In case you missed the Global Mobile Internet Conference (GMIC) in Tel Aviv, one of the most talked about panel discussions was East & West – User Acquisition and Monetization, moderated by Taptica’s CEO Hagai Tal. The discussion dived deep into the minds of a today’s biggest thought leaders in mobile advertising, revealing the latest mobile trends, strategies for acquiring high-quality users, the essentials for approaching the Asian market, and more. Sharing their insight were SPOTAD’s Co-founder Yoav Oz, Outfit 7’s CRO Mika Kuusisto, and Matomy’s own COO Sagi Niri (as pictured below). Here’s what we learned:
What’s Are the Major Trends of 2016?
Three major trends were highlighted. The first is a shift in the focus of user acquisition. Instead of targeting users en masse, marketers are targeting high-quality users. This change also entails a shift from CPI (cost-per-install) to CPE (cost-per-engagement) – in other words, favoring retention and engagement over just installations. After all, what good are users who will download your app but never use it after the first time?
As for the second trend, all three panelists agreed that 2016 is the year of video. Similar sentiments were expressed by Matomy’s CEO Ofer Druker this week in an article published by 4-traders, “Consumers are increasingly connected through their mobile devices and video has become one of the most effective formats to deliver messages and build engagement.” It seems that video is the preferred ad format for advertisers and it will help provide a relevant and engaging channel for high-quality user acquisition, as well as monetization.
Improved monetization through optimization and automation is another trend that was introduced by Sagi Niri. He predicts a rise in feature-rich automation software that “does everything for you.” Optimization is key to acquiring high-quality users and if there is smart technology that can assist advertisers and publishers – all the better to save time and money.
On Finding, Identifying and Acquiring High-Quality Users
“Data,” SPOTAD’s Co-founder Yoav Oz responded first. Better data will help us all acquire those sought-after high-value users. And how do we get better data? Through testing and optimization. Matomy’s Sagi Niri added that what’s even more important than the data itself is how to use that data to achieve quality users at scale, and that can be answered with behavioral targeting and targeting lookalike audiences (audiences similar to your best quality users).
What seemed to be a growing theme throughout the discussion is the issue of providing relevant ads for users to improve acquisition. But what makes an ad relevant and why is video the channel to do it? Using games as an example, it was explained that video can be used to demonstrate actual games to ad-jaded users. Outfit 7’s CRO Mika Kuusisto also expressed having seen improved acquisition efforts from showing video ads that more accurately displayed the actual games they were advertising. This way the user best understands what to expect when they install a new game, and they’ll be more likely to become engaged with the game, download it, and enjoy it – making for inherently higher potential users.
East vs. West: How to Approach a New Market
And what about East vs. West – the topic at hand? All three panelists agreed that what works in the West doesn’t necessarily work in the East. For example, users in the East use social even more than in the West. Will this affect your advertising approach? Absolutely. Even if you’re selling the exact same product, you can’t bring Western advertising to engage users in Asia.
“You have to adapt your methods. You have to think local, understand the culture, market preferences,” Sagi Niri added. This of course entails a great deal of research on the market. If you can understand each market, each culture and advertise accordingly, you’ll be leagues ahead of your competition. Simply put, you must get to know your audience and tailor your message to their wants and needs.
What was clear from the discussion as a whole is that mobile marketing is becoming increasingly essential for brands, even for long-established traditional companies that are just beginning to dip their toe in mobile. To succeed in the future, every company will have to embrace mobile wholeheartedly.