1.
`
2016 Lessons & 2017 Trends
P O C K E T G A M E R C O N N E C T S L O N D O N - J A N U A R Y 2 0 1 7
@ R O S S Y S H E I L

2.
MARKET PLACE USER BEHAVIOURAPP STORE
@ R O S S Y S H E I L
Market forces driving the app economy…

3.
@ R O S S Y S H E I L
USER BEHAVIOUR

4.
Source: eMarketer, Sept. 2016 UK data
Print Radio TV Desktop Mobile
29%
23%
31%
13%
3%
16%
25%
38%
17%
4%
UKTIMESPENTWITHMEDIA 20162013
@ R O S S Y S H E I L
minutes with
digital media are
spent on mobile
2/3Mobile time is eating other media…

5.
90%
SOURCE | comScore MMX MP and Mobile Metrix, UK, 2015
TIME SPENT IN APP VS MOBILE BROWSER
@ R O S S Y S H E I L

6.
SOURCE | Kleiner Perkins Internet Trends, 2015
85 TIMESCONSUMERS UNLOCK THEIR PHONES EVERY DAY
@ R O S S Y S H E I L

7.
76 SECONDSUSER WILL WAIT BEFORE MOVING ON TO A COMPETITOR
SOURCE | LivePerson, 2015
@ R O S S Y S H E I L

8.
8 SECONDSTHE HUMAN ATTENTION SPAN
SOURCE | Microsoft research, May 2015
@ R O S S Y S H E I L

9.
C O N F I D E N T I A L
Attention span is decreasing…
Time
Choices
@ R O S S Y S H E I L

10.
Consumption & behaviour are
changing…
@ R O S S Y S H E I L

11.
Expectation of ‘Now’…
@ R O S S Y S H E I L

12.
@ R O S S Y S H E I L
75%
SOURCE | CISCO 2016

13.
Consumption method is changing….
@ R O S S Y S H E I L

14.
Mass Adoption of Creator Marketing
@rossysheil
Video-first consumption is impacting
games…
@ R O S S Y S H E I L

15.
USER BEHAVIOUR IS
EVOLVING…
+ 11%
YoY usage increase on
aggregate vs 58% in 2015
- 15%
Gaming down YoY vs -1% in
2015
1 Billion
Apps across 2 B devices
@ R O S S Y S H E I L SOURCE | FLURRY 2016

16.
CANNIBALISATION OF
TIME SPENT..
- 4%
Decrease in time spent gaming
@ R O S S Y S H E I L SOURCE | FLURRY 2016

17.
@ R O S S Y S H E I L
MARKET PLACE

18.
When demand exceeds supply…
@ R O S S Y S H E I L

19.
0
30
60
90
120
SmartphoneUsers
0.0
0.7
1.3
2.0
2.6
2014 2015 2016 2017 2018
SP Users Mobile Ad Spend
AdSpendingBillions
Mobile Ad Spend per User
2014
2015
2016
2017
2018
0 15 30 45 60
$52
$44
$38
$30
$19
3%
YoY increase in smartphone
growth in 2016
42X
Multiple of Users : Ad Spend in
2017
2.5X
Multiple of which the rate of ad
spend exceeds rate of growth
in 2016
THE TIPPING POINT

20.
More ad tech available than ever - over 1,000
vendors…
@ R O S S Y S H E I L

21.
Are you reaching a unique audience ?
@ R O S S Y S H E I L

22.
Attribution & user colouring is a problem
UNIQUE AUDIENCE ?
GOOGLE
VUNGLE
FACEBOOK
FIRST CLICK
A S S I S T
LAST CLICK
IMPRESSION
Lack of parity in industry on assisted &
view
Attributed data hard-coded & at cohort-
level does not help publishers
@ R O S S Y S H E I L

23.
APP STORE
@ R O S S Y S H E I L

24.
HOW CAN A USER FIND YOUR APP?
4MM OTHER APPS.
250BN+ INSTALLS SINCE 2008
@ R O S S Y S H E I L

25.
Discovery & monetisation is challenging…
@ R O S S Y S H E I L

26.
RELEASES PER
DAY
MONTHLY GAMES
CONSUMPTION
APPS ON HOME
PAGE SCREEN
4k+ 6 5
@ R O S S Y S H E I L SOURCE | FORRESTER 2016

27.
C O N F I D E N T I A L@ R O S S Y S H E I L
GAMING APPS MATURE..
2013 2014 2015 2016
119 days
SOURCE | APP ANNIE 2016

28.
Market place trends & discovery challenges force
internationalisation…
@ R O S S Y S H E I L

29.
C O N F I D E N T I A L
79 Billion
2.2x growth by 2020
400 Billion
1.8x growth by 2020
3x
Revenue
GLOBAL APP STORE IS
BOOMING…
@ R O S S Y S H E I L SOURCE | OVUM 2015

30.
C O N F I D E N T I A L
USA & EMEA
Deceleration due to app
saturation and maturity
MATURING & EMERGING…
SEA
BRIC
APAC
Acceleration in downloads as smartphone adoption
increases
@ R O S S Y S H E I L SOURCE | APP ANNIE 2016

31.
C O N F I D E N T I A L
APAC
2x time spent vs USA
JP ARPU
2x aggregate in ‘Big 5
Countries’
CN
Largest iOS market and 10x ARPU
increase
BALANCE THE ECONOMIES…
@ R O S S Y S H E I L SOURCE | APP ANNIE 2016

32.
WHAT DOES THIS MEAN FOR 2017 ?
@ R O S S Y S H E I L

33.
The Rise of Premium Programmatic
@ R O S S Y S H E I L

34.
PREMIUM PROGRAMMATIC
VIDEO ADS
eCPMs
+60%
VIDEO ADS
REVENUE
+180%
DSPs BUYING
VIDEO ADS
+120%
- Private Market Places will be key trend for
diversification & high quality acquisition
- Enables advertisers to compete at high
CPM’s where brand advertisers are applying
pressure
- First party data push - continued movement
towards ‘premium audiences and not
inventory
Video Ad Revenue
DMP Syndication of First Party Data to
trade audiences across RTB
@ R O S S Y S H E I L

35.
Mass Adoption of Creator Marketing
@rossysheil
Mass Adoption of Creator Marketing
@ R O S S Y S H E I L

36.
49%
Users have used a product
because of an influencer
PROGRAMMATIC CREATOR
MARKETING
20%
Users share products they see
influencers use
Strong channel for mid-long
tail acquisition
@ R O S S Y S H E I L

37.
MarTech as Antidote to AdTech
@rossysheil
MarTech : AdTech
@ R O S S Y S H E I L

38.
- Market shift in focus to user retention & predictive
analytics
- Maximise value & yield of a single user or cohort
- Unique experience for on-boarded users on a channel
level
- MMA can marry product & marketing teams goals
effectively
THE MARTECH ANTIDOTE…
@ R O S S Y S H E I L

39.
100% Player Monetisation
@ R O S S Y S H E I L

40.
5%
Users who carry out in-app
purchases
100% PLAYER MONETISATION
- Single SDK with predictive analytics to maximise
monetisation & IAP
- Integration of immersive ad experiences & rewarded
video to boost LTV
- Enhanced data sharing capabilities MMP, SSP, DSP
@ R O S S Y S H E I L

41.
@rossysheil
ROAS to inform Demand Strategy
@ R O S S Y S H E I L

42.
SHIFT TO PREMIUM ON DEMAND
NATIVE AD
CLICK-THROUGH RATES
+130%
+390%
NATIVE AD
REVENUE
+132%
INCREASE IN NATIVE
INVENTORY
- NATIVE to combat mobile CPM’s & lack of supply
- Playables to generate mass adoption
- ROAS on ad type and individual-user level (Soomla)
- Social contributors & K-Factor on cohort level
- Synchronous and asynchronous gameplay via demand &
platform
@ R O S S Y S H E I L

43.
AI to Power Creativity
@rossysheil@ R O S S Y S H E I L

44.
AI TO POWER CREATIVITY
- Platforms are suffering from lack of innovation in
ad fatigue and user fatigue
- AI & predictive analytics will address rules based
approach to creative fatigue
- Machine learning will open up a new native
channel with in-video advertising
@ R O S S Y S H E I L

45.
Key Takeaways
1
2
3
4
Market place, app store and user trends are converging to limit supply & create
excessive demand
The rise of premium programmatic will aid in diversification with greater predictability of
ROAS
Age of the mature marketing organisation - unit economics mean tighter focus on ROAS
AI will open up innovation in creativity for performance marketers in video
@ R O S S Y S H E I L

46.
#PGCLondon
@ R O S S Y S H E I L