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Grow your app business through user acquisition and monetization

Sissie Hsiao
Global product leader at Google
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2018 Google I/O
May 8, 2018, Mountain View, USA
2018 Google I/O
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Grow your app business through user acquisition and monetization
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About speaker

Sissie Hsiao
Global product leader at Google

Sissie Hsiao is the global product leader for Google mobile advertising. She leads product strategy and development for App monetization, reaching millions of apps and billions of app users. Her areas of responsibility include building a global business, leading both advertiser and publisher facing components of in-app advertising, as well as leadership on Google’s broader cross-device initiatives. Prior to her work on mobile ads, Sissie led all of Google's cross-channel measurement and attribution efforts,

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About the talk

Building a successful apps business requires smart growth strategies focused on acquiring and monetizing the right users. Google’s app ads solutions empower you to reach these users efficiently and to deliver user-first ads experiences. This session will cover the latest AdWords and AdMob innovations that help app developers thrive.

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Hello, everyone. My scalp was right before I even get started. So good morning. It's great to be here at Ayo. I'm 50 Shadow and I need Google's mobile app advertising products at Google and this talk will be about building a successful app business with ads. The first off it's just incredible to hear all of the wonderful things that you're building in your mobile app. And one of my favorite ass is the one that you see on the screen. It's called calm and it's a relaxation app and I first thought 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 a panty in 2017 over 86 billion dollars will be transacted in Ops alone. And this is just a digital Goods. This is not include real woods goods and services that are transactions through us. 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 is an incredible opportunity. There's an 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 ass 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 and drop you didn't make sure that those are really great and elegant experiences for users

or another way to say it supposed to ask 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 problem to building a great successful at business number one hits. 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 your 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 ass and the content for your for your users. So let's start with number one, which is how do you find those most volatile 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 song 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 a very popular vertical of games now contrary to what many people still believe mobile gamers are not just young male and in fact men and women play mobile game about equally And furthermore in the US females from the age of 10 all the way to 65 about 65% of that population is huge range a female's plays mobile game know. What a my favorite thing to do is share my favorite mobile game with my daughter who's 7 so after really

transcending boundaries and defying our presumptions of what users really like and this is what makes a promotion really hard you're fishing for the right users who wouldn't want to use your services but to help make user acquisition easier and more effective for you. We built a product called Universal app campaigns for UAC. Now what is UAC very simply it's an odd product and it helps you find the right user for your app across multiple billion user surfaces, including Google search

the Google Play Store YouTube and over 3 million sites and apps across the Google Display Network. But before we talk a lot more about what you AC doesn't work. Let me share a few stories about developers who are using UAC to accomplish their business goal. Let me start with Kabam. Now many of you might know about two bands there an award-winning game developer in San Francisco, and they have some really amazing titles like Marvel contest of Champions and the Fast and the Furious and came to us with a problem for their business. They wanted to grow

their Global daily active users for the game Marvel's contest of Champions. Let's hear a little bit more from them about their story. Batman world leader of massive multiplayer mobile games fighting games that released in 2014 and users can play with anyone else in the world has 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 are regulars these regular hard to find because 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 are going to become regulars. We work with a Google account team to create a bit strategy that would find the regulars who would want to play contest of Champions. Google's automation. Help us find a huge untapped audience that we didn't know existed. Considering our game is 3 years old with a high user base that really isn't an easy thing to do. We reach hundreds of thousands of new players

year-over-year install volume increase by two and a half times with our Target return on ad spend increase my 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 Gab and 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 were able to help them grow their installed by 6X quarter of a

reporter and maybe more importantly there Ro ask for return on ad spend increase by 70% another example this time in Europe. The my taxi is Europe's leading taxi app and it really helps consumers book and find taxi rides that you can imagine that this on-demand ride business is very competitive. It certainly is competitive in the US and its competitive in Europe as well as 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 ride 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 September 5th September they came to us and try Vue AC further expansion into 11 markets in Germany. And within just a few months they were able to able to increase her installed in this 11. Test Market by 70% And more importantly they tripled their growth rate of finding those first-time Riders Riders who are new to their service. So we're all so incredibly happy that my taxi was able to use R22

built their business you might wonder how is UAC able to deliver these performance your characteristics prove two, very different businesses. When is a game expanding amateur business one is contrasting 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 and it doesn't Spike combining in real-time hundreds of millions of a signal combination to understand, you know, where that I

should show who that should show to what the heck should look like and also what to pay for that at and it's doing all of his optimization in real time to optimize the valley of your dollars so that we'd to return the highest Roi for your advertising budgets. This helps to you to save both time and money for your acquisition campaign. Because of this I'm also incredibly proud to say that we have now delivered over ten billion installs for developers like you through our ad services and potentially even more important. We're delivering /

7 billion in app events per quarter. What are in at the events? These are the events that matter to your out whether it's subscribing to the service are 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 campaign. The first thing is we know that a really good way for you to understand what your app is about. It's a show them a video of the app and this is why I earlier this year. We we introduced a new feature a quick to play video ad in Google Play.

No, this unit is exactly like it says you just go to the Google Play store looking for some app to download their 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 music leads to very qualified users for that Advertiser. No, another way to qualify High Valley 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 campaign? Very simply we are going to show users a try now button in the app and saw as that they encounter. So if you're using Google Play instant, you plug it into Universal app campaigns and no users get a try now or 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 going to use it or not, which seems like pretty intuitive to me. And so it's a he'll provide more information about your ass in your install ads. We're introducing a new feature the ability to surface in app content in your Universal app

campaigns ads that may be an example is more clear on explain how this works. So let's look at the app wish for those of you who don't have the Wish app, which is a retail app and they sell a lot of different things. They sell kids stuff. They sell sports equipment. They sell travel-size face a lot of different lines of products. It's a what which can do now is they can feed that list of products to add words and after they've connected that to Universal app campaigns. We will now use machine learning to figure out which products to service the 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 for 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. Yeah, let's switch gears and talk about something really important, which is the measurement of your app install ads. I know a lot of you care about

understanding the ROI inefficiency of those ads dollars that you're putting forth. So we're announcing a new metric called you through conversions or btc's for Universal app campaign, very simply this metric just correlate your impressions on video and display ads to the app and saw that happened Downstream and this is something that will surface and Edwards in the coming months. Got developers like in a game which created for two empires had been using BTC to understand how effective their Universal app campaigns are and this is also a great

way to compare btc's between Google and other acquisition channels. Now the other thing I'd like to add about btc's is that they will be surface and both had words and are a pot rebutia partners because we know that many of you are using those services 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 gold. And now the flip side of a building a successful ask business, which is monetization, but I can share with you how Google is helping you build great monetization into your app through advertising. Does 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 app that they use 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 ADD Partners. How do I maximize Revenue? Those are the two problems that we want to help you with that start with great as experiences now stepping back for a second. I've been working on apps for 6 7 years and I've 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 into a surface and one thing that we seen become very popular recently. Hybrid monetization which is just a fancy way of saying in-app purchases and ads in the same app. And when active oh, so you're doing this one thing that's become very popular recently. Something called rewarded ads. For those of you who don't know what rewarded as are very simply users opt into watching an ad and in return they get a service in the act of this is very very popular in games, but I'll Sheeran on game example Pandora

Pandora realized that many users who are using their music service. We're 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 gift monetize 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. But let's take a look at a septic an example avidly, which is a creator of a game called

Bingo party now avidly was very concerned about adding adds to their at 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 I just to see how it would work and the surprising results are never one. They made more they got an increase in revenue between IEP and by 40% but in addition session duration Group by 20% which means that by adding these add to the game you just actually paid more and played longer. So everybody

wins right avidly Pandora precio kissing that when you put the ads into the app and it 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 as in admob grow by 9x since we introduced it in March of last year and we've added a lot more to rewarded add since then one of the things that we've added is rewarded with multiple option and that's what you see on the screen here. Essentially you are deciding to watch an ad to get some item or service in the app. Why don't you let them pick which as

they want to watch this, please again to the user being more interested in the ad that they've decided to watch and also the advertisers getting on much more qualified user this also then leads to higher CPM for you as a developer. No, one of the new things I'd like to share today. I'm really excited about is rewarded reporting in admob. Evans may not sound like wow, what's what's going on here reported reporting. It's super important cuz you need to know how rewarded actually works in your ass to hear. We're going to share a lot more metrics about

exactly what's going on with the users that are interacting with your rewarded as which rewarded as are working and not what reward units are more resonating with users. What are the view through rates of awarded as and this lets you as a developer TuneIn optimize how and where you offer these rewards and also what reward to provide two users. This also gives you a sense of how it's affecting your core user experience. Is it additive like a case? We saw it avidly and how is it affecting your arpu to this is going to be available in admob very soon.

No just talked about great as 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. Pacifically the word way this works today is something called mediation and very simply this is the ordering of how you sell your ads to different at Partners traditionally works on a historical pricing basis, which basically means in this mock-up. You see here Network a paid $2 in a pass. So they're at the top and network be and that work CR below that because historically their

prices were lower. Now the fly with this model as you can see is that at any given moment each impression can be priced differently. And in fact that were fee or C might have a higher price for an impression than that work at any time. So we think we can help earlier this year. We announced the feature called open bidding that what open bidding does is it takes mediation and instead music to a real-time fitted auction system. What does that mean for 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 at the inventory in your house. Now the benefits are Beyond pricing as well mediation typically requires integration of multiple add Network SDK as well as launching multiple surfaces to reconcile billing and figure out payments. With open today, we're trying to resolve all that you can get most of the demand for the Fist from all of us add 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 to and provide transparency into your metric so you don't have to chase down payment or login to multiple interfaces? The developers like alien here are seeing remarkable results by being part of our open bidding beta if it's something that we're going to continue expanding overtime. If I can in addition to the partners that we launched earlier this year we have now added the global ad Network in Moby to our open bidding feature. Now

let's talk about a second way for maximizing revenue from your add Partners something called open measurement and very very simply brand advertisers are often buying impression for users and they want to make sure that those impressions are seen and to the viewability part now in reality in the past that developers wanted to guarantee viewability of their eyes. They had to integrate multiple SD case that yielded disparate numbers of their viewability. So to solve that what we've done is joined an IAB LED Coalition, which is unifying and simplifying down to a single methodology

for measuring the ability in your eyes. So excited to announce that we have integrated the measurement SDK into our Google mobile ads GMA and our interactive media adds i m a s t case the dissolution 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 are DSP and are at exchange product will also be able to use the spado. So thank you so much. We covered a ton today. So if you have

any questions about both user acquisition and Universal app campaigns or are admob announcements, please come to our office hours. I just like to close by saying it is an incredible time to be a developer. You can feel great services to reach billions of users and our job is to help you build a great business foundation on top of the services. We want to help you with two problem user acquisition finding the right users for your app and number to in-app ad 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 IO.

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