I gave this presentation at Pocket Gamer Connects in London on January 16, 2017. This presentation contains three predictions of user acquisition megatrends in mobile advertising for 2017.

1. Three UA
Megatrends in
2017
Eric Benjamin Seufert
Pocket Gamer Connects
London, January 16 2017

2. Who I am
Heracles Mobile Dev Memo Freemium Economics

3. Presentation Structure

4. Presentation Structure
1) Current State of App Economy;

5. Presentation Structure
1) Current State of App Economy;
2) Review of UA Megatrend
Predictions, 2016

6. Presentation Structure
1) Current State of App Economy;
2) Review of UA Megatrend
Predictions, 2016;
3) UA Megatrend Predictions, 2017.

7. Presentation Structure
1) Current State of App Economy;
2) Review of UA Megatrend
Predictions, 2016;
3) UA Megatrend Predictions, 2017.

8. Current State of the App Economy

9. Current State of the App Economy
• Tech giants own considerable mobile
audience and that audience is growing;

10. Current State of the App Economy
Source: Nielsen

11. Current State of the App Economy
- 8 / 10 of the most used
apps (in terms of unique
audience) owned by
Facebook & Google;
- “Legacy” apps like
Facebook, YouTube,
Gmail still growing at
>10% YoY.
Source: Nielsen

12. Current State of the App Economy
- Many of these apps are
ad channels and / or
third-party content
distribution channels.
*
*
*
*
*
*
*
Source: Nielsen

13. Current State of the App Economy
Google Maps is an ad
channel and / or
third-party content
distribution
channel?

14. Current State of the App Economy

15. Current State of the App Economy
• Tech giants own considerable mobile
audience and that audience is growing;
• Tech giants are turning their apps into
content consumption platforms;

16. Current State of the App Economy

17. Current State of the App Economy

18. Current State of the App Economy
• Tech giants own considerable mobile
audience and that audience is growing;
• Tech giants are turning their apps into
content consumption platforms;
• Increased consumer engagement /
spending on mobile continues to drive
advertising budgets.

19. Source: SensorTower
Current State of the App Economy

20. Current State of the App Economy
Source: Flurry

21. Current State of the App Economy
Source: comScore

22. Current State of the App Economy
Source: eMarketer

23. Current State of the App Economy
Source: eMarketer

24. Presentation Structure
1) Current State of App Economy;
2) Review of UA Megatrend
Predictions, 2016;
3) UA Megatrend Predictions, 2017.

25. Review of UA Megatrend Predictions, 2016

26. Review of UA Megatrend Predictions, 2016
1) Growth of the Simultaneous Second
Screen;

27. Review of UA Megatrend Predictions, 2016
1) Growth of the Simultaneous Second
Screen;
2) Shift to Managed Services;

28. Review of UA Megatrend Predictions, 2016
1) Growth of the Simultaneous Second
Screen;
2) Shift to Managed Services;
3) Growth of multi-device attribution.

29. Presentation Structure
1) Current State of App Economy;
2) Review of UA Megatrend
Predictions, 2016;
3) UA Megatrend Predictions, 2017.

30. Megatrend #1:
Proliferation of New Native
Ad & Content Distribution
Channels

31. Proliferation of New Native Ad & Content
Distribution Channels
Existing
Paradigm:
Content
Platform
Ad Clicks
Mobile App
Platform
Advertising Revenue
30% Fee on
Platform Revenues

32. Proliferation of New Native Ad & Content
Distribution Channels
Emerging
Paradigm:
Content
Platform
Mobile App
Platform
Advertising Revenue
30% Fee on
Platform Revenues
Platform Revenue
Share
Advertising
Revenues
Ad Clicks

33. Proliferation of New Native Ad & Content
Distribution Channels
Emerging
Paradigm:
Content
Platform
Mobile App
Platform
Advertising Revenue
30% Fee on
Platform Revenues
Platform Revenue
Share
Advertising
Revenues
?

34. Proliferation of New Native Ad & Content
Distribution Channels
What does this look like?

35. Proliferation of New Native Ad & Content
Distribution Channels
What does this look like?

36. Megatrend #2:
AdTech Consolidation
Delivers Full-Stack
Marketing Tools

37. AdTech Consolidation Delivers Full-Stack
Marketing Tools
• Many developers rely on patchwork
marketing infrastructure comprised of
many 3rd party tools:

38. AdTech Consolidation Delivers Full-Stack
Marketing Tools
Data Warehouse
(S3, etc.)
Data
Visualization
Tool (Tableau,
etc.)
Attribution
Platform
Ad Network Cost
Aggregation
Platform
Ad Networks
N1
N2
N3
PMD

39. AdTech Consolidation Delivers Full-Stack
Marketing Tools
Data Warehouse
(S3, etc.)
Data
Visualization
Tool (Tableau,
etc.)
Attribution
Platform
Ad Network Cost
Aggregation
Platform
Ad Networks
N1
N2
N3
PMD
Marketing
Team

40. AdTech Consolidation Delivers Full-Stack
Marketing Tools
Data Warehouse
(S3, etc.)
Data
Visualization
Tool (Tableau,
etc.)
Attribution
Platform
Ad Network Cost
Aggregation
Platform
Ad Networks
N1
N2
N3
PMD
Marketing
Team

41. AdTech Consolidation Delivers Full-Stack
Marketing Tools
• Many developers rely on patchwork
marketing infrastructure comprised of
many 3rd party tools;
• M&A in mobile AdTech strong in 2016,
especially acquisitions by Asian buyers;

42. AdTech Consolidation Delivers Full-Stack
Marketing Tools
Source: Results International

43. AdTech Consolidation Delivers Full-Stack
Marketing Tools
• Many market segments are challenging
and hyper-competitive, new business only
possible via poaching clients, race to the
bottom on cost;

44. AdTech Consolidation Delivers Full-Stack
Marketing Tools
• Many market segments are challenging
and hyper-competitive, new business only
possible via poaching clients, race to the
bottom on cost;
• Huge appetite for fully-integrated toolsets
from developers.

45. Megatrend #3:
Segmentation of Ad
Inventory by Industry /
Sector

46. Segmentation of Ad Inventory by Industry /
Sector
• Grouping of app types around inventory
pools based on natural overlap of
interests;

47. Segmentation of Ad Inventory by Industry /
Sector
Existing / Old
Paradigm:
Inventory
Pool
Mobile Gaming
Advertisers
Mobile
Commerce
Advertisers
Dating App
Advertisers
Mobile Gaming
Publishers
Dating App
Publishers
Mobile
Commerce
Publishers
Ad Networks /
Native Inventory Sources

48. Segmentation of Ad Inventory by Industry /
Sector
Emerging
Paradigm:
Mobile Gaming
Advertisers
Mobile Gaming
Publishers
Dating App
Advertisers
Dating App
Publishers
Mobile
Commerce
Advertisers
Mobile
Commerce
Publishers
& travel, etc.
Brand
Advertisers
& travel, etc.
Retail
Advertisers

49. Segmentation of Ad Inventory by Industry /
Sector
• Grouping of app types around inventory
pools based on natural overlap of
interests;
• Some inventory has been bid up beyond
reach of certain types of apps;

50. Segmentation of Ad Inventory by Industry /
Sector
Ad Networks /
Exchanges
Owned Inventory
● Retail;
● Brand;
● Mobile
commerce;
● High-LTV /
High-CTR
Games.
● Intent-based
advertising
(travel,
in-store
retail).
● Brand;
● Youth-oriented
retail;
● Entertainment.
● Games;
● Finance

51. Segmentation of Ad Inventory by Industry /
Sector
• NOTE: This segmentation is soft. Every
type of app is & will continue to be
advertised everywhere;

52. Segmentation of Ad Inventory by Industry /
Sector
• NOTE: This segmentation is soft. Every
type of app is & will continue to be
advertised everywhere;
• But these groupings will draw
performance divisions between inventory
sources for different app types.

53. http://hrcls.co
eric@hrcls.co
@eric_seufert
Thank You!