Eric Seufert's 2018 State of the App Economy presentation from Casual Connect Disneyland. The presentation discusses the current state of the App Economy from a marketing standpoint and outlines 3 mobile marketing tactics that practitioners should be aware of in 2018.
11. - 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
Current State of the App Economy
12. - Many of these apps are ad
channels and / or
third-party content
distribution channels.
*
*
*
*
*
*
*
Source: Nielsen
Current State of the App Economy
13. • The Duopoly (Facebook and Google) owns
considerable mobile audience and that audience is
growing;
• The Duopoly has productized its massive quantity
of user data into industry-leading, proprietary ad
bidding and targeting tools;
Current State of the App Economy
14. Current State of the App Economy
Source: Marketing Dive
Source: AdWeek
15. • As a result of its proprietary data and the tools
that utilize it, the Duopoly has captured a massive
portion of the mobile advertising market;
Current State of the App Economy
16. Current State of the App Economy
Source: IAB
Source: eMarketer
Source: eMarketer / WSJ
17. • Engagement is being concentrated in a smaller
number of apps;
Current State of the App Economy
19. Source: SensorTower / Unity
*Applies specifically to mobile gaming
Current State of the App Economy
20. • Engagement is being concentrated in a smaller
number of apps;
• The biggest apps are becoming 3rd party content
distribution platforms & intermediating the app
discovery process;
Current State of the App Economy
see: The coming war between Apple and Facebook,
http://mobiledevmemo.com/coming-war-apple-facebook/
25. New Discovery Paradigm
App Store / Google Play
App
Proprietary 3rd-Party Content
Catalogue
(“App Store”)
Content
“App Discovery”
26. Current State of the App Economy
Is Netflix the “App” and the
App Store the Discovery
Channel?
Or is Narcos the “App” and
Netflix the Discovery
Channel?
27. • “Content” on mobile increasingly means Video, and
this is creating an enormous torrent of new
advertising inventory;
Current State of the App Economy
28. Current State of the App Economy
Source: Zenith / ReCode
Source: Cisco / AT Kearney
29. Current State of the App Economy
Source: BI Intelligence
Source: eMarketer
30. • “Content” on mobile increasingly means Video, and
this is creating an enormous torrent of new
advertising inventory;
• Mobile video has impacted television viewership
and movie ticket sales, and big screen advertising
dollars are flowing onto mobile;
Current State of the App Economy
35. When every device is connected, every device appears to be
a platform on which to develop & reach a new audience:
3 Challenges & Opportunities
36. When every device is connected, every device appears to be
a platform on which to develop & reach a new audience:
3 Challenges & Opportunities
37. • Tech media sometimes uncritically promotes all emerging
platforms as ascendant “next big thing”;
3 Challenges & Opportunities
38. • Tech media sometimes uncritically promotes all emerging
platforms as ascendant “next big thing”;
3 Challenges & Opportunities
39. • Tech media sometimes uncritically promotes all emerging
platforms as ascendant “next big thing”;
• New platforms are appealing (first mover advantage, lack
of price discovery, etc.) but developers need to be able to
discern hype & time deployment correctly.
3 Challenges & Opportunities
40. • Example: VR vs. Mobile Gaming
Source: SensorTower / Unity
3 Challenges & Opportunities
41. OPPORTUNITY: Opportunities to reach new audience
emerge constantly as connected devices proliferate and
create platforms;
CHALLENGE: Difficult to know which platforms will truly
reach scale, and being early same as being wrong.
3 Challenges & Opportunities in 2018
43. 3 Challenges & Opportunities
• World governments are beginning to take note of
the proliferation of disinformation / propaganda on
the largest social networks;
45. 3 Challenges & Opportunities
• World governments are beginning to take note of
the proliferation of disinformation / propaganda on
the largest social networks;
• The companies that operate these networks are
reacting slowly / reluctantly, and regulation seems
likely to be introduced.
47. OPPORTUNITY: These types of changes are difficult for big
organizations to react to and satisfy quickly, creating space
for nimble companies to comply & accelerate.
CHALLENGE: Laws around use (and possibly even collection)
of certain data produces challenges in keeping products and
advertising compliant.
3 Challenges & Opportunities in 2018
49. 3 Challenges & Opportunities
• The biggest mobile advertising platforms are
becoming siloed, both in terms of tool offerings
and inventory offerings;
50. 3 Challenges & Opportunities
• The biggest mobile advertising platforms are
becoming siloed, both in terms of tool offerings
and inventory offerings;
• The biggest inventory sources are vying to own
advertiser data as a form of lock-in.
53. 3 Challenges & Opportunities
• Event-based bidding via machine learning makes
advertising on that channel more efficient, but
advertiser doesn’t own the optimization;
54. 3 Challenges & Opportunities
• Event-based bidding via machine learning makes
advertising on that channel more efficient, but
advertiser doesn’t own the optimization;
• Some platforms are merging all proprietary
channels into single interfaces, mixing performant
channels with non-performant and charging for all.
55. OPPORTUNITY: Platform-specific tools and inventory help
advertisers reach appropriate audiences more efficiently;
CHALLENGE: Walled gardens create scaling difficulty for
advertisers. Analytics / infrastructure “lock in” can limit
growth.
3 Challenges & Opportunities in 2018
57. 1) The App Economy is evolving rapidly with respect to
the way consumers think about “apps” and discovery;
Über Points / Takeaways
58. 1) The App Economy is evolving rapidly with respect to
the way consumers think about “apps” and discovery;
2) Video is the new, massive mobile frontier;
Über Points / Takeaways
59. 1) The App Economy is evolving rapidly with respect to
the way consumers think about “apps” and discovery;
2) Video is the new, massive mobile frontier;
3) Walled gardens are making it harder to stay
technologically flexible / platform agnostic;
Über Points / Takeaways
60. 1) The App Economy is evolving rapidly with respect to
the way consumers think about “apps” and discovery;
2) Video is the new, massive mobile frontier;
3) Walled gardens are making it harder to stay
technologically flexible / platform agnostic;
4) Increased regulation will create uncertainty /
compliance overhead.
Über Points / Takeaways