Capitalizing on Mobile

October 29. 2013, GamesBeat Conference, Redwood City, CA—Michael Metzger from Covert and Company had a chat with Steve Wadsworth from Tapjoy. They discussed the need to build a mobile business for revenue and effective user acquisition.

How are mobile ads driving the mobile space?
First, advertising wants to be where the people are. They want to be where people spend time and attention to be able to turn that time into money. Mobile is the right solution for advertisers.

Categories for spending?
First is the game apps. People are spending more money on mobile games, and the game engagement leads to game-related revenue.
Second, take an approach that addresses ROI on a platform that works, increasingly this is mobile.
Finally, develop good brand ads. The advertisers were late to move, and the distance from the ad to the effect causes friction. The distance is exacerbated by the existing infrastructure, the agencies and sales channels.

Verticals?
Target markets are:
Quick service restaurants, credit cards ( companies can use mobile apps to get a direct response), automotive, mobile device manufacturers. Some consumer packaged goods companies are starting to track and analyze user responses to various inputs from their mobile devices.

What is the size of brand versus all mobile market?
Mobile is like the Web, most ads are direct response and lead generation. Video is one differentiator and a potential solution to the clutter issue. It will take 3-5 years before branding and other ads reach parity.

Compare to direct response?
Some companies are spending in this area, and depending on the end results. Brand also wants to transfer a message, so the value of engagement for mobile is to offer brand and engagement.

Getting to the right user?
Targeting is complex. Facebook is good in front of people and in driving user acquisition. The driver for all the efforts is to find the right user for a specific advertiser. Game publishers are more sophisticated in the use and quality of their analytics. Some publishers are trying for more downloads and other methods to increase interactivity and results.

CPI?
The average is dropping and targeted ads are getting better revenue than blanket ones.

The cost to get to the top 20 games in the Apple store?
You need to have a great game first. Then you can spend across a range of solutions. You have to find the right solutions and partners.

Incentivized ads?
These are a huge opportunity. True engaged ads have to be part of the overall content. for example, print is just around. Mobile has the problem of limited real estate, so you need engagement to tie the value of the ad to the content. You also need to have clarity in the relationship between the ad and the cost of (game) creation. Develop a path to enable opt-in and engagement within the ad.

Emerging platforms and Asia?
In the US, the app stores are harder as new entrants come in, but overall are cleaner. China is confusing because the government can change the ecosystem. The ap developers and platform providers can create their own ecosystems.

Tencent is investing in US companies?
They are a big palyer in China and are investing to create a larger US footprint.

Incentives versus non-incentives for install?
Ultimately, a great target and the right interactivity can lead to growth for the app publisher. The user gets rewarded and sees clear value in the exchange.