Programmatic advertising has become one of the fastest growing channels of digital marketing due to its inherent abundance of media inventory and buying efficiency. It offers multiple ways for mobile app advertisers to find the right media inventory for their ads. But with a few different ways to acquire media inventory programmatically, app advertisers are sometimes confused about which is the best way. To lessen the confusion, let’s shed some light on the differences between three different ways: open auction, private auction, and preferred deal.
The mobile app marketing industry has undergone quite a few changes since its early days. As discussed in part 1 of this blog series, the industry began with the focus on clicks then moved to optimizing for installs and post-install events. Today, app install is still one of the most common key performance indicators (KPI) in an app marketing campaign. However, as the mobile app industry continues to mature, app marketers are starting to realize that acquiring high lifetime value (LTV) users is the key to success. Thus, many have began to optimize their app marketing campaigns for high LTV users.
In recent years, programmatic has grown to become a popular media-buying channel for advertisers across the globe. As the mobile industry grows, it’s not difficult to see why app marketers are looking to programmatic media as the solution. Mobile users have diversified interests and behavior, making it much more difficult for app advertisers using traditional ways to select, negotiate, and buy the media that will optimize ad performance toward the target users.
The mobile app industry has come a long way since almost a decade ago. Back in 2007, Apple released the first generation of iPhone with preloaded apps. Shortly after, the first Android smartphone hit the market in 2008. Back then, mobile apps were simply deemed as useful, nice-to-have tools that people could live without.
As the mobile app industry continues to evolve, app marketers are beginning to look beyond app installs to measure the campaign success. Instead, they are choosing to focus on the quality of users and consequently, the return on investment (ROI) of each campaign. The theory is that the more high-quality users they can acquire, the more likely it is that the campaign will achieve stronger ROI. This can be attributed to the believe that ROI is driven by the amount and value of in-app purchases high-quality users will make.