
 
Big Brand Strategies for Mobile App Marketing
Big Brand Strategies for Mobile App MarketingBig Brand Strategies for Mobile App Marketing
Big Brand Strategies for Mobile App Marketing
 
How To Succeed With Rewarded Video Ads
How To Succeed With Rewarded Video AdsHow To Succeed With Rewarded Video Ads
How To Succeed With Rewarded Video Ads
 
A Bunch of Random Facts about Facebook Ads
A Bunch of Random Facts about Facebook AdsA Bunch of Random Facts about Facebook Ads
A Bunch of Random Facts about Facebook Ads
 
AdColony App Install Marketing Survey — Q3 2016
AdColony App Install Marketing Survey — Q3 2016AdColony App Install Marketing Survey — Q3 2016
AdColony App Install Marketing Survey — Q3 2016
 
5 Factors Affecting Mobile In-app Monetization_MobileDay2017
5 Factors Affecting Mobile In-app Monetization_MobileDay20175 Factors Affecting Mobile In-app Monetization_MobileDay2017
5 Factors Affecting Mobile In-app Monetization_MobileDay2017
 
Get jar digital now! preso
Get jar digital now! presoGet jar digital now! preso
Get jar digital now! preso
 
Business Briefing
Business BriefingBusiness Briefing
Business Briefing
 
User Engagement In Extraordinary Times - Marketing For Post-COVID-19 World
User Engagement In Extraordinary Times - Marketing For Post-COVID-19 WorldUser Engagement In Extraordinary Times - Marketing For Post-COVID-19 World
User Engagement In Extraordinary Times - Marketing For Post-COVID-19 World
 
What users want from mobile - Equation Research - July 2011
What users want from mobile  - Equation Research - July 2011What users want from mobile  - Equation Research - July 2011
What users want from mobile - Equation Research - July 2011
 
Kohl's Mobile User Acquisition
Kohl's Mobile User AcquisitionKohl's Mobile User Acquisition
Kohl's Mobile User Acquisition
 
Vietnam 2021: Build Effective Engagement Strategies for App Growth
Vietnam 2021: Build Effective Engagement Strategies for App GrowthVietnam 2021: Build Effective Engagement Strategies for App Growth
Vietnam 2021: Build Effective Engagement Strategies for App Growth
 
After The Download: Keeping Them Engaged Using 1:1 Marketing
After The Download: Keeping Them Engaged Using 1:1 MarketingAfter The Download: Keeping Them Engaged Using 1:1 Marketing
After The Download: Keeping Them Engaged Using 1:1 Marketing
 
Mobile marketing tips & tricks - faces of content
Mobile marketing   tips & tricks - faces of contentMobile marketing   tips & tricks - faces of content
Mobile marketing tips & tricks - faces of content
 
The beginners-guide-to-mobile-advertising-analytics updated
The beginners-guide-to-mobile-advertising-analytics updatedThe beginners-guide-to-mobile-advertising-analytics updated
The beginners-guide-to-mobile-advertising-analytics updated
 

Similar to The Reason Behind Yahoo's Purchase of Flurry

The Ten Commandments of App Marketing - Big Ideas Machine at Digital Growth Day
The Ten Commandments of App Marketing - Big Ideas Machine at Digital Growth DayThe Ten Commandments of App Marketing - Big Ideas Machine at Digital Growth Day
The Ten Commandments of App Marketing - Big Ideas Machine at Digital Growth Day
OMN
 
The ten commandments of app marketing
The ten commandments of app marketingThe ten commandments of app marketing
The ten commandments of app marketing
Big Ideas Machine
 
Adobe Scene7 2010 Mobile Commerce Survey
Adobe Scene7 2010 Mobile Commerce SurveyAdobe Scene7 2010 Mobile Commerce Survey
Adobe Scene7 2010 Mobile Commerce Survey
Carla Dias
 
The Necessity of Mobile App Marketing by App Promo
The Necessity of Mobile App Marketing by App PromoThe Necessity of Mobile App Marketing by App Promo
The Necessity of Mobile App Marketing by App Promo
Putra Utama
 
10 Tips for Leveraging Big Data for Mobile Marketing
10 Tips for Leveraging Big Data for Mobile Marketing10 Tips for Leveraging Big Data for Mobile Marketing
10 Tips for Leveraging Big Data for Mobile Marketing
Heather Forsythe
 
Fiksu presentation at AppConext: User Acquisition and Discovery-Why a Cohesiv...
Fiksu presentation at AppConext: User Acquisition and Discovery-Why a Cohesiv...Fiksu presentation at AppConext: User Acquisition and Discovery-Why a Cohesiv...
Fiksu presentation at AppConext: User Acquisition and Discovery-Why a Cohesiv...
Fiksu
 
You Call THAT an APP Buying Funnel?
You Call THAT an APP Buying Funnel?You Call THAT an APP Buying Funnel?
You Call THAT an APP Buying Funnel?
Jim Nichols
 
It's Time to Fix Your Conversion Funnel
It's Time to Fix Your Conversion FunnelIt's Time to Fix Your Conversion Funnel
It's Time to Fix Your Conversion Funnel
James Nichols
 
How to build the next million dollar app?
How to build the next million dollar app?How to build the next million dollar app?
How to build the next million dollar app?
Sandeep Chauhan
 
Gg mobile apps_vs_web_july2011-5
Gg mobile apps_vs_web_july2011-5Gg mobile apps_vs_web_july2011-5
Gg mobile apps_vs_web_july2011-5
DMI
 
8 statistics every business should know about mobile
8 statistics every business should know about mobile8 statistics every business should know about mobile
8 statistics every business should know about mobile
Copper Mobile, Inc.
 
Big brand strategies for mobile app marketing
Big brand strategies for mobile app marketingBig brand strategies for mobile app marketing
Big brand strategies for mobile app marketing
Ajai Srivastava
 
Why we are working on AppSocially
Why we are working on AppSociallyWhy we are working on AppSocially
Why we are working on AppSocially
Yusuke Takahashi, PhD
 
Overcoming Pitfalls of Launching Kids Apps | Natalie Portier
Overcoming Pitfalls of Launching Kids Apps | Natalie PortierOvercoming Pitfalls of Launching Kids Apps | Natalie Portier
Overcoming Pitfalls of Launching Kids Apps | Natalie Portier
Jessica Tams
 
R 13-bii appmarketingreport-2013_freeappmkt
R 13-bii appmarketingreport-2013_freeappmktR 13-bii appmarketingreport-2013_freeappmkt
R 13-bii appmarketingreport-2013_freeappmkt
Centrum Adama Smitha
 
4 reasons why your retail business needs a mobile app
4 reasons why your retail business needs a mobile app4 reasons why your retail business needs a mobile app
4 reasons why your retail business needs a mobile app
Frank Whyte
 
iPhone Apps: From Idea to Implementation
iPhone Apps: From Idea to ImplementationiPhone Apps: From Idea to Implementation
iPhone Apps: From Idea to Implementation
Dustin Jacobsen
 
[White Paper] Interconnections via API: Improving the performance of digital ...
[White Paper] Interconnections via API: Improving the performance of digital ...[White Paper] Interconnections via API: Improving the performance of digital ...
[White Paper] Interconnections via API: Improving the performance of digital ...
AT Internet
 
Eric garcia-fiksu
Eric garcia-fiksuEric garcia-fiksu
Mobile App Marketing: The Ultimate Guide to Success
Mobile App Marketing: The Ultimate Guide to SuccessMobile App Marketing: The Ultimate Guide to Success
Mobile App Marketing: The Ultimate Guide to Success
Pappas Group a DMI Company
 

Similar to The Reason Behind Yahoo's Purchase of Flurry (20)

The Ten Commandments of App Marketing - Big Ideas Machine at Digital Growth Day
The Ten Commandments of App Marketing - Big Ideas Machine at Digital Growth DayThe Ten Commandments of App Marketing - Big Ideas Machine at Digital Growth Day
The Ten Commandments of App Marketing - Big Ideas Machine at Digital Growth Day
 
The ten commandments of app marketing
The ten commandments of app marketingThe ten commandments of app marketing
The ten commandments of app marketing
 
Adobe Scene7 2010 Mobile Commerce Survey
Adobe Scene7 2010 Mobile Commerce SurveyAdobe Scene7 2010 Mobile Commerce Survey
Adobe Scene7 2010 Mobile Commerce Survey
 
The Necessity of Mobile App Marketing by App Promo
The Necessity of Mobile App Marketing by App PromoThe Necessity of Mobile App Marketing by App Promo
The Necessity of Mobile App Marketing by App Promo
 
10 Tips for Leveraging Big Data for Mobile Marketing
10 Tips for Leveraging Big Data for Mobile Marketing10 Tips for Leveraging Big Data for Mobile Marketing
10 Tips for Leveraging Big Data for Mobile Marketing
 
Fiksu presentation at AppConext: User Acquisition and Discovery-Why a Cohesiv...
Fiksu presentation at AppConext: User Acquisition and Discovery-Why a Cohesiv...Fiksu presentation at AppConext: User Acquisition and Discovery-Why a Cohesiv...
Fiksu presentation at AppConext: User Acquisition and Discovery-Why a Cohesiv...
 
You Call THAT an APP Buying Funnel?
You Call THAT an APP Buying Funnel?You Call THAT an APP Buying Funnel?
You Call THAT an APP Buying Funnel?
 
It's Time to Fix Your Conversion Funnel
It's Time to Fix Your Conversion FunnelIt's Time to Fix Your Conversion Funnel
It's Time to Fix Your Conversion Funnel
 
How to build the next million dollar app?
How to build the next million dollar app?How to build the next million dollar app?
How to build the next million dollar app?
 
Gg mobile apps_vs_web_july2011-5
Gg mobile apps_vs_web_july2011-5Gg mobile apps_vs_web_july2011-5
Gg mobile apps_vs_web_july2011-5
 
8 statistics every business should know about mobile
8 statistics every business should know about mobile8 statistics every business should know about mobile
8 statistics every business should know about mobile
 
Big brand strategies for mobile app marketing
Big brand strategies for mobile app marketingBig brand strategies for mobile app marketing
Big brand strategies for mobile app marketing
 
Why we are working on AppSocially
Why we are working on AppSociallyWhy we are working on AppSocially
Why we are working on AppSocially
 
Overcoming Pitfalls of Launching Kids Apps | Natalie Portier
Overcoming Pitfalls of Launching Kids Apps | Natalie PortierOvercoming Pitfalls of Launching Kids Apps | Natalie Portier
Overcoming Pitfalls of Launching Kids Apps | Natalie Portier
 
R 13-bii appmarketingreport-2013_freeappmkt
R 13-bii appmarketingreport-2013_freeappmktR 13-bii appmarketingreport-2013_freeappmkt
R 13-bii appmarketingreport-2013_freeappmkt
 
4 reasons why your retail business needs a mobile app
4 reasons why your retail business needs a mobile app4 reasons why your retail business needs a mobile app
4 reasons why your retail business needs a mobile app
 
iPhone Apps: From Idea to Implementation
iPhone Apps: From Idea to ImplementationiPhone Apps: From Idea to Implementation
iPhone Apps: From Idea to Implementation
 
[White Paper] Interconnections via API: Improving the performance of digital ...
[White Paper] Interconnections via API: Improving the performance of digital ...[White Paper] Interconnections via API: Improving the performance of digital ...
[White Paper] Interconnections via API: Improving the performance of digital ...
 
Eric garcia-fiksu
Eric garcia-fiksuEric garcia-fiksu
Eric garcia-fiksu
 
Mobile App Marketing: The Ultimate Guide to Success
Mobile App Marketing: The Ultimate Guide to SuccessMobile App Marketing: The Ultimate Guide to Success
Mobile App Marketing: The Ultimate Guide to Success
 

The Reason Behind Yahoo's Purchase of Flurry

  • 1. The Reason Behind Yahoo’s Purchase of Flurry Background to App Discovery Global mobile ad-spendispredictedtoincrease 75% to $31.45bn as users are now spendingover 50% of theirdigital time onmobile apps. Thisnotonly showsthe importance developersare placing on app marketingbutalsothe difficultyof doingso.Witha brokenappstore resultinginthe top6 techbrands (Facebook,Google,Apple,Yahoo,Amazon,Ebay) owningnine of the tenmostused apps,occupyingover75% of user’stime,thisleaveslittleroomforup-and-comingappdevelopers& large traditional brands. Lack of Cookie Support & 3rd Party Audience Data Additional problemssuchasa lackof cookie supportandthirdparty audience dataonmobile have resultedinburgeoning acquisitioncosts.AsCPM’shave startedtorise,conversionratesare still laggingbehind. Itlooksonthe surface like alotof acquisitionisblind,apray& sprayapproach to findingthe rightusers,withlittle hope of makinga positive ROI. UserProfiling All isnot lostthough,forseveral yearscompaniessuchasFacebook&Flurryhave beenbusy collectingaudience data,buildingupdetailed3rd partyuserprofiles: seeingwhatappspeople use, howtheyuse them,and whothey’re friendswith. ThisdatahasenabledFacebooktocharge $0.50 CPC andstill produce the lowestCPIsinthe industry. Twitterisalsogoingdownthe same route, usingreal-time sentimentbasedonkeywords. Yahoo PurchasesFlurry Yahoo hasfor yearsbeen seenasa dyingbehemoth,butsuddenlyspurredintoactionbya recalcitrantMarissaMeyer determinedtobringYahooback to life,orat leastbuyYahoo’swayto success,haspurchasedFlurry,a pure-playmobile appanalyticsprovider. The sale cost hundredsof millionsof dollars,andeventhoughbyall accountsFlurrywasloss-making and debt-ridden,andlackingscale comparedtorivals, itsaudience datapropositionwasseenasa goldengoose byYahoo,badlylookingtobolsteritsmobileproposition. Flurry’sdatahas the potential tobe a game changer.Its Trojan horse product(Flurryanalytics) servesavast array of app developersinreturnforbeingable toutilisetheiraudience data&profile theirusers.Thiscan make the differencebetweenYahoo sellinginventoryat$2 CPMvs an enriched datasetproducingresultscosting$20 CPM. Whilstthiswill notbe sufficientforYahootocatch Google & Facebookonmobile,itisanimportant stepinthe rightdirection,andalsothe reasonwhyYahoovaluedFlurryat hundredsof millionsas opposedtotensof millions.
  • 2. The Value of Audience Data To put thingsintoperspective,acampaignwithoutaudience datawill probablyachieve a1-2% click to downloadrate,anda large drop-off post-downloaddue touninterestedusers.Butif youknew exactlywhoyouwere targeting,the appstheyhave ontheirphone,andhow oftentheyuse them, thenyoucouldpotentiallydouble notjustyourconversionrate butalsoin-appengagementrate, ultimatelyleadingtogreaterrevenue. Whilst,MobAd’stestsof Flurryhave notyieldedsuchpositive resultsyet,whichbeliesstill howearlyonthe propositionis,itislikelywhencombinedwithYahoo’s back-enddatato reallyhave the potential tooutperformrival exchangessuchasMopub andNexage still reliantonDSPsactingwithoutdetailedaudience insight,andpotentiallyleadtoa greatershare of publishersmovingto Flurry/Yahooto monetise their inventory. In anyevent,thisisa highlysignificantmove forYahooandprovides anotheruseful stepintothe pure-playmobile world,whichitseekstogrow into,toensure notjust itsfuture revenues,but possiblyalsoitslong-termexistence. http://www.emarketer.com/Article/Driven-by-Facebook-Google-Mobile-Ad- Market-Soars-10537-2013/1010690#sthash.nRo9JdTI.dpuf