Presentation delivered during the Adjust Mobile Spree Event by Stefan Bielau (from Dynamo Partners)

1. How Brands and App Marketers measure ROI –
Without a direct Monetization Model
Berlin, 2017-06-01

2. Monetization Models for Mobile Apps

3. Paid /
Premium
Freemium /
Free2Play
mCommerce
Advertising
Lead
Generation /
Affiliate
Data
Monetization Models for Mobile Apps

4. Monetization Models for Mobile Apps
Pay once for the full app
experience.
One-time fee.
Paid / Premium
Paid /
Premium
Freemium /
Free2Play
mCommerce
Advertising
Lead
Generation /
Affiliate
Data

5. Monetization Models for Mobile Apps
Pay for features or content.
One-time fee or subscription.
IAP.
Freemium / Free2Play
Freemium /
Free2Play
mCommerce
Advertising
Lead
Generation /
Affiliate
Data
Paid /
Premium

6. Monetization Models for Mobile Apps
Pay for digital or physical goods.
Via payment providers other than
appstores.
mCommerce
mCommerce
Freemium /
Free2Play
mCommerce
Advertising
Lead
Generation /
Affiliate
Data
Paid /
Premium

7. Monetization Models for Mobile Apps
Free apps.
Premium & Performance.
CPx.
Banner, Video & Co.
Advertising
Freemium /
Free2Play
mCommerce
Advertising
Lead
Generation /
Affiliate
Data
Paid /
Premium

8. Monetization Models for Mobile Apps
Profiling.
Transactions.
Partner Programs.
Lead Generation / Affiliate
Freemium /
Free2Play
mCommerce
Advertising
Lead
Generation /
Affiliate
Data
Paid /
Premium

9. Monetization Models for Mobile Apps
Free apps.
Aggregate & analyse data.
Sell to 3rd parties.
Data
Freemium /
Free2Play
mCommerce
Advertising
Lead
Generation /
Affiliate
Data
Paid /
Premium

10. Monetization Models for Mobile Apps
Paid /
Premium
Freemium /
Free2Play
mCommerce
Advertising
Lead
Generation /
Affiliate
Data

11. Measuring the Economics

12. Measuring the Economics
Monetization
Retention
ViralityLTV
• Evaluating profitability
• Improve budgeting decisions
• Understand your users better
The metric for:
𝐿𝑇𝑉 = 𝐴𝑅𝑃𝑈 𝑥
1
𝐶ℎ𝑢𝑟𝑛
The formula:

13. 𝐿𝑇𝑉 = ? ? ? 𝑥
1
𝐶ℎ𝑢𝑟𝑛

14. Alternative Business Models

15. Alternative Business Models
01
04
03
Growth-
Funded Apps
Companion
Apps
Branded
Apps
02
Apps of
Classifieds

16. Alternative Business Models
01
04
03
02
Apps of ClassifiedsBranded Apps
Companion
Apps
Growth-funded
Apps
Branded Apps
• Convey brand messages
• Offer services
• Engage audiences
• Build customer loyalty

17. Alternative Business Models
01
04
03
02
Apps of ClassifiedsBranded Apps
Companion
Apps
Growth-funded
Apps
Apps of Classifieds
• Seller-Buyer
marketplace
• Critical mass
• Charging sellers
• Promoted Listings
• Ads
• Lead Generation

18. Alternative Business Models
01
04
03
02
Apps of ClassifiedsBranded Apps
Companion
Apps
Growth-
funded Apps
Growth-funded Apps
• No biz model (yet?)
• Limited run-rate
• Photo & Video apps
• Social networks
• Health & Fitness

19. Alternative Business Models
01
04
03
02
Apps of ClassifiedsBranded Apps
Companion
Apps
Growth-funded
Apps
Companion Apps
• Rarely do paid UA
• Owned & Operated
Promotions
• Automotive
• Telco
• IOT

20. How to Measure UA for
Alternative App Businesses

21. Requirements
• Quantitative Key Performance Indicators
• Awareness (What is this?)
• Interest (I have to try this!)
• Conversions (Can I have the link?)
• Reach, i.e. impressions, installs, active users
• Engagement, i.e. sessions, session length, frequency,
sign-ups, granted permissions
• Retention: retention rates, churn / attrition
• Plans & Scenarios
• Responsibilities
• Measurement tools
How To Measure UA for Alternative App Businesses

22. 𝐿𝑇𝑉 = ? ? ? 𝑥
1
𝐶ℎ𝑢𝑟𝑛

23. Approach #1 – CPx Targets
• Research industry benchmarks for acquisition costs within your category
and target markets
• Sources, e.g.
• RFQ of ad networks and publishers
• Indices of Facebook Business Manager and Google Adwords
• Insights: Chartboost, Fiksu, IAB, Pubmatic Mobile Index etc.
• Apply benchmarks to simple budgeting and marketing planning
• Incorporate benchmarks into your AAARRR funnel
! Do not miss growth opportunities, test scaling effects within the acquisition
channels:
• Increase CPx by 100%
• Decrease by 25% until original target is hit
• Measure the correlation between paid and organic installs
How To Measure UA for Alternative App Businesses

24. Approach #2 – Brand KPI
• Awareness and Interest
• Break up the clutter of Awareness, Interest & Install Conversion
for max growth
• Measure awareness via
• the total adressable audience and your share in it
• Measure interest via
• Direct traffic
• Earned Media
• SEO links
• Social reach & engagement
• Search Volume
• Incorporate the top-funnel assumptions/data into your AAARRR funnel
How To Measure UA for Alternative App Businesses

25. Approach #3 – Virtual Revenue
• Assume you could sell ads in your app
• Benchmark CPx (see approach #1)
• Result: CPM and CPC
• Segment your users
• Measure D7 retention and the total # of users being active within the first
7days
• Multiply by click conversion rate = users who will click on your ad
• Estimate the click-to-download conversion = CPI
• Do UA with a 7day window for your return on ad spend (ROAS)
! €500 =
€5∗100.000
1.000
100.000 ∗ 1% = 1.000
€500
1.000
= €0,50 |
€500
1.000∗12%
= €4,16
How To Measure UA for Alternative App Businesses

26. Approach #4 – Data Deals
• Questions
• What type of user my app is build for/will I acquire?
• What how does a user profile look like, what depth does it have?
• Do I need more signals in order to add „sales value“?
• Answers
• Data Brokers for Mobile: Exapik, DatastreamX, Dawex
• Audience Managment Platforms: adsquare, Adobe
• Assign a value to one user profile
• Differentiate between the various stages of proliferation of user profiles,
i.e. registration – permission – usage data
• Do UA against an hypothetical ROI
How To Measure UA for Alternative App Businesses

27. How To Measure UA for Alternative App Businesses
CPx Targets
Virtual Revenue Brand KPI
Data Deals
Branded
Apps
Growth-
Funded Apps
Apps of
Classifieds

28. Don´t launch what you can´t measure!

29. @StefanBielau
Stefan Bielau
Managing Partner
+49 175 5840160
stefan@dynamopartners.com
dynamopartners.com