Analytics, Marketing

The 5Ws (and 1H) of Postbacks for Ad Whales

blog header image with postbacks for ad whales written as the title and signs that say where, what, why, who, when and how

Before we jump into the topic of postbacks for ad whales, lets first understand what are postbacks and why they are so important for any marketer of a mobile app company. Let’s say you have a dating app called TrueMatch and after you have had some organic growth you have recently partnered with a few marketing partners – mostly ad-networks who specialize in bringing installs. Let’s call one of them Tap4Buck. Tap4Buck places ads to promote your app TrueMatch on different websites and apps. As a result users click on them and get to your app-landing page. Some of them also decide to install your app and a smaller percentage even continues and converts to payers. Since Tap4Buck wants to give you the best results possible, they want to know which clicks ended up converting to installs and which ones converted to purchasing users. The problem is that the app store landing page breaks the flow of information so Tap4Buck can’t continue to track the user once they have installed the app. Postbacks solve this issue. If you are using an attribution provider (you should – it’s a must have these days), you can easily configure it to send postbacks to Tap4Buck and help them optimize your campaign for you.

What are ad whales and what are postbacks for ad whales

Now, let’s imagine that TrueMatch makes 50% of it’s ad-revenue from advertising. This means that sending postbacks for users who made purchases only tells Tap4Buck half the story. What about users who generate a lot of revenue from ad based monetization? Ad Whales are users who made at least $0.7 in ad revenue. This is the minimal amount of revenue a payer can make ($1 purchase minus 30% cut by Apple/Google). $0.7 threshold means that a conversion to ad-whale yields the same amount of money as a conversion to payer would yield. Postbacks for ad whales means that your attribution provider would send Tap4Buck an event every time a user that came through Tap4Buck has generated at least $0.7 in ad revenue and converted into an ad whale. This typically happens with 2%-5% of the users in games that are tuned towards ad based monetization but obviously changes from one game to another.

Who should care about postbacks for ad whales?

Companies who have any type of paid marketing activity would benefit from sending postbacks in general. The ones that also have an ad revenue component that amounts to at least 15% of their total revenue should be sending postbacks for ad whales. Ad whale postbacks also benefit the partners on both sides. For the marketing partner that sent the traffic to your app, better postbacks means more effective campaigns and happier customers. For the monetization partners, better postbacks means that the app will get more ad whales as a result of the optimization and therefore their volume of revenue would increase.

When – 2017 is the year of change

If you have been following the industry trends you already know that ad revenues are becoming the dominant way to monetize apps. It’s already as big as In-App Purchase and is projected to grow faster in the next 4 years. In Mobile games alone, App Annie projects in-app advertising will amount to revenue streams of over fifty billion dollars ($50B) for the companies who will be placing these ads in their apps. The total mobile ad spend worldwide is projected to reach $195B by eMarketer. As ad based monetization is becoming so important, companies are looking for tools to optimize them and postbacks are a big part how the mobile marketing space has been operating.

Where – not all geographic areas are created equally

Most of the media buying today is concentrated in a few countries where people are willing to spend money on in-app items. These countries are often referred to as Tier 1 countries and are also where most of the postbacks are being fired today. At the same time, postbacks for ad whales bring a new opportunity to table. There are other countries with large population where people can’t afford to buy in-app items. These countries offer low rates for user acquisition due to lack of demand. Setting up postbacks for ad whales allow app publishers to find opportunities to acquire users in these countries with positive ROI. This means that as postbacks for ad whales became more popular through out 2017 we will see a shift in the postback geographical activity areas.

Why track conversion to ad whales and report it as postbacks?

There are 3 main reasons to track and post ad whale conversion:
Business goals alignment – many apps that have a big ratio of ad revenue today would make up a game progress goal such as “100 sessions completed” or “10 levels”. These goals would be defined as events and companies would track conversion to these goals and report postbacks to the ad-networks. However, these goals are not aligned with the business of the company. Conversion to payers and to ad whales is a far better goal and will bring better results in the long term.

ROAS not enough
– Measuring and optimizing the return on ad spend is the best theoretical approach. However, in a real world situation it relays on predictive models that are often hard to implement. Media buyers often require a more day to day metric to optimize against. This is why most UA campaigns track the conversion to payers as one of the leading KPIs. Similarly, in apps that monetize mainly with ads, the easiest way for media buyers to optimize is against a goal of conversion to ad-whales.

Postbacks allows manual as well as automatic optimizations – reporting the conversion to ad whales as a postback to the traffic source allows them to have an optimization goal that is aligned with your business. In turn, it impacts what users you will be getting from this traffic source. In some channels such as search and social media there is a lot of algorithmic optimization taking place. These algorithms need a goal to optimize against so having them optimize for ad whales would be the best approach for an ad supported app. Similarly, in other channels there is a manual optimization process of eliminating bad sub-sources such as sites or segments – these manual optimizations also requires a goal and reporting ad-whale conversion as postbacks provides such a goal.

How to set up ad whale conversion as postbacks

There are 3 components for setting up ad whale postbacks in your app:

#1 – Tracing back ad revenue per user – in order to detect the ad whales and report them you will need a way to measure the ad revenue for each user separately. Your monetization partners typically report ad revenue per country and average CPM but not the ad revenue for specific users. The most accurate way to measure ad revenue today is SOOMLA TRACEBACK. It is the only platform that can identify the ad whales for you.

#2 – Connecting the data pipelines – your attribution platform is the one in charge of sending postbacks to your marketing partners. Once you have SOOMLA integrated in your app you can configure it to send the right postbacks to your attribution platform with just a few clicks.

#3 – Setting up postbacks in your attribution platform – this step is slightly different depending on the attribution partner. However, they all have a partner configuration screen where you can set up the ad-whale conversion from phase #2 as the trigger for the postback.

 

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