how to get low cpi high value users via mobile ad networks by naghi prasad
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How To Get Low CPI High Value Users Via Mobile Ad Networks by Naghi PrasadTRANSCRIPT
How to get low CPI and High Value Users via mobile ad networks
Naghi Prasad
Co-Founder, Deep Forest Media
March 2014
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Agenda
• Introduction to paid user acquisition
• Measure Life Time Value of Users
• Increase Life Time Value of users
• Decrease the cost of acquiring high value users
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User Acquisition Dilemma
• Increasingly, revenues and downloads are decoupling. • Rage of Bahamut is not a top 500 iOS app by download but #14 app in revenue in US, DARPU ~$0.80!
• Clash of Clans – one of the top grossing iOS apps is not even in top 50 in downloads
Getting the right user is the game!!
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Net positive return on users
• Life Time Value (LTV) of user
• Profit per user. = LTV – CPI
Cannot optimize for what you don’t measure
Measure
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LTV Calculation – Too Late to Affect Ad Campaign
Days
Leading Indicators for LTV prediction
LTV and Leading Indicators Measure
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Increase LTV
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Freemium versus paid apps
• Freemium is the dominant model • Is Freemium a good model for your app?
• Paid apps are hard to get through paid acquisition
Reduce costs
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Campaign types
• CPI • Minimal risk • Hard to get, at volume
• CPC • Conversion risk still on the advertiser
• CPM • Maximum risk; maximum reward • Willingness to experiment and take losses.
Reduce costs
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Supply Sources
• Over 100 supply sources • Native platforms (Facebook, ….) • Ad Networks • RTB Exchange
• Types of inventory • Native platforms • Incentivized vs non-‐incentized • Video (incented video, non-‐incented install vs non-‐incented video) • Pay per Engagement • Rich Media
Reduce costs
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Retargeting
• Very useful technique for mature apps • RTB exchanges ideal for this • Work with a platform that keep your data siloed and targets on
your behalf.
• Any kind of data advantage you have falls in this bucket.
Reduce costs
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Deep Forest Media
Easy § One click
buying
Transparent § One-stop unified
reporting
Automated § Algorithmic
spend optimization
advertisers mobile users