Optimization Towards KPI: How to Make an Agency Be Your Partner (White Nights Conference Helsinki 2016)

1. Optimization
Towards KPI
Evgeny Marchenkov
VP of Sales and Marketing
evgeny@datalead.com
© DataLead 2016
How to Make an Agency Be Your Partner

2. Contents
u Something about DataLead
u Global trend in advertiser-agency collaboration
u Existing collaboration models
u Utilities
u eCommerce
u Games
u Case Study
© DataLead 2016

3. Something about DataLead
u The leading performance marketing agency in
Russia and Eastern Europe
u Premium partner of Facebook and myTarget
u Up to 500K daily installs globally
u 170K iOS and 330K Android installs every day
u Working with premium traffic sources only:
myTarget, Facebook, Instagram, Google
u Traffic optimization focused on client’s KPI
u 300+ clients trust us including AliExpress, JD, EA, Zynga,
Machine Zone, 360, LeoMaster, Holaverse
u Top affiliate for MobVista, YeahMobi, Avazu, MundoMedia,
ClickDealer
© DataLead 2016

4. Global trend in advertiser-agency
collaboration
u Advertiser is looking for huge volume of
cheap quality installs
u Agency is looking for a big budget, high
payout and an edging up ROI
u There is no sustainable business model!
© DataLead 2016
Is it
a war?

5. Advertiser’s problems
u Advertiser earns money according to their business
model
u They buy mobile installs (CPI), but in fact looking for
ROI-positive users.
© DataLead 2016

6. Agency’s problems
u Agency earns money on the difference between the base
price of installs and the advertiser’s price
u They have small test campaigns and a binary result –
good or bad quality
u They’re looking for long-term partnership with big
budgets and predictable ROI
u Example: US Gaming client
© DataLead 2016

7. Solutions in the market
u Advertisers are calling the shots
u Their solution: CPI + KPI model
u Specific models for different verticals
u Utilities
u eCommerce
u Games
© DataLead 2016

8. Utilities model
u Business model: Monetize their
audience through in-app ads
u Google AdMob and Facebook
Audience Network – two most
common solutions
u KPI: Retention rate (Day 2, Day 3)
© DataLead 2016

9. Utilities model – Example #1
© DataLead 2016
u Geos: WW
u Devices : Android
u Goal : Achieve target KPI’s
(Retention rate)
u Price Model: CPI + KPI
u Daily budget: Unlimited
u Pay in accordance with their organic
traffic.
u A: >=88% of our organic 3-day
retention rate.
u B: >=80% of our organic 3-day
retention rate.
u C: >=75% of our organic 3-day
retention rate.
u DEF: lower than 75%
u For A, we pay 100%
u For B & C, we pay 60%
u For DEF, we don’t pay

10. Utilities model – Example #2
© DataLead 2016
u Geos: IN, BR, US
u Devices : Android
u Goal: Achieve target KPI’s (Retention rate 10%+)
u Price Model: CPI + KPI
u Daily budget: Unlimited
u KPI: D2 RR 10%+ , if less no pay

11. eCommerce model
u Business model: Sell goods
u KPI: Retention Rate, ROI
© DataLead 2016

12. eCommerce model – Example #1
© DataLead 2016
u Geos: Eastern Europe
u Devices : Android
u Goal : effective promotion
in Eastern Europe
u Price Model: CPI + KPI
u Daily cap: 1500 installs
u KPI: D.Day2 RR 30%, Submit orders/
cost 2:1.
u Weights: RR 60%, Submit orders –
40%
u Pay in accordance with client`s KPIs
fulfilment:
u A.>90% KPI fulfilment we have $1.2
CPI
u B.50%-90% KPI fulfilment we have $1
CPI
u C.<50% KPI fulfilment we have $0 CPI

13. eCommerce model – Example #2
© DataLead 2016
u Geos: SA
u Devices : Android
u Price Model: CPI + KPI
u Daily budget: 500$
u KPI: 40% D1 retention, 2% in-app purchases
u Payment model: If don’t meet KPIs – no further
promotion

14. Games model
u Business model: Freemium
u In-app purchases
u In-app ads
u KPI: Retention Rate, ROI
© DataLead 2016

15. Games model – Example #1
© DataLead 2016
u Geos: Russia, CIS
u Devices: Android, iOS
u Price Model: CPI + KPI
u Daily budget:
u IOS: $1200
u Android: $1000
u KPI:
u Average Activation Rate - 85%
u Effective Activation rate - 50%
u D2 RR - 35%
u Traffic is not paid for:
u AR < 45%
u ER < 30%
u D2 RR <10%
u Day 7 ROI <7%

16. Games model – Example #2
© DataLead 2016
u Geos: RU
u Devices: Android+iOS
u Goal: Volume of quality users
u Price Model: CPI + KPI
u Daily budget: $1200
u KPI: ROI
u ROI: 35% Day 30
u Payment terms: No further promotion if do not meet KPI

17. Case Study
© DataLead 2016

18. Case study: Conditions.
u Geos: Russia, Europe
u Devices : Android , iOS
u Business model: In-app purchases. $6 - $50
u Price Model: CPI + KPI
u Daily budget:
u RU – unlimited
u EU – 250$ android, 250$ - ios. Total 500$
u Restrictions: no Google, Facebook and incentive traffic
u KPI: Optimized campaigns towards in-app purchases
© DataLead 2016

19. Case study: Execution plan.
u Studying client’s product
u Making a bunch of creatives for different target
audiences
u Implementing deep integration (in-app events)
u Testing creatives and choosing the best
u Optimizing campaigns towards client’s KPIs
© DataLead 2016

20. Case study: Our dashboard
© DataLead 2016

21. Case study. Results
Platform Installs CVR # of in-app
purchases
Purchases
CR
iOS RU 23 641 14.93% 429 1.81%
Android RU 7 279 14.93% 105 1.44%
iOS EU 1 124 7.06% 27 2.40%
Android EU 2 195 3.96% 49 2.23%
© DataLead 2016

22. Summary
u Agency = Outsourced media
buying team
u Agency = Full transparency =
Creatives control + Account
access
u Agency = Fixed fee up to 20%
(No more arbitrage)
u Agency = High quality and
optimizations towards KPIs
© DataLead 2016
Agency is your partner!

23. Questions?
Evgeny Marchenkov
VP of Sales and Marketing
evgeny@datalead.com
© DataLead 2016

24. Thank you!
Evgeny Marchenkov
VP of Sales and Marketing
evgeny@datalead.com
© DataLead 2016