As the economy changes, 5 things mobile advertisers should know

Data-driven thinkingWritten by members of the media community, it contains new ideas about the digital media revolution.

Today’s column was written by Levi Matkins, the company’s CEO The street of life.

It’s a new year and a new day for mobile programming.

2020-2021 mobile has seen a huge boom as consumers have turned to their devices for entertainment, connection and support during the pandemic. The industry predicted that as 2022 approaches mobile engagement will remain high. But with the repeal of the IDFA, rising acquisition costs and inflation are hurting consumer spending, the global gaming market. contracted by 4 percent last year.

With the economy faltering and budgets tightening, 2023 will be a year of adjustment. LTV curves will become more difficult to predict. Additionally, the industry will continue to develop and test solutions to deal with Apple’s removal of IDFA. Under these conditions, app marketers will need new ways to find scale for their app advertising campaigns.

Here are five predictions for how they will expand their programs in 2023:

1. Increased transparency

With the discontinuation of IDFA and the loss of rich audience profiles based on user-level data, acquiring high-value users has become more challenging. The increase in complexity coincided with UA leaders’ increasing understanding and expectations of programming.

The black box relationship between DSPs and growth marketers is no longer standard. in 2023 there will be more scrutiny and transparency in how unique bidding models are created and advertising dollars are spent.

2. Focus on profitability

Capital investment-driven program developers have historically focused more on growth than profitability. This focus has changed and will continue to change in 2023.

In the future, players will invest more in proven channels and strategies than speculative business ventures. Therefore, more emphasis will be placed on the development of existing titles rather than research and development of new titles and presentations.

Finally, app developers will turn to well-known intellectual property (IP) to gain access to a large and existing audience that is already associated with the brand. Take the rise of mobile games based on the Harry Potter IP, which in 2022 generated a total of 1 billion player spending worldwide.

3. Generative AI for creative resources

In games, the sheer amount of resources required (2D art, 3D art, sound effects, music, dialogue, etc.) can be a huge barrier to scaling processes and increasing efficiency. But generative AI has the potential to fundamentally disrupt the development of creative assets.

We’ve already seen very early adoption of this technology with Stable Diffusion, DALL-E 2, and Midjourney (text-to-image models) to generate art assets at scale. These types of models will soon help creative teams increase the generation of in-game resources and significantly reduce the cost of content production. For example, the production time of one image can be reduced from several weeks to an hour.

As IDFA moves away from ads as the primary performance lever, generative AI can also be a powerful tool to expand ad creative.

4. Advertising standards that focus on the end-user experience

To cope with an uncertain economy where LTV curves are harder to predict, advertisers will run more ads and push the limits of traditional advertising. More aggressive advertising practices are already emerging, such as introducing a delay before viewers can close an ad.

There is also an unmet need to standardize the advertising experience. Today, developers use five to 10 different networks and exchanges to serve ads, all of which provide different experiences for users.

A more intrusive ad experience and non-targeting will drive the market towards consumer-first advertising standards.

5. Increase in subscription tiers

As advertisers serve more ads to compensate for changing CTR curves, the number of ad-free subscriptions is likely to grow. Regardless, advertisers should continue to offer ad-supported subscription tiers to users on a budget.

I am waiting

From new privacy restrictions to a changing economy, there’s no doubt that mobile programming has become more complex over the past few years. But like all things, business is cyclical. in 2023 the industry will refocus on what creates long-term value for app developers.

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