Jeremy Ney

Analytics of Operatoins
15.774
Vungle Course Questions

1. How does Vungle Make Money?

Vungle makes money by placing video advertisements in apps and then advertisers pay Vungle
if the app is downloaded. Publishers receive 60% of revenues and ad provider gets the
remaining 40%.

2. What challenges does Vungle face?

Vungle faces several challenges around competition, Impression-to-Install rates, and content
creation. The ad serving space is becoming increasingly competitive, particularly as more

m
er as
companies recognize the value of video advertisements. This creates challenges around offering
strong products and quick algorithms to properly offer the right products to customers. Second,

co
eH w
the funnel of fill-rate to completion-rate to click-through rate to conversation-rate can be quite
narrow at the bottom. On a typical day, Vungle has a conversion rate of 0.5%. This means that

o.
rs e
99.5% of the time it is failing to deliver a product that receives revenue, and therefore it must
ou urc
serve a very high volume of ads. Lastly, Vungle has moved into the content creation space and
needs to develop its own products. While it sounds like the Dartmouth students have stronger
backgrounds in computer science, they now need to move into user behavior territory and
o

commercial design.
aC s
vi y re

3. Based on the data in case exhibits 2 & 3, which algorithm, A or B, would you
recommend and why? How confident are you with your recommendation?

I would choose algorithm B since it has an eRPM that is an average of $0.131 higher than A’s
ed d

algorithm. However, it appears as though algorithm B is below a 95% confidence interval on a p-

ar stu

value test when we compare the conversion rates of the two different tests. I would want to run
the test for longer and do a 50/50 ratio instead of 1/16 ratio.
is
Th
sh

This study source was downloaded by 100000796982919 from CourseHero.com on 10-06-2021 10:10:25 GMT -05:00

https://www.coursehero.com/file/52596537/Vungle-A-B-testdocx/
Powered by TCPDF (www.tcpdf.org)