1. The document discusses market trends in 2016 including increased mobile usage, decreasing attention spans, and evolving consumer behaviors that favor immediacy.
2. Key challenges in the mobile app market are discovery, monetization, and saturation that are pushing international expansion. Premium programmatic advertising and creator marketing are highlighted as trends for 2017.
3. The rise of marketing technology and use of predictive analytics and machine learning are presented as ways to maximize user retention, experience, and monetization in the face of these mobile trends and challenges.
4. Source: eMarketer, Sept. 2016 UK data
Print Radio TV Desktop Mobile
29%
23%
31%
13%
3%
16%
25%
38%
17%
4%
UKTIMESPENTWITHMEDIA 20162013
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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
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6. SOURCE | Kleiner Perkins Internet Trends, 2015
85 TIMESCONSUMERS UNLOCK THEIR PHONES EVERY DAY
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7. 76 SECONDSUSER WILL WAIT BEFORE MOVING ON TO A COMPETITOR
SOURCE | LivePerson, 2015
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8. 8 SECONDSTHE HUMAN ATTENTION SPAN
SOURCE | Microsoft research, May 2015
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9. C O N F I D E N T I A L
Attention span is decreasing…
Time
Choices
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14. Mass Adoption of Creator Marketing
@rossysheil
Video-first consumption is impacting
games…
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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
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…
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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
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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…
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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
33. The Rise of Premium Programmatic
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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
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35. Mass Adoption of Creator Marketing
@rossysheil
Mass Adoption of Creator Marketing
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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
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37. MarTech as Antidote to AdTech
@rossysheil
MarTech : AdTech
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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…
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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
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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
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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
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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
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