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Mobile Advertising Market Overview

Mobile Advertising Challenges

Quality vs. Quantity

Why YouAppi?

Platform and Products

YouAppi White Paper | Building Your Mobile Business Right

Contents

Participating in the mobile economy is becoming more of a challenge. The solution is personalized advertising that reaches the precise users that will not only download an app, but will engage over the long term.

Introduction

Building Your Mobile Business Right: Promote Your App to an Audience of One

Mobile Internet Ad Spending Worldwide, 2013-2019

Mobile Internet Ad Spending ($Billions)

% Change

2013

19.20

117.9

16.0

3.7

2014

42.63

122.1

29.4

7.8

2015

68.69

61.1

40.2

11.9

2016

101.37

47.6

51.1

16.5

2017

133.74

31.9

59.4

20.5

2018

166.63

24.6

65.9

24.1

2019

195.55

17.4

70.1

26.8

% of Digital Ad Spending

% of Total Media Ad Spending

Note: Includes display (banners, vidoe and rich media) and search; excludes SMS, MMS and P2P messaagin-based advertising; ad spending on tablets is included. Source: eMarketer, March 2015

Mobile advertising is growing steadily, the global mobile advertising market will hit two significant milestones in 2016, according to new figures from eMarketer, surpassing $100 billion in spending and accounting for more than 50% of all digital ad expenditure for the first time. The $101.37 billion to be spent on ads served to mobile phones and tablets worldwide next year represents a nearly 430% increase from 2013.

This means there are many creators of apps trying hard to get the attention of potential customers in a noisy and cluttered environment. Plenty of money is being spent on a blizzard of mobile ads – but for creators of apps and their marketing teams, more money doesn’t necessarily deliver the right customers.

How can advertisers be sure that their ads are viewed by the people most likely to become long-term customers, not just one-time downloaders? How can publishers provide advertisers with the best opportunities to showcase apps, while driving revenue? And how can both groups run campaigns that are tied to their most important key performance indicators – which are different from business to business? Learn more about how to reach “an audience of one” – that is, targeting ads to the right person at the right time.

The Mobile Advertising Market: Strong Growth, But Plenty of Noise

By 2016, Global Mobile Ad Spend Will Rise To $100 BillionMore than 50% of total digital ad spend

* eMarketer - April 2015

Acquiring the wrong customers: It’s tempting to simply go after numbers, and gather as many customers as you can. But if the people who download an app aren’t in the target audience, they’re the wrong customers. Over time, it will cost a business more money to acquire low-quality customers instead of high-quality customers.

Attracting the most valuable customers: The right customers are the ones who engage deeply with an app. When advertising is aimed at the right customers, it costs less over the long term, because customer retention improves dramatically.

Delivering content that drives engagement: When the right people use an app, app creators learn how to present content so that users consume more of it.

Understanding what you want from your customers: Some metrics are more important to your business than others – for example, you may want to attract customers who’ll read for content, or you may want customers who are more likely to buy products. Knowing which metrics you need to monitor will help drive successful campaigns.

Here are the challenges that advertisers face:

Reaching the right audience is a constant challenge for app developers. Simply amassing a large audience isn’t easy – but more important, it isn’t strategic and doesn’t drive business growth and revenue. Without the right customers – meaning people who will actively engage with the app long-term – an app gets lost in the marketplace clutter.

Advertising ChallengesAcquiring Customers For The Long Term

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you•appi

Promote Your App to an Audience of One

Quality vs Quantity:

With a deeper understanding of potential customers’ online behaviors – including spending habits within apps as well as demographics – advertisers can target the people most likely to become valuable customers. It’s a quality approach to customer acquisition, not quantity.

YouAppi has solved the problem of identifying and reaching customers that are not only most likely to convert, they will engage over the long term, and thereby help generate revenue for app makers. YouAppi’s OneRun platform analyzes the mobile content consumption, usage, and spending patterns of more than 200 million app customers using more than 1,100 apps and mobile sites in 200 countries. YouAppi then provides the most relevant app recommendations and predicts which customers are most likely to engage with an app beyond just installing it.

This user data is combined with key performance indicators from advertisers, such as time spent on sites, number of articles read, or number of items placed in shopping carts. Identifying and tracking KPIs is critical to successful mobile campaigns, since they relate directly to campaign goals. Once KPIs have been defined, campaigns are launched and continuously analyzed and optimized to deliver profitable customers. YouAppi’s algorithms are able to match the best content with the users most likely to engage and pay for it.

As app creators acquire new customers and understand more about users’ needs, they can craft content that engages audiences and contributes to long-term customer retention.

Building the Business the Right WayCustomer Lifecycle—

How To Build Your Business Right

With YouAppi

Without YouAppi

Low Cost

High Cost

Acquire LOW Quality Customers

Acquire HIGH Quality Customers

High Cost

Low Cost

IncreaseEngagement

IncreaseEngagement

High Cost

Low Cost

Increase Retention

Increase Retention

Digital DNABy analyzing the behavior of 200 million app customers, YouAppi can identify each customer’s “digital DNA” – what makes them unique and potentially the right user for an app or mobile website.

Matching AlgorithmsYouAppi’s predictive and matching algorithms identify qualified users to reduce customer acquisition costs, and learn about individual users within each app or mobile website. The result is that ads are tailored to each user, increasing the likelihood that the user will download and engage with the app or mobile website.

Our matching algorithms accommodate both advertisers and publishers: they identify and match up advertisers with the customers that best match their KPIs, while they learn about individual customers within each publisher’s app and then find ads that fit that person. This gives customers valuable information, creating inbound marketing traffic. Although traditionally these ads might be viewed as an interruption, they become more organic to the user experience because they are tailored to the individual.

Inventory forecastingUsing our matching algorithms, which identify the publishers with the users that best match the advertiser’s KPIs, YouAppi can determine the potential scope of the relevant inventory for our advertiser’s campaign and optimize the delivery in real-time.

Why YouAppi:

Based on proprietary matching algorithms and the usage habits of 200 million mobile users, YouAppi drives the acquisition of the most engaged mobile customers, not just installs. Our OneRun Platform delivers higher Customer Lifetime Value (LTV) and the ability to scale customer acquisition with greater insight and control over revenue.

Here’s how YouAppi drives conversions and customer engagement:

Digital DNA, Matching Algorithms, and Inventory Forecasting

Why YouAppi?YouAppi helps both advertisers and publishers reap the benefits of personalized customer acquisition.

For Advertisers• Target only those customers that our matching algorithms

identify as qualified and thus reducing the cost to acquire them (CPA) by as much as 68%

• Drive quality engagement, not just installs, by recommending the right apps to the right customers predicted to have the highest lifetime value

• Match KPIs to campaigns for greater success• Generate conversions averaging 10%, and 30% for returning

customers• Get to know customers better with real-time data insights on

what interests them

For Publishers• Leverage app downloads to generate incremental revenue• Maximize eCPMs far beyond those generated using Real

Time Bidding (RTB), and dynamically optimize inventory yield with YouAppi’s predictive algorithms and data analysis

• Ensure that only the highest quality third-party content is displayed on publishing properties

• Effortlessly integrate YouAppi’s SDK-free JavaScript and tag creative units, via any industry standard ad server, to run both in-app and mobile web campaigns

Try YouAppiDon’t let apps get lost in the clutter. To learn more about how YouAppi can help increase customer engagement and retention, Sign Up Now!

* comScore US Mobile App Report - August 2014

App Usage Makes Up 52% of Total Digital Media Engagement

The Brands That Trust YouAppi

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