Optimizing Mobile Advertising Campaigns 20131119

Optimizing
Mobile Advertising
Campaigns
OPTIMIZING MOBILE ADVERTISING CAMPAIGNS
Optimizing mobile
advertising campaigns
Introduction
The crux to successful mobile adver- their user base and amplif ying the When building a mobile app market-
tising lies in targeting, traffic quality average revenue made with each ing strategy, it is crucial to identify
and reach. The ultimate goal of any user. The realit y for the majorit y of which users are most relevant and to
app developer and marketer is to all app business models, however, specifically target them. Concentrat-
maximize mobile revenue, and thus is that less than 5% of all app users ing ad spend on the right users will
app marketers focus on building up turn into valuable, paying users. significantly increase marketing ROI.
Optimization Best Practices
The most efficient targeting can be achieved with mobile real-time bidding. It is not surprising
When buying RTB traffic, the ad impression is bought in real-time and served on
an individual user level. This process involves an advanced bidding engine, that mobile RTB is
which can process all impression bids in milliseconds as well as elaborate data getting more attention
management technology. The more information there is available on each user,
the worth of showing a specific user a specific ad can be better calculated. More- in the industry.
over, ads can be better targeted to the users’ specific preferences and history
with the advertiser, which will increase the conversion rate.
Unsurprisingly, mobile RTB is receiving increased attention within the industry.

Technological advances and increased numbers of publishers integrated with
Supply-Side Platforms (making their inventory RTB compliant) are driving the
development of mobile real-time advertising.
Since mobile RTB is still in its development stage and the inventory is still
limited, app marketers should also consider other traffic sources in the mean-
time. We list below the top 5 best practices for mobile advertising optimization.
www.trademob.com | 02
TOP
5
BEST PRACTICES
Top 5 best practices for mobile advertising optimization.
Network Optimization CPI Combined network performance

1 One of the biggest challenges within mobile
advertising is finding the right balance CPI performance
@ 5-10 networks
between traffic volume and traffic quality.
The first step in campaign optimization is to look at the

mobile ad networks/suppliers. Data shows that when daily
budgets increase, average CPI goes up too. In order to
maximize volume while minimizing the acquisition cost, it CPI performance
@ >15 networks
is important to leverage multiple networks. The optimal
mix of networks depends on each campaign and the
overall budget.
Spending
Blacklisting
2 Publisher IDs for CPC suppliers can be tracked
to evaluate which ones are delivering quality
This is best done through an aggregation platform or a
Demand-Side Platform, which is integrated with the
traffic and which are not. A blacklist and/or various suppliers. This process requires deep tech integra-
whitelist can be created and sent to suppliers to ensure tion and/or a great deal of manual work. Therefore, it is
the highest quality traffic. In order to do this effectively, best to work with an experienced partner.
you’ll need a deep technical integration with each supplier.
TOP 5 BEST PRACTICES

Hourly Targeting Germany Weekdays

3 In order to drive campaign
performance, it’s impor- Clicks Installs
tant to understand when

your users are most active. Clicks, 20,000 200
installs and user activity can be

1,2%
broken down by an hourly basis. 15,000 1,3%
1,3% 1,1% 150
1,1% 1,2% 1,1%
With this data, the times of day that 1,0%
0,9%
0,9%
0,7%
have the best conversion rate can be 10,000 1,7% 0,7% 100
pinpointed and parameters can be 0,3%
set that target these times. 5,000 50
For instance, smartphone users use 0 0

their devices fairly steadily through- 0 1 2 3 4 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23
Hours
out the course of the day, while
tablet use rises during the
Germany Weekends
evening/night. Combining a daypart-
ing strategy with mobile device Clicks Installs
targeting can be an effective way to
160
increase campaign ROI while driving 12,000
down the cost. Not only do the num-

2,0%
1,7% 2,0%
140
10,000 1,7% 1,7%
bers of clicks and installs vary 120

1,4%
throughout the day, but also the 8,000

1,1% 1,1%
1,3%
1,2%
1,3%
100
1,0%
conversion rate, which is illustrated 0,8% 80
6,000
by the graphs to the right. 0,5%
0,4% 60
4,000
40
Other factors, such as relevant
2,000
seasonal events for an advertiser, 20
should of course also be considered. 0

0 1 2 3 4 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23
0
Hours
Clicks Installs Conversion Rate
Device Targeting
4 Targeting specific devices and even their oper-
ating system is possible with most suppliers. An
down by each device can be used to determine which devices
have the highest conversion rates. For example, an analysis
analysis of the campaign performance broken by Trademob found that on Android, approximately 70% of all
TOP 5 BEST PRACTICES

conversions happened on Samsung devices. However

such a metric only tells part of the story. The best practice
14.3%
for gauging which devices are most effective for advertis-
ing is to cross analyze device conversion across the 73.2% 7.4%
market share of a particular device. For instance, if it’s 2.1%
discovered that a device is contributing to the majority of

1.3%
traffic, but that it only has a small amount of the market
share, then this is absolutely the best device to target.
other
7,4%
Optimize for the Right KPI

5 CPI is still the most used KPI for mobile advertis-
ers. While it is a reasonable metric to monitor
results over time. In many cases, there’s a larger time gap
between the click and an in-app action than there is
and optimize against, CPA and overall campaign between a click and an install. Since the time of click, the
ROI should always equally be considered. To illustrate this time of first opening and the time of action can be recorded,
point, observe the charts below showing the correlation analysis can be performed to determine how long it takes
between CPI and CPA campaigns. The graphs show perfor- for the custom action to occur after the click. The evaluation
mance per network for iPhone and Android in Germany. The of CPA performance should thus be run shortly after
size of the marker shows the spending for that network. campaign start and then again one week later, one month
Another oft-forgotten aspect is the evaluation of campaign later, etc.
ANDROID iPHONE
30 60
20 40
(Cost Per Install)
(Cost Per Install)

CPI
CPI
10 20
0 0
0 20 40 60 80 100 120 0 50 100 150
CPA CPA
(Cost Per Action) (Cost Per Action)
Campaign
Example
Campaign Optimization
To better illustrate how to effectively advertise on mobile, we’ve constructed a

campaign example showing the first steps to take when optimizing your mobile
app advertising campaign.
1 Start with campaign X

b Start on network A, B, C
b Start with Banner 1, Banner 2 (with similar budgets/targeting)
2 Monitor performance on A, B, C for at least 5-7 days
3 Evaluate the following:
b Click-through Rate (CTR)

b Conversion Rate (click to install)
b Cost Per Install (CPI)
b Conversion Rate (install to custom action)
b Cost Per Action (CPA)
4 Suppose network A has a higher CTR and click-to-install

conversion rate than B or C, but C has more active users
5 Further evaluate the above filtering by the following:
b Publisher ID
b Device ID
6 You see that all the custom actions from C are coming from publisher 123,
you then:
Campaign
Example
Campaign Optimization
7 b Shift more budget to network A, thus generating more installs and clicks,
and lowering your CPI
b Whitelist publisher 123 on network C, and generate more active users
8 Medium term:
b You now have enough data to do a banner analysis. You see that Banner 1 and
Banner 2 have a very high CTR but Banner 2 has a low conversion from click to
install. This could be because the banner does not present relevant information.
So the user clicks the ad, but realizes the app is not what they were expecting and
does not install. So we remove Banner 2
b Compare CPI, CTR and conversion rates (click to install) in synergy across all
banners. Ask networks A and C to give more traffic to Banner 1, as it is the best
performing one in terms of the previously mentioned KPIs
9 Scale up the campaign if needed. Add networks D, E, F and apply steps 2 to 7.
10 Further options for optimization analyses:

b Active users by network
b Incentivized vs. no-incentivized traffic
b CPI vs. CPC traffic mix analysis
b Revenue generating actions analysis
Of course, as mentioned above, audience targeting and retargeting will be additionally highly
relevant optimization levers to look at with the development of more sophisticated RTB technolo-
gy and increased available inventory.
Conclusion
Targeting and tracking are crucial elements of mobile app marketing. You need the right mix of ad
formats, payment models and traffic to mutually maximize ad spend efficiency and volume. The
best way to optimize your ROI is to experiment with a variety of options, track them and then
analyze the results thoroughly to create a truly optimized campaign.
Optimizing Mobile Advertising Campaigns
Headquarters Questions?
Friedrichstraße 126 DE +49 30 202 1575-0 sales@trademob.com
10117 Berlin US +1 914 703 8262 marketing@trademob.com
UK +44 203 428 5162 info@trademob.com

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Optimizing

Optimization Best Practices

Unsurprisingly, mobile RTB is receiving increased attention within the industry.

Network Optimization CPI Combined network performance

The ﬁrst step in campaign optimization is to look at the

TOP 5 BEST PRACTICES

Hourly Targeting Germany Weekdays

tant to understand when

installs and user activity can be

pinpointed and parameters can be 0,3%

set that target these times. 5,000 50

For instance, smartphone users use 0 0

down the cost. Not only do the num-

bers of clicks and installs vary 120

throughout the day, but also the 8,000

should of course also be considered. 0

Clicks Installs Conversion Rate

TOP 5 BEST PRACTICES

conversions happened on Samsung devices. However

discovered that a device is contributing to the majority of

Optimize for the Right KPI

(Cost Per Install)

To better illustrate how to effectively advertise on mobile, we’ve constructed a

1 Start with campaign X

2 Monitor performance on A, B, C for at least 5-7 days

3 Evaluate the following:

b Click-through Rate (CTR)

4 Suppose network A has a higher CTR and click-to-install

5 Further evaluate the above filtering by the following:

9 Scale up the campaign if needed. Add networks D, E, F and apply steps 2 to 7.

10 Further options for optimization analyses:

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