Grow your app business through user acquisition and monetization (Google I/O '18)
Hello. Everyone. Well. Hi nice, applause, right before I even get started so good morning it's, great to be here at i/o I'm. Cissy Chou and I lead Google's, mobile app advertising, products, at Google and this. Talk will be about building a successful app business, with, ads. So. First off it's just incredible, to hear all of the wonderful things that you're building in your mobile apps and one. Of my favorite, apps is the one that you see on the screen it's, called calm and it's, a relaxation app, and I, first bought this app out because I certainly needed more calm in my, life and so. For many of us apps like calm are the very reason, that we find our phones to be so indispensable. Now. For developers, like all of you Mobile. Has democratized, access to, billions, of users like me and you and according. To app Annie in, 2017. Over. 86. Billion dollars, will, be transacted, in apps alone, and this, is just the digital goods this does not include real, wood goods, and services that are transacted, through apps, so. There's an incredible, opportunity for, all of you to build great services, to reach and touch consumers. Lives, now. At the same time because there's an incredible opportunity there's. Incredible competition. There. Are millions, of free apps vying. For users attention so. You need to make sure that your app and your, advertising dollars, help your app stand, above the crowd on, the. Flip side if, you're using in-app, ads monetization. Well, guess what users, expectation. For user experiences, continues, to get higher and higher because, they have so many wonderful choices so. If you're putting ads into your app you need to make sure that those are really great, and elegant. Experiences, for, users or another, way to say it both the app and the ads have, to be really, really seamlessly, done and. This. Is where we, want to help we want to help you solve two fundamental, problems to building a gray successful, at business number, one is, how do you you grow your user base how, do you find the right users, the profitable, users that will resonate with your service, and get, excited and subscribe, or pay for the services that you're building and number, two how, do you monetize, your apps more effectively, with in-app ads monetization. This, is what I'm here to talk about we, want to help you build the tools so that you can focus on building, amazing, apps and the content, for your for your users, so. Let's start with number one which is how do you find those most valuable, users the, ones that will like your, app. Now. The good news for all of you is that billions, of users are downloading billions. Of ass last. Year alone Google, Play saw 94. Billion, app downloads happen. And I've. Been watching this year-over-year this, number continues to grow it's just incredible. But. The really hard thing about finding the right user is that there is no typical, profile. For a user anymore, let, me explain what I mean, let's. Take the very popular vertical, of games now. Contrary, to what many people still believe. Mobile. Gamers are not just young males and in. Fact men and women play mobile games about equally, and, furthermore. In the u.s. females. From the age of 10 all the, way to 65, about. 65%. Of that population, this huge range of females, plays mobile games you.
Know One of my favorite things to do is to share my favorite mobile games with my daughter who's, 7 so. Abs are really transcending. Boundaries. And defying. Our presumptions. Of what users really, like. And. This. Is what makes app promotion really, hard you're fishing for the right users who wouldn't want to use your services, so to help make user acquisition easier. And more effective, for you we built a product called, universal, app campaigns, or UAC. Now. What is UAC very, simply, it's, an ads product, and it helps you find the right user for your app across. Multiple, billion. User, surfaces. Including. Google, search the. Google Playstore. YouTube. And over, 3 million sites, and apps across the Google Display Network. But. Before we talk a lot more about we get what you AC does, and how it works let me share a few stories about developers, who are using UAC to. Accomplish, their business, goals. Let. Me start with Kabam, now. Many of you might know about Kabam, they're an award-winning. Game, developer, in San Francisco, and they have some really amazing titles, like Marvel's, contest of Champions and, The, Fast and the Furious and. Koga. Kabam, came to us with a problem for their business they wanted to grow their global daily, active, users for, the game marvels. Contest, of Champions let's. Hear a little bit more from them about their story. BAM. Is a world leader of massive, multiplayer mobile. Games Marvel, contest of Champions is, an action fighting game that released in 2014. And users, can play with anyone, else in the world because. Marvel is a very social game it's important that we find players all over the globe our, target audience are engaged daily active users or what we like to call them or regulars, these. Regulars are hard to find because, they're not bound by geography. Gender. Or age we. Really didn't have the resources to process and analyze millions, of data points to find our target gamer from, Hong Kong to Dallas each player has their own unique gamer profile, at. The end of the day we just want to reach more people in the world who are going to become regulars we. Worked with the Google account team to create a bid strategy that would find the regulars who would want to play a contest, of Champions, Google's. Automation, helped us find a huge untapped audience, that we didn't know existed. Considering. Our game is three, years old with a high user base that really isn't an easy thing. We, reached hundreds, of thousands, of new players year-over-year. Install, volume increased, by two and a half times with, our target, return on adspend, increasing, by 70%. Now, we've been able to focus on our overall growth strategy, rather. Than worrying about manually, optimizing, campaigns. It's. Been really incredible for us to be part of Kabam success, story, and we're, glad that despite, Marvel's, contest, of Champions being, a game that's been out since 2014, and already, having, millions of users that, we're, able to help them grow their installs, by, 6x. Quarter-over-quarter. And maybe. More importantly, their, RO ass or return on adspend. Increased, by 70%. So. Let's look at another example. This time in Europe. Now. My taxi, is Europe's. Leading taxi. App and it really helps, consumers, book and find, taxi, rides, now. You can imagine that this on-demand ride. Business, is very competitive it. Certainly is competitive, in the US and it's competitive in Europe, as well so. Their main business challenge, that they came to us with was how, can I find more users for my taxi, app that, will actually take rides and after. That first ride continue, to take more rides, they just wanted those people to, have the frequency of use of their, service, so. In subset September. They, came to us and tried, UAC for, their expansion into 11 markets, in Germany. And. Within just a few months they, were able to able to increase their installs, in these 11 test markets by 70%, and. More. Importantly, they've, tripled their growth rate of finding, those first-time, writers, writers, who are new to their service, so. We're also incredibly, happy that my taxi, was able to use our tools to build their business, now. You might wonder how is, UAC able, to deliver these performance. Characteristics. For two very different businesses, when is a game, expanding. Amateur business. One is conquest, into a new region for a taxi, app. Well. The secret sauce is not really, that secret, it's machine, learning and UAC. Uses, machine, learning to, learn which. App users. Are the most relevant and right for your app and it, does this by combining, in real-time hundreds, of millions of signal, combinations, to understand, you, know where the ad should show who.
The Ad should show to what. The ad should look like and also what to pay for, that ad and it's. Doing all of this optimization in real-time to optimize, the value of your, dollars, so, that we return, the highest ROI for your advertising budgets, and, this. Helps you to, save both time and money, for. Your acquisition campaigns. Because. Of this I'm also incredibly, proud to say that we have now delivered, over 10 billion, installs. For, developers, like you through, our ad services, and potentially. Even more important, we're delivering over 7, billion in app, events, per quarter what, our in-app events these are the events that matter to your app whether, it's subscribing. To the service or passing, a level in a game or taking. A ride in, your ride-sharing app. But. This is not enough I'd like to share, some new announcements, on what we're adding to universal, app campaigns. Now. First thing is we, know that a really good way for users, to understand, what your app is about is to show them a video of the, app and this is why earlier this year we, introduced, a, new feature a, click, to play video. Ad in, Google, Play, now. This unit is exactly, like it says users, go to the Google Play Store looking, for some, app to download they're invited, to watch a video about an app they might like and after. Watching that video they can decide where, they want to download the, app or not this, use leads to very qualified, users for. That advertiser. Sorry. Now, another way to qualify, high value users is to actually let them try the app before. They install it and I'm sure many of you have heard of this new technology called, Google Play Instant, which. Is really, cool basically if you haven't heard about this technology it allows you to build a small, version. Of your, game and have, it load instantly. For consumers, to try now. How does this work with universal, app campaigns, very, simply we, are going to show users a try, Now button, in the app install ads that they encounter, so, if you're using Google Play Instant you plug it into universal, app campaigns, and now users get a try now experience, where they get to experience, potentially. A level of your game before. Deciding, to download, and this is something we're actively experimenting. With and will launch in the coming months. However. Making ads informative. And engaging isn't, enough we also want to make them super, relevant for users about. 70%. Of users say that they download, an app based on whether they think they're gonna use it or not which, seems like pretty intuitive, to me and so. To help provide more information, about your app in, your install ads we're, introducing a new feature the, ability to surface, in-app, content. In your new universal app campaigns, ads now. Maybe an example is, more clear on explaining, how this works so. Let's. Look at the app wish. For. Those of you who don't have, the wish app wish is a retail, app and they sell a lot of different things they sell kids stuff they sell sports, equipment, they, sell travel stuff, they sell a lot of different lines of products. And so, what wish can do now is they can feed that list. Of products, to, AdWords and after. They've connected, that to universal, app campaigns, we will now use machine, learning to figure out which, products, to service to rich users, before, they download the app so. For example, some users might want to be buying. Kids, stuff because their parents, this is something that the machine learning algorithm will, optimize, towards, or another, set of users might be interested in sports equipment, that's what they'll optimize, towards so, this is just another way for us to surface, more, information.
About What your app is for. Your, potential users. Now. Let's switch gears and talk about something, really important, it was just the measurement, of your, app install ads I know, a lot of you care about understanding. The, ROI and efficiency, of those ads, dollars that you're putting forth so, we're announcing a new metric called, view-through, conversions or, VT, C's for. Universal, app campaigns, very. Simply this, metric, it, just. Correlates. Your, impressions, on video and display ads to. The, app installs, that happened downstream, and this, is something that will surface in Adwords, in the coming months. Now. Developers, like innoGames, which created forge of Empires have been using PTC's, to understand, how, effective. They're universal, app campaigns, are and this, is also a great way to compare veetc s between Google and other, acquisition. Channels, now. The other thing I'd like to add about VT C's is that they will be surfaced, in both Adwords, and our, app attribution. Partners because we know that many of you are using, those surfaces, to, compare, metrics, between, different, providers. So. We're really excited about, the huge, opportunity, that you have to. Build a great, service, and get that service into the hands of billions, of users and my. Team is excited to continue working on universal, app campaigns, to help you achieve your, user acquisition goals. And. Now. The, flipside of model, of building, a successful apps, business which, is monetization. I like, to share with you how Google is helping you build great. Monetization, into, your app through. Advertising. Now. Getting ads into, your app may seem easy but it's actually not that obvious and here's, why number, one is what I talked about earlier users. Have a really, high expectation, for, the apps that they use so, if you're putting ads in they. Better be working really well and number. Two is fine. I'm opted, into showing ads to users how, exactly, do I make the most from my ad partners, how do I maximize revenue. Those, are the two problems that we want to help you with let's. Start with great ads experiences. Now. Stepping. Back for a second I've been working on apps for 6 7 years and I have been really really interested, with the emergence, of so many different ways that users, can pay for things they.
Can Pay through subscriptions, they can pay through in-app purchases, they can pay through virtual. Currencies, and now there's other things like tipping, there's just so many different ways that monetization. Is emerging, in the apps surface, and one. Thing that we've seen become. Very popular recently is, hybrid. Monetization. Which, is just a fancy way of saying in-app. Purchases, and ads in the same app. And. When. Active, elves are doing this one, thing that's become very popular recently. Something called rewarded, ads for. Those of you who don't know wrote rewarded, ads are very simply, users. Opt, into watching an ad and in, return they get a service. In the app now. This is very very popular in games but I'll share a non game example, Pandora. Pandora. Realized. That. Many users who are using their, music service, were not going to become subscribers. So. Instead they offered those users a choice would. You like to watch an ad and in, return get, some ad free listening, and by. And large this is an incredibly, great model, because Pandora gets monetized. Those users who are not paying and the. User gets the service they're happy, with it and the. Advertiser, actually, gets a very engaged, and qualified, view. From that user so. Let's, take a look at a separate second example avidly. Which. Is a creator, of a game called bingo party now. Avidly, was very concerned, about adding. Ads to their app they were worried that ads were going to ruin the gameplay experience that. Users would flee to other free games. So. They decided to try rewarded, ad just to see how it would work and, the. Surprising, results, are number. One they made more they. Got an increase, in revenue between AI AP and ads by, 40%. But. In addition, session. Duration grew by 20% which, means that by adding these ads to the game users. Actually paid more and played, longer, so. Everybody, wins right avidly, Pandora, are showcasing, that when you put the ads into the app in an elegant way users. Publishers, advertisers are, all going to win and. Because. This model has become very popular it's no surprise that we have seen rewarded, ads in AdMob, grow by, 9x, since. We introduced it in March of last year and we've. Added a lot more to rewarded ads since then one. Of the things that we've added is rewarded, with multiple, options and that's what you see on this, screen here essentially. Users, are deciding to watch an ad to get some item. Or service in the app why, don't you let them which ad they want to watch this. Leads again to the user being more interested in the ad that they've decided to watch and also, the advertisers getting a much more qualified, user. This. Also then leads to higher CPM, s for you as a developer. Now. One of the new things I'd like to share today I'm really excited about is rewarded, reporting, in AdMob, now. This may not sound like wow, what's what's going on here reported. Reporting is super important because you need to know how. Rewarded, actually, works in your, app so. Here we're gonna share, a lot more metrics, about exactly, what's going on with, the users that are interacting, with your rewarded, ads which. Rewarded, ads are working and not what, reward units are more resonating, with users what are the view through rates of rewarded, ads and this lets you as a developer tune. And optimize, how, and where you offer these rewards, and also, what reward to provide to users this. Also gives you a sense of how it's affecting, your core user experience, is it, additive, like the case we saw with avidly and how, is it affecting your ARPU so, this is going to be available, in AdMob very soon. Now. I just talked about great. Ads experiences. In apps let, me talk about something else which is really important, which is maximizing. The revenue that you're getting from your ad partners. So. Typically the way this works today is something called mediation. And very. Simply, this, is the, ordering of how, you sell, your ads to different ad partners now. Mediation. Traditionally, works on a historical. Pricing, basis, which basically means in this, mock-up you see here network, a paid $2 in the past so they're at the top and network, B and network C are below that because historically, their prices were lower, now.
The Flaw, with this model as you can see is that at any, given moment, each, impression can be priced differently and in fact network B or C might have a higher price, for an impression, than network a at any, time. So. We think we can help earlier. This year we announced a feature called, open, bidding now what. Open bidding, is, it takes mediation, and instead moves it to a real-time, fitted, auction. System what. Does that mean very, simply every. Impression, is available, for every added network to bid into simultaneously. And in real-time and this. Means a higher, and better price for each and every impression for those of you who are selling. Ads inventory, in your apps. Now. The benefits, are beyond pricing, as well mediation. Typically. Requires integration of multiple, ad network SDKs, as well, as launching, multiple. Surfaces to reconcile, billing, and figure, out payments. With. Open bidding we're trying to resolve all that you, can get most of the demand benefits, from all of those ad providers through, a single, AdMob SDK, leading. To a lighter app for your users to download and also, less development, time, and. What's more AdMob. Will often, manage, the billing too and provide transparency into, your metrics so, you don't have to chase down payments, or log, into multiple interfaces now. Developers. Like Ileana here are seeing, remarkable, results, by being part of our open bidding beta and this is something that we're going to continue expanding, over. Time. In. Fact in addition to the partners that we launched earlier this year we, have now added the global, ad network in mobi, to, our open bidding feature. Now. Let's talk about a second, way for, maximizing, revenue from your ad partners something. Called open measurement. And very, very simply, brand. Advertisers, are often. Buying impressions, for, users and they want to make sure that those impressions are seen hence. The viewability part, now. In reality in the past if developers wanted, to guarantee, view, ability of their ads they, had to integrate multiple, SDKs. That yielded disparate, numbers of their view ability so. To solve that what we've done is joined, an IAB, lead coalition. Which, is unifying. And simplifying, down to a single methodology. For. Measuring. View, ability in your ads, so. We're excited to announce that we integrated, to IAB open, measurement, SDK, into, our Google mobile ads GMA. And our. Interactive, media ads ima. SDKs. So. This solution will help you save time as well, as reflect, the true value, of your, app inventory, now, in addition our. Developers. On double-click. Both, our DSP, and our. Ad Exchange products, will also be able. To use this beta. So. Thank you so much we've covered a ton today so if you have any questions, about both user acquisition and, universal app campaigns, or our, AdMob, announcements. Please come to our office hours so. I. Just like to close by saying it, is an incredible, time to be a developer, you. Can build great services, to reach billions of users and. Our job is to help you build a great business foundation, on top of those services, we, want to help you with two problems user. Acquisition finding. The right users for your app and number, two in-app, ads monetization, continue. To make more and more, maximize, your revenue from, the ads that you're adding to your app.
Thank. You so much for all your time and enjoy, the rest of your time at i/o.