John Koetsier is a journalist and analyst. He's a senior contributor at Forbes and hosts our Growth Masterminds podcast as well as the TechFirst podcast. At Singular, he serves as VP, Insights.
Colder temperatures outside have been warning me for months now: it’s winter in the northern hemisphere and almost the end of the year. Which means just 1 thing at Singular: we’re getting very close to the next Singular ROI Index. And that made me kind of curious … what are the top ad networks by growth so far in 2023?
Good thing Singular has a lot of data to answer questions like that.
It’s been a tough year for ad networks, platforms, and advertisers, thanks to inflation, war, and a general downturn in the economy. Not all of the 30 top ad networks by spend on Singular have increased revenue throughout the year: for many, ad spend has decreased. But some have still managed to grow spend, and while that list is shorter than it was last year, the list of ad networks and platforms that have increased their number of customers is longer.
In other words: ad networks are generally working harder for less so far in 2023. Which probably exactly mirrors what advertisers are going through as well.
Top ad networks 2023: customers
Here are the top 10 ad networks by number of Singular customers gained in 2023:
Google Ads
Facebook Ads
TikTok Ads
Apple Search Ads
Unity Ads
Mintegral
AppLovin
Bing
Digital Turbine
Moloco
Yes, it’s true that the rich are getting richer: Google, Facebook, TikTok, and Apple vacuumed up the majority of all new customers gained so far in 2023. But we’re also seeing smaller players like Unity, AppLovin, Bing, and Mintegral get some share of new advertisers.
Top ad networks 2023: spend
Here are the top ad networks by growth in ad spend by Singular customers in 2023:
AppLovin
Liftoff
Tapjoy
TikTok Ads
Google Ads
Blind Ferret
Facebook Ads
Snapchat Ads
Moloco
Mistplay
This is a more interesting list. It’s not representative of where the total ad revenue is going: Google and Meta are still taking the lion’s share of that, while Apple, TikTok, Moloco, AppLovin, and Snapchat are firmly occupying the tier beneath them.
But it is representative of which ad networks are adding spend … or at least losing the least in an overall down market.
What this means for advertisers
Everyone knows that at scale you’re likely to be using Meta and Google. Apple Search Ads is popular for iOS app publishers, of course, and TikTok continues to grow its share of advertisers and ad spend, though there doesn’t seem to be consensus that these platforms work for all kinds of apps and budgets.
Just under that tier of ad networks is Unity, AppLovin, ironSource, Moloco, Snapchat, Liftoff, and a few other players.
While I didn’t check ROI for this analysis — wait for the ROI Index — these are worth a try.
We’re also seeing interest in some different players like Bing and Roku. Roku in particular seems to be riding the CTV wave and boosting its share of revenue from traditional mobile ad networks.
What about Twitter? X? Xitter?
Twitter has of course been an interesting platform over the past year and not without its share of controversy. As it turns out, that controversy is not great for business.
Twitter hit the top 3 for number of advertisers lost so far in 2023
Twitter also was down 46.2% in revenue over the course of the year
We’ll have more details in the 2024 Singular ROI Index, but it looks like if new owner Elon Musk and CEO Linda Yaccarino are going to turn that ship around, it’s going to take at least another year, and maybe just a little less controversy … which few advertisers like.
Any surprises?
While I can’t share any specific numbers here, Moloco surprised me with the sheer amount of ad spend advertisers are sending it.
We’ll have more insight in the ROI Index, which will come out in the near year, but as we saw in a recent Growth Masterminds podcast, Moloco is doing something right. In fact, ad monetization expert Felix Braberg called it an “instant 10-year success” that opens the door for advertisers to get a 8-11% lift on revenue.
More coming: stay tuned for the Singular ROI Index for 2024
I like to analyze an entire year’s worth of data for the ROI Index, so we’re likely targeting late January/early February for the next version of the Singular ROI Index. Stay tuned!
How does a brand form a one-to-one relationship with billions of customers simultaneously, globally, in hundreds of languages? There’s literally only one way: mobile, with maybe just a dash of generative AI. PepsiCo is on a multi-year journey to reach that brand nirvana, powered by Pepsi mobile apps.
I had the chance to sit and chat with Athina Kanioura, chief strategy and transformation officer at PepsiCo, about exactly what that might look like.
We talk mobile, digital transformation, global brand strategy, and much more. Hit play to listen, then keep scrolling:
Pepsi mobile apps: Pepsi in your pocket
Why does a massive corporation with a market cap of over $230 billion that ranks #46 on the Fortune 500 list want to live in your pocket?
Two main reasons, according to Kanioura.
Convenience for cross-sell: PepsiCo has literally thousands of SKUs, not just the very well-known carbonated drink that is also part of the company’s name
Undiluted loyalty benefits: while PepsiCo goes to market with its thousands of products via many local bottlers, retailers, and resellers, filtering a mobile experience through those partners would dilute the loyalty benefits PepsiCo wants to give consumers
The goal is to be able to bring all of an individual’s engagement with the company into a single CDP, customer data platform, in order to serve specific needs of specific people better and — of course — boost cross-sell.
One app to connect them all (and measure everything)
Pepsi has literally hundreds of apps.
A quick search on the App Store or Google Play brings up Pepsi Lebanon, Pepsi Fanclub, Pepsi Saudi, the MyPepsiCo employee app, a Pepsi B2B partner app, and a number of other Pepsi apps for different geos and parts of the company. Most of the companies’ apps aren’t publicly visible, however, and are only available for internal or partner use.
But even bringing all of its consumer apps together into a single codebase will be a monumental task.
The reward, however, will be a better understanding of people who might buy Lays chips, Gatorade, Bubly water, or any of hundreds of products from dozens of brands.
It will also provide a better understanding of where people engage with PepsiCo on the company’s promotional side. Pepsi sponsors the NFL, the NBA, the NHL, Champions League in Europe, and much more: cricket, NASCAR, and numerous other sporting and artistic events, leagues, and stars across the globe. All of that sponsorship comes with the ability to reward loyal customers with once-in-a-lifetime perks, but when delivered via mobile, PepsiCo is also able to measure how much customers engage with those sponsorships.
Mobile is harder to measure now than it used to be — thank you, SKAdNetwork and Privacy Sandbox — but sponsorship has always been hard to measure. Now, paradoxically as mobile becomes harder to measure in terms of app install attribution, sponsorship is becoming easier to measure via mobile app engagement: sign-ups, interest, prizes, loyalty awards, and more.
Of course, when you’re a global company with 315,000 employees and billions of customers, these things take time. PepsiCo is in the middle of its global CDP roll-out, and that’s what will be powering the single app experience.
“The first holistic direct to consumer applications are being activated as we speak,” Kanioura says. Mexico, Brazil, Turkiye, and the UK are early recipients, while other countries will follow later. “North America is being activated in the middle of 2024.”
The end result, she says, will be much more global commonality in Pepsi apps for its direct to consumer experience. Those Pepsi apps will also be linked with global inventory management systems for easier demand modeling and fulfillment.
Organization is destiny is strategy
We’ve shared many times in webinars and podcasts: how you organize your team has a huge impact on how you can drive growth. PepsiCo knows that too, and Kanioura has built cross-functional teams of “applied strategists” to not just build strategy and toss it over the wall, but also execute it.
“When you have the groups together, the handoffs are seamless,” Kanioura says.
That’s design, strategy, technology, marketing, category, geo, and execution teams all embedded together, driving transformation.
Technology — and apps — are core to that strategy.
“If digital strategy becomes part of the core strategy of the company, then everything you do from a portfolio transformation, from a geo expansion, from a category growth model, has the technology component embedded to that,” Kanioura says.
Most leading mobile-first companies achieve something similar, but they generally have a somewhat easier task than Pepsi, which has a mobile-first strategy for end-customer engagement, but also has distributors, retailers, aggregators, and other players, all of whom are important to the company’s execution of its mission. In addition, they’re natively tech companies, while Pepsi is still reinventing itself in some places.
The key job for the leadership of a multilayer brand like this is to build that mobile-enabled one-to-one relationship with the customer while respecting and even enhancing the role of partners. It’s not an easy tightrope to dance.
An added layer of challenge: it has to be good for customers too.
“That data relationship has to translate to an incremental value for the consumer,” Kanioura says. “If you go to a Walmart store or a Carrefour store, you will still find the core brands that you have, but not every brand of PepsiCo. But if you go to our D2C application, you will find the full breadth … and there are people that are loyalists, right … they want the specific product: they want to have it and they cannot find it in the store.”
Generative AI and an AI specialist
The interesting thing about tapping Athina Kanioura to digitally transform PepsiCo is that in a previous life, she led a team of 20,000 at Accenture as the chief analytics officer and head of applied intelligence.
In other words: artificial intelligence. And AI is going to play a role in Pepsi, its apps, and its relationship with its customers.
Predictive AI is a big part of it on the backend, analyzing and predicting demand, but generative AI will be a big part of the future. Some of that is simple — personalized Cheeto’s hoodies — but some will be much more advanced.
On the marketing side, that means using generative Ai to create more personalized and creative design and content, Kanioura says. In the future, it could mean using generative AI with celebrities to deliver personalized messages from The Rock to a billion people. Imagine a sports star sponsored by Pepsi delivering the news of a big goal or major win, inserting your name and maybe even a few more personal details in a specific message for you, all inside Pepsi apps.
That all depends on IP and fairness and legalities, Kanioura is quick to stress, but is something PepsiCo is looking at.
Another option: delivering brand messaging to consumers on mobile via a brand avatar, powered by generative AI.
Personalized Cheetos sweaters
Ultimately, the goal is better customer experience. And giving superfans exactly what they want.
Such as personalized Cheetos clothing.
“We want the consumer the full benefit … of the full experience of PepsiCo, including of course merchandise,” Kanioura says. “And you would be surprised how many people are saying: ‘Oh, can I have my own personalized sweater of Cheetos?’
“You would be shocked. As a European going to the U.S., it’s like wow … it’s a love relationship … It’s an adoration relationship with PepsiCo.”
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It has been personally depressing to me that the transition to SKAN 4 has been taking so long. One little bug that totally borks conversion values and the whole ecosystem got cold feet, and stayed chilly for months. However, I’m happy to finally be able to report some positive news: as a percentage of all postbacks, SKAN 4 postbacks are definitely increasing in a months-long positive trend.
One big player that’s joined the SKAN 4 party?
Reddit.
SKAN 4 postbacks trending up
First off, here’s the trendline. Don’t pop the champagne yet, and hold off on the celebratory SKAN 4 IS HERE parties, but there’s a definite trend from August through to November of gradually increasing SKAN 4 postback share. (The big bulge in late July is Meta going SKAN 4 just before the SKAN 4 bug bit.)
So what changed?
Well hi there, Reddit
In the last 30 days and especially the last week, Reddit has ramped up its delivery of SKAN 4 postbacks to almost the 90% level. Reddit announced the update in — of course — a subreddit, saying that they “launched support for SKAN 4.0, and is excited to uplevel our product solutions and provide our partners with a slew of improvements and new features.”
A few notes the Reddit for Business team added:
SKAN reporting for Reddit will be at the ad group level AND the ad level, which Reddit says will help achieve crowd anonymity quicker
Each app ID in Reddit can have up to 200 active ads (up from 100 under SKAN 3)
You can have up to 20 ad groups active
Each ad group can have up to 10 ads active
Reddit has streamlined SKAN ID management, improving visibility into how many IDs are available for new ad groups.
The result of Reddit’s moves is that Reddit is now the leading platform/ad network for SKAN 4 adoption on Singular’s SKAN 4 adoption dashboard.
Who else is joining the SKAN 4 trend?
Other leading ad partners include:
Jammp
Unity
Smadex
Dataseat
Unicorn
Mintegral
AppLovin
Moloco
Appier
Liftoff
Google Ads
Kaden
Remerge
What we haven’t seen yet is Meta reverting back to issuing SKAN 4 postbacks en masse. Google is still in a testing/holding phase as well, as are platforms like TikTok and Snap.
In a recent webinar, most experts on the panel predicted SKAN 4 would only hit majority postback share in Q1 2024.
My guess is that the ecosystem is basically ready right now, most iOS devices have been updated with a SKAN 4 CV reset bug fix, and the sticking point is that platforms are investing in and supporting their own modeled results preferentially over SKAN 4. They’ll get there, and they’ll eventually flip the switch on SKAN 4, but only when they’re good and ready … and hopefully their customers are primarily relying on internally modeled numbers rather than SKAdNetwork.
Maybe I’m just cynical like that.
In any case: we are now seeing an uptick, and as additional small, medium, and large ad networks begin tipping over into SKAN 4, we’ll likely see that continue.
BTW … have you signed up for SKANATHON yet?
We’re doing a thing. And it’s a pretty awesome thing: SKANATHON. As SKAN 4 postbacks trend up, it’s a smart thing for you to considering joining.
SKANATHON is a live webinar series spread over 2 days and 4 sessions with 17 speakers to get you ready for SKAN 4 in 2023.
Session 1: SKAN review SKAN 3, how it works, what to do
Session 2: ASA and ASO Running Apple Search Ads and boosting app store optimization to mitigate impacts of SKAN.
Session 3: Singular’s SKAN solution There’s a reason the industry sees Singular’s SKAN solution as the leading measurement product for iOS. Get a deep-dive into how it works and why it gives you better results than the competition.
Session 4: SKAN 4 deep dive SKAN 4 is (almost) here. Get ahead of the curve and find out how to take advantage of all its goodies, while not losing backward compatibility with SKAN 3.
How do you make SKAN work in the real world? Well … you can start by watching this video. Hit the play button and keep scrolling …
Apart from SKAN on iOS, the measurement options are challenging. You might try to use modeled ad network data for campaign measurement. You might use media mix modeling to attribute advertising results. You might still be trying to use fingerprinting. You might be using first-party data and logic. In fact, you probably should be using many methods.
But on iOS, SKAdNetwork is the only option that is deterministic, ensuring that (under certain conditions) you will get postbacks for app install attribution, and ad networks will get the data they need for campaign optimization. So it makes sense to use it also, and to learn to use it well.
The problem is that to make SKAN work in the real world, there are plenty of challenges:
Choosing the right model
Selecting the right key measurement events and thresholds
Encoding enough information into the limited space in your postbacks
Designing the right app experience to get quick feedback via SKAN on results
So I asked 2 of Singular’s smartest SKAN whisperers to spend some time with me on making SKAN work in the real world. Both of them have worked with literally hundreds of clients to help them tweak their settings, models, and apps and extract the absolute maximum amount of information from SKAdNetwork.
Victor Savath, VP Solutions Consulting
Nabiha Jiwani, Customer Success Team Lead
Here’s what they told me …
1. Realize it’s not 1 and done
Under IDFA, you could collect everything and figure out what you need after. Under SKAN, you need to be much smarter in selecting the right measurements.
But you’re not smart enough. None of us is. Realize you’ll be iterating to get it right, and realize you’ll be iterating more to get it righter. And furthermore, realize that as the world changes — Apple switches something, a partner changes something — you’ll be iterating yet again.
“There needs to be a mentality and understanding that it’s not a one-and-done exercise,” says Savath. “We see iteration as part of the core philosophy of approaching SKAdNetwork. Not just because your KPIs change or your product changes … the ecosystem changes.”
2. Understand the goal
Do you mostly want measurement for internal teams? Do you specifically want optimization for ad partners? Is ROAS the key metric you want, or is something like the customer journey more important? What does the product team need, specifically, versus the growth team?
“With my clients specifically, I’ve seen a deeper focus on how partners can understand and read the SKAN data and make sure that those events connect,” says Jiwani. “The second layer would be, okay, let’s focus on revenue.”
SKAN is technology, but you make SKAN work first and foremost by having a clear strategy.
3. A big benefit of ad monetization measurement models under SKAN
Ad monetization has a massive advantage over monetization models like subscription when using SKAN, because feedback is far quicker.
“When I think about conversion models more holistically, I’m always thinking about what gives you good early signals and then what can also give you strong predictors of quality user, strong LTV over time,” Savath says. “So it’s often a blend of discrete variables, continuous variables. But in the world of admon, you can actually have both because you’re going to have early signals (ad impressions, generally speaking) so you have these signals with a high level or decent amount of variance.”
That means you can segment users easily just based off volume of ad impressions alone, and you can use those segmentation to make and test predictions about which cohorts might be more likely to buy IAPs or even subscribe later on, if you have those options.
There’s a lot of modeling under SKAN 3 thanks to the very quick measurement period. That modeling can be very good, but it’s still modeling.
So take some of the early signals you’re measuring with SKAN and compare that with your Android data.
“Taking those smaller signals like a session start or some sort of indication there and coupling it with what you know of how your Android users have been performing and comparing those 2 subsets have helped a lot of my clients understand where their iOS data has been going,” says Jiwani.
Plus of course, with SKAN 4 you’re going to get longer measurement periods, which will help considerably. That may not arrive at scale, however, until early next year. SKAN 4 postbacks are currently only around 15% of all postbacks that Singular is seeing, though the trend is rising.
5. Make SKAN work: understand your users better than they do themselves
Clearly you want to use early indicators to predict future behavior. The first step is understanding what is actually happening in your app versus what you just happen to be currently measuring.
Once you do that, you can build your SKAN models off real behavior.
“Instead of just choosing revenue buckets based on, let’s say my average product price tags in an in-app purchase, let’s just look at my IDFV data set and say: what is the average amount generated on day one amongst users that complete the tutorial?” says Savath. “Perhaps you use that as your revenue bucket thresholds when defining a conversion model, because now it gives you a good segmentation group or cohort to observe.”
Watching that group over time — much more time than you can currently measure with SKAdNetwork — gives you good insight into monetization potential for that segment. You can then experiment with early predictive signals that indicate a new SKAN install should be assigned to that segment.
6. Iterate SKAN conversion models monthly when testing
Iterating in the real world with SKAN is a challenge. You can’t do it daily, because you need some amount of time to let SKAN campaigns flush through your ad network partners’ ecosystems. Iterating too quickly will be messy, and provide insufficient data to make smart decisions on.
But how often should you iterate when in testing?
“I’ve had clients change it month over month initially,” says Jiwani. “You might optimize towards tutorial complete, registration, some sort of account creation, right? Changing those initial metrics that indicate whether someone will or will not purchase, or will or will not deposit and then taking that data and then modeling it … changing that first initial event indicator has been really strong with some of our customers.”
Of course, you’re probably not going to continue that cadence forever, but you’re also not likely to keep the same model for a year.
A quick note: initially when switching SKAN campaigns you had to pause everything, wait 48 to 72 hours, then restart.
Singular now offers technology that makes iteration much quicker and simpler: just switch and go. Singular also offers a product feature where you can simulate SKAN changes without actually making them, and see what your update measurement data would look like.
7. Check your log-level data to optimize revenue buckets
Don’t just set up conversion value revenue buckets and forget about them. If your revenue buckets don’t match what users are actually doing, you’re essentially wasting bits and failing to maximize information return.
Make SKAN work by checking log data:
“Anyone who has a mixed model or IAP revenue model, you’ll notice in any sort of log-level data … there’s dips or there’s segments in your conversion model that are just unused,” says Jiwani. “Making sure you tweak those buckets … to actually capture that subset of users, or making sure that you either expand or minimize those buckets to ensure that there are no dips, that each actual conversion value is used in that model … will ensure that you’re getting the most amount of data you can.”
Jiwani says she’s done that exercise time and time again with customers, and it almost always results in better data capture.
8. SKAN 4 helps you break cohorts down into sub-groups for higher fidelity
In SKAN 3 you might be able to assign a user to a cohort like did_tutorial, observe later behavior, and set a revenue estimate based on early indicators for that kind of cohort.
In SKAN 4, you’re going to be able to go a lot deeper.
“You have a cohort of users that did ‘tutorial complete’ on day 1 and performed an in-app purchase …that’s operating as one of those 64 buckets,” says Savath. “That’s a user cohort. The beauty of P2 and P3 is you observe that user as they enter the P2 timeframe or the P3 timeframe and you say, oh … that single cohort now breaks into 3 additional groups … users that did ‘tutorial complete’ day 1 and purchased … and then in P2, they did a repeat session. They came back. Or they made another purchase, or they made a huge purchase, right? Now you have 3 groups: that one cohort split to three.”
All of it adds to modeling rigor and your ability to build better ROAS and LTV models based on early indicators.
A quick note about SKAN 4: yes, we still don’t have a majority of SKAN 4 postbacks yet. In fact, far from it.
But with Singular, you can set up a SKAN 4 conversion model, benefit from any SKAN 4 partners you’re working with, and not lose any data from SKAN 3 partners … because it’s backwards compatible.
9. Streaming verticals and subscriptions: yes, you do have early data
Subscriptions are hard under SKAN, especially if you used to have a 7-day trial period.
But there are always early events you can use for proxies, and in streaming media verticals like music, entertainment, and video, there might be more than most. Make SKAN work by using them.
“If you think about any of your streaming services … you do have continuous variables that you could read signals into,” Savath says. “They’re good early indicators and they’re plentiful.”
Examples:
How many times did they listen?
How many movies did they watch?
Did they stream to a bigger screen, or to an external speaker?
Also, there are segmentation indicators, like what kind of subscription they tested: a family plan, an individual plan, student plan, and so on. All of that gives you more information to build segmentation and look for predictive indicators.
Such as: in the family plan, did anyone else sign up and get added?
10. Multiple monetization methods helps drive better data
If you only monetize via subscriptions, you have one thing to measure, and it’s hard, and often takes longer than SKAN’s available measurement period.
If you add ad monetization, then you’ve got additional signals that will come quickly and give you more information. And if you add in-app purchases, you’ve got even more information that will help you build smarter predictions and more accurate assessments of cohort value.
Even better, you’re automatically allowing your users/customers/players to segment themselves, and you’re allowing people who don’t want to make an immediate long-term commitment the ability to try before they buy.
11. Retail: first purchase is easy, subsequent value is hard
Retail apps often work fairly well under SKAN for initial purchases at least, because people often download a retailer’s app for a specific purpose, and they pull the trigger immediately.
So the first purchase often happens quite quickly.
The problem is getting adequate measurement for subsequent purchases.
That’s where you have to look at engagement variables and usage variables: sessions, views, searches, add to carts, and more to get a sense of how likely a specific newly acquired customer is to buy more.
A personal note of caution here: I have installed retail apps, purchased nothing, and then made hundreds of dollars of purchases literally months later. You simply cannot assume that if nothing happens right away, nothing will continue to happen forever.
SKAN 4 will help, but not be a panacea for that:
“The unlock with P2 and P3 postbacks is just having those additional signals that indicate someone’s coming back or someone’s making a different purchase, or they’re viewing another item in a specific catalog,” says Jiwani. “That will be helpful with SKAN 4.”
12. Retail: make sure you differentiate between the reporting layer and the partner optimization layer
It’s important to be able to measure the quality of profitability of new user cohorts. It’s also important to communicate the value of new users to ad partners. In retail apps, that often means a mixed SKAN conversion model with measurement for engagement events as well as revenue.
A key tool here: IDFV.
“You might have an engagement and events funnel model,” Savath says, referring to sign-ups, cart adds, etc. “If you have that type of model, Singular’s in a place where you still have revenue reporting because you could say: I’m using that funnel as a way of segmenting my IDFV data set, and I’m going to observe these cohorts and see the actual revenue that they generate over time, and report on those revenue inferences within the Singular reporting interface such that the networks can be optimizing off events based off how the model is configured, but from an analytics or LTV reporting perspective, I can also see the revenue.”
13. Fintech: mix engagement and revenue metrics
Fintech can be tough to measure under SKAN. There are great events to look for, such as account creation, connecting a bank, depositing money, but these are big steps for people to take, and they don’t always happen quickly.
Mixed conversion models, therefore, are the way to go:
“I’ve seen most customers do a mixture of both engagement metrics and revenue metrics to capture users that who initially have engaged with the app, have inputted a certain level of information into the app, have connected various accounts within that app as an indicator of how active that user is,” Jiwani says. “And then at the same time on the revenue front, we’re capturing potentially the amount of money deposited or the amount that’s been used in a transaction.”
Funnels models are more rare in fintech, but there is potential here, she adds.
14. On-demand: you lucky SOBs!
On-demand apps are super-lucky under SKAN: most people who download an on-demand app do it as part of a purchase or engagement process.
Example: you want a ride, you download Uber or Lyft, enter your payment information, and take a ride.
But there’s more to look at to make SKAN work when you want to estimate LTV, Savath says.
“Then you go into the world of continuous variables … revenue amounts are definitely not as common given the high level of variance between trip length duration. So it’s really around the engagement and frequency of utilization.”
More, generally, is good. (Of course.) But it can be misleading too: vacation or business travel users might be very sporadic.
15. Games: hyper casual vs mid-core
Hypercasual games might have been just made for SKAN. Admon and speed are both common factors here:
“It’s almost like it was designed for this use case because you’re talking about users that are engaging what they do within the first day, and then oftentimes the life cycle of hyper was much more truncated,” Savath says.
Also, if we can help in any way, experts like Victor Savath and Nabiha Jiwani work with customers and prospects every single day to ensure they maximize their marketing campaign values with Singular tools. Sometimes you even get Singular CTO Eran Friedman, perhaps the most knowledgeable privacy-and-measurement person on the planet.
Get in touch, book some time, and find out how we can help.
On April 26, 2021, half the mobile marketing world changed as Apple released iOS 14.5 and SKAdNetwork. Something similar will happen for the other half of the mobile universe, likely at some point next year in 2024, when Google flips the switch on Privacy Sandbox on Android and — perhaps simultaneously — Privacy Sandbox on the web. We recently hosted a webinar with Google, Gameloft, and Tinuiti to help the ecosystem prepare. One of the things we learned: what marketers consider to be the hardest part of Privacy Sandbox.
We invited panelists from Google, Gameloft, and Tinuiti to join Singular co-founder Eran Friedman:
Kelly Gieschen, strategic partner manager, Privacy Sandbox, at Google
Vasil Georgiev, UA director at Gameloft
Mollie Sheridan, senior manager mobile app paid search, Tinuiti
As it turns out, the hardest part of Privacy Sandbox could be the same as the most important part: understanding measurement results.
When we asked participants during the webinar what they thought would be most challenging, here’s what they said:
Understanding measurement results: 47%
Setting up conversion models: 20%
Keeping track of cohorts: 12%
Targeting: 12%
Retargeting: 8%
That and other challenges just in learning what will become the new official system for attribution, targeting, retargeting, and SDK management on Android is stressing marketers out.
68% are concerned. 17% are terrified, according to the sample of marketers attending the webinar. Only 15% are either “happy” or “fine.”
The good news is that Singular, Gameloft, and Google are already beta-testing the hardest part of Privacy Sandbox as well as every other part. Check out the webinar for an update on how that test is going.
“Privacy Sandbox believes first that user privacy and a healthy mobile ecosystem are not at odds. And, two, that a blunt approach without providing working alternatives does not work and will make users worse off. So with those two principles in mind, we envision technology where privacy takes precedence while businesses can still thrive and be successful.”
– Kelly Gieschen, strategic partner manager, Privacy Sandbox, at Google
Essentially, Gieschen says, it’s about allowing businesses to continue their growth and marketing initiatives without having to use granular user-level data, or capturing device identifiers that could be used for cross-app tracking.
Advertising APIs and context APIs
Most mobile marketers know the core APIs in Privacy Sandbox by now. It is interesting, however, to see how Google insiders approach them: as building blocks for the industry to innovate on top of.
There’s 3 advertising APIs, 2 of which are “relevance APIs:”
Topics and Protected Audiences are relevance APIs
The third advertising API is Attribution Reporting
“Topics provides high-level user signal interests and may be combined with contextual signals and first-party data so that SSPs and publishers can select relevant ads. Then we have Protected Audiences, which supports more granular remarketing use cases, enabling ad tech marketers, developers, advertisers to reach audiences who’ve shown interest in a specific brand or product in a privacy-preserving way.”
– Kelly Gieschen, strategic partner manager, Privacy Sandbox, at Google
Those matter in the MMP space, and there’s some work happening on them, says Singular cofounder Eran Freidman, but the Attribution Reporting API is naturally where marketing measurement companies are going to focus.
“Naturally, it’s the biggest focus for us as an MMP and we’re putting a lot of resources on that, from testing the framework, integrating with the different media partners, or designing the product to… provide the essential performance reporting.”
Differences between SKAN and Privacy Sandbox
“There are similar principles between the frameworks … but if we talk about the differences, there are many,” says Eran Friedman.
Some of the differences:
Privacy Sandbox aggregation keys for campaign, creative, placement and optimization data provide far more range than even SKAN 4’s campaign IDs
Wanting more data points comes with a cost in Privacy Sandbox: the more values you encode and the more granular you try to go, the more random noise gets injected into the data. In SKAN, there are fewer data points, but once you pass privacy thresholds (SKAN 3) or crowd anonymity (SKAN 4) you get essentially all your data.
In Privacy Sandbox you always get some data, even at very low scale campaigns, while under SKAN you need to pass certain minimum install number thresholds. That number is less with SKAN 4 than with SKAN 3, but it remains. The tradeoff for Privacy Sandbox for Android is that at low thresholds, more noise or junk data is inserted.
There’s another key difference between SKAN and Privacy Sandbox that Gameloft UA director Vasil Georgiev highlighted, and that’s testing.
You’ll be able to do far more testing far easier under Privacy Sandbox than under SKAN, simply because you have more ability to encode variables.
“It’s very clear that one of the first differences is that the opportunities for testing will be enormous,” Georgiev says. “We are not going to be limited to the things that we can test.”
From tracking everything to trade-offs
You don’t achieve privacy without cost. There will be loss of signal, similar to what we’ve seen on iOS with ATT and SKAdNetwork. Probably less loss of signal, but loss nevertheless.
“Today marketers can track everything they want, everything they can,” says Gieschen. “And that practice would have to fundamentally change. And depending on what marketers want to look at specifically, there may be trade-offs on granularity and richness of information versus noise and delays.”
Some of the trade-offs refer to how much detailed information you, as highlighted above. Some refer to how quickly you want information, says Tinuiti’s Mollie Sheridan.
“If you’re pulling reports more often, there’s going to be less accurate data and Google is going to inject that noise data just to protect privacy,” she says. “You’re going to have to decide if you want to wait longer periods for more accurate data or if you want shorter periods.”
That said, most things marketers want to do today will still work under Privacy Sandbox for Android. The art and the science will be balancing granularity versus aggregation as well as speed versus accuracy to achieve the best possible — not perfect — results for marketers’ attribution needs and ad networks’ optimization needs.
“You’re going to be able to optimize towards the events that you want to optimize towards, whether that be CPI, target ROAS, specific events, they’re still going to be available to you,” says Sheridan. “It’s just going to be the frequency of your reporting and the segmentation of your reporting … balancing that out to make sure that you’re getting enough volume to get the most accurate data available within this privacy-centric framework.”
The good news: actual hard-core high-scale marketers think this is going to work.
“It’s very clear that Google recognizes the minimum viable state of data and they’re trying not to block marketers from continuing to do optimizations,” Georgiev says. “And I also believe that they are trying to avoid making it more complex than it should be.”
The timetable for Privacy Sandbox full roll-out
Short answer: there isn’t one yet.
But Google promises plenty of notice before the full Privacy Sandbox roll-out does actually happen.
“We don’t have any updates that we can share publicly at the moment in terms of when 100% migration would happen,” says Gieschen. “But just as we’ve done in the past, we’ll be giving the ecosystem and partners ample notice prior to any changes regarding the beta and general availability.”
Much, much more in the full webinar, including progress on our Privacy Sandbox beta with Google and Gameloft
Meta is introducing a privacy-safe way to get back user-level click-through and user-level view-through attribution on Android for ads on Facebook or Instagram, the Meta Install Referrer.
This significantly expands on the measurement possibilities already available via Google Play Install Referrer and is a big deal. For the first time in years, Android app advertisers will get view-through attribution back on Meta, providing additional details and data to build up a more accurate picture of the results of their campaigns.
Meta Install Referrer (MIR) is supported by Singular as of November 2023.
Here’s a quick comparison of the Google referrer versus the new Meta Install Referrer:
Google Play Install Referrer
Meta Install Referrer
Purpose
Attribute Android installs via ads on Meta
Attribute Android installs via ads on Meta
Use cases
Click-through
Click-through
View-through (most scenarios)
Different session click-through
App stores
Google Play
Google Play
Other Android app stores
Singular supports both the original Google install referrer and MIR, but because MIR includes all Google referrer use cases and adds more, Singular will prioritize using the Meta Install Referrer for user-level attribution decisions.
It’s important to note that there are some caveats. View-through attribution is available via MIR when using:
Advantage+ App Campaigns
Broad Targeting Manual App Promotion Campaigns
The supported campaign configuration for Manual App Promotion Campaigns include:
Default age setting (18-65+)
All genders
Country or country group
Interest segments, behaviors, and demographics set to broad targeting
Custom audiences also set to broad
How the Meta Install Referrer works
Most people understand how the Google Play Install Referrer works, because it’s based on the concept of a click referrer on the web:
User clicks on app ad on a Meta property
Meta encrypts campaign metadata
Meta appends it to the referrer parameter in the Play Store URL
The Play Store URL brings the user to the app listing
The Play Store saves the referrer string
Singular’s SDK reads the referrer from the Play Install Referrer API
Singular decrypts the data for install attribution
The Meta Install Referrer operates differently, but essentially achieves a similar purpose. At a very high level it works something like this:
User views or clicks on an app ad on a Meta property (and then installs the app)
Meta encrypts campaign metadata
Meta saves the campaign metadata to local on-device storage in either the Facebook or Instagram app, wherever the ad was shown
Singular’s SDK (for the installed app) reads the campaign metadata from local storage
Singular decrypts the campaign metadata for install attribution
Privacy and marketing attribution
The Meta Install Referrer is on-device attribution.
When we looked at the design of MIR we were excited to see it does not need to rely on leveraging a Google Ad ID or other device identifier, nor on the need for transferring any device identifiers to a Meta or MMP server to make it work. As such, we believe it’s a much more privacy-friendly solution than existing GAID or IDFA-based solutions. Another way we think of it, the solution could be said to function pretty much like UTM parameters on a standard link on the web, even in view-through scenarios.
As such, it’s possible other major platforms could adopt similar mechanisms.
The result of this new methodology is that marketers will get a clearer picture of what ads, creative, and campaigns on Meta resulted in conversions, and they’ll be able to gauge the value of their investments better.
Enabling MIR on your campaigns
Talk to your customer success contact about enabling MIR on your campaigns. If you’re not currently a Singular customer, here’s a good place to start.
It seems like just yesterday that one of the core challenges of high-volume growth teams was scaling ad creative. Making the thousands of pieces of art needed for testing was hard, even with some rudimentary automation. But yesterday, Google announced that P-Max is adding generative AI for ads in beta, and it has some super-cool capabilities.
Over the next few months the floodgates will be opening for adtech platforms to make generative AI for ads a common core feature for all their advertisers. And while right now many of the platforms are sandboxing generative AI created images in creative suites that help marketers make the images they want, soon that will transition to on-the-fly creation of images and content personalized to individual people.
In that, the big platforms will have huge advantages.
Google’s Performance Max and generative AI for ads
P-Max’s generative AI is both impressive and limited.
It’ll take your brand ambassador and drop her into a corporate, home, beach, or country setting. It’ll generate headlines and descriptions, and let you create core assets to use in multiple ad types and backgrounds. If you already have product assets, P-Max will import them and allow you to try as many variations as you like. Google says it will never generate the exact same image twice, so your competitor won’t have an ad that looks shockingly similar to yours.
(Cue the let-me-try-prove-that-wrong crowd.)
It’s U.S.-only at the moment, and it is rolling out gradually, so not every advertiser will get access this week or even this month. If you’re in a sensitive vertical, such as politics or pharmaceutical, you won’t get access either.
You won’t be able to create images of specific people or celebrities, for obvious reasons, or branded items. (My recent attempt to get OpenAI with Dall-E to make a picture of Oprah failed recently, but Creative Diffusion allowed it.)
And all images will be watermarked with SynthID so there’s a track record and accountability to surface the fact that they are artificially created.
What P-Max’s generative AI for ads solution isn’t is a real-time per-person per-product generative AI solution that combines what it knows about Google users and what it knows about advertisers’ products and offers, and crafts a completely personalized one-off ad in real-time or near real-time to maximize relevance.
Join the party: everyone’s doing it
Everyone is joining the generative AI for ads party. Some are further ahead than others in their ability to integrate generative AI with ad tools.
Googlelaunched Performance Max generative AI ads; availability starts now
Metalaunched generative AI in Ads Manager: started last month, rolling out globally “by next year” for background generation, image expansion, and text variations
Amazonlaunched image generation in beta last month, primarily focused on lifestyle backgrounds for product images
Microsoft is adding Copilot to the Microsoft Advertising Platform which will generate new images using Microsoft’s image library, as well as offer conversational chat … debuting in closed beta in “early 2024”
TikTok just launched a generative AI “creative assistant” to “to spark creativity and be a launchpad for curiosity” as you make ads for the platform
Snap is running text ads in My AI, but not generative AI in ads yet
Pinterest hasn’t announced anything yet
Reddit hasn’t announced anything yet
Big brands are using Dall-E and other tools to make their own generative AIs
Agencies like WPP, Publicis, Omnicom are doing the same
Ultimately, this will be a standard feature and a checkbox item on all major platforms, and from most significant ad agencies and ad networks.
The big platform advantage for on-the-fly generative AI, and what’s next
While all advertising platforms will likely add generative AI for ads tools, add-ons, or plugins eventually, the biggest platforms have huge advantages. Not only can they throw more engineers and more money in solving the challenges of bringing generative AI to their advertising tools quicker, they have an on-platform data advantage.
That means that when it comes to on-the-fly generative AI creation, they can do it with much greater knowledge of their users’ interests, habits, and behaviors, giving them a much greater chance of crafting a message that resonates.
There’s still a lot of work to be done, of course, as the platforms themselves acknowledge. One big area of improvement: allowing marketers to define brand colors, imagery, styles, even conversational tones so that the ads they generate fit the brand and build the brand.
“There is still work to do on delivering outputs customized to every brands’ unique voice and visual style,” Meta says. “We’ll need to define new ways of partnering with brands and agencies to help train these models on brands’ unique perspective.”
The other is doing this all in a way that is cost-effective on GPU time. Especially for on-the-fly generative AI, the GPU load is going to be intense.
Snap is already thinking about that, and has plans to do the work on-device. I’m not sure that will work in all cases, but with the kinds of chips that Apple is putting in its devices these days — and the new Snapdragon Gen 3 chip on Android — that’s like to be a possibility at some point.
Mobile web for user acquisition is growing, iOS and Android spend patterns are normalizing, and CPIs are dropping. That’s just a fraction of the data-driven insight in the new 2023 State of UA Report, which is based on a $10 billion subset of Singular cost data, trillions of ad impressions, hundreds of billions of clicks, and billions of app installs.
It’s also based on insight into billions of creative optimization decisions from our partner on this report, Apptopia.
So what is the state of UA in late 2023?
It’s a weird, weird time, and not just for user acquisition pros.
Spend is down: the global economy is feeling the aftershocks of Covid, military conflict, and increasing political polarization. There’s also still post-ATT and SKAdNetwork disruptions, and visions of more of the same in the coming Privacy Sandbox changes.
What’s inside the report?
So in this state of UA report we focus on:
Massive ecosystem shifts
Verticals most impacted
iOS/Android spend changes
CPI trends
Spend distribution in key global geos
Ad format shifts, including
Video
Banners
Interstitials
Growth insights based on brands like
Calm
Sephora
Temu
The state of UA is that it’s late in the year
We’re nearing the end of 2023, and the all-important holiday season is just around the corner. The data in this report will help you navigate end-of-year as well as the first quarter of 2024, sharing how user acquisition specialists are adopting mobile web, testing new ads. We also dive into spend distribution between Android and iOS globally as well as in key countries in Africa, Asia, Europe, North America, and Africa.
Thanks to our partner Apptopia we also have dozens of insights into ad format changes, what’s working, what’s changing, and what’s hot.
In addition, we dive into how Calm boosted downloads 83% month over month, and more than doubled them quarter over quarter. We examine how Temu tested new partners and boosted Android installs more than 3,000%. And we look at how Sephora transformed from underdog to top dog in a mobile app install battle with a key upstart competitor. All of this is gold not just for user acquisition managers but also for growth strategists looking to deploy capital, creative, and campaigns at scale to win.
The first-ever banner ad is a long way from generative AI in advertising. But one of the same people who worked on placing that tiny paid piece of internet history is still engaged in the adtech industry. Now, of course, he’s focused on generative AI and other emerging technologies.
The first banner ad
It was 29 years ago in 1994 when AT&T paid actual money for the very first banner ad on HotWired.com, now just Wired. Part of a crystal-ball ad campaign that foretold people working remotely from the beach on laptops, or having video conferencing meetings, the text-heavy banner ad said simply in a rainbow-colored font: “Have you ever clicked your mouse right here? You will.”
It wasn’t even called a banner ad, initially.
The first name was “tile.”
“The original concept was drawn on a whiteboard and we were drawing outlines of the websites that were out there … and we called them tiles,” says Tom Zawacki, now president of enterprise solutions at Data Axle, but formerly employed at Modem Media. “Originally, we said, if we could just take a tile and put the tile on one website and have them click there and go to another website, that would be really cool. And that was it. So that was the original original concept.”
A box, with text, linked to another website.
A fairly humble beginning for internet advertising, you might think. Pretty far from today’s ideas of generative AI in advertising.
Generative AI in advertising personalization
Now of course generative AI is the hottest tech, not the humble banner ad, and the opportunity for creativity and variety is increasing exponentially. Ad creative personalization is one big opportunity Zawacki sees in generative AI.
“One of the nice things about using generative AI is it allows us to increase the volume of production when creating copy and or visual design,” he says. “Forever we’ve been promising the delivery of personalization … what’s gotten our way is the volume and velocity of variables that create these combinations of creative message and visual design that humans just can’t create fast enough.”
I see that too, and my mind is blown by the opportunities that Amazon, for instance, has in generative AI ads. Most Amazon ads are shown on the Amazon platform, of course, which means that Amazon knows a lot about the people seeing them: purchase history, search history, maybe some of what you watch on Amazon Prime Video, maybe some of what you listen to in Prime Music, maybe what you read on Kindle.
Imagine the personalization Amazon can create — especially on-platform — in generative AI ads for the 10s of millions of products it sells. Text and image ads should be relatively easy. Video ads are also fairly doable, with a heavier compute lift.
Personalized playables are probably coming as well.
Off-platform, of course, that’s harder. With ATT, SKAN and Privacy Sandbox taking away access to device identifiers, off-platform personalization will be harder and less targeted.
But other platforms, walled gardens, and retail media platforms ought to be able to do similar things in their own worlds: Facebook, TikTok, Snap, Pinterest, DoorDash, Uber, and others. The golden age of marketing personalization is likely going to be found in on-platform generative AI in advertising … with the possible addition, for brands, in owned spaces like apps and websites, and permissioned communications.
Generative AI to build creative campaigns
Another question: how will marketers use generative AI to build their core creative?
It’s easy, as I stated in the conversation, to want the machine to do the work. To sort of poke MidJourney with a stick and ask it to do something cool. It’s harder to make excellent, world-class, brand-compliant creative that completely fits your needs for a specific campaign or ad opportunity.
For Zawacki, the combination of biological and artificial intelligence is always going to win.
“IBM Watson did some great research in 2017, taking human intelligence, taking an artificial intelligence … and having them do a series of events,” he says. “And in every case, the combination of humans and AI working together — augmented intelligence … they called it cognitive computing at the time — won out in all those series of tasks.”
His goal: the Tony Stark model, where you have a human intelligence directing an AI that multiplies and accelerates innovation. We’ll all probably have our own JARVIS — Just A Rather Very Intelligent System — at some point in the near future.
And that will be a game-changer.
“We are using augmented intelligence to turn our clients and our employees into superheroes,” Zawacki says.
Meta will charge the equivalent of $127.40 for an annual subscription to its services in the EU starting in November 2023. That’s essentially double what Meta makes in ad revenue per user in Europe, which is a total of not quite $64 over the past 4 quarters.
Meta announced today that due to changes in EU regulations, it will be offering an ad-free subscription to Facebook and Instagram. The core reason: EU legislators have rejected Meta’s use of “contractual necessity” as a legal basis in Europe for processing user data for personalized advertising and have pushed Meta towards a subscription option which would then offer EU citizens a data-processing-free means of accessing Meta’s global-scale social platforms.
The subscription will be optional, Meta said today in an announcement post. The option is simple:
Either pay for the service
Or, consent to targeted, relevant ads
How many subscribers would it take to replace Meta revenue in the EU?
Thanks to Meta’s detailed quarterly and annual reports, it’s easy to understand both how much Meta makes from advertising right now, and how many Europeans would have to subscribe to Meta’s services to replace that ad revenue.
Meta has averaged 408 million monthly average users over the past 4 quarters
Each user returned an average of $15.99 per quarter
Meta made $63.97 per MAU from advertising
Note that total revenue per user is slightly higher than ad revenue per user, simply due to the fact that Meta offers some products for purchase.
But Meta’s subscription plan would theoretically bring in far more revenue, per average user, than ads.
Subscribers on the web will be charged $10.60/month for an annual total of almost $130 (so far there is no mention of an annual discount, though that could come). In-app subscribers will pay more, but I’m using the web numbers as Meta is following Twitter’s lead in charging more for in-app purchases to cover Apple’s and Google’s cuts.
That $130 is almost twice what Meta makes from targeted advertising per average user.
At these rates, Meta would need 208,572,327 European users to buy a subscription to replace all ad revenue.
Of course, as we’ve seen from Twitter (OK, X), very few people will subscribe. On X, about 640,000 people pay for premium, formerly Twitter Blue. If we take Twitter Ads Manager’s estimate of 372.9 million addressable users, that’s far less than 1% of users. To be precise, it’s under .2% of users. And there’s very little to indicate that Meta’s users would be substantially different enough to impact the economics on Facebook and Instagram.
This is not about a shift in Meta’s business model
208 million Europeans are not going to start paying the Euro equivalent of $130/year to access Facebook, when you can get it simply by consenting to ads.
Rather, this is simply about dotting I’s and crossing T’s so that Meta can point to the subscription model and tell European regulators that citizens can totally and completely opt out of data processing for personalized advertising if they choose to pay for the service.
That’s good news for advertisers, who don’t want to lose a valuable way of connecting with consumers, players, customers, and users.
It’s also good news for Europeans, who will continue to have a valuable service that connects them with friends, loved ones, communities, and celebrities, and who can continue to do it for free now that Meta has (almost certainly) cleared a legally plausible rationale for continuing to process user data for personalized advertising.