Ad monetization hacks, unwritten laws, & keys to success with Felix Braberg: we chat Google, Amazon, Moloco, and more

So you want to learn all the ad monetization hacks, unlock the keys to success, and grow to $50,000 or $80,000 a day in admon revenue? Who doesn’t? In a recent episode of Singular’s Growth Masterminds podcast, I chatted with admon expert Felix Braberg about everything ad monetization.

What we covered:

  • The Google Ad Manager ad monetization hack that is shutting down, costing publishers 8-18% ad ARPDAU
  • Moloco’s instant 10-year success and how to get a 8-11% lift on revenue
  • How Amazon Publisher Services (APS) has grown from 10-17% of adshare in America
  • How APS will likely massively grow that in Q4 of 2023
  • How ad monetization hacks can boost your growth to your first million users
  • The current shift BACK to ads from subscriptions
  • Duolingo’s estimated daily ad revenue
  • Organic growth
  • Hyper casual to hybrid casual … but also why hyper casual is Not Dead Yet™
  • Unwritten rules in ad monetization and how to access them
  • Luck vs skill in mobile growth
  • And much more!

To get started, press play on the video above.

Then keep scrolling to get more of the details.

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Ad monetization hacks with Felix Braberg

The Google Ad Manager hack is closing down, sadly. And brand spend has withered away in the past half year while the economy takes a nap.

But there are still ad monetization hacks available.

And one of them is going direct with a DSP that gets really big. The most current example: Moloco.

“What I’ve seen lately is that if you go direct and if you have some kind of volume, usually you’re able to get an 8 to 11% uplift on ad ARPDAU by going directly to Moloco,” Braberg says. “And that’s like a hack that didn’t exist because they didn’t have an SDK a year ago.”

That’s probably less of a hack than a tactic, Braberg says, but it’s still a massive win and it offsets some of the 8-18% ad ARPDAU you’re missing as the window closes on the opportunity to play Google Ad Manager against AdMob and Google bidding.

Another source of revenue that’s been growing surprisingly fast is APS: Amazon Publisher Services.

“Two years ago, they were sub 10%,” Braberg says. “Now they’re about 17% in America of overall impressions, which is quite impressive … they’ve gone gung ho in saying, yeah, your margin is my opportunity. So they’ve entered in with their e-commerce demand, and then on the side they’ve been letting you as a publisher hack the system by basically doing direct TAM deals [Amazon’s Transparent Ad Marketplace] where basically they drop their margins to near zero, and then you benefit greatly from that.”

Why Amazon is set to keep growing quickly in Q4

Amazon Publisher Services is kind of a one-trick pony right now. They pretty much don’t do anything but banner ads well because their video tech isn’t quite on par with other players.

“They’re only good at banners right now because of the one fact is that on video inventory they don’t have any adjustable end cards,” Braberg says. “So you physically actually can’t have an end card where you have to click out of it. It just kind of ends.”

That compares poorly to SDK networks that have highly-evolved video and rewarded ad tech on mobile with aggressive end cards and aggressive SKOverlay implementations that push click-through rates in some cases to north of 80%. 

We can of course have a long conversation about the ethics and utility of that kind of adtech aggression — and I have — but the fact remains that in an adtech arms race, APS is showing up to a gun fight with a knife.

Q4 is when APS is likely to unveil new tech for video ad end cards, and hopefully the result will be both more respectful to users, less destructive of the CTR metric, and also more effective and driving the right kind of business.

Subscriptions vs ad monetization

A year ago, everything was all about subscription revenue. Getting it, boosting it, building for it, measuring and optimizing ads for it: you name it. In a down economy, that trend is reversing somewhat, Braberg says.

“I think there’s been some really cool companies like Duolingo that really led the charge on this—or Redecor—that have some really good ad placements,” Braberg says. “And a lot of subscription-based ads are looking at this and taking notice because … they’re probably making anywhere between 50 to 80 grand a day currently on ads, which would put them as a really big mid-size gaming company in terms of ad revenue. And I don’t think that would even be possible three, four years ago.”

The more things change, the more they stay the same, huh?

The key to success in ad monetization is two-fold:

  1. Have a lot of users
  2. Build and nurture a robust in-app economy

Like most things, easier said than done, but if you can get a large number of people to not just install but actually use your app, and then if you pair that with things they want and would like to pay for—with their time if not their cold hard cash—you can build a successful ad monetization platform.

Perhaps not $50,000 to $80,000 a day successful … but I’d take $20,000 a day.

Ad monetization hacks: so much more in the full podcast

Subscribe to the podcast on video and/or audio, and here’s a transcript to get you started. 

Felix Braberg: So they’ve entered in with their e-commerce demand, and then on the side they’ve been letting you as a publisher hack the system by basically doing direct TAM deals where basically they drop their margins to near zero, and then you benefit greatly from that.

John Koetsier: How do you acquire your first million users? Hello and welcome to Growth Masterminds. My name, of course, is John Koetsier. As you probably know, we’re on a series, right? It’s about starting up, getting a new app up and running. Maybe you’re reinvigorating an old one. Probably not, but maybe. It’s taking it from the starting blocks to a pretty significant milestone, not the end goal— it’s the journey, not the destination—but it’s your first million users. 

Today we’re chatting with somebody who’s helped hundreds of app companies. He’s got a successful app marketing podcast. He’s smart, he’s edgy, he’s not afraid to call it like it is. His name is Felix Braberg of two & a half gamers. Welcome, Felix.

LinkedIn messages for the fail

Felix Braberg: Thank you so much for having me. We’ve been trying to do this for a while.

John Koetsier: I am super pumped to have you. We’ve been working on this forever.

Felix Braberg: Yeah.

John Koetsier: I think problem number one is we were using LinkedIn Messages to communicate, and that is not…everybody knows, that’s a disaster, right? You get 5 million of them a day—I might be exaggerating—most of them are people, Hey, biz dev. I have an SEO.

Felix Braberg: Yeah. I think the first tip to getting your million users: don’t use LinkedIn Messaging.

John Koetsier: No, you’ll get a lot of promises and not much delivery, but you’ll probably pay a few people some things as well. How are you? You are doing amazing things at two & a half gamers. You are consulting with lots of people. How are things going in your life? 

Felix Braberg: Ohhh, it is ad monetization consulting, right? So it’s up one day and down the other, right? So, yeah, one thing about ad monetization it’s very much tied to both micro and macroeconomic cycles, right? So what I do is very much tied to how good I look; it’s also a function of how close to Christmas we are. The closer we are to Christmas, the better the work I do makes me look, and the further away from Christmas, the worse it looks.

John Koetsier: Okay. How well you can do is based on how good you look. I mean, I guess that’s the facelift there and that’s the shower in the background [referring to artwork in the background]. I don’t know the guy by the tree there. Excellent. 

I know you’re talking about results, obviously. How’s it been recently? What’s been happening in AdMon recently that has you interested, has you confused, has you…what? What’s going on?

Finding ad monetization hacks

Felix Braberg: So this last year, out of all the years I’ve been working in ad monetization, I would say is the year where we’ve seen the most amount of changes. So, ad monetization is always about finding the little hacks that no one talks about, that maybe 200 people in the world know about; utilizing that hack, and that hack usually ends up making you a lot of money. 

Up until recently, the most profitable hack has been to utilize Google Ad Manager resellers and competing them against AdMob and Google bidding. This kind of ad monetization hack closes in about 30 days. 

That has been, I think, a majority of studios that I work with are mainly monetizing on ad monetization. They’re not very happy about this. And then you slap on the fact also that Google’s making you do a CMP update [Consent Management Platform], otherwise they won’t bid on any European users, has resulted in the fact that this year, kind of the network that at least ad monetizing games and apps are most annoyed with, is Google, because they’re making them do the most amount of work. 

But, that’s not the end. 

Then you also have this superimposed with a big entrance into the mobile gaming space, and that is APS, Amazon Publisher Services, that have entered into the market in a very Amazon way. Basically they’ve gone gung ho in saying, Yeah, your margin is my opportunity. So they’ve entered in with their e-commerce demand, and then on the side they’ve been letting you as a publisher hack the system by basically doing direct TAM deals [this is Amazon’s Transparent Ad Marketplace] where basically they drop their margins to near zero, and then you benefit greatly from that.

So it’s just … that’s like a lot of changes have happened in a very short amount of time, and that’s maybe half of the changes that’s happened since January. And usually that would be maybe three or four years worth of changes, but it’s all happened within the last seven months. So, a lot of things.

John Koetsier: It seems like everything is that scenario, right? Everything has accelerated. Everything is just happening so quickly right now. Let’s go back to the first one that you mentioned, the arbitrage thing that you talked about with Google. I mean, I understand being pissed off that that’s closing, but I mean, come on … does anybody think that that was gonna continue forever?

Arbitrage never lasts forever

Felix Braberg: I don’t know, but the fact is that there’s a lot of studios, right, that run the kind of the CPI, LTV like calculus and kind of do that arbitrage between getting users. 

And, you know, right now if you stop doing that GAM—getting that GAM hack—usually what you’d say is like maybe you’re losing between 8 to 18% on an ad ARPDAU basis, which I’m seeing when I’m running these tests on switching it off. I mean, if you’re running a mobile gaming studio and you’re acquiring millions of users, you know, that 18% is really gonna hurt you, right?

So, by all means, you’re angry with the status quo, but there’s not that much you can do about it because Google’s very large. And no matter how big you are as a gaming company, there is no company or gaming company that’s bigger than Google.

John Koetsier: Yes. Yes. So this suggests, by the way, that in a month a tsunami is hitting and there’s gonna be some real challenges for casual, hyper casual. There’s gonna be some real challenges for anybody else in AdMon. And they’re looking hard for a new hack.

Moloco: a 10-year overnight success

Felix Braberg: They’re already out there. Like, when one door closes, another one opens. This industry is so fascinating because there’s so many small little things you can do, and there’s always people looking for an edge that there’s already things that have popped up that are looking extremely promising.

On the last Two & A Half Gamers podcast, I was mentioning that we’ve had tremendous success with some of my clients with directly integrating Moloco. 

Moloco has been this DSP that’s blasted onto the scene. It’s like, I spoke with them at Gamescom and they keep saying it’s a 10-year overnight success. They’ve been slowly humming along. And right now, I’m hearing some rumors—that’s on ALX, and on ironSource exchange, and Digital Turbine exchange—sometimes, in some geos, Moloco is like 45% of DSP revenue that you’re getting.

So, usually a DSP, when it gets that large it makes sense for them to go direct, because then they can cut out the middleman. So what I’ve seen lately is that if you go direct and if you have some kind of volume, usually you’re able to get an 8 to 11% uplift on ad ARPDAU by going directly to Moloco. And that’s like a hack that didn’t exist because they didn’t have an SDK a year ago. So that’s like a new door that’s open. It’s not really a hack, it’s just trying new things.

John Koetsier: Yeah. Yeah. It’s cool. I recently interviewed somebody from Moloco. They’re doing pretty cool stuff, pretty amazing stuff. They rank really well in the Singular ROI Index, the most recent one. They’re heavy on AI, heavy on artificial intelligence to try and learn really, really quickly—apply that. So that is cool.

Let’s go back to the APS thing that you were talking about. What are you seeing there? Do you think that’s a land grab that’ll go away as well? How long do you think that’ll last?

Amazon Publisher Services growth

Felix Braberg: So, if we look at mobile, like in terms of share or revenue over all ads in America, that’s what matters, right? 

So, two years ago, they were sub 10%. Now they’re about 17% in America of overall impressions, which is quite impressive. That happened in a very short amount of time. But it’s only banners that they’re really strong on. Right now, they’ve only conquered banners. And they’re only good at banners right now because of the one fact is that on video inventory they don’t have any adjustable end cards. 

So you physically actually can’t have an end card where you have to click out of it. It just kind of ends. So they’re playing competition with the big boys on mobile that all have these aggressive end cards that sometimes, you know, have click-through rates of 80%, and they can’t even compete with that. 

So they’re always gonna be at a disadvantage until they change that, which won’t be until Q4 this year.

John Koetsier: Mm-hmm. And the other thing that I’m thinking is if they apply a generative AI solution to creating video ads for products that are for sale, that could be super, super interesting.

Felix Braberg: Yeah, they’re also kind of cutting off the overall demand because they’re only letting on certain types of publishers right now to monetize with theirs. So it’s kind of like the most— it’s like the VIP club of ad monetization right now. They’re not letting in everyone. 

They’re just letting in the publishers that they think have the biggest overlap with the Amazon ID, which tends to be women over 45, I think they’re looking for, so … yeah. Social Casino and Match 3, they get entrance straight away because that’s usually the kind of segment that, like, it’s tailored to them. 

John Koetsier: C’mon, where’s the first-person shooter, Amazon?

Felix Braberg: Exactly.

John Koetsier: Okay, cool. Okay, so that is some cool new stuff that’s happening. Some doors are opening, some doors are closing. And I guess you better build an app that is for women over 40. 

Let’s talk about your first million users. Clearly, as you have, you’ve got your Amazon—sorry, your AdMon hat firmly screwed on. That is you.

Felix Braberg: Yeah.

John Koetsier: That’s what you do. That’s what you focus on; you’re an expert. That’s where you go there. So if you’re looking at apps that are looking for their first million users, what are the pathways that you’re seeing right now?

Ad monetization hacks? Ad mon is the hack in mobile!

Felix Braberg: So, purely speaking from an ad monetization perspective, AdMon is kind of the hack in mobile. So, a majority of the things we do on mobile, like most of the users that we acquire, don’t actually add to the bottom line. 

In mobile gaming, you’re very lucky, like a Supercell game, if they’re getting 1.5 to 2% conversion—like users converting to an IAP—that’s considered amazing. You’d be shouting that off the mountaintops, right? 

But that still means you don’t convert or actually get any value from the 98% of users that you pay for, most likely, to get into your app or into your game. 

So what ad monetization is, it’s a way to earn some sort of revenue from that user base. Actually, like the biggest growth in my consulting segment that I’ve seen in the last year has actually been from mobile companies looking at subscription-based mobile companies looking to actually diversify their income away from subscriptions. And the way of doing that is basically rebuilding or tailoring their app with mobile ads. 

I think there’s been some really cool companies like Duolingo that really led the charge on this—or Redecor—that have some really good ad placements. And a lot of subscription-based ads are looking at this and taking notice because, yeah, I think … what is it that we estimated? 

Duolingo is probably one of the biggest mobile app publishers out there. 

Probably, I think we estimated they’re probably making anywhere between 50 to 80 grand a day currently on ads, which would put them as a really big mid-size gaming company in terms of ad revenue. And I don’t think that would even be possible three, four years ago. 

So, I guess the overturn window is shifting, if you say it like that. And basically what was not okay to talk about four years ago in terms of ad monetization, is now very relevant.

John Koetsier: How the wheels turn.

Felix Braberg: Yeah.

From subscriptions to ad mon

John Koetsier: How the wheels turn, hey? Because a year ago, two years ago, six months ago in a lot of cases, the big thing is subscription, subscription, subscription. 

Everybody wants subscription. Everybody needs subscription … and you’re over-indexing on that. 

Well, guess what? 

Hey, nobody wants to have like 10, 20, or 40 tiny little holes in their bank account dripping out money every single month. So there’s a limit to the number of subscriptions that you’re gonna have. Streaming is taking a lot of those as well at a high value. Also, Apple One is taking a lot of that at a high dollar value every single month so, on the iOS side at least. 

And guess what? The economy … not so great. Not so great. Not so amazing. Lots of inflation. People are thinking, Hey, the money I made last year is this [pinching gesture], this year. 

So that makes a ton of sense. But, wow, $50 to 80K a day. That’s hard to say no to.

Felix Braberg: I mean, the key to making a lot of money in terms of ad monetization is that you need to have a robust in-app economy or in-game economy and a lot of users. If you have those two things, like something of value that you can give away for a 30-second rewarded ad, then you’re gonna get a lot of impressions. 

And right now those impressions are still worth quite a lot of money. So, yeah, it’s a good way of kind of helping the leaky bucket leak less.

John Koetsier: Talk about an app—maybe it’s like a Duolingo, maybe it’s another one—that is monetizing subscribed users at, let’s say, $10 to $15 a month. Subscription is $10 to $15 bucks a month, maybe $100 to $150 a year, whatever the case might be, and they say, Hey, you know what? We wanna go AdMon because we want to capture the segment that’s never going to do that, never going to buy in. 

What do you think the equivalent level of monetization is between the subscribed user and the AdMon user?

Felix Braberg: So, if I’m understanding the question correctly, how would I implement the ads? Or what kind of, what would you think is the best balance?

John Koetsier: Where am I making more money?

Felix Braberg: Ah.

John Koetsier: Am I making more money from the person who’s actually on the subscription? Or the person who’s watching the ads? 

Felix Braberg: Always you will make more money per user basis on the subscription, right? But that also has the Apple and Google tax, right? And the beautiful thing about ad monetization is you don’t have that tax. So, it’s untaxed money.

John Koetsier: Untaxed money—this is awesome. It’s almost like being an employee of the UN, wherever you go.

Felix Braberg: Except it’s ads, so not really.

Organic growth and data

John Koetsier: Yeah. Exactly. Oh wow. So, let’s talk a little organic, because we know that the primary vector—especially for games, for growth, and pretty much everybody else when you want to go big—you’re buying a lot of ads, you’re acquiring a lot of users, you’re doing a lot of that arbitrage, the LTV, your cost of acquisition, all that stuff. 

Have you seen anybody lately who has had a major organic success?

Felix Braberg: Mmm. There’s been a couple of successful cases in Europe in the last year. I do work with the one I’m thinking about, so I’m not sure I can give them a shout out.

John Koetsier: Why not?

Felix Braberg: Ah, yeah, I don’t know if they feel comfortable with it and, you know, it is better always to err on the safe side. But like, you know, I think on the gaming side, there’s one that’s the biggest one that grew quite quickly. They’re a casual studio and they had immense success when most gaming studios decreased last year or did not grow. 

But also, some of the hybrid casual, hypercasual studios are shifting right now into hybrid casual have had really good success. I would say probably the most interesting thing I’ve seen is Dreamdale, and I probably think that’s the best game to look at if you’re looking at a true shift from hyper casual to hybrid casual. 

So that’s probably one of the games I’d highlight.

John Koetsier: What are some of the things that you saw from this customer you cannot name, that you can draw out as learnings? How did this organic success happen?

Felix Braberg: A real big focus on design and ease of use, and also an undying focus on growth and saying no to ad networks, and going their own way. 

So, some people get really influenced by their ad partners or UA partners. These guys don’t. They pave their own way and they don’t take no for an answer. And if they get a no, they’re strong-willed enough to not let it phase them. And when you can couple that with unparalleled success, I find that that’s in our industry, you’re usually able to bend any company or anything to your way, which usually is very beneficial for the company. 

The unwritten rule of ad monetization hacks: scale trumps everything

‘Cause I think one of the unspoken rules, at least in ad monetization, is that there’s rules for everyone in our industry. But the unwritten rule is that scale negates all other rules. 

So, yeah, the rule for ad monetization is if you’re one of the top 10 publishers in the world, you’re not gonna get treated the same as if you’re making $500 a day. AppLovin, IronSource, Unity—they’re all gonna treat you very differently and you can write your own rules. If something is against the terms and conditions for the little guy? The big guy, like, doesn’t matter. They can dictate their own terms.

So in our kind of industry, once you hit scale and if you’re growing towards the trajectory of large scale, you have a lot—yeah, you can be a lot more flexible with the law, so to speak. 

John Koetsier: Mm-hmm.

Felix Braberg: Of course, not the law, but the terms and conditions set up for you.

John Koetsier: What kind of laws are you breaking?

Felix Braberg: It’s like…what can you say, some networks are able to do growth deals. That was more popular before kind of the economy turned around, where essentially you could get cashbacks based on your monthly earnings. Meta used to do this beautiful thing that if you were growing, you used to be able to get a certain percentage of your growth just back in cash. 

John Koetsier: Nice.

Felix Braberg: Sometimes that could mean, you know, I had some clients back in the day they were earning like $100,000 to $250,000 a quarter in just pure cash bonus. And if you didn’t know that existed and didn’t ask for it, you never got it. So it’s like those unwritten rules, if you’re growing, all companies love you,

John Koetsier: Absolutely. Success has a thousand fathers. Failure is an orphan, right?

Felix Braberg: Yeah. 

Hyper vs hybrid casual

John Koetsier: You just mentioned the shift from hyper casual to hybrid casual. Talk about what’s changing in that shift.

Felix Braberg: So, I think it was a couple of Pocket Gamers ago, an astute gentleman from Voodoo came out and said that hyper casual is dead. I believe it was a bit of a marketing push, and everyone took notice and everyone’s talking about it. 

And that kind of was a starting gun that most people, or most hyper casual studios, started shifting to hybrid casual. That is to say, some portion of your earnings was coming from IAPs instead of zero. I don’t personally believe that hyper casual is dead because, if you look at the top charts, it’s still a lot of hyper casual games that are coming up there. So I don’t think it’s a dead genre and I don’t think it will completely die.

I do think it’s a clever thing to diversify your income stream away from ads. Because the thing about ads is it’s also very much tied to the overall health of the economy, and the U.S. economy is a big driving force here. 

So, in our little ecosystem, usually what happens is that the majority of the highest eCPM ads are other mobile games. But what also pushes up the average eCPMs is also branding inventory. 

And since May last year, branding inventory has just kind of fallen through the floor. There’s no fast-moving consumer good ads. There’s nothing, like, no one advertising cars. And that’s a direct function, basically, because you as consumers aren’t spending as much money on products as they were two years ago. 

So, as a result, my eCPMs are lower than they were two years ago.

John Koetsier: Yeah. I would just like to highlight that the AdMon consultant just said about three minutes ago that you have to diversify beyond ad monetization.

Felix Braberg: Yeah. I mean, it’s just good business sense, right? Like, if you’re completely tied, I would give that advice to anyone, right? Like if you’re completely reliant on one source of revenue…that’s not safe.

John Koetsier: It’s not safe. Absolutely. Hopefully APS is coming in and injecting something that the brand was…is dropping off on. So that’s good news, at least in a sense. 

As you see this shift, what do you think it does to the longevity of an app? the longevity of a game? We’ve seen this sort of turn and burn with hyper casual, right, where, you know, just burn through multiple apps. 

Do you think this hybrid shift means that there’s a little more longevity in an app?

Felix Braberg: It should be, on paper, right? Like, I’ve been a part doing some ad monetization for some hyper casual games and I can tell you, some of the half-lives on these games are like 10 days, and they earn back the full production costs in like four days? 

And then, you know, you’ve burned through all the users in the world that will download your game in 18 days. And then you’re like, Okay, let’s move on to the next project.

So, I think those days are numbered and it would make sense that some of these hybrid casual games will have a bit more depth and a bit longer half-life. But, hyper casual is not dead, so it still will be around for some time.

Generative AI and apps

John Koetsier: It makes me think of generative AI, because you can use generative AI. I know several people who’ve said, “I created an app with generative AI,” and I think that that’s a bit of an overstatement. I think there’s pieces that you need to do, but yeah, it can help and there’s gonna be increased and better and a more amazing generative AI in the future.

I mean, you’re gonna be able to prompt an app at some point, right? And you’re gonna be able to prompt a game. 

That sounds pretty cool, but the downside is how much crap will the App Store and Google Play be loaded with?

Felix Braberg: I think we’ll still get these beautiful Cinderella stories. ‘Cause basically mobile development is full of apps and mobile games. 

There are just these absolute success stories that maybe is one person or just a dev team that have worked on and kind of threw away, and then suddenly the app is making millions of dollars a month, and they don’t really know what’s going on. 

I think the most recent case I’ve heard of a multimillion dollar outcome, was by a man named Steven in America who made the Wordle app. And then it got really famous ’cause of New York Times and then he got multiple app downloads and was eventually purchased by, I think, Lion Studios for an undisclosed amount of money. 

And, you know, he got—this guy made this app in two weeks, wasn’t doing anything about it for two, three years, and suddenly it had millions of downloads and AppLovin bought it. It’s just hilarious. Like, these things happen in our ecosystem.

John Koetsier: And everybody who has an app that’s been languishing forever goes like, There’s hope! There’s hope. That’s my retirement plan. 

Luck vs skill

Felix Braberg: There’s also a large amount of luck in success in our industry. Like, I don’t know how big a portion is—I don’t know if it’s 20% or 30%, but luck is also a factor.

John Koetsier: We actually talked in the beginning about the butterfly effect, and I brought up overdetermination. 

And, of course, the butterfly effect is some tiny thing happens and some immense thing happens that’s actually directly, causally related to that, later in time. Absolutely. Cool. And overdetermination is everything has multiple causes, right? 

Everything is…I truly believe that overdetermination plays a role in this “luck.” It is absolutely luck. You can do everything right and fail. You can do almost everything wrong, and succeed. And yet the more things you do right, the more luck you tend to have. 

So I do think, I almost think luck is…required? 

Felix Braberg: Yeah.

John Koetsier: Necessary but insufficient, perhaps?

Our missing time machine

Felix Braberg: Yeah, I mean, one of the first panels I was ever on—I was on with this guy who just like in 2013 made one of the first flashlight apps on one of the first iPhones, and then when MoPub came out, which was the first mediation, he started making like $60-$70k a day in ads. 

And he was on this panel and he’s getting these questions, and after the panel he’s like, I don’t know, I just made a flashlight app. And then he sold it.

John Koetsier: Ah, nothing is more common than somebody who trips into success and then everybody looks, What did he do? How can we follow that? What did she do? What can we learn from her success? And, you know, it’s like, I’m glad he was honest afterwards.

Felix Braberg: Yeah, he was super honest. 

He was like, Yeah, you guys all seem really clever in talking about LTV—I didn’t—I just made a flashlight app in 2012. There were no apps on the App Store.

John Koetsier: Felix, where is our time machine?

Felix Braberg: Yeah, exactly.

Vectors to mobile growth

John Koetsier: Where is our time machine? Holy cow. We need that. Okay, cool. 

I wanna talk about some of the most common vectors to success and get your take on that. Because if I look at apps that absolutely grow and do amazing, I see most of them have one or multiple kinds of main vectors to success, right?

In some cases it’s IP—you’ve got some great intellectual property, Pokémon GO, or whatever it might be, something like that—that just has huge cachet and people jump on it. 

Another is tons of dollars and you just spend, spend, spend, spend, spend on UA and eventually, hey, it goes and the ball starts rolling downhill. 

Felix Braberg: MONOPOLY GO! 

John Koetsier: Exactly. Yeah. Cultural relevance. Something just happens, and maybe luck comes in there. It’s the right app at the right time; it’s related to a major event, and boom, it goes. I almost wonder if Flappy Bird is there, you know, that kind of invent itself. Wordle, maybe is there. 

Sometimes it’s dogged determination. You just keep pushing, keep pushing, and eventually something lets loose and it gets successful. What do you see? Any other vectors?

Felix Braberg: So, what I’ve seen is like a determined focus just on data from a very early stage. 

So, mobile game development or app development, dev teams that focus purely on data tend to do better than ones who do not. So, that is to say, from very early days they don’t look at eCPM or ad ARPDAU from an ad perspective, they just look at impressions per DAU and overall ad viewer rate. 

And then they, until they get to a certain threshold that they know will add a certain LTV to the game, they don’t bring in more users. They don’t waste any money on UA. 

Same thing for IAPs or subscriptions. They work on tweaking these little small metrics until it gets to—and then they bring in maybe 500 to 1,000 users. And then they work on that until they actually get all the metrics right, and then they hit the scale button when they get there. And also before they even have a prototype, how they actually do prototyping is they do UA—fake UA—on different concepts too that they’re trying out. 

So instead of saying, I think people will like a board game set in medieval Europe, they actually make fake creatives—fake video creatives—of the board game of medieval Europe; spend a thousand dollars on the different creatives that look a bit different, and see how many signups they get on a fake posting, essentially, that doesn’t exist. And that’s using data to drive app developments where UA takes a center stage. 

Because at the end of the day, monetization’s great, but UA is probably the most important discipline right now and it’s taking a bit away from design, I would say. And UA is just becoming more and more prevalent, and more and more important.

John Koetsier: Mm-hmm. Super, super interesting. Cool. Well, we’ve gotta bring this to an end. It’s getting late for you. I wanna thank you for taking this time. I’m looking at your success with two & a half gamers—you guys are doing amazing. And all the more power to you.

Felix Braberg: Thank you.

SKAN 4 is coming: we’re seeing a definite uptick in SKAN 4 postbacks (again) and here’s what you need to know now

SKAN 4 has been coming for a long time. Over a year in fact, since June of 2022. And while we saw a brief spike in SKAN 4 postbacks when Meta switched over from SKAN 3, SKAN 4 as a percentage of all postbacks tumbled way back down to the 10% mark when the SKAN 4 CV reset bug reared its ugly head. 

We’re now actually seeing numbers trend up again.

Don’t get too excited, we’re talking 17%, not 30% or 50% or 80% … but it’s the highest percentage since the SKAN 4 CV reset bug, and maybe, just maybe, the growth rate we’re seeing live on the Singular SKAdNetwork adoption tracker will continue.

So the big question is: are you ready?

SKAN 4 is coming insights: available on-demand

We just held the SKAN 4 is coming webinar to help marketers prepare. As usual, we assembled an all-star cast of experts to share what’s going on and what you need to know to get ready.

Check it out on-demand right now for all the insights, including:

  • The current state of SKAN 3 and trending adoption of SKAN 4
  • What’s changing between SKAN 3 and SKAN 4
  • Actionable tactics to become an early adopter
  • Predictions on when SKAN 4 will be the majority model

Here’s a few of the goodies and top tips from the webinar to get you started …

Using SKAN 4’s second and third postbacks

As everyone in mobile marketing knows, SKAN 4 brings multiple postbacks where SKAN 3 only had 1. What no-one really knows yet is just how useful they’ll be and what they’ll enable.

One thing they probably won’t bring is extra ad network optimization. But they will offer a deeper sense of the long-term value of the users, players, and customers you get from different campaigns and sources.

From DraftKings digital marketing automation specialist Richard Eiseman:

“With those longer delays, we’re probably not gonna get any platforms optimizing to those second and third postbacks, or at least that’s what we’ve heard so far. But it’s really gonna just be a good tool to further differentiate users and understand what they’re doing after that single post-install data point.”

What we’re likely going to see is much great diversification of how marketers and advertisers use SKAN across different verticals and for different monetization schemes, thanks to these extra postbacks. Longer funnels are now more measurable for higher-value subscription apps, and casual/hypercasual game makers might be able to track ad monetization levels beyond just the first week.

More data is more data

SKAN 4 is more complex, which is the downside, but it provides more data. That’s not just more as in going from 50 to 100 (which is nice) but more as in going from nothing to something (which is essential).

From Liftoff director of product management Matthew Ellinwood:

“We used to have a little bit of data or no data, and now we have a chance at three different tiers of data. One thing that I call out with this multiple postback approach and the addition of a coarse and fine values is what I think is actually gonna be the most impactful, which is the increase in certainty of just getting the lowest level of detail, the coarsest data within a specific amount of time, and being able to count on getting that data and that signal quickly. Whereas in the old version, before we had these coarse and fine grain signals, we really didn’t have that option at all.”

This is very good news for indies and smaller publishers because SKAN 3’s all or nothing approach often left advertisers who were not spending huge amounts of money extremely data-poor. In that sense, SKAN 4 levels the playing field a bit.

From Eran Friedman, Singular’s CTO and “chief SKAN whisperer:”

“The smaller advertisers are gonna get something instead of nothing as they had before.”

Democratization of marketing data via SKAdNetwork might be overstating the case, but at least it’s a step in the right direction. Of course, there’s also goodies for the titans of mobile: more than more is … more. Even if you got a decent amount of data — no-one is really happy with the amount of data available via SKAN 3 — you’ll get more data and better data under SKAN 4.

The lower null rate will be a big boost to ad network optimization, says Matthew, saying it will “inch us a little bit closer to that pre-ATT era that was a lot easier.”

SKAN 3 vs SKAN 4: where the ecosystem is

SKAN 3 is not working well for 10% of the marketers in our webinar, which is to be expected. And it’s just OK for most: 72%. But the majority aren’t jumping all over SKAN 4 just yet. Only 3% feel ready, while 43% are working on it and 37% are thinking about it.

Another 16% are more along the lines of “come back and talk to me in 2 months when the SKAN bug fixes are on more devices.”

That might not be too far away. 

iOS 17’s release date is September 18, and there’s already a massive uptick in new versions of iOS being captured on StatCounter’s reporting. Both suggest October could be an interesting month for mass iOS updating.

The uptick in SKAN 4 postback percentage that Singular is seeing suggests ad networks and platforms are getting more comfortable with SKAN 4 and could soon be upping their use. At least some platforms definitely are. From InMobi product marketing and app performance lead Sara Camden:

“90% of the iOS spend across our performance clients is SKAN compatible at this point, and then 90% of that is SKAN 3 or above.”

I would like to be optimistic here, but most of our panelists think SKAN 4 will only really be in a majority position in the ecosystem in 2024. Complexity, ecosystem challenges, and slowdowns from some of the bugs we’ve seen are the key issues.

From Eran Friedman:

“I hope that Q1 of 2024 would be the mass adoption stage, but I think networks are gonna maybe go a bit more carefully now after kind of the recent bugs and issues that were found. 

Matthew Ellinwood:

“If you would have asked me six to eight months ago, I probably would’ve been bullish. But … the enabled inventory of percentage growth over time has just been lagging. And I don’t think that that’s gonna flip extremely quickly.”

Sara Camden:

“There’s so many different things that have to come together. It’s the adtech players that I mentioned but then also the advertisers … it’s turned out to be a lot more complicated and a different shift in mindset than even earlier versions of SKAN. So it’s taking a little while to get that to that comfortable place, but then the users have to have the right version of iOS too.”

Richard Eiseman

“We’re mostly just in the testing phase … thankfully, Singular has the transitional model. So even on those channels where we are getting some SKAN 4 and some SKAN 3, we can get both reads and kind of maximize what’s available now.”

Get all the insights from the full webinar

As always, click through to the full webinar to get all the insights.

It’ll be worth your time.

And, keep an eye out for Singular’s next webinar.

Successful kids apps: 10 things a billion app installs can teach us

Winning with kids apps can be super-tough. There are a lot of rules and regulations to follow. But knowing them unlocks a world of opportunity, making this space lucrative and enticing for app developers. Singular is uniquely positioned to help app publishers market and measure success for kids apps among MMPs, with privacy and protection features no one else has.

We sat down for a chat about the challenges and opportunities in kids apps with one of the biggest developers in the space, TutoTOONS.

Click play on the video above, subscribe to the podcast, and keep reading!

Note: if you’re looking for privacy and regulation compliant mobile attribution for kids apps, learn more about Singular’s solution here.

TutoTOONS: a leader in kids apps

TutoTOONS is a Singular customer with over a billion app downloads and a very interesting subscription model: buy it once, and get full access to all of its 50+ apps on the App Store and Google Play. The value prop is simple

  • Full access to all the games
  • No ads
  • 100% kid-safe
  • Entertainment, sure, but also learning
  • Regular updates and new content
  • Cancel anytime

The interesting part of this model is that there are literally 50 front doors to the TutoTOONS subscription universe. While the company can concentrate paid acquisition on the most performant entrance paths, all are organically collecting customers and funneling them to the one subscription that opens a universe of app fun and learning.

We also added an expert from privacy consultancy and technology provider PRIVO, plus a Singular expert for an in-depth focus on kids apps. Our full panel:

  • Celeste Rollason: Senior Child Privacy Expert at PRIVO
  • Stefano Accossato: Head of UA and Ad Monetization at TutoTOONS
  • Mike Gadd: Customer Success Director for EMEA at Singular

Here are 10 things I learned about building and marketing kids apps

  1. Start with kids
    The parent is the purchaser, so the parent is important. But the kids have to like the apps. If they don’t get interested, engaged, and hooked, there’s little chance that you’ll be getting a subscription from a parent. 
  2. You must earn parents’ trust
    Kids need fun. Parents demand trustworthiness. You absolutely need parents to trust that they can give their kids your app experiences and nothing bad will happen. Fail this test, and you won’t win.
  3. Compliance is marketing
    Visible compliance with all child safety regulations and platform standards is key to winning the trust of parents. For a subscription app, that might mean that their kids won’t see any ads. For all apps, it means that privacy and a curated, safe environment are critical.
  4. SKAdNetwork was great for kids apps
    SKAN was a great thing for kids apps. Before SKAN, kids apps on iOS could not advertise on self-attributing networks like Meta. Now, however, with SKAN3 and SKAN 4, you can run privacy-safe user acquisition campaigns pretty much anywhere. And on the ad monetization side for kids apps that how ads, ad revenue is up since SKAdNetwork.
  5. Kids apps are ahead of the privacy game
    Because kids apps have to comply with COPPA and GDPR and any other local or regional regulations, kids apps are already compliant with pretty much any privacy regulations or platform changes. They’re built for a world with SKAN and Privacy Sandbox.
  6. Anything is possible, almost
    You can’t do behavioral targeting advertising, of course, in kids apps. But pretty much anything else is possible: video, games, accounts, email addresses. The keys are consent and transparency: what are you doing, why, and how will any data collected be used? Parents need to be in the loop, and parents need to provide consent.
  7. Change your data collection practices
    Most apps collect data on everything that goes on in their apps, 99% of which goes to die a long lonely death in the cloud. Kids apps need to be intentional about what data they collect and transparent about it. Only collect data that you need, and privacy legislation compliance gets a lot easier.
  8. Three tiers of monetization for kids apps
    You can monetize kids apps in almost exactly the same ways you monetize regular apps: ad monetization, in-app purchases, and subscriptions. Subscriptions and ad monetization tend to work better for parents, but all the options are open.
  9. How to pick your ad networks
    If you’re running ads for monetization, you need to pick ad networks that are certified COPPA compliant. Adding a network that is not COPPA compliant will mean inventory that won’t monetize. You need ad networks that provide ads that are certified kid-safe.
  10. Get tech partners that are compliant from day 1
    All of this is possible with the right tech partners to navigate compliance and ensure data collection is complete kosher and above-board. PRIVO is a good partner for what to do, among other things, and Singular is the only MMP with all the technology you need out of the box to ensure complete kids safety compliance.

Subscribe to Growth Masterminds and never miss an episode

If you haven’t already, subscribe to Growth Masterminds and Singular’s YouTube channel. You’ll always be up to date on not just what Singular is doing, but also what the world’s top mobile marketing experts are learning and sharing.

Now check out our full conversation:

Full transcript: conversation with TutoTOONS, PRIVO, and Singular

Note: this is largely AI-generated. It has been lightly edited for clarity

John Koetsier: Hello everybody and thank you for joining us today on Growth Masterminds. My name is John Koetsier. We’re doing something a little different today. We did a LinkedIn Live just recently with four global experts, and it was about kids apps. And maybe that’s not the space you’re in. Maybe you are thinking about that space. Maybe you’ve never thought about that space. It’s actually a fascinating space where, yeah, there’s a lot of barriers on the one hand. But there’s also a ton of opportunity and super interesting, and some things that actually Singular does really, really well. 

So this is a recording of our LinkedIn Live on kids apps. We had some amazing people. We had Celeste Rollason from PRIVO. We had Stefano Accossato, who’s the head of UA & AdMon at TutoTOONS. We also had Mike Gadd who’s from Singular. He’s the customer success director in EMEA. 

So, we had a lot of interesting conversations about what works, what doesn’t work, what you have to know, what you have to think about in kids apps. Enjoy the conversation. 

John Koetsier: Hello everybody. Hello and welcome. How can app publishers win in the most managed and restricted areas of Google Play and the Apple App Store? Welcome, this is a special Growth Masterminds. We’re live on LinkedIn. It’s awesome. We’re happy to have you with us. Hope you’re joining and sharing and liking and all that stuff… commenting, questioning.

We’re talking about marketing kids apps—how to be effective and compliant. And when we’re talking about kids apps, we’re including both kinds, right? There’s official kids apps and official App Store sections for kids. There’s also apps that are just built and released in the regular App Store, Google Play that are just targeted for younger users.

We’re going to get into a lot of stuff. What are they? How do Apple and Google manage them? Is this an attractive space to do business in? How much competition is there? What rules do you have to abide by? What are some massive mistakes that companies make? And how do you win in kids apps publishing? To chat about it, we have an all-star group of people, which I am super pumped to introduce you to. 

First off, we’ve got Celeste Rollason. She’s a Senior Child Privacy Expert at PRIVO. PRIVO is a global expert in minors, privacy, identity, and consent management. Thank you so much, Celeste. We also have Stefano Accossato. He is the head of UA and Ad Monetization at TutoTOONS. They’re an app publisher that focuses on kids aged 3 to 12, they have over a billion app downloads. And we have Mike Gadd. He’s the Customer Success Director for EMEA at Singular. Singular is a next-generation privacy-focused MMP. 

Welcome, all. If you have questions, by the way, we’re going to take some time at the end, so please add them. If they’re super relevant, we might even bring them in right away. We’ll see how it goes. And guess what? We’ve got one. Welcome everyone online, absolutely. Welcome everybody. 

We’re going to start by setting the stage. Start with the big picture. What is a kids app? Is it different on Android and iOS? Stefano, please lead us off. 

Stefano Accossato: Right. Thanks for the intro, John, in the first place. Well, what is a kid app? Everybody thinks straight away about kids games, like something more cute, something, in our case, very pink—definitely that’s the color that is mostly present in our apps. But the question here is about how do you distinguish a kid app from another kid app, a kid-oriented app or an actual kid app?

So, what we call as official kids apps is what you may find in the stores under the kids section, right? But there are also plenty of apps which are not part of that category in the store, but they’re still oriented to kids, right? 

So Google Play, App Store have different understanding of what a kid app means, and it’s really down to the publisher to understand where better to fit their app. But all those categories come with restrictions. So you need to be aware of those. You need to really read down the guidelines to understand where your app basically should be placed. 

John Koetsier: Cool. Celeste, any thoughts on that as well? What are some of the differences here? How do we define a kids app? 

Celeste Rollason: Right. So, speaking from the regulatory side of things, and there’s definitions of what’s a website directed to children? What’s an online service directed to children? Are there characters? Is there language that speaks to the child, etc.? And the regulations have those definitions to help you understand if your service is directed at a child. On top of that, whether your service is likely to attract a child, that’s a whole other conversation.

There’s clearly child-directed, and then there’s the idea that kids are playing these… are accessing these games, accessing these services, and using it. You know, everybody’s online now, there’s no limits to who might touch what you’re creating. And when considering compliance, on top of all of that, it shouldn’t be a barrier.

Entering the kids market shouldn’t be a barrier. You hear legal, you hear regulations, you hear these strict, Oh, this is for kids, or this is not for kids, etc. But it should be enabling you to think, really, what you can do for them and how you can use regulations, how you can use these definitions to achieve what you want to achieve, rather than stifle your creativity.

John Koetsier: That is a great point and we’re going to get deeper into that later on as well. We’re going to talk about that. When I hear compliance, I hear something and you hear something different. And there are opportunities in that as well. 

Before we get there, Celeste, we’re going to stick with you. There’s a ton of legislation around kids’ privacy protection. What are the key pieces of regulation? I mean, we all know GDPR, COPPA. What are the differences between geos? Lead us into that conversation, please. 

Celeste Rollason: Absolutely. Yes. So, COPPA, the big one in the U.S., and then the GDPR is the big one that covers the EU, U.K. We’re also seeing a lot of state legislation, a lot of state regulations coming out, and movement in the Asian market, and movement in South America, Brazil, different regulations coming forward. 

So what’s most important to consider is, again, going back to what is a child-directed app? What is your audience? COPPA defines users as… children as 12 and under. The GDPR and a lot of the global regulations speak to users 18 and older, and these regulations are going to have a global impact.

You might consider that, Oh, I’m in the U.S. I’m a U.S. company. I have to stick to one regulation or another. But we all know that the internet is ever-reaching. You’re not limited to a group of kids. You’re not limited to a single space. You’re not even limited to, you know, your employees. We all know, we’re all coming from all different places in the world today, in this call.

So, touching the regulations thinking you might need to stick to one, but you’re going to need to consider an audience. And a lot of the state regulations are going to meet that high standard of the GDPR: speaking to kids 18 and under, considering 13 to 17, the impact of teens, and how that’s going to affect your service.

And then, fundamentally, that leads into your notice, your transparency, how you’re speaking to users. COPPA speaks to having… speaking to the parent, having a lot for the parent engagement. Whereas the GDPR brings in ideas of having a privacy notice, having a privacy policy that lets children know, What is privacy? What are we doing here today? And why do you need to worry about your identity online? 

John Koetsier: Stefano, come on in and talk about this. You’ve got over a billion apps downloaded. You’re based in Europe. You’ve got customers, users all across the globe. How have you managed to deal with this web of legislation? 

Stefano Accossato: Yeah, when I joined TutoTOONS, I think it was one of the first things I noticed to be aware of all those policies and regulations and so on, like, almost had to become a lawyer overnight. But when it comes to the practice of it, you want to know as a publisher, as a developer, you want to know how those regulations really affect your game from a development perspective, monetization perspective, and publishing perspective, right?

So, if you were going to try to keep track of all of them separately, it might just add a lot of extra work to it. You need to start from the basics. What are the common aspects in different regulations? What are they actually talking about? Are they talking about content? Are they talking about ads? Are we talking about monetization basically, or they are talking a lot about data, like data sharing, data collection? So, often as I’m more into ad monetization and UA, of course, I focus more on: Okay, what does it mean in terms of ad monetization? What can I do? What can’t I do? UA, we will talk more later, I guess, but what does it mean tracking UA activity in a compliant way for kids apps? In our case, we are a hundred percent compliant, like we don’t use an age gate in order to divide our user base in adult players and kids players. So we consider all of them as kids. 

This is also a very important aspect, like, is it compliant to use an age gate? How should it look like? What does a certain regulation say about it versus another one? And what can you do about it? Because when it comes to publishing on Google Play you can have different app versions for different geos. So, if you are 100% sure that you want to go this way, you could even have a different user experience for different geos, right?

But you really need to mind your resources in this case and then not mess up too much the situation. But when it comes to iOS—because I guess you want to be on iOS as well—it’s not really working that way. So we can have completely different versions on different geos. So it’s going to be a unique, a unified experience, basically.

So, basically if you look into what PRIVO is doing when it comes to GDPR and COPPA compliance, they also can talk about other regulations that are in other countries like the U.K., like Brazil, or even statewide in the U.S. when it comes to California, for example, and now more states since these years are joining this, right.

So, but if you are really having a good base when it comes to COPPA and GDPR, you probably find yourself in a good place already. And then it’s about very small changes or small attention to details when it comes to other regulations, because COPPA and GDPR are really broad. They cover almost everything. 

You’ve got to for sure remember, as Celeste said, the difference in age. So if a user is in the U.S., you might want to have a custom age gate when it’s about 12 to 13 years old, right? That’s when the switch happens. But if you are in Europe, originally at least under the GDPR-K, there were different ages for different countries. So one country would say that, oh, a kid is under 18. Another would say that the kid is under 16, and another would say, no, we like the way that COPPA does it—it’s under 13.

So what your age gate should do, basically, when it should switch into a different audience, right? So, this is usually solved if you play games and they are having an age gate. You will often see that if you’re in Europe, you get the European age gate, which is usually unified across Europe. It’s not by country, usually, and it’s about, let’s say, 16 years old, because that’s where, I guess 90% of the country agrees on, right?

But if you go to the U.S., you don’t really have a choice, or North America, you don’t have a choice. Your age is 12 to 13. So these are some of the main differences. But if you go deeper, of course, the way the data is treated, what does it say about what data you can collect, manipulate, and then share. That’s where it gets more tricky, and that’s where you really need the help of a partner that helps understand what happens there. Unless you want to do everything by yourself, but, you know… plan some time for it. 

John Koetsier: Doing everything by yourself is pretty challenging, but I can understand why you’re treating everybody as a kid. It kind of simplifies your world in that sense. That makes a ton of sense. 

Okay. We’re going to get into compliance. We’re going to get into tips of what works and what doesn’t work and a lot of other stuff. Before we get there, as we’re still kind of unpacking here, Stefano, we’re going to keep you on stage here. Who are you really marketing to? Do you have one audience? Is it kids? Is it one audience … that’s parents? Is it both? What are you doing? 

Stefano Accossato: Yeah. Yeah. That’s something that is always on our mind and top of mind is like, how can we give a good experience to the kid in the first place, but how can we translate that into value for the parents? Because yeah, needless to say, the parent is the purchaser, right, when it comes to doing a purchase and buying power. So they really need to be able to see the value there. So we can’t… I don’t know, do something which is just looking into what the parents need and then forget about the kids, and vice versa. That’s really not possible. 

So when it comes to the kids, you really want the quality to be really high. You want the creatives to be the best possible creatives that really inspire kind of happiness for the kid when it gets into the game, right? You really want to use the right mechanics so that the kid is able to understand that it’s not too complex, but should be also, of course, challenging, otherwise it gets boring too fast. And I guess who has kids or not, but we can imagine that the kid gets bored pretty quickly if something is not catchy enough or challenging enough, but it also gets pretty frustrated if it’s too challenging. And the line there, it’s pretty, pretty narrow. It’s pretty hard to define. So it requires some game testing done, collaboration with, for example, something we do—we do go to schools, and we do have like kids playing our games during, for example, development phase, or if we want to have a content update, we have our kids playing with that and see how they react to it. Everything is done in a compliant way, and these really help answer those questions. In a way, it’s harder to get the parents’ perspective because, well, you’re not gonna go to school and get the parents to play with the kids. 

So, first of all, you need to have the kids really engaged in the game. Then the parent notices that the kid is actually engaged in this game. So it starts to pay attention to what it is, and that’s when you need to start giving a solution for the parent. So what that may be, right, iIn the first place, you want the parent to feel safe that your kid is in a safe environment.

There is no, I don’t know, tricky behavior in like… I don’t know, prompting you to make an in-app purchase in the middle of the screen and by mistake it gets clicked and so on. So all these things need to be addressed for a parent to feel safe. 

The ad experience is extremely important of course here, and I guess we’ll talk more about it later in detail. But then at the end, also, what problems are you trying to solve?

And one simple aspect to it is like, well, you want the parent to trust the kid while playing the game and not being there all the time looking at what the kid is doing in the game. So, one example, it’s our subscription service that gives to the user the possibility to unlock all the content to make sure that there is no ads involved of any kind, at any point, so that the parents feel like the kid is spending time in an entertaining and sort of informal education way as well, because some of our mini games have something that does with mathematics stuff, but in a very informal way, there is not like actual division and multipliers involved.

But the subscription, it’s really important in order to make sure that there are a bunch of apps that the kid can use. They’re all under the same account. They’re all under the same payment. There is no need to pay more for it and, I mean, more for each single app. It’s just one. And then the kid can actually enjoy a big variety of games, mini games, characters, and so forth.

John Koetsier: I want to go to Celeste on the same question, but just before we do, Stefano, do you have multiple apps that you get with the same subscription, or are they mini games within one app? 

Stefano Accossato: No, it’s about multiple apps. So, as we have like around 50 apps live in each store, so once a user decides to subscribe for one game, they get also the suggestion of all the other games that are included in our TutoClub subscription, and they can directly get to the store from the panel inside the app, or find this information as well shared on the store when you read the description of the game.

At the moment, we have this on per store, right, and we’re working on delivering a solution that will actually be a one unified experience, so one account covers all stores. 

John Koetsier: Super interesting. I’d love to dig more into that, but we can’t right now. 

Celeste, same question. You’re marketing to different audiences. What are some of the implications of that? 

Celeste Rollason: Right, yeah. So, I’m going to touch on a lot of the similar points to what Stefano was going through. The idea that COPPA, these regulations are designed to put parents in control.

But what’s key—and this is one of those misconceptions about the barriers of compliance is consent, you know, a parent has to say ‘yes’ and get permission—but it’s very important to get the kids engaged from the start and to create an experience that is compliant that they can just come in, open up in your app, and just start playing it. And then, when they’re invested and engaged and interested, they bring their parents into that conversation. And then when those parents come in, the marketing, the compliance is a marketing tool on its own. Parents are looking for trust marks. Parents are looking for Parents’ Choice Awards, etc.—those big badges on the website that say, This is a safe place for your child to be. 

So you want to bring kids in, but you also have to have something that the parent is going to see and go, Oh, this is a good place for my child to be. I might want to put my money here. I’m going to put my money where I know my kid’s going to be safe. I’m going to take an extra step and provide consent. I’m going to get my kid more engaged in your service. And then when you’re coming out with a new product, a new service, it just carries on. And building that legacy brand and compliance are really tied hand in hand.

John Koetsier: Very cool. Mike, let’s bring you in here. Thanks for joining, by the way. 

I want to talk about the level of competition in the kids space and maybe some of the unique challenges associated with that, because there are some additional barriers here. 

We’re going to talk… Celeste has some different opinions about that, we’re going to get to her in just a moment because those barriers are actually opportunities, in her thinking, but what’s the level of competition we’re dealing with here? Is it as bad as everywhere else in the App Store? Is it better? What’s your thoughts? 

Mike Gadd: So, I mean, from what we’ve seen with our customers, it’s not so much like you’re trying to beat other people. It’s sort of like improving your personal best all the time. 

There are a lot of barriers, I think, that need to be… that are rightly in place, but you need to be able to work within those limitations to make sure that you’re compliant, but also be able to do that optimization. And what’s really amazing is actually we see quite a lot of our customers who are in the same space actually working with each other.

And Stefano is a good example who has actually helped me with other customers in the past and things like that, where actually we’re quite happy to share ideas and things like that because it is a challenging environment to work in, but actually, there are opportunities within there. 

And I think the fact that we’re becoming more privacy-centric as an entire industry anyway, actually really boosts this part of the industry. Because actually things like SKAN, you didn’t have that before, and you couldn’t actually use self-attributed networks. So if you were on iOS, you couldn’t use something like Facebook to advertise properly, whereas now you can in a privacy-safe way. That’s pretty cool. So, yeah, that’s what we’re seeing with our customers. 

John Koetsier: We gotta bring in Stefano on that because, I mean, if you’re a kids app and you see all these privacy things happening and you see the bulk of the industry, the ecosystem going, oh no, all these challenges! It’s so hard, it’s difficult, and SKAN is here, and I don’t have my IDFA anymore. 

And you’re going like, Welcome to the party guys. This is better than I used to have it. 

Stefano Accossato: Right. That’s one way to put it. I would say that, yeah, we kinda were ready before in order to, how say… to have the right mindset, you know, of like looking into the policies. What do they mean? Like, what does it mean to have less visibility on data? What does it mean to be less able to reach the right audience? So, yeah, we’ve been there from the very beginning. 

So, let’s say that it’s not that there is no impact, of course, when it comes, for example, to ad monetization. When it comes to the monetization side of things, in a way, there was nothing much to do for us other than updating the list of SKAdNetwork that are available for each network. But that’s a regular kind of development job that we do in the back end. 

But the ad revenue didn’t see a drop, for example, when the SKAN came in. We are rather more likely to fill in ads because suddenly there are more contextual ads available. So from that side, things are getting better, let’s say, for a kids developer like we are. 

On the other hand, it doesn’t mean that all comes to that because we still enter the new system, in the new SKAN, then there will be the changes on Android as well—which, by the way, from a certain point of view, already hit us. 

So, GAID is already something of the past for us, while many developers will need to come into it in the coming years. And from this point of view, you know, kind of looks like we are advantaged because we already went through the lack of GAID, but we already have a solution thanks to Singular here as well.

So we kind of solved this problem, but the same has happened with iOS. 

Once it’s going to kick in, the whole new Privacy Sandbox, we are going to be part of it as well. So all that Google will do, and what I guess is already doing, all the system, how things are working, we anyway need to go through it, so it’s still impacting on the UA side in a very similar way as it’s impacting everybody else.

On the other hand, the level of competition might be looked at in a different way compared to what we can call adult apps. Because being in the field of kids games for more than four years, when you look at who are your competitors, who is in the top of the charts, you often see the same names, right? Like you rarely get some new player that suddenly breaks all the charts and it comes through. There is a lot of, let’s say, stability in who are your competitors where, well, you get inspired, you inspire others, and so on. 

Of course, I’m talking about fair competition. I’m not talking about stealing game ideas and/or making, hacking down your builds. It happens in this field as anywhere else, by the way, but the level of competition is a little bit different. 

But at the same time, the perception of different options is also different. Kids and also parents, at least some, they tend to stick with something that they really feel safe with, right?

So how you’re going to get there and take that user on your side, you need to give a sense of relatability—is that an existing word?—and a sense of safety, the same as is perceived in other games, or actually improve that and do a better job. And then you’re going to get more attention, right?

And the value, you know, whether it is educational value, whether it is entertainment, it should be very clear from the very beginning as well. So that’s how you’re going to succeed as well. And of course, running UA in a proper way, contextualized to your field and not thinking that you’re running UA like a regular puzzle game out there. You’re running UA in kids games, so you really need to pay very much attention to what this means and what does it translate into practical actions that you can take every day.

John Koetsier: One thing I got out of that, which is super interesting, is that your retention can be quite high in kids apps once they feel good, once they feel safe, they’re there. Obviously they’re going to age out at some point, but your retention can be good. That’s awesome. 

Celeste, we’re going to go to you again, and we’re going to talk about something that, you know, I’ve hinted at a couple of times like—and we talked about it in our prep as well—I hate the word compliance. I personally hate the word compliance. 

Should people in the kids app space learn to love that word? Is compliance an actual enabler of success here? 

Celeste Rollason: Well, I want to say yes. And of course, we at PRIVO know we have a very, very steep hill to climb to have that kind of relationship we have with TutoTOONS and Singular. 

I mean, the sort of triangle of our three great minds coming together with a lot of the regulations, but even what both Mike and Stefano were speaking to there about these new privacy, like, tech… less regulatory, industry is moving ahead in privacy. Privacy Sandbox, the iOS 14 updates, everything that came out. And you’ll start to see that kids apps, like Stefano touched on, were already there. They’re already ahead of the game. They’re already considering this. 

Compliance is… that’s the direction everything is moving in now. The regulations are built in a way to help you build privacy by design. That’s a big key word that’s big in our space. I don’t know how much everyone else has heard that, but I’m sure it’s come up. Starting from zero, thinking about privacy first because that helps build your app around it. More and more people, not just kids, not just parents, want to know, Why have you collected my data online? What are you doing with it? Why are you taking… everybody has an anecdote about, the advertisement knows what you need before you do. And that’s a conversation that many, many people are having, and more and more people are trying to keep their data close to their chest. 

So, using the regulations to, like I said, structure from zero should be an enabler. It should not be a barrier. It should start helping companies form what their apps are going to look like. Because kids having fun is one thing, but even from a child development standpoint, kids having fun within a closed environment, within what we call a walled garden, is going to give them a better experience whether you’re coming from education, or entertainment, or however you want to engage kids.

John Koetsier: Okay, cool. Thank you. So let’s dive into how to actually get compliant. We’ll talk about what the actual rules are. We’ll talk about how challenging it is. We’ll talk about the tools and tech. 

Let’s start off here, and we’ll start off with Stefano. You’re kicking off a kids app. How do you build safety and compliance in? What do you need to do? 

Stefano Accossato: Well, you gotta get knowledge, basically, the first thing you gotta do. You need to start looking at their policies in the stores, really, pay attention to that. Google Play has courses on how to be compliant with their policies. You can actually take tests and learn about it.

Learn about what it says when it comes to the Designed For Family program? What does it mean in terms of monetization? What does it mean in terms of data collected already for the store? We’re not even yet going into COPPA or GDPR here, we’re still sticking to the store policies and guidelines.

That is the first step. 

That is the first step to take when you’re thinking about publishing an app, maybe just for kids or also for kids. Because this applies also to those apps that are including the kids in their audience, not the ones that are only made for kids 100%, right? So, that’s really the first step.

Then the second would be, of course, to get certified by a company like PRIVO here, because that gives you much more control over your compliance path and requirements, but also gives you really a sense of safety as a developer, as a business. Because having that seal on your app, it’s really a proof of quality, a proof of commitment for the developer to be safe for kids.

And parents do look at that, as was mentioned before. So that’s really important as well. And you need to start doing that asap. You don’t do that when you have your game two weeks from hard launch. You’re gonna start to do that when you are starting the development of a game, or even, I would say, the idea of a game.

Because if you wanna dedicate resources correctly and effectively, you need to consider that part of the time from the team will go into understanding all of this and collaborating with external partners on this topic specifically, which eventually touches everyone—all the ad networks, all the UA channels that you want to use, you’re going to have to bring this up every single time. So you need to start from it to get to a product later on. Yeah. So, the idea is where I would start.

John Koetsier: Super interesting. I’m gonna come back to Celeste. What are the actual rules? What can you do? What can’t you do? 

Celeste Rollason: Well, I don’t have that much time, but… and I think we touched on a lot of this call is, you know, thinking about what you want your service to do is going to help figure out what you can do and what you can’t do.

But basically a lot of the regulations boil down to being mindful of the data that you’re collecting and processing—whether it’s actively, you’re asking a user for an email address, you’re asking user to sign up for an account, or passively, are device data advertising identifiers—and how that data is managed. That’s a building block right there. And that’s going to bring in the rest of your app and is going to be built on top of it. Do you want users to have video on? Do you want them sharing content, etc.? And so building up. 

So, and everything is possible under the regulations, except behavioral advertising. But even then, there’s a world for it. But really, there’s a lot… a lot that can be done. 

There just has to be maybe an extra step in place first, having consent or having, you know, transparency. Transparency is always going to be key. So once you know, it’s surprising how many companies don’t know what data they are actually collecting about their users.

‘Cause frequently the tradition has been to collect it all and dump what you don’t need and just use what you need to, and it’s all sitting somewhere. But thinking about that and then telling your users. That’s what you need to do. So, as long as you’re transparent, as long as you’re mindful and aware of exactly what you’re doing, there really aren’t any limits to what a kids app can and can’t do.

I hope that answers that question.  

John Koetsier: I think so. What is this dump the stuff you don’t need? I don’t even know if companies sometimes go back and look, Oh, we have all this extra stuff, let’s see. I suspect they are now. 

Stefano, anything to add to what Celeste said there about what you can or can’t do? 

Stefano Accossato: Well, a question I get really often is like, How do you even monetize kids games? That’s something I probably get at least once in every conference I attend. And the simple, fast answer is that you can actually monetize with the same tools that you use on any other game. 

Yes, you can do ad monetization. Yes, you can do in-app purchase monetization. Yes, you can do subscription. You gotta just maybe sometimes get a little bit more creative in the way that you do your in-app purchase offering, of course.

And when it comes to ads, the practice is very much the same as any other game. The main difference is what are your possibilities, because you need to stick with the networks that are certified to ensure compliance for COPPA, which usually automatically covers GDPR and other regulations, and it’s often applied pretty much worldwide. Like, if there is a COPPA flag available in a network, it’s going to cover all your countries. You don’t need to go country by country and learn about the law locally and so on. It’s a pretty simple, straightforward process. 

But you’ve got to be aware of where those flags are, what they should look like. Is there something on the UI of the network, if there is something that is more into the code when you add this network or the adapter for a mediation inside your app, because it often can be in both places. So, but once you are clear with this, you just go with regular optimizations, regular kind of partnership and so on.

And one important thing as well is that Google and iOS see this thing a bit differently. iOS has a kids space, which is—I don’t even know if it’s an actual category; it’s more like maybe a flag that your game is a kid game. That is for the games that are ready to offer just, for example, in-app purchase bit, or even be like a premium app that you need to pay to download in the first place. 

But you can be in the kid system and monetize with ads on iOS as well, categorizing yourself as an educational app, as an entertainment app, and that’s fine as well. 

So there is more possibility once you do that. And it seems also that it may look to you, once you get into this, that, oh, I can add any kind of SDK then on iOS. Which technically sounds like, yep, maybe. But if you actually look at what this SDK can do, then once you actually, your app is for kids… well, yeah, you may add that network because iOS is not stopping from doing that, but it’s not going to monetize. It’s not going to monetize because it’s not having those flags, or if it’s having them, it just says to the network that, Hey, it’s a kid. Okay, we’re not going to do anything with it.

So, there is really no point in spending time on things that don’t bring you anywhere. So you need to ask these questions first before jumping into a new partnership. 

John Koetsier: That makes sense. Mike, let’s come to you. So there are some challenges here for making kids apps. Is it worth it? You’re on the business side. You see measurement. Is there a pot of gold at the end of this rainbow? 

Mike Gadd: Yeah, I think definitely. I mean, we catch up with customers on a regular basis. I’d say, actually with apps that are targeted towards kids, they almost need some sort of even more partnership support because there are so many different things to consider and things.

So we spend a lot of time talking to our customers to make sure we’re supporting them, and it’s great to see—I mean, I’ve known Stefano for over two years, I think, in terms of the time that we’ve been working with him, and it’s great that we’ve seen how they’ve developed and they’ve grown and things like that. 

And we see that with a number of our customers. So yeah, it definitely works and there’s definitely success stories there, so it’s definitely worth doing. 

John Koetsier: Talk a little bit, Mike, about what it means to be an MMP for kids focused apps. Is it different? Are there things that you have to do that ordinary MMPs can’t do, or don’t do? Do you have to do different things for kids apps in terms of measurement than you do for all other different kinds of apps? 

Mike Gadd: Yeah, definitely. So, I mean, first of all, it’s the technology. 

So you need to have the right technology in place to be able to collect data in a compliant way, and share data in a compliant way, and understand where you can share, where you can collect, etc. And it needs to be really flexible. I think, as Celeste said, there’s lots of different options you’ve got to be able to still be compliant. And so you need a solution that’s super flexible so that you can set the parameters of what you can and can’t do in the platform and allow it to work that way.

And then the second part is the partnership piece. 

So, making sure that you have someone like PRIVO, you’ve got someone like Singular who can work with you. We’re definitely not lawyers and I never give legal advice as part of a customer success function. 

But what we can do is we actually do talk with our customers’ lawyers or with advisors, where we can say, If you select this option, this is what data is shared; this is what’s collected. And we can give a really sort of strong walkthrough of exactly what’s happening, and then you can make your own decision in terms of whether that’s compliant. 

John Koetsier: Celeste, talk about the technology that you need to manage all this stuff. You offer some of it. Singular offers some of it. How does it all work? 

Celeste Rollason: Well, I mean, it’s a building partnership. So, obviously with, you know, the regulations are self-regulatory. There is enforcement action that comes down. It’s very important to keep that in mind as well. So, not to be biased, but engaging with a privacy expert is always a great start to be building that partnership.

You know, as we’ve touched on, PRIVO, Singular, and TutoTOONS all have a long-standing relationship. We’ve been working together for a very long time and I think that sort of helps sort of build those tools. You have experts with different priorities, but also different considerations that all come together. And we’re all invested in, at the end of the day—well, maybe not the MMPs, but giving that child, giving your audience and selling the audience. So, just the tools that are out there looking like, as Stefano touched on, looking for flags, looking for settings, anything extra that you can bring in to help move your app into a compliant direction, moving there.

And your best tool, yeah, is… well, I want to say compliance, that’s your best tool. It’s good for marketing. It’s good for building. It’s good for thinking about as a starting point. I, again, I’m a little bit biased, but I still see that as the starting point. 

John Koetsier: I guess we’re all biased to some degree or another. Stefano, as you are going through this whole journey of tools and tech to make sure that you’re doing what’s right, what do you need from the tech? How are you using the tech to make sure that you stay compliant? 

Stefano Accossato: I would say to pay attention—to pay attention to our questions and really try to answer them and not trying to avoid them. So this may sound obvious, but you can really meet that often in the industry—not the kids industry—in general, you know, in the industry whenever it comes to tech, making it for the tech providers not to stick with what they know, and to how they think the tech should look like and should work, and should be a one measure fits all.

That’s really the main point when, in my opinion, in my experience, that’s when we started to work with Singular. They really understood the point of like, okay, we may not be ready right now, but we can get ready. So Singular did it. Everybody can do it, basically.

The networks can do that as well. That’s why you can see that over time, more networks try to be compliant, try to develop a system that let them also deliver ads, for example, to kids games in a safe way. It may look like a complex process and so on, but it was also, of course, about being consistent with this work that you’re doing. 

So, for us, the fact that we were not just the ones that were the middle guys between Singular and PRIVO in this case, that did all the communication job. It would have been quite challenging if that would have been the case. I don’t know if we wouldn’t get to our results as we got in the end, but the fact that they stepped in—Singular stepped in; PRIVO was open for the conversation—and then they kind of put together a solution that works, compliant through from the beginning. Not building a solution that should be compliant and then you go into a review process and then you get an answer, yes or no, but you actually start from the beginning. You collect first the info on what needs to be done, and then you deliver a result. 

After the job was done, basically between Singular and PRIVO, we didn’t have to put extra effort in order to understand what we need to do now to use that tool. Singular provided the guidelines for it. So that’s really where you want to be, because as a developer that works in the kid space, you already have a lot of questions to answer all the time and to raise. You really want the tech to come towards you and kind of meet you halfway, basically. Do part of the job in understanding what does it mean for them to be compliant, and be honest about it, because there is no point in starting a potential partnership or a conversation and then three months later find out that, Oh well, we can’t really do anything about it, so why did we waste three months of our time? 

And these things happen, but it all comes to the human approach that in the first place tech puts near the top. So, and also it’s hard probably to find tech that has a lot of experience with kids games, right? So when you ask this question for the first time, you might not get a lot of answers. 

But there are some technologies which, yeah, they don’t have a client right now that is COPPA, a hundred percent COPPA, but it took the COPPA seriously from Day 1. So, you just mentioned COPPA, they already understand everything you’re talking about. They already can tell you yes or no. 

And I really appreciate when people honestly tell me ‘no’ in the first call or in the first exchange of emails that we have, because that will help me respect them more later on when they are going to get compliant, because I know that they will actually have done it properly by then.

So this is something to really consider when jumping into, well, which tech can I use, which tech I cannot use, or who I can trust and who I cannot.

John Koetsier: Love it. Makes a ton of sense. 

Okay, Stefano, we’re going to stick with you for a bit here because we’re going to talk about monetization. We’re going to go into AdMon, how it works. We’re going to talk about in-app purchases, subscriptions, all that stuff, how that works as well. Let’s start with AdMon for kids. Give us the big picture of how that functions. 

Stefano Accossato: Yeah, so I mentioned something before, but the main rules are: no targeted ads, no behavioral ads—how you want to call them—so it’s contextual only, right? So that’s the first thing. Yes, it has an impact on your CPMs. It’s fine. But you can still get a very good fill rate by considering that we surpassed a billion downloads. We have quite a lot of impressions we deliver on a daily basis, right? We don’t really struggle with fill rate. 

So, there are ads available out there. You need to find the right partners. You need to, of course, find them. Test them. 

So how can you find them? The first step, you go to Google policies, you see the list of certified networks for the Designed For Family program. That’s your way to go. That’s where your answers are. And that’s where you’re starting, because if they are there, it means they have all the right flags and you don’t need to start asking a lot of questions.

In this case, private will be the ones that confirm that, yeah, that is fine. We just approve of it that you actually did it during the setup of that network, but that’s it. You know, you’re ready to monetize. It’s pretty simple. But with this comes another challenge that I will try not to go too deep into it, because I tend to get too passionate about it, but it’s ads quality. So, basically, what is ads quality?

Usually it’s intended as UX, user experience. Is the ad easy to close, is the ad easy to navigate and then get back to your game. So this, of course, applies to us as any other game out there for adults as well. But in our case, it’s also a lot about content. It’s about the appropriateness of the ads and this is a huge topic, and you need to take it very seriously.

In our case, we actually haven’t started at-scale monetization. I mean, we were already doing end monetization because there are also networks out there which work just with kids brands, which are delivering safe content all the time. You didn’t need to even check that it’s going to be fine. We do check this anyway, but you can really trust them. They know what they’re doing. They’re certified already and you can trust them a hundred percent. They work only and exclusively with kids brands. So that is already giving you a decent revenue in the first place. 

But if you are scaling up your business, usually that’s not enough. You need to start adding SDK networks to your stack as well. So that’s when the ads quality becomes really, really serious. Because, yes, you have the flags. Yes, the flags should say that an ad that is for 12+ or 17+ shouldn’t show in an ad that is marked primarily direct to kids. But technology sometimes fails the developer that is running that campaign. That UA campaign might not have properly categorized their game on the App Store in the first place, or not have given the right content rating to the game on Google Play, for example. 

Now, usually these things fix themselves over time because the store realizes that the content rating is wrong, sends you an email telling you that you need to fix it unless your app is gonna get rejected or removed from the store. But in the meantime, days are passing and those campaigns are delivering impressions. And the networks, even though they try their best to avoid these impressions to show up in your games, they might come through. So you really need to have control over the content of your ads and you need to take this extremely seriously. 

At TutoTOONS, we started with the manual work on Day 1 once we found a process that works for us. Then we started to use the SDK networks and we had, I remember in the beginning, we called it the big red button, which was a button in our config, in our backend, that once we would see that the network is not respecting our request for blacklisting apps, we would press the big red button and the network is gone.

So, at that moment, basically, because we can’t allow anything dangerous to pass through, we can’t ruin the experience for our users and put us in a very dangerous place as a brand. 

John Koetsier: I think I would like a big red button for my life… remove anything I don’t like or don’t want. But I guess that’s not gonna happen. That’s cool. 

Now, briefly, because we don’t want to take too long for this whole session. Talk about in-app purchases and subscriptions, actual monetization via taking money. How does that work? Is there an allowance? Is there a wallet? Briefly, what are your thoughts there?

Stefano Accossato: Yeah, that’s often from a game development perspective quite a difficult question to answer. Well, as I said before, it depends on the value you’re giving, but we could say that there are like two kinds of in-app purchases. It’s unofficial, of course, but you could see that there are two of them. 

One is for the parents and one is for the kids. 

So the one for the kids are usually related to content—to new pets, new characters, new things in the mini games, I don’t know, access to a certain part of the game which wasn’t allowed if not buying a certain purchase. Just making random examples here, but as with our games at least, if you’re going to download them and play them, you will see there are a lot of collectibles, there’s a lot of hatchables, you know, and this is really driving engagement with the kids. They always want more, so you can actually build a strategy around this aspect, for example. And of course, still, even though it’s the kid that is asking for it, the parent has to agree with that. 

So, in this case, the new element you’re adding after the in-app purchase needs to add to the game for real. It shouldn’t be just there as… without sounding too judgmental, but, you know, just a skin but then your game stays absolutely the same. That new character is actually bringing a new dynamic into the game. It’s maybe opening up for new possibilities that before weren’t there, so that the kid has actually the possibility to engage with this character rather than just buying it and having it there on the shelf, so to say. So that’s also when you can deliver a message to the parent as well that the money is well spent, because the kid gets the ability to interact with more elements, with more environments.

And we actually see that, for example, the difference between gaming and just watching videos, right? Video by itself is quite passive. We all know about this. But the game, as such, gives the kid the ability to actually try to do something. So, this is actually a very important point because we tend to spend a lot of our time watching videos.

I remember myself, of course, it was a different generation back then. We didn’t really have much of a choice at the point, but this moving from being a passive observer into being an observer but also participant of the experience, this brings more dynamicity into the kid behavior overall. 

And so, of course, as part of your brand statement, you want these things to be safe, to make sense in real life. You don’t want to teach a kid to, I don’t know, break stuff at home in a game. But you can teach things that are really related to daily life. And this connected to the in-app purchase can really add value. 

And the last piece is, of course, as I mentioned before, the subscription. It’s a very important in-app purchase, we could say, because it gives constant support. 

Because if we are doing this, it’s because those games are being supported constantly. New content is being added and the people that have the subscription get this, well, first before everyone else, you know. So this is, for the kid is important, of course, but for the parent to know that this ensured a hundred percent that the content is always top level, it’s always updated with all the new things we add to the game, that the ads are removed from the show, and there is no interruption in the gameplay. So this is definitely more oriented toward the family as a whole, rather than just the kid, right?

John Koetsier: Makes a ton of sense. And thank you for that about monetization via both ads and in-app purchases, subscriptions. 

Okay, we’re coming near the end. We’re going to talk about some examples of when it works. What happens when everything goes right? We’re going to bring Celeste on first for that. Then we’re going to talk about when things go bad. What can happen there? 

Then we’re going to go to your number one takeaway, from each panelist, for marketers who are entering the kids app space. And if they can only remember one thing from this show, what should it be? And finally, if we have some time for questions, we will ask you to supply your questions if you’re listening, watching, that’d be great. Have some questions ready. That would be wonderful. 

Okay, Celeste. We’re going to start with you. Let’s talk about when this all works, when this goes right, give some examples of things done right. 

Celeste Rollason: Well, I mean, I think this is probably the third time I’m saying it, but things done right are: having those relationships, excellent communication, collaboration between the compliance side, the regulatory side, the first-party developers, the actual people who touch the users and the processes that they need, the people are going to collect information on their behalf, like Singular, who are going to help support the developers. I think that is when it’s working right. 

When you have a company that, like TutoTOONS, has a specific business need and objective. They—PRIVO, we’ve worked with them before—they know what questions we’re going to be coming in and asking. Going to companies like Singular, asking up front, Do you have COPPA solutions? Are you compliant? Do you have kids apps? etc. And then seeing that flow of just from one aspect to another and watching that relationship grow. 

John Koetsier: Do you have some examples of some apps that have done that right and had success as a result?

Celeste Rollason: Well, I mean, obviously, sitting right here, like TutoTOONS can speak to their success as an app… and I’d like to say that, and I think we all agree that compliance is a huge part of it. The apps are engaging in themselves. The kids love playing with them. They have such a simplified but challenging element to them that has that level that you were speaking to, Stefano, and then… but with that privacy consideration in mind, and speaking to kids as the primary audience is one way that that can be done right.

So, and then on the same side in the background, Singular. 

Up front, we want to do something. We want to be able to meet the needs of developers for kids apps because kids are a huge market, and we’re going to create this solution, and… this is privacy done right. This is something that has gone right—this relationship between us, our three companies, and we have similar relationships with other services in the same way, whether it’s with their legal team, whether it’s with their development team, etc. But it’s all sort of based on that same principle of that relationship, and that’s what builds success. 

John Koetsier: Cool. Mike, any examples of things done right? 

Mike Gadd: Yeah, I think to build on Celeste’s point, the biggest thing as well with that relationship is mapping out all your processes. So, if you have an age gate, where’s the age gate going? What does that mean? If you haven’t got an age gate, okay, what does that process look like? And what networks are you going on? Which operating systems are you using? All of these different things. 

If you’ve mapped it all out, then it’s very easy to work with people from PRIVO and Singular to be able to go through each and every single one, make sure it’s compliant, know exactly what you’re going to see and what you’re not going to see, and then know how you’re going to optimize. So that would be like my biggest sort of plus point in terms of how you make that relationship as effective as possible. 

John Koetsier: Wonderful. And let’s turn to… you know, since Celeste talked about TutoTOONS already for things going right, let’s turn to when things go bad, examples of things done wrong. And guess what? Stefano, we’re going to start with you. You know, you don’t have to give huge, huge apologies, but have you ever screwed up? 

Stefano Accossato: Of course. I mean, you learn from mistakes, right? At least that’s my way to go. But you still want to test stuff. There is not really anywhere to go. If you are not ready for testing and sometimes taking some risks, you should be able to evaluate how big is the risk you’re going to take, of course, with something. But it does happen, you know, that, oh well, we did our best, but somehow we published the game and that SDK version was not listed in the compliant one, so we got the rejection, Oh, there’s something about it. 

Or everything seems fine. We did all we can to control that the ads are safe, the SDK is fine, it’s certified and what’s so on, whatever about it. And then somehow you get a rejection from the store that says your ad was shown in a wrong place, it interrupts the gameplay; is it a config issue, is it somehow an app issue, or there is something wrong with the SDK itself? So you’re gonna go check it for the homework, fix it, and update the app on your store. 

So, also one thing I learned is that, I mean, it’s obvious to say you don’t want to get the stores to reject your game, but a rejection is not a removal. A rejection is not a suspension. Those things get there, the situation can get there when you don’t take care of your mistakes. But there is no rule that, oh, you can’t make any mistake, like you can make mistakes. It’s normal to make mistakes and some of them you will not notice that you made them.

That’s why there is the rejection process in place and you can speak with the store. They are going to tell you what is wrong. Yes, sometimes you might have to wait a little bit for the answer and sometimes it might be quite an enigmatic answer overall, so you still need to do the checks on your end, but these things happen.

And also another aspect is, how clear is the experience for the user inside the app? Because it’s very easy to make the mistake of thinking that the user thinks as you do as a developer. So you need to learn from the data you can get from the gameplay—how the user is interacting with, for example, the in-app purchase offering or the ads. See where there are drop-offs, see where there is no follow-up in the user journey that you’re not really able to track precisely because you don’t have identifiers as such, but you can totally see where the user was last time and then suddenly their users are dropping out, right? 

So you need to think as the user. You need to try, of course, otherwise you’re not gonna know. And you need to be very clear with your messaging. Like, the same as with ads, or you can be very creative with that. But if the ad is not easily distinguishable from the content of the game, you can get a rejection, you can get complaints, you can get a bad rating.

So these things happen and it’s up to you to step in and do something about it. Don’t ignore it. That’s the thing, like you should never ignore these issues in any game, of course, but in this space, you know, it’s important to keep a good word about your games, about your brand.  

John Koetsier: Yeah, I love those messages back that your app is not compliant with section blah, subsection blah, blah. And you’re going like, How? Where? Please, more. 

Okay. We’re almost at the end of our time. We probably won’t have time for questions. If there’s one or two, I might show them real briefly, but let’s go to our top takeaway from each panelist for marketers around marketing kids apps. 

Mike, I think we’ll start with you. If there’s one thing that somebody should remember from this session on marketing to kids apps and doing so in a compliant way but also an effective way, what would it be? 

Mike Gadd: So, I mean, we’ve already talked about the relationships and proper mapping processes, etc. So actually, in terms of a key takeaway, start simple. So, don’t try and go into this being like, We’re going to do absolutely everything and it’s all suddenly going to be very compliant—because that’s incredibly hard to do. Like, we’ve worked with TutoToonS over a number of years and they’ve built up the complexity of their setup, and we’ve done it slowly. We’ve done it together. We’ve been checking it along the way. Whereas, yeah, if you try and do everything at once, you’re going to give yourself a mess.

John Koetsier: Good advice. Celeste, your top takeaway. 

Celeste Rollason: Sure. So, outside of compliance as an enabler, I think considering your audience is a key takeaway when it comes to marketing and when it comes to, you know, being effective. Don’t underestimate children. 

There’s a misconception that parents are going to be involved in this process. Kids are alone. This is a generation of kids that’s born with a smartphone in their hand, and so doing the bare minimum won’t—in terms of privacy in today’s climate—will not bring you very far. Everybody’s looking for it. 

And companies who try to skirt around regulations, who try to skirt around compliance, will ultimately not be successful in the long run. It will catch up with you. It’s better to start from the beginning and build around it. And it’s just as important as the user experience, and it’s just as important as how you’re going to make money. Privacy is that third piece. 

John Koetsier: Babies are born with a smartphone in their hand. I’m almost tempted to use that as a prompt in Midjourney or something like that, but I will resist the temptation. 

And Stefano, you have the last word. What is your top takeaway for marketers in this space? 

Stefano Accossato: Well, in one sentence or so, I would say that—repeating the words I said before—so, compliance is your number one concern when it comes to monetization publishing and UA. So make sure to start looking into it at the beginning of your journey. That’s, I think that’s the most important thing to do when you want to start in this field. 

John Koetsier: Wonderful. Thank you so much. I’m going to just, if you have questions, put them in the comments and we’ll answer them there as we get time. I really appreciate that. We’re over an hour right now and I have to release these people. Some of them are in Europe and it’s late for them. 

Stefano, thank you so much for taking this time and sharing your knowledge and your hard-won knowledge over years of work in this space. Your mistakes and your challenges as you’ve grown and learned in this are helping others. Really do appreciate that.

Celeste, thank you so much for sharing your expertise as well. Much appreciated. Thank you so much. And Mike, thanks for taking some time out of your evening and sharing what you’ve learned also. 

Thank you all. 

Stefano Accossato: Thank you. 

Celeste Rollason: Thanks very much.

DMA: European Union designates App Store and Google Play as core platform services provided by gatekeepers

It’s official: the DMA is starting to be enforced. Today the European Union designated Apple and Google as gatekeepers under the Digital Markets Act, along with Amazon, TikTok parent ByteDance, Microsoft, and Meta. And, as expected, the App Store and Google Play are squarely in the EU’s sights: both have been classified as core platform services that have significant DMA obligations.

In July 2022, I said that the Digital Markets Act would “change app stores as we know them.”

In fact, it’s likely that the DMA will force companies like Apple to allow third-party app stores within just 6 months.

DMA: big changes coming

The Digital Markets Act forces companies of a certain size to allow third-party interoperability with their services, allow businesses using their platforms to promote their own services and make sales outside of the gatekeeper’s platform. It will also restrict gatekeepers from privileging their own products or services above third-party apps, stop them from preventing people from connected with businesses outside their platforms, and force them to allow pre-installed app deletion, among other things.

DMA-gatekeepers

A year ago, I thought the DMA would likely bring big changes, including:

  • Side-loading apps (and perhaps even installing apps right off a web site)
  • Independent app stores
  • Third-party payment processing
  • Interoperation with with core messaging services
  • Access to hardware features that platforms might have reserved for themselves
  • Switching AI assistants

Now we know that much of that will be happening within the next half a year.

There are 22 core services that the 6 designated gatekeeper companies own that will be impacted, including the App Store and Google Play. You’ll note that a few others that are relevant to mobile marketers are Google Ads, Meta’s advertising platform, and Amazon’s advertising service. Android and iOS are core platforms services under the DMA as well, and so are the Apple browser, Safari, and Google’s Chrome. TikTok also makes the cut as a social network.

  • Social Networks
    • Facebook
    • Instagram
    • LinkedIn
    • TikTok
  • Messenging services
    • WhatsApp
    • Messenger
  • Intermediation services
    • Google Maps
    • Google Play
    • Google Shopping
    • Amazon Marketplace
    • App Store
    • Meta Marketplace
  • Video
    • YouTube
  • Search
    • Google Search
  • Advertising
    • Amazon
    • Google
    • Meta
  • Browsers
    • Chrome
    • Safari
  • Operating systems
    • Android
    • iOS
    • Windows

So far, Apple Search Ads is not impacted by the DMA, though iMessage is under investigation as a core platform service from a gatekeeper. iPadOS is also under investigation, even though the EU acknowledges that it does not meet the criteria for gatekeeper status. Microsoft’s Bing and its advertising platform are also under investigation.

App marketing: bigger changes coming

Gatekeepers have 6 months to comply with all the regulations of the DMA: until March 2024. That means that basically at the same time as marketers are dealing with all the implications of SKAN 4 and Privacy Sandbox on Android, there will be new changes for how the largest digital advertising platforms in the world operate, and for how the main method consumers get apps will evolve.

Here’s a few things that seem likely to change:

  1. Ad targeting
    Gatekeepers can’t process personal data of end users using third-party services, or combine data across core platforms, or use personal data from third-party services, for advertising purposes. Nor can they use data from one core service to power ads in another service … unless they get explicit consent. (There’s a reason why Meta is looking at subscriptions options.)
  2. Sole source/do not contact rules
    Gatekeepers can’t prevent app publishers from offering products or services off their platforms. (In other words, Apple’s attempts to block off-app purchases that avoid paying Apple’s cut are likely in trouble.)
  3. Your users/customers/players are your users/customers/players
    Gatekeepers can’t prevent app publishers from contacting users — free of charge — and presenting offers … on the core service or off.
  4. Payment service freedom
    Gatekeepers cannot require business users — AKA app publishers — to use their built-in payment systems. (Or browsers or sign-in systems or other technical services.)
  5. Transparency on ad prices and publisher revenue sharing
    Gatekeepers will need to freely provide daily data on prices, discounts, surcharges, payments to publishers, and full means by which those numbers are calculated. Importantly, this applies to both advertisers and publishers, meaning publishers will know the exact value of their inventory to advertisers and how much of the total purchase price goes to the gatekeeper ad platform.
  6. App uninstalls
    Gatekeepers’ pre-loaded apps must be user-deletable under the DMA, meaning a number of things. One, there could be more fair competition for third-party services that compete with the gatekeeper’s own additional offerings (like Apple Music from Apple). And two, any preload apps from third parties on Android smartphones also need to be user deletable.
  7. App Store freedom
    Gatekeepers need to allow and technically enable the installation and use of third-party app stores. Gatekeepers also have to allow users to set those as their default app stores.
  8. No privileging of services
    Gatekeepers cannot rank or index their own services preferentially over competitive services.
  9. Open hardware requirements
    Gatekeepers have to allow third-party companies access to the same hardware and software features they use. That means, in just one example, Apple won’t be able to restrict NFC use to its own wallet or other services.
  10. More data for advertisers
    Gatekeepers are required by the DMA to provide advertisers, publishers, and third parties authorized by them, “with access to the performance measuring tools of the gatekeeper and the data necessary for advertisers and publishers to carry out their own independent verification of the advertisements inventory, including aggregated and non-aggregated data.” (Non-aggregated data: interesting!)
  11. Search algorithm transparency
    Gatekeepers who offer search engines must provide data on rankings, queries, clicks, and views to “any third-party undertaking providing online search engines.” (I wonder how many new “search engines” will pop up in order to get a look under the hood of Google Search and App Store search.)

There’s more. Much more. You can read the entire piece of DMA legislation here. Add it all up, however, and what it essentially means is a lot of work, expense, and distraction for gatekeepers that will end up leveling the playing field for both business users of their platforms and potential competitors.

DMA changes: it’s early days still

It’s early days still.

Apple, Google, Microsoft, Amazon, Meta, and ByteDance have 6 months to comply with all the DMA regulations. If they don’t, there are hefty financial penalties: up to 20% of their annual global revenue, or even requirements for gatekeepers to divest themselves of certain platforms, features, or products.

But what is clear is that the DMA is going to have a huge impact on marketing and monetizing mobile apps.

Imagine big apps becoming their own app stores.

Epic, which has run a three-year battle against Apple’s control over the App Store and payments on iOS, will certainly want to run an App Store on iOS.

Imagine payments via multiple methods.

Imagine increased competition for core gatekeeper apps.

There’s a ton more to think about there, but the upshot is that smart mobile publishers are going to find more ways and places to both advertise their apps and monetize them. The unanswered question at the moment is whether this DMA legislation in Europe will be echoed around the world in Asia, North America, South America, and Africa.

If so, it’s truly a new global ball game in mobile.

SKAdNetwork updates: instant model migration, SKAN 3 compatibility mode, more granular revenue reporting, Google conversion API

There’s a lot that’s new in SKAdNetwork support from Singular, and I’m not even talking about SKAN 4 or SKAN 5. The Singular product team has been hard at work on SKAdNetwork updates and has delivered massive upgrades and improvements, including:

  • Instant model migration
  • SKAN 3 compatibility mode, which lets you safely transition to SKAN 4
  • More granular revenue reporting in SKAN 3 (and even bigger updates in SKAN 4)
  • Google compatibility

I spent some time with Singular product manager Omri Barak, chatting about the new SKAdNetwork updates.

Click play on the video above, subscribe to the podcast, and keep reading!

SKAdNetwork: instant conversion model migration

Changing conversion models in SKAdNetwork has been painful and slow. Whether you want a new model because your app changed, or because you think there are different events or revenue thresholds that will give you better signal for optimization, you’re in for a wait.

A long wait.

First, existing ads and campaigns tied to the old conversion model need to flush from your partners’ inventory. Second, any time you change conversion signals, ad partners need to retrain their systems to target and optimize for your new data points. That’s true in SKAN 3, and it’s even more true in SKAN 4 due to much longer conversion windows.

  • SKAN 3 postback: 24 to 48 hours after updating final conversion value
  • SKAN 4 has multiple postbacks, though
    • First postback period is 0-2 days after install
      • Postback comes 24 to 48 hours after updating final conversion values
    • Second postback period is 3 to 7 days after install
      • Postback comes 1 to 6 days after updating final conversion values
    • Third postback period is 8 to 35 days after install
      • Postback comes 1 to 6 days after updating final conversion values

Add it all up, and SKAN 4 postbacks might not be flushed through until 41 days after the original install. And that’s bad for growth.

“A campaign is better than no campaign,” Barak says. “It really hinders adoption of SKAN.”

The solution: extreme data science for seamless and instant model migration, which allows changing SKAN 3 models at will — as well as upgrading to SKAN 4 — without the big wait, missing data, and lost growth opportunity.

“We’ve built models internally to figure out for each conversion value or each postback we receive, what is the probability?” Barak says. “We’re able to determine what’s the chance that the first model encoded this, or the second model.”

This works especially well with minor tweaks to SKAN conversion models. It also works when marketers totally change the events they’re measuring, because it’s easier to determine that the old events aren’t relevant anymore. Minor tweaks in revenue models are also supported, and Barak says they will improve predicted D1 and D7 revenue while not seriously impacting network optimization.

From a reporting perspective, this is completely transparent: no differences, no pausing.

In addition, Singular will be communicating with ad partners to let them know: you don’t need to pause campaigns anymore when you get new optimization criteria from updated conversion models.

SKAN 3 compatibility mode

Being able to instantly update your SKAdNetwork conversion model to something potentially better is great. Being able to update to SKAN 4 without the pause while still remaining SKAN 3 compatible is even better, and that’s one of the SKAdNetwork updates Singular has recently delivered.

Note that what determines whether an ad network provides a SKAN 4 postback depends on 3 things:

  1. The ad network click version
  2. The way the conversion value is updated
  3. The version of iOS running on the device an app in installed on
SKAN 4 SKAN 3 ready device

What SKAN 3 compatibility mode essentially does is simple: it stops encoding values after 24 hours to make the first SKAdNetwork postback functionally equivalent between both SKAN 3 and SKAN 4. So in a SKAN 3 world, you don’t miss anything. In a SKAN 4 world, you gain a little extra with postbacks 2 and 3, which would not have been possible if you were still in default SKAN 3 mode.

“Basically what we do is we stop encoding new values after the first 24 hours,” Barak says. 

“In case of SKAN 4 you’re missing out on some of the measurement or anything that happens between 24 and 48 hours, but actually this allows SKAN 3 and SKAN 4 to achieve the same information and conversion values, and still won’t interfere with current network optimization that is built over SKAN 3.”

More granular revenue reporting

SKAdNetwork revenue conversion models tend to be less granular than you might like, simply based on how many revenue buckets you can set up. Now Singular is using your own first-party data to double-check the SKAN math and get more accurate revenue.

The problem is trying to estimate actual value from the ranges in SKAN conversion values.

Revenue buckets might span a $1 range or much more. Estimating SKAN reported revenue would generally average that bucket, so a postback with a conversion value range of $1 to $2 would estimate $1.50 reported revenue.

The problem is that this might not align with your actual purchases very well, leading to under-reported revenue. That in turn will lead to inaccurate ROAS calculations, wrong LTV and ROI assumptions, and worse ad campaign optimization.

SKAN ROAS calculation

The solution is to check your actual revenue.

“In order to tackle that, what we do in Singular is we actually count the actual revenue for each user that reached a certain conversion value,” says Barak. “That way, we can kind of group by or cohort users based on the conversion value they reached. So if all your users that reached conversion value 2 actually spent $2.99, we’ll be able to correctly report and map those users to that conversion value. And it leads to much [more] accurate reporting.”

The first step was 87% accurate D7 predictive revenue under SKAdNetwork, which Singular released way back in May 2022. Now Singular has accurate D1, and is working on bridging up the gap between D2 and D3.

SKAN 4 will just improve this modeling with the second and third postbacks.

Google conversion API

Google has taken its time to support SKAdNetwork, of course, but now the search and ads giant is there. What’s available now is automatic updating of your SKAN conversion models in Google Ads as soon as you update it in Singular.

“They released an API where Singular is able to update the model,” Barak says. “This means that Google can now optimize, not only toward specific, like higher conversion values better, but actually towards specific events or ROAS campaigns. And the good news for Singular users is that it’s out of the box, like you don’t need to do anything.”

Set up your model, and you’re good to go.

You can even set up your SKAN 4 model — which Google does not support just yet — and thanks to compatibility mode, Singular will send it over to Google just as if it’s a SKAN 3 model.

More SKAdNetwork updates to come soon

There’s more SKAdNetwork updates coming:

  • More accurate cohorts
  • Longer cohorts
  • Better postback 2 and postback 3 reporting in SKAN 4
  • New conversion models

The goal is simple: be the best iOS and SKAdNetwork attribution provider.

“We basically want to always be the leading company in SKAN,” says Barak. “That’s our goal and that’s what we’re working on.”

If you haven’t already, subscribe to Growth Masterminds and Singular’s YouTube channel. You’ll always be up to date on not just what Singular is doing, but also what the world’s top mobile marketing experts are learning and sharing.

Full transcript: Singular SKAdNetwork updates

John Koetsier: What is new with SKAdNetwork? 

Hello and welcome to Growth Masterminds. My name is John Koetsier. 

Feels like there’s a ton going on with SKAN right now: the transition to 4, some bugs perhaps, and maybe a little bit of rewind, but there’s also a lot of innovation happening. 

To chat about that, we have Singular Product Manager, Omri Barak. Welcome, Omri.

Omri Barak: John, thanks for having me. 

John Koetsier: Super pumped to have you. Super pumped to dive into all this stuff. Major overview first, let’s start there. What’s the state of SKAN right now?

Omri Barak: So, SKAN 4 has been released for over a year now and we still see kind of adoption going on slowly. It’s totally dependent on networks, to be honest. Networks are the ones that control which version of SKAN our users or anybody doing UA can do.

And we have just seen like a step backwards when Meta released SKAN 4 and then we saw a decline in conversion values, and here in Singular, the team figured out that there’s an Apple bug. And now we know that Meta took a step back and rolled back their change, and now even Meta is mainly SKAN 3. So we’re seeing adoption but it’s slower than what we thought.

John Koetsier: Yeah, I was super excited, I want to say 15, 20, 30 days ago, SKAN adoption seemed like it was on the curve. Meta started, it was great. We saw adoption overall industry-wide in the 30 to 40% range, maybe even tagging up towards the 50 on some days. And then, of course, the bug came out. Conversion values were disappearing, and Meta said, “Ah, back to SKAN 3.” Now I’m afraid that we might have months still on SKAN 3, because when will all the changes roll out to all the iOS devices, right? I happen to be on iOS, I think it’s 17 right now, or it’s the latest, right?

It’s a total beta version but most people update when they have to, or when the phone finally does it for them, right? So, yeah, that’s a little bit of my concern right now.

Omri Barak: Yeah, so there’s a long time until every device is actually SKAN 4 ready. We know that Apple fixed it in the latest 16.6, if I remember correctly. It’ll still take a long time until all devices are eligible for SKAN 4 without this hindering bug.

John Koetsier: However, we will get there. It will happen. The wheels of progress do continue turning, so we’ll get there. 

Now, one of the challenges, of course, is, even if you’re just using SKAN 3, sometimes you change your model. Sometimes you just think there’s a better way to capture conversions; there’s events that are more indicative of long-term value, whatever it might be, and you need to change your conversion model. 

Also, when you’re upgrading to 4, then you’re changing. What are some of the challenges associated with that? Why is that hard to do? Or even, you almost don’t want to do that.

Omri Barak: So, basically, when you change models in SKAN, what most partners start off by doing is wait for all SKAN postbacks to flush. Because of the random timers and lock windows and different measurement periods, depending on your model, mostly because of a mechanism built into SKAN or up til SKAN 3, where each time you updated your conversion value you would get another 24-hour grace period to update the conversion once again. And only after the full time has passed, only then would Apple enter a second kind of a timer of 24 hours, and only then would any partner showing an ad will get the first postback. 

So, that was a serious challenge. And what partners and even Singular did in the past is in order to be able to decode what each postback meant or what each conversion value meant that you would need to stop all your conversion value updating. Which is a challenge if you’re not working with an MMP. But even with an MMP, that means that you’re going to stop a new encoding for 24 or 48 hours, depending on your model. 

And then what we saw in Singular is it really hinders adoption of SKAN. Because if people set a model and they don’t want to stop their campaigns, because it might not be the best model and might not be working well for optimization, but a campaign is better than no campaign for two days. And we saw people getting stuck or working with a suboptimal model just because somebody sometime in the past started this model. We also know that some networks pause each time a model on the MMP side changes.

So, Meta, for instance, used to pause a campaign if somebody changed the model in Singular. And it’s a use case for all MMPs, not a Singular specific problem. And when we’re introducing SKAN 4, we know that everybody’s going to change a model. Like there’s new postbacks to be configured, measurement period changes from one to two by default.

And at Singular we understood that we don’t want to face this challenge with all our clients all at once. And what we introduced is a seamless model migration in Singular. 

Now, in Singular, you can change SKAN 4 models without the pause. So how we’re tackling it is there is a lot of data science into this. Like, we need to figure out what does each conversion value mean if we didn’t pause the model? We don’t want to pause the model for additional reasons, right? There’s an increased 48 hours, so now a pause would be much longer. And there’s a second and third postback that can take up to 35 days. 

John Koetsier: A month.

Omri Barak: And so our approach at Singular, we stopped waiting for events to flush. But we’ve built models internally to figure out for each conversion value or each postback we receive, what is the probability? And I know it’s a word you can’t say anymore, but it’s still valid statistically. But we’re able to determine what’s the chance that the first model encoded this, or the second model.

And from a reporting perspective, you don’t see anything in Singular reporting. Like it’s completely flatline. You don’t see a difference or you don’t see a pause, and that’s amazing. And we also collaborated with partners to say, okay, maybe you can stop pausing your campaigns. And we do expect that to be announced soon.

John Koetsier: So let’s just replay that real quick in SKAN 3. If you want to change your model, because guess what? You might find a more optimized one. You might find an event that is more predictive, whatever. You’ve got probably two, three days of bad data or poor data minimum, right? Because there’s time for it to flush. 

There’s acceleration on the new model. It might be even more than that, because guess what? If the platforms and networks are using SKAN for optimization purposes, then how do they optimize based on that? So you might actually burn more cash and just spend that just goes out the door because the AI is training the networks on what to optimize on. 

In SKAN 4, that’s even a bigger issue, like you said, because the default conversion periods are huge. Much bigger, especially the second and third postbacks, right? The third one, 35 days — ouch — plus or minus an indeterminate period of time. So you could be spinning your wheels. 

Now you’re basically saying, “Hey, change it on the fly. Go for it. We’ll figure out all the details. We’ll work out all the details.” That sounds great. It sounds wonderful. How good is it? How close is it to reality?

Omri Barak: So, it works amazing with minor tweaks. Which we already know, like if you have revenue buckets and change it around a bit, or if you introduce events that are unique. If you totally changed events that weren’t on the first model and now are available in the second model, it also works pretty well, because it’s easier to determine that the old events are no longer relevant in any way.

So we do support these two kinds of very separate use cases. And we know they work well. So if you want to get new events, it’s easy, because it’s pretty simple to figure out that they are no way related to the first event. And minor tweaks in revenue, which mean a lot in Singular from Singular perspective, because minor tweaks in revenue mean better one-day revenue and even seven-day predicted revenue because of how our algorithms work, and we expect them not to affect network optimization by much.

John Koetsier: Super interesting and super cool. Look forward to that. Ultimately, the goal is with this and also with Privacy Sandbox which is even more complicated, let’s put it that way, and coming pretty soon, the goal for this is, hey, run your campaigns. Be a marketer. Figure out your growth. We’ll take care of the details. And so that’s a step towards that happy future and hopefully that works out perfectly well. Is that available right now? Is that shipped?

Omri Barak: Yeah, it is. It is live for all our clients. Anybody who has a SKAN 3 campaign can update it to SKAN 4 with no pause. And if you already have a SKAN 4 campaign but you’re not totally happy with it or want to tweak it, now’s the time you can do it with no penalty charges.

John Koetsier: And just so everybody is clear, you can update to your SKAN 4 model. It doesn’t change anything. You don’t miss any data if your partner’s just doing SKAN 3. You actually get more data when they start using SKAN 4, correct?

Omri Barak: True. So, in Singular we enter to have our clients’ back here while most networks are still on SKAN 3, we allow a SKAN 3 compatibility mode in Singular and that allows clients that want to just test out SKAN 4, just want to have coarse conversion values, want to get P2 and P3 to figure it out, or are working with a majority of SKAN3 networks and don’t want to hurt optimization and reporting on their side, we allow a compatibility mode. 

What we do in Singular to support it, and I won’t get into the math here because I always lose everybody when I do, basically what we do is we stop encoding new values after the first 24 hours. So, right, in case of SKAN 4 you’re missing out on some of the measurement or anything that happens between 24 and 48 hours, but actually this allows SKAN 3 and SKAN 4 to achieve the same information and conversion values, and still won’t interfere with current network optimization that is built over SKAN 3.

John Koetsier: And still allows for postback 2 and postback 3 later on. 

Omri Barak: Yeah. 

John Koetsier: Perfect. Perfect. And gives you parity between those two measurement models. So you can see, hey, what am I seeing? What am I getting? Because with SKAN 4, even if you stop the first postback period, lock it after 24 hours, there’s additional data that you can get, source identifier data, if you match, if you have enough volume to overcome the privacy thresholds or crowd anonymity, which is a SKAN 4 term for that. 

Very cool. What else is new in SKAN for Singular? You’ve got model revenue, you got SKAN cohorts, you’ve got some Google conversion API stuff. What else is new?

Omri Barak: So one of the very cool things that we recently did in Singular is we improved our P1, our first postback kind of reporting works for SKAN 3 and SKAN 4 as well to have better indication of what is the actual revenue generated by each postback.

Let’s think of a kind of a simple example. Let’s say you have a revenue bucket configured in your model and it’s between $2 and $3. So, a naive approach would be to say, Okay, so each time I get this postback value, I’ll treat it as like two and a half dollars and it’s the middle of the bucket. But my app only has a gem package of $2.99. So every time I actually get this postback it’s not equal, like two and a half. It’s $2.99. And then I’m actually under reporting. Singular, or anybody who wants to decode this, naively, would under report your revenue. 

In order to tackle that, what we do in Singular is we actually count the actual revenue for each user that reached a certain conversion value. That way, we can kind of group by or cohort users based on the conversion value they reached. So if all your users that reached conversion value 2 actually spent $2.99, we’ll be able to correctly report and map those users to that conversion value. And it leads to much [more] accurate reporting and that might be like on the nose example, but we can see it across the board.

So, a lot of times if revenue buckets are too big or are not well suited for my specific app, we would revenue reporting fluctuating. And now all our clients have much more accurate reporting for Day 1, and it fits well into our kind of overall scheme of bringing back cohorts to the SKAN world. So, one of the biggest challenges of SKAN reporting is that Apple took cohort revenue away from us. 

And now Singular has already released, the first step was releasing Day 7, and that’s a major, major jump. Now we have accurate Day 1, and now we’re working on bridging up the gap between Day 2, Day 3.

There’s a lot more data science and we want to pull in P2 and P3 to get better reporting. So now when SKAN 4 kind of lifts off we’ll have much more signals for longer cohorts, so we can do Day 7 now. Using postback 2 would be amazing. We’ll get much more accurate data and Day 35 will also be built over P2 and P3. Which is amazing, because we’re basically bringing back cohorts.

John Koetsier: Very cool. Is it also the case that when you’re reporting something that you’ve used some data science to figure out, you’re reporting it as, we think it’s here, but here’s the range it could fall within and here’s the probability?

Omri Barak: Yeah. So we do have range because it’s statistical modeling. The more accurate or the better model you choose that is a good indicator for revenue, the better. If you choose events that have no correlation to revenue, it’s a challenge to do what we’re trying to do. Obviously revenue is the best, has the best correlation for revenue.

But if you don’t get revenue on the first, second day, we know it’s a challenge, especially around non-gaming or non-casual gaming. If you use well enough defined events, like a subscription started, even if the subscription doesn’t end or you don’t see revenue on the first seven days — or first two, obviously, and even not for seven — it might be a good enough indicator to how much revenue is generated by these users.

Any engagement can be a good indicator. And that’s one of the cool things in our new kind of approach in order to see revenue, or Day 1 revenue or Day 7 revenue in Singular, you don’t need to have revenue encoded into your SKAN model. So if you choose different events that might have a longer effect, or you want to optimize networks to optimize towards those events, you’ll still see the revenue generated by those users in Singular. So it’s the best of both worlds.

John Koetsier: Wonderful. And what’s the deal with the Google conversion API?

Omri Barak: So, that’s amazing news. Google has been late to the SKAN game, very late. It’s the first time they’re optimizing over models that are supplied by a third party or MMP in this scenario.

And they released an API where Singular is able to update the model configured in Singular. This means that Google can now optimize, not only toward specific, like higher conversion values better, but actually towards specific events or ROAS campaigns. And the good news for Singular users is that it’s out of the box, like you don’t need to do anything.

You set up a model in Singular. Singular ships it over to Google, and that’s it. Now you can start your campaign and then run it. The bad news is… that they only support SKAN 3 for now. 

John Koetsier: Which is not really a problem at least for a couple months.

Omri Barak: Not really a problem. And even if you have a SKAN 4 model in Singular, we’ll send it over to Google as if it was a SKAN 3. Don’t worry about it. In Singular, you don’t need to worry if you have a SKAN 3 or SKAN 4 model, we are fully compatible and in every which way. And things work, out of the box.

John Koetsier: It just works. I kind of remember that from another company, maybe a fruit company, I’m not sure. Anything else? Tease us a little bit. What can we expect over the next quarter? Any other goodies?

Omri Barak: We’re working on much more accurate cohorts and longer cohorts. We’re working on better P2 and P3 reporting. We want to show what events and the paid users in each kind of postback time period. We might be working on new models, but that is only in the idea stage. 

But we basically want to always be the leading company in SKAN. That’s our goal and that’s what we’re working on this quarter, like we did last too.

John Koetsier: Wonderful. Well, Omri, thank you for taking this time. I know it’s late for where you are. Also, thank you and your team for uncovering what was actually happening with SKAN 4 and the conversion value reset bug.

If you want the details for that, Omri actually wrote a blog post on the Singular blog. Head on over to Singular, hit the blog and you’ll find his post. It’s one of the recent three or four, you’ll just find it there. Thank you so much for your time and have a wonderful evening.

Omri Barak: Thanks, John.

When will SKAN 4 adoption start growing again?

SKAN 4 adoption is now the lowest it has been since May of this year, almost 4 months ago. After a high of 27% on July 29, SKAN 4 postbacks now make up only 9% of all mobile app install postbacks Singular is measuring. 

What’s going on? 

And when will SKAN 4 adoption start growing again?

skan 4 adoption August 2023

SKAN 4 high water: July 2023

The SKAN 4 high water mark was July 29. Applovin, Meta, Unity and other platforms had just migrated to a significantly larger percentage of SKAN 4 postbacks and I called it the SKAN 4 inflection point:

Since May 9, SKAN 4 adoption has been hovering around the 10% mark. It’s been a phase of testing, analyzing, refactoring, and optimizing for pretty much all the major ad networks and platforms.

But on July 18th, we saw significant movement that has turned into an emerging trend line: the SKAN 4 inflection point. The most recent data indicates we hit 23% SKAN 4 postbacks industry-wide, with no signs of slowing down.

If I’m going to be generous with myself, it was perhaps a SKAN 4 inflection point, but it will not (hopefully) be the SKAN 4 inflection point. As we all know by now, the SKAN 4 CV reset bug, which had probably been hiding in plain sight inside an Apple Search Ads function for months if not years, suddenly became very obvious, resetting SKAN 4’s fine conversion values to zero and coarse conversation values to “none.” The vector for the bug to activate was one of the new capabilities SKAN 4 brought to SKAdNetwork: the ability to decrement conversion values as well as increment them.

The result was catastrophic: loss of attribution signal.

By good luck or skill Singular’s SDK was immune on its own, but third-party SDKs could still decrement values for Singular customers, and other MMPs’ SDKs were not immune.

Back to low water … 9% SKAN 4 (but not for all)

Since most of the biggest platforms have either reverted their migration to SKAN 4 or never began it after hearing about the bug, SKAN 4 adoption is now a third of what it was a month ago. That feels like reverse migration, but of course there is no point sending out postbacks whose payloads will get zeroed out.

The interesting thing is that not all big ad networks have fully reverted their SKAN 4 migration. If you check Singular’s SKAN 4 adoption dashboard by network adoption, you’ll notice a few outliers.

skan 4 adoption by ad network

Unity is still up over 50% SKAN 4 still. AppLovin is very close to 50%. Smadex is at 36% SKAN 4, while Appier and Mintegral are at 26% and 16%. Even Meta, which triggered the inflection point, is still over 11% SKAN 4 postbacks.

There are a number of possible reasons here:

  1. Unlikely
    This is Singular data; Singular is not directly impacted by the SKAN 4 CV reset bug; these networks could be firing more SKAN 4 postbacks for Singular clients than others.
  2. Unlikely
    MMPs impacted by the bug have quickly solved it; other SDKs that were impacted have done so as well, so the networks can keep a higher percentage of SKAN 4 than you might think.
  3. Likely
    Some networks are running measurement, analytics, and optimization on non-SKAN data and are therefore not (solely) relying on SKAN 4 postback payloads to target and tweak.
  4. Likely
    Since everyone except Unity is under 50% SKAN 4, many are using SKAN 3 plus their internal data to improve campaign performance.

So when will SKAN 4 adoption start growing again? When will we have our next SKAN 4 inflection point?

Apple has fixed the SKAN 4 bug already. That’s not the problem.

The problem is that we need the universe of iOS users to update to a newer version of iOS that carries the fixed SKAdNetwork framework code. And that could be from 1 to 3 months.

As we mentioned earlier this month, it took from April through May and June and all the way to July to get iOS 16.5 to nearly 55% of devices. But 2 of those months were to get from 0% to 2.72%. For big changes, Apple takes its time to roll out updates to the hundreds of millions of iOS users. 

From that sub-3% level, however, it was just 1 month to 43.17%. So when Apple’s pretty certain about the quality of a release, it can get hundreds of millions of iPhones updated globally very quickly.

The next big iOS release is iOS 17. (I’m on the public beta, and it’s really good.) Announced at WWDC this year in June, it’s likely to be released in September. That’s not based on insider information, by the way, but history. Here’s a list of previous iOS update release dates in September, via 9TO5Mac:

  • iOS 16: September 12, 2022
  • iOS 15: September 20, 2021
  • iOS 14: September 16, 2020
  • iOS 13: September 19, 2019 
  • iOS 12: September 17, 2018

So, it’s not written in tablets of stone, but we’ll likely see an iOS 17 release in September unless major issues come up. The SKAN 4 fix is already out in iOS 16.6, but not everyone upgrades for point releases. It’s more common for the bulk of the iPhone and iPad fleet to get updated soon after major software releases with new features that Apple customers want to experience.

Which means we should see the SKAN 4 numbers start to go up in late September and through October.
At least, that’s my bet for the next big SKAN 4 inflection point.

Singular starts testing Android Privacy Sandbox

TLDR: Singular is now actively testing Android Privacy Sandbox with partners

The Privacy Sandbox on Android is moving along quickly, and presents an opportunity to change how advertisers will target, measure, attribute, and generally approach marketing efforts on Android in a way that will be more privacy-preserving by design. Singular is preparing for this by investing in reviewing, providing feedback, and testing the various tools Google is offering via the Privacy Sandbox for Android and finding ways to incorporate them into our solutions for marketers.  

In a major development for Singular’s testing, Singular is announcing today that it is kicking off live testing of the Privacy Sandbox Attribution Reporting API with Gameloft, one of the biggest game makers in the industry, and Google Ads.

The Attribution Reporting API is the Privacy Sandbox’s  privacy-preserving marketing measurement and attribution tool that can be used in place of the Google Advertising ID (GAID).

Privacy Sandbox development is moving fast 

Approximately 1% of Android devices currently support the capabilities of the Privacy Sandbox. That’s going to grow over time as Google rolls out the Privacy Sandbox APIs for testing over the coming months.

Although no changes will be made to the GAID at least until the end of 2024, we expect to be running tests of the Privacy Sandbox tools next year, so we’ve started getting ready.  We’re excited to start experimenting early to uncover what works best for us and find the best outcomes.

Over the last year, we’ve worked closely with the Android Privacy Sandbox team to understand the Attribution Reporting API and work towards our implementation. As of now, we’re fully integrated, have run an end-to-end simulation internally, and we’re now ready to kick off our external testing phase with partners. The first milestone in our partner testing was to complete the end-to-end test we’re running with Google Ads to ensure all the connections are working properly before introducing our other beta partner Gameloft. 

End-to-end partner testing

We’ll be testing a full end-to-end advertising campaign measured using the Attribution Reporting API:

  1. Gameloft will be using Singular’s SDK with the Privacy Sandbox enabled in one of their games, and start a live test campaign on Google Ads using the Privacy Sandbox.
  2. Any Android users with Privacy Sandbox-capable devices will be eligible for ads that register the ad engagement using the Attribution Reporting API:
    1. When an Android user views or clicks an ad from this campaign, Google’s AdMob SDK registers the views and clicks (called “sources” in the Privacy Sandbox).
    2. Once the Android user installs the app and starts playing Gameloft’s game, the Singular SDK registers the game activity as conversion events (called “triggers” in the Privacy Sandbox) based on Gameloft’s configured conversion model.
  3. The Attribution Reporting API runs on-device, and attributes triggers to sources for any ad tech platform that initiated the registrations. In this case, that means matching Singular’s registered triggers with Google Ads’ registered sources:
    1. As a result, Singular receives event-level attributions from the device, and uses the Attribution Reporting redirect mechanism to forward them directly to Google Ads in real-time for their optimization and reporting.
    2. In parallel, Singular also receives encrypted aggregatable reports from the device and uses their Aggregation Service implementation to decrypt the batched results and provide Gameloft with granular and deduplicated performance reports across all their media partners.

“Gameloft is excited to partner with Singular and Google Ads on this privacy initiative. We believe that privacy frameworks like Privacy Sandbox on Android are the future of privacy-safe marketing.”

Vasil Georgiev, User Acquisition Team Lead @ Gameloft

What’s coming next

The good news for app publishers is that Singular will be managing all of this complexity for clients, enabling them to focus on their apps and their marketing campaigns.

If you’re a mobile publisher and a Singular client, we’re happy to discuss how you can get involved in testing. 

In addition to beta testing with Gameloft and Google Ads, we’re also collaborating closely with the Privacy Sandbox team, and this test is a big milestone that will help glean insights into what’s working, what’s challenging, and where improvements can be made.

Stay tuned as we’ll be sharing our learnings to provide guidance around how your team can get started and see success with the Privacy Sandbox on Android. 

9 things I learned about growing games from Brain Games VP Itay Milstein

How do you scale a game from zero to hero? And how does the job of growing games change as the game gets bigger and better?

In this Growth Masterminds we chat with Itay Milstein, VP of Growth at Braingames. He’s formerly from Wivo and was head of growth at Huuuge Games. Braingames makes Word Farm Adventure, a fast-growing game that is a mashup of word puzzles and a world-building farm sim. Every game and every app runs into roadblocks when launching and scaling. Milstein talks about how his team is overcoming them.

9 things I learned about growing games

I’m doing a new series on getting your first million users, so I’m hyper-focused on seeking out growth experts’ best strategies right now. (Check out the first one with Hannah Parvaz.)

Here’s a bit of what I learned from Itay:

  1. It’s OK to take a long time
    Almost everyone struggles to launch a mobile game into the stratosphere. That’s good, says Itay Milstein, because you learn your product better.

    “It’s good that it took us a while … we did many iterations again on the product side, on the marketing side, in order to really understand the value and the quality of our product alongside some sophisticated and innovative marketing strategies.”
  2. Everyone struggles with the yin and yang of monetization and churn
    Yes you need to monetize. And yes, many of the things you do to monetize — especially in an ad-driven game — can cause churn.

    “Monetizing better means putting more ads in the game. Yes, that’s super annoying for players,” Milstein says. Part of the struggle is finding the right mix, the right cadence, and the right placement in your game flow and game economy … and that’s something you only learn over time.
  3. Numbers are NOT all that matters
    Yes, numbers are important. CPI, LTV, ROI, ROAS, you name it. But the map is not the territory. At base, your game is about people and what they want.

    “We look at the numbers … but at the end of the day, there are people that download your game like me, like you all over the world,” says Milstein. “It’s the game experience, the first time user experience and then the longer retention user experience that needs to be appealing enough, fun, challenging at the same time for the player.”
  4. You MUST play your own game
    Eat your own dogfood. Understand your product like a customer/user/player. You will never be able to market your app as well as you should if you don’t know it inside and out.

    Milstein: “it’s super important that you play your own game every day and try to be the least biased that you can and understand the pain points and tackle them without any … game developer’s ego. I mean, put that aside, really try to understand that sometimes you’re doing things wrong and you need to fix them fast.”
  5. Building a successful game is a roller coaster
    Sometimes you’re a hero. Sometimes you’re a zero. Don’t get too high or too low over your successes and failures, because what is most predictive of long-term success is sticking with the journey over time.

    “Every day is an adventure,” says Milstein. “At the end of the day, especially startups and gaming startups … it’s a rollercoaster … we had times where we thought that we’re gonna break all records in one day, and we had times when we thought, okay, maybe that’s not the right way.”
  6. Stick to iOS despite ATT
    Yes, it’s harder. Yes, the rules have changed. Yes, you’re getting less data and insight. But you can mitigate that with the right technology, and ultimately: people are still using their iPhones.

    “We are advertising on iOS because at the end of the day, what we’re all always saying internally is that okay, basically Apple took away IDFA, but it doesn’t mean all the people in the world that still have iPhones [went away] … and we still need to find a way to reach them,” says Milstein.
  7. It’s not all about ROAS. CPI does, in fact, really really matter
    Positive ROAS is great: go for it. But positive ROAS with high CPIs over a long LTV is not good if you don’t have unlimited cash to dump into the mobile advertising casino. You must, must, must optimize around low CPIs.

    “I know that everyone is saying, okay, look at ROI … why do you care about CPI?” says Milstein. “That’s not true. We need those lower CPIs in order to recoup faster, to get our payback.”
  8. Creative is your path to lower CPI (and AI can help)
    Better creatives, more interesting creatives, more compelling creatives, more targeted creatives, more converting creatives is your best current path to optimizing for lower CPI. The platforms reward clicks and conversions, so you have win at the first point of attack.

    “We’re working really hard on creatives right now,” says Milstein. “With that AI company …  we’re able to get one, two, three concepts per day, which … I think it multiplies the number of creatives that we’re doing in a week by five or six … that’s a good way to deal with CPIs, working on the creative: different lengths, different concepts.”
  9. Organic is gonna get harder
    Everyone loves organic user acquisition (get 26 insights from 6 experts on organic UA here) but it’s gonna get harder. The benchmark is about 30% organic, Milstein says, but that’s going to go down.

    “Now we have Google Play saying that the store is going to be much more personalized, specific to the individual and not every keyword will activate the same games,” Milstein says. “We see that the organic factor is declining.”

So much more in the full episode

Check out the full show either in video or audio.

Subscribe to Singular’s YouTube and to the audio podcasts to never miss a show. We interview people who are growing games, building apps, running the adtech that the growth industry relies on, and building the privacy solutions that will define growth marketers’ capabilities in the coming years.

And, the full transcript: growing games with Brain Games VP Itay Milstein

John Koetsier: How do you get your first million users? Hello and welcome to Growth Masterminds. 

My name is John Koetsier. I’m starting a new series, as you might know, in Growth Masterminds. It’s about the cold start, your first apps, your first users. It’s about failing. It’s about iterating. It’s about learning. It’s about growing, figuring it out, and starting to scale.

Our guest today is someone who’s been there and done that. 

He’s been the marketing lead at Wevo, head of growth at Huuuge Games, now VP of marketing at Mad Brain Games, who make Word Farm Adventure. It’s a fast growing game that is a mashup of word puzzles and a world building farm sim. 

Welcome, Itay.

Itay Milstein: Hey, John.

It’s great being here.

John Koetsier: How are you? Super good to have you and you know what? Super good that you’re rolling with it. You thought this was the prep session, it’s the actual full on video recording. You’re rolling with it. Awesome. You’re not shy. Tell us about your current game.

Word Farm Adventure

Itay Milstein: Oh, okay. So, Word Farm Adventure is a word casual puzzle game.

It basically has an amazing story about you as a player trying to save the animals from the evil uncle Jack. Save the farm, renovate it, and then progress to many other amazing locations that we have in the game while you’re solving crossword puzzles, challenging your brain, and enjoying a good word game.

John Koetsier: Awesome. Mashups are such a thing right now. Hey, I mean, taking elements of world building, taking elements of word puzzles, and now sims and everything. It’s interesting how that’s such a thing right now.

Itay Milstein: It is. I mean, it started like a few years ago. I think that it’s called the “scapes” part of the game where you have the core game at, in our case, it’s where you solve word puzzles and again, challenging your brain and spending some time trying to get better at it.

But then you earn some shovels, some stars in other games. And you go and there’s another story to the game where you renovate stuff, where you build villas, mall, county fair. That’s super amazing because it gives two dimensions to the game and one of it is for the people who like to challenge your brain and solve puzzles.

And the other part is more design, the artistic side of the game, I would say. So it’s a great combination for players that love to play in both areas.

John Koetsier: Yeah. Yeah. And it’s got the quick hits of fun. It’s also got the building, the long term build which is a kind of neat combination that we see in other places as well.

Now you’re starting to scale right now. Walk us through the journey. It hasn’t been easy.

Growing games = failing a lot

Itay Milstein: No, it hasn’t been easy. I would say that you have to, we failed a lot. So basically Brain Games is a company we exist for. It’s a gaming startup that has existed for I think three years now. We have several games in our portfolio, Word Farm Adventure is our main title.

We’ve been struggling the first two years with the game. When I’m saying struggling, I mean, it took us some time to understand how to monetize better. If I’m talking about business metrics, how to retain our players longer in the game … a lot of iterations on the product itself, a lot of iterations on the marketing strategy.

Until we reach a point where we have I’d say a solid marketing strategy together with the solid product. And we’re now able to run this machine on a higher scale. And I think it’s good that it took us some while to, it took us a while to, to get there. Because we really built it … it wasn’t like an easy success story.

It’s still not, I mean, we have a lot to go. We have a lot of work to do, but I think it’s good that it took us a while. And we did many iterations again on the product side, on the marketing side, in order to really understand the value and the quality of our product alongside some sophisticated and innovative marketing strategies.

Now I think that we are in a very good position. And we feel very comfortable with scaling our marketing budgets. And yeah, we’re doing it at the moment.

John Koetsier: What was one of the core times when you had to iterate, when you learned something, when something wasn’t working and you had to switch and then you fixed it?

Retention vs monetization: it’s hard

Itay Milstein: So I think that one of the main challenges today, not only for Word Farm Adventure, but for gaming companies and game developers in general, is retaining users in the game. It means that today with today’s competition and you have competition like you never had before the amount of games is just growing.

Marketing budgets are increasing significantly. It means that there are more games that are competing for the same amount of players. With that said, we had to understand what value we can give to our players to keep them in the game longer. But at the same time, we also had to understand how we can monetize faster.

Again, talking about business metrics … sometimes those two things are not going smoothly together. 

Cause especially if Word Farm Adventure, which is an ad based game – so it monetizes faster, monetizing better means putting more ads in the game. Yes, that’s super annoying for players. Some players are okay with that, some not, and obviously that’s a big challenge for us. 

How can we still keep the game experience good and solid for the players and not make them churn so fast?

John Koetsier: That’s yeah, hard rock, immovable force, right? You need to retain, you need it to be a great experience, need it to be fun. You need to make some money because otherwise you can’t build it, do it, all that stuff.

And so finding a way to make that work, I found it super interesting that you said that it was good that it was hard because you learned the real value. It’s funny because just my last interview – hasn’t even been published yet … by the time this comes out, it’ll have come out – my last interview was with Hannah Parvaz.

She’s a UA consultant. She’s been everywhere, helps hundreds of apps all over the place. And the first thing that she says is understand your users, understand what they want, understand your customers, what they need, what value you’re providing, what you’re doing. And that’s the core of growth that can last.

And it feels squishy. It feels, I don’t know, consultant-speak or something like that, but it’s real. I mean, that, that is actually what you’re doing. You’re providing experience. And if it’s not the one that somebody is looking for they’re not going to stick around. 

It’s about the people

Itay Milstein: It’s so true.

I mean, at the end of the day, we look at the numbers. And we’re saying, okay, we need to increase the ROI day seven. We need to increase the retention day 30. And we look at the numbers and we treat them like numbers. But at the end of the day, there are people that download your game like me, like you all over the world.

And at the end of the day, it’s the game experience, the first time user experience and then the longer retention user experience. That needs to be appealing enough, fun, challenging at the same time for the player. 

I think every game studio does the same, but it’s super important that you play your own game every day and try to be the least biased that you can and understand the pain points and tackle them without any, you know, I’ll call it like game developers ego. 

I mean, put that aside, really try to understand that sometimes you’re doing things wrong and you need to fix them fast. And we are also super close and paying attention to our players at the end of the day with support teams working around the clock and trying to understand what are the main issues at the moment, because, you know, we’re always releasing new features.

New versions, things can go wrong, the features that you work on may not be at the end of the day what you planned when you draw them on the board. So you need to be on top of things, understand, listen to your users, your players. 

Play your own game

Play the game yourself. I think that is something that once you understand that you can be your own, how can I say it, you can be your own gatekeeper, I don’t know how to say it exactly, but you can prevent things from happening before they happen.

John Koetsier: I want to underline that piece of advice that you just gave, play your own game, play your own game, feel it as somebody out there who downloads it, feels it, right? Oh, this is annoying. Oh, why did they do that? Oh, why is this here? That’s so important. 

And I think that there’s a good chunk of people who don’t play their own games.

And I gotta say that playing mobile games, which is, you know, fun … is also the best way to learn mobile games and what’s good about them and what’s bad about them. And that’s going to give you a lot of insight about growth. I want to ask … you are starting to scale now, but you’ve had to iterate and learn and retrench and figure out and all that stuff …

Did you ever have some doubts along the way? Did you think, are we going to get this? Are we going to solve this? Are we going to figure this out? Is this going to start rolling downhill?

Play the long game when growing games

Itay Milstein: Every day, I mean, I mean, every day is an adventure. Yeah but at the end of the day, especially startup and gaming startup it’s a rollercoaster.

I mean, you know, we started before COVID, I mean, a bit before COVID and COVID was amazing for the gaming industry. I mean, unfortunately for the world, it wasn’t brought for the gaming industry. It was good, so many companies were founded at the COVID basically, many gaming companies, many investors, a lot of investor capital has been invested in the gaming industry.

It means more games, it means more marketing budgets, and at the end of the day, again, I’m going back to competition. With so many games after COVID has ended we took a hit because people went back to reality and gaming in general went down: usage and revenue and everything.

There are so many articles and reports about that. So obviously for a gaming startup that has been experiencing the good covid time and then the bad post covid time bad time it’s a rollercoaster. We had times where we thought that we’re gonna break all records in one day, and we had times when we thought, okay, maybe that’s not the right way.

But that exactly those are the points where you need again, to invent yourself, iterate it sounds like cliche but never give up in a way that you, if you believe in the game and at the end of the day, we do believe in the game.

So you need to keep on going, iterate things and get some successes.

John Koetsier: Love it. So in those successes, and it’s nice to see you have had those days where, wow, where it’s going straight up the graph and the charts looking amazing. That’s incredible. And of course you’re going to have those days where what the heck is happening here.

Hardest part of the cold start

If you look at the journey, starting a new game in this insane competitive environment is super challenging. What’s the hardest part of the cold start? Is it getting your first few hundred users? Is it, what is it?

Itay Milstein: Sometimes it’s individual for the game type that you want to launch.

So as a game developer, again, we have four games. One of them is World Farm Adventure, which we have talked about, but we have three more that we developed and are still developing in house and also when I was Huuuge Games as the head of growth, the growth department basically was responsible for launching new games.

So I’m quite familiar with the challenges of launching new games. And I’d say that the biggest challenge at the end of the day is seeing your idea that you think is going to be like the best in the market because you did the market research and you have the best design team and the art is amazing and the product, I mean, what can go wrong … crashes when you launch the game

And that’s okay. Leave that aside. The fact that you were upset about that. It’s also the amount of time, resources that you invested in developing a game that you see like in one moment that you mean, it’s not one moment. It’s that launch, soft launch, takes a few months.

But if it doesn’t go up, a lot of investment will go into the trash. And the biggest challenge for us is obviously, again you design the game, you build the product, you launch it in marketing, and then you understand that you have a lot of iterations. It’s not magic. 

I don’t know a game that just launched and everything went smoothly and was okay.

John Koetsier: Flappy Bird.

Itay Milstein: Yeah, it’s not … it’s a long way. There’s a long way to go. There’s a lot of changes to do. I mean, from the moment that you launched the game till it’s ready to go to global launch, it could be two, three, four months if you’re lucky … up to one, two years. Yeah, it’s a long way.

Privacy, ATT, and growth

John Koetsier: Growth today is different than it was even two years ago. Device identifiers, IDFA is scarce. GAID is probably going away. It’s going away according to what Google has said. There may be some changes on that. We’ll see how that goes, but it’s going to be different. What’s working for you in the new environment?

Itay Milstein: I mean, things have changed. That’s right. The deprecation of IDFA was a big thing, still a big thing. It doesn’t mean that we’re not advertising on iOS, okay, and that’s important to say. Obviously, the rules of the game have changed. And it’s much more difficult. I would say, to reach your exact target audience.

There are still some ad networks that offer different solutions for advertising on iOS devices. If you’re talking about SKAN specifically, I would say it’s still a big challenge. We are doing SKAN. 

We are advertising on iOS because at the end of the day, what we’re all always saying internally is that okay, basically Apple took away IDFA, but it doesn’t mean all the people in the world that still have iPhone [went away] … and we still need to find a way to reach them. And so I’d say that the rules of the game have changed, but it doesn’t necessarily mean that we’re not, I mean, another advertiser that I know as well, specifically are doing fairly well on iOS.

You just need to try. You need to test your schemas, you need to follow best practices and test. And at the end of the day, I believe we still have [opportunity] … 

By the way, as for us, it’s still not going so smoothly. And, but we know that it’s a market that we must advertise to. So we’re still trying and testing.

If Android would do the same, that would be difficult. That would be difficult because, you know, you still have your safe spot on Android devices. You know how to target. And also for us, again, as an ad revenue based game obviously the mediation part, the ad monetization part is our bread and butter. So when you’re buying users that don’t have your IDFA for them, and also advertisers that advertise in your game, I mean, you’re not able to maximize your eCPA for those users, at the end of the day, because no one knows who they are.

There are issues, but I think that at the end of the day, if you want, and you can, and you have the resources to test IOS, you’ll be there.

John Koetsier: Hopefully those two challenges balance out somewhat. 

You can’t exactly target anymore. So hopefully the price is going down a little bit, although when you get somebody in and they’re seeing ads … people who are buying those ads can’t exactly target either. So there it is going down a little … hopefully that cancels out somewhat. 

Itay Milstein: Hopefully!

John Koetsier: Hope is not a strategy 🙂

Okay, let’s end here. 

How does the growth job evolve as your game matures, you’ve iterated, you’ve learned, you’ve got a core of users, you know what works, you know the value you provide, and you know how to move forward. 

Doesn’t mean the challenges will end, they will continue, the roller coaster will continue, but does the job evolve a little bit?

Itay Milstein: Yeah. I mean, now it’s basically, we’re just getting started, right? Cause we’ve been through a lot. Now the product is good. So all the pressure is on the marketing team, my team. And now the story is about scaling. That’s true. That’s basically our challenge because think about that again, as an ad based game, for example, CPIs – cost per install – is so important for us.

CPI matters even if you’re getting positive ROAS

We really need to keep it on … I know that everyone is saying, okay, but why do you care about CPI? 

That’s not true. We need those lower CPIs in order to recoup faster, to get our payback. I mean. You don’t have to agree to pay super high CPIs. If you insist, if you are building the right strategies, you’re also able to significantly reduce your cost per install.

And the thing that everyone is saying, and that’s true, that if I can invest in the CPI index over the years, you know, buying the user, a player, In 2011, 2012, less than a dollar a paying user in the U.S. Obviously today the numbers are much higher than that. 

So I think that still, yes the increase in competition, increase in marketing budgets, at the end of the day that’s the main reason for CPIs to go up, but with the right creative strategy with putting a lot of attention on CPIs you are able to keep them low. And I’m talking a lot about CPIs because you asked about what you do, like what’s the growth mindset at the moment. So the growth mindset at the moment is to scale, but when you’re scaling the budget significantly – 10 times, 20 times, 30 times – from what you’re spending right now, obviously you expect CPIs to go up. 

That’s our main challenge at the moment. So we’re working really hard on creatives right now.

We just signed on a new partnership with a new, very innovative company that basically creates marketing creatives specifically for gaming using AI only. What we so far did with the internal video editors … that we still love them and they’re still working for us and do an amazing job …

But now with that AI company which I’m not sure if I can tell the name, but I think they’re still under the radar …  we’re able to get one, two, three concepts per day, which … I think it multiplies the number of creatives that we’re doing in a week by five or six, something like that.

So that’s a good way to deal with CPIs, working on the creative: different lengths, different concepts. And that’s our challenge at the moment, growing the game, is growing the game in marketing budgets, growing marketing budgets, it’s CPIs going up, performance going down. That’s not the case.

We’re trying to keep it very low. That’s what we’re doing.

K-factor and organic user acquisition

John Koetsier: Is there any organic component to your growth or are you focusing entirely on paid and maybe are there verticals that work better with organic?

Itay Milstein: John, that’s a good question because it’s just like something that we just discussed about. So from my time at Huuuge Games, it was, I think, almost three years ago, we had a very solid benchmark for what is a K-factor. I would say, like, how much of your daily installs come from organic?

And we had, I think, the benchmark in the industry, it’s around 30% for the benchmark. Yeah, obviously there are games with much more and there are games with less … and now we have Google Play saying that the store is going to be much more personalized, specific to the individual and not every keyword will activate the same games and so on … we see the opposite. 

We see that the organic factor is declining for us at the moment and that’s not so good because at the end of the day, you want to enjoy this organic traffic. But if you look at it from a different perspective and say, okay, I made it with a very low percentage of my installs coming from organic traffic, it means that once I’ll be able to increase that I’ll probably do much better than what I’m doing today. 

So we’ll be very glad if our organic factor will go up than what we have now, but still we are doing well without it. So once it is added, we’ll be in a very good place.

John Koetsier: I think that’s a really smart way to look at it.

And I think that organic is interesting. You can get it when you’re super established and you have a brand and people know you because that snowball starts to roll. As a small company, there’s an opportunity maybe in a niche where you have a super passionate core group that spreads and everything like that, but in between those extremes it’s really challenging.

And that should grow over time.

And honestly, organic won’t save you if you don’t understand your game mechanic and you don’t understand your LTV and you don’t understand your monetization and your retention and all that stuff. In any case, this has been a ton of fun. I’ve really enjoyed having the conversation.

Anything else that you want to share that you’ve learned, maybe recently, that would be helpful for others who are growing to their first million users?

Itay Milstein: Just again, play your game, iterate, try things, and if you believe in it, I believe that that’s the secret sauce for success. We have a long way to go. We still need to grow our game. It’s still a big challenge at the moment. 

But yeah, it was super fun. Thank you for having me, John.

John Koetsier: Thank you so much.

CTV milestone: streaming zooms to a record high, while old-fashioned broadcast & cable falls below 50%

Earlier this year an M&C Saatchi executive told me that ad-supported CTV represented just 18% of TVish video ad spend, while good old-fashioned linear TV was 57%. That probably hasn’t had much time to change yet, but one massive part of the whole streaming TV, connected TV, and OTT world just did. Yesterday Nielsen reported that streaming TV captured a record 38.7% of all TV viewing in July while broadcast and cable TV dropped below 50% for the very first time.

Included in that streaming TV record: sources such as …

  • YouTube
  • Netflix
  • Hulu
  • Prime
  • Disney+
  • Max (formerly HBO Max)
  • Tubi
  • Peacock
  • Roku
  • Paramount+
  • Pluto
streaming media CTV

In fact, the story is stronger than 38.7% for streaming TV.

In an abundance of caution, Nielsen offers a big 11.6% slice of TV labeled “Other.” Look a little deeper, and you find that “Other” includes:

  • Unmeasured video on demand (VOD)
  • Streaming through a cable set top box
  • Audio streaming
  • Gaming
  • Other device use (DVD, Blu-Ray)
  • All other tuning from unmeasured sources

It doesn’t take a massive leap of logic to think that if you add up that VOD and set top box streaming, you’re likely significantly north of 40%.

A caveat on streaming’s big win

There is a caveat on streaming TV’s big win, however. While it is true that linear TV fell below 50% of TVish viewing for the very first time — and it’s true that the trend will continue — linear TV could very well take a temporary U-turn and pop back below that 50% mark over the next few months.

Nielsen explains:

“With kids settled into their summer breaks in July, they continued to have an outsized effect on TV usage. While overall TV usage was up just slightly from June (0.2%), viewing among people under the age of 18 increased 4%, and viewing among adults 18 and older fell 0.3%. These trends resulted in increased streaming and “other” usage, which is  primarily attributed to video game consoles.”

In other words, with kids going back to school in August across much of the United States and in September in Canada, some of that streaming will drop. Plus, July was a slow month for sports: football is not yet on, ice hockey and basketball are off as well, and only soccer is in season.

Still, July 2022 to July 2023 still showed a drop-off.

In July 2022, broadcast TV captured a 21.6% share of TV watching, while cable captured 34.4%. In July 2023, broadcast slumped to 20% and cable dropped to 29.6%. Streaming TV, on the other hand, grew from 31.4% to its highest level yet, 38.7%.

More room for ad campaigns on streaming TV

In April when we asked hundreds of marketers in our CTV-focused webinar about user acquisition on streaming TV and other forms of CTV, 45% said they were already running user acquisition campaigns on CTV platforms. (Note: yes, that’s a biased audience.)

CTV campaigns

Now that old-school TV is less than half the full TV-viewing picture, streaming and CTV and OTT advertising is likely to keep growing. Connected TV ad spend is forecast to be around $39 billion in 2026, but with news like this — and continued focused by streaming platforms on ad-supported tiers of service — that could be an underestimate.

To help you crack the code on maximizing marketing value on CTV, check out this webinar. Or, give us a shout and we’d be happy to chat.

Your first million users: how to rock the cold start, with Hannah Parvaz

How do you get your first million users? Money is definitely part of that equation, but it’s not where you need to start.

The cold start is a major challenge. Not everyone has multiple billion-user networks to kickstart your new Twitter competitor, after all. And while most have some funding, few have the ability to blow millions of dollars on massive ad campaigns. As an extra challenge, early in your app’s lifespan your product is also young, probably incomplete, and likely not as mature and polished as it will be in a year or two.

As all startup founders know, building the plane while flying the plane while also advertising for tickets on the plane is a significant challenge.

Your first million users: start with the real problem

I recently spent the better part of an hour with Hannah Parvaz, a former growth mentor at Google and Business of Apps app marketer of the year. She’s helped dozens of mobile app publishers grow and runs her own agency, Aperture.

It starts with something that sounds very simple and obvious — and it is — but that most of us impatient builders and founders brush past because we assume we know:

“The very first thing that’s important for us to pin down together is understanding our customer and understanding really what the problem is,” says Parvaz.

The challenge is not only that we assume we know (which is always a perfect barrier to learning) but also that there’s so much to build, so much to make, so much to market, so much to manage. The result of all the busy-ness is that some founders refuse to come to grips with actual customer need. But the ones who get “stuck in” to understanding their users, customers, and players are the ones she’s seen win.

Don’t forget the recursive why

Parvaz is a fan of the recursive why.

Except she doesn’t like to use the word “why.”

The recursive why is important because, as one theory says, all of your answers are 5 why’s deep. Our real reasons — and our app users’ real reasons — are often buried under justifications, pat answers, rationalizations, publicly acceptable reasons, or other misleading answers.

That’s one of the lessons of The Mom Test.

“Everyone is accidentally lying to you without them knowing it,” Parvaz says. “It’s an accident; they don’t realize.”

One example: users of the Curio audio journalist app said they used the app because they wanted to learn. A few why’s later, it emerged that what they actually wanted was to be socially interesting and to appear smart. Multiple conversations over months of customer interviews yielded the same finding, resulting in a change of the app’s tagline from “intelligent audio for busy people” to “becoming the most interesting person in the room.”

Keep reading: more in the full transcript about finding your first million users

See the full transcript below with much more insight and more details on key app growth topics to help you find your first million users:

  • 2 forces that increase demand generation
  • 2 forces that reduce conversion
  • Digital drug dealers and little hits of dopamine
  • When to use awareness and when to use direct response ads
  • Starting at the bottom of the funnel
  • Experiments and why even the failed theories are useful
  • When to add an MMP
  • Boosting retention from 20% to 52%
  • When to not advertise (!!)
  • When to start advertising
  • Doing the work that others won’t do
  • Why many app publishers spend 80% of their time on the first 2 minutes of app use … and why you should not
  • North Star metrics
  • The subscription app formula:
    • cadence
    • action
    • revenue
  • Avoiding the churn cycle so many apps are in
  • What to build a brand around
  • The 3 key drivers
    • Acquisition
    • Activation
    • Retention
  • One campaign that went insanely viral
  • One campaign that completely flopped
  • And … how to find your David under the block of marble

But first, subscribe to Growth Masterminds!

Don’t miss this Growth Masterminds episode, or any of the others …

Subscribe to Singular’s YouTube and to the audio podcasts to never miss a show. Recent guests have shared insights on topics like:

  • E-commerce and in-game fraud
  • Alt-UA with Fluent co-founder Matt Conlin
  • Power shifts in the ecosystem with guests like InMobi’s chief business officer Kunal Nagpal
  • Generative AI in games with Unity CEO John Riccitiello
  • Massive games growth with Dive’s Elad Levy (who sold his games company to Playtika)
  • Privacy Sandbox on Android
  • Targeting in the era of privacy
  • Reducing app subscription cancellations
  • And … so … much … more!

 

And now, the full transcript: Hannah Parvaz on getting your first million users.

John Koetsier: How do you rock the cold start? 

Hello and welcome to Growth Masterminds. My name is John Koetsier. 

I’m starting a new series in Growth Masterminds and the Singular blog, it’s Zero to Hero. It’s a startup story. It’s about getting early growth, not just your first hundred or first thousand, but maybe your first million, maybe your first hundred thousand, first 500,000 users.

There are huge challenges, we all know, for really big apps and real big brands to continue to grow, right? But they’re different. They have some resources, they have some brand, they’ve got users or players or customers or whatever they’ve got starting from zero or very small is a different challenge. 

I actually think there’s a lot to learn on both sides of that for the other side, but this series will focus on early stage growth to kick it off. We’ve got an all star. She’s literally an app marketer of the year. Also biz strategy consultant of the year. She’s worked in tons of growth roles and now runs her own growth agency called Aperture.

She’s helping apps grow, helping mobile businesses work. And I noticed speaking all over the world. Her name is Hannah Parvez. 

Welcome to Growth Masterminds, Hannah.

Hannah Parvaz: Thank you so much, John. It’s really nice to be here and I’m really excited to have this conversation with you today. So thank you.

John Koetsier: Awesome.

I love it when people say that … it’s often true too, but it’s late, you’re in London, it’s Thursday night and you’re hanging around in the office to chat. I really do appreciate it. 

https://youtu.be/GSAowSXl5oU

I wanted to start with a little bit of personal stuff because you’re one of the UA consultants that runs your own agency. That’s an exclusive group, right? We talked earlier. You got Thomas Petit. You’ve got Felix Braberg. You got 5, 20 others. There’s not hundreds or thousands of people like you. 

What’s your life like?

Hannah Parvaz: Actually, last year, my life took a big change. I have been living in London for the last 11 years, since 2011.

And last year, actually, I ended up going completely remote for the year. So my life has been a bit atypical over the last year. So I went to a lot of different places. I’ve met a lot of different kinds of interesting people from interesting companies. I was speaking in many different places and countries and cities all over America and Europe.

And at the moment I’ve come back to London just for a couple of months, just to, I mean … the idea was to capture some of the summer, but in a true kind of British style, it’s not been exactly what we were expecting.

John Koetsier: Your summers are probably like San Francisco summers.

Not very good.

Hannah Parvaz: Ah, yes, I saw a heat map of the US recently where it was like 100, 100 and San Francisco was 62.

John Koetsier: Yes, exactly. SF summer is not so great. It’s great in the spring, great in the fall. So working as you have with companies in a head of growth or head of UA role, those sorts of things, and then transitioning to working with 10, 15, 20 companies, maybe at a time, what’s that like?

Hannah Parvaz: Whenever I was working full time in house for my last kind of three or four companies, I had been doing a bunch of coaching and consulting and freelancing on the side. And that was always something that I’ve been doing a lot of. And it was also something that kind of comes with the package.

I wouldn’t have been able to work with a company unless I was also able to do that and had the freedom to do that because. For me, having those additional challenges on the side and being able to work on all of these different problems at the same time was really beneficial for my personal growth.

And so transitioning over to having Aperture and working on this full time, I left my last full time in house company. I disappeared off the face of the earth for a month. And then I came back better and faster and stronger than ever, like ready to go ahead with Aperture. But it did feel very seamless and it did feel like the only possible next step for me after being at my last company.

So it was good. It’s been great.

John Koetsier: I’m always so tempted to take the month off or the three months off or something like that, but I don’t trust myself. I’m not sure if I’ve ever come back. So that’s why I haven’t done that.  

Okay. So somebody comes to you, they’ve got a new app, they’ve got some budget, they have big plans, they want to grow.

What do you do? Where do you start? 

What is the core problem you are solving?

Hannah Parvaz: If they’re right at the beginning of their journey versus, even a bit farther in, I’ve worked with companies at all kinds of stages from being, the second higher and a company’s not even launched yet to joining later or working with kind of larger kind of commercial companies and so on, more corporate styles.

But really the very first thing that’s important for us to pin down together is understanding our customer and understanding really what the problem is. 

Because a lot of the time we’re doing this supply side thinking, we’re thinking about what we want and what we think is the problem and what is so important and what I spend a lot of time talking publicly and also with founders and with other people is just centering the customer and centering what their needs are, as opposed to what you think their needs are. And that’s something this is just the bread and butter for every company, it’s not just for mobile apps, it’s not just for a specific kind of subscription, this is for every business. You should truly understand exactly what your customer wants and needs. And this is my favorite topic, so I’m happy to spend all day on this if you like.

John Koetsier: Nobody wants to do that really. I mean, everybody wants to … 

I got to build something.
I got to make something. 
I have to market something. 
I have to buy a campaign. 

I have to … all that stuff. I’m talking for myself right here, just myself. I mean, this is the sort of thing that you just … it’s hard.

Hannah Parvaz: It really is hard. And a lot of people are very resistant to doing it as well, because it’s really facing what the problem is head on and potentially, you’re potentially …

John Koetsier: Wrong solution.

Hannah Parvaz: Yeah, maybe what I think isn’t correct, I don’t want to have to face that and what I do see time and time again is that it’s the founders that are happy to get stuck in that are the ones that succeed.

And I’ve worked with some founders who are: I’m not going to join these customer conversations … I don’t want to. (I always call these customer conversations, by the way, rather than user interviews, because “user” … it’s obvious we can use this term sometimes internally, but we need to start thinking about them as customers. They’re buying something from us.)

https://youtube.com/shorts/UI61jFl9NeY

And obviously you can have a really great interview, but what we want to do as well is just have a proper conversation and get to the bottom of who they are, what they are.

There’s a theory called the four forces which I’m sure you’re familiar with, but …

The four forces of demand generation

John Koetsier: Tell me about the four forces. I want to know. 

Hannah Parvaz: There are these two demand generation forces, which are pushes and pulls. So what’s pushing you towards the solution and how is the solution pulling you towards it? 

And then there are these two forces which are reducing demand, which are habit. So what am I already doing? And anxiety, what is my fear of what is this product? 

And a lot of the time companies focus a lot on the demand generation, what, how are we pulling people in? How are we marketing ourselves? But they don’t focus enough on those other two. 

And the customer is inside all of these four forces, these, all of these anxieties trying to work out what’s the best solution for them. Where are they? And they’re experiencing all of these. I mean, we’re people, right?

https://youtu.be/3K96zOFZiX0

We’re constantly experiencing emotion. So they’re experiencing all of these forces and emotions at every point of their customer journey. So from being problem unaware to problem aware to, they’re actually now buying and now they’re using it. They’re experiencing and thinking about these things the whole time.

So for us, it’s our job to understand how they’re thinking and how they’re feeling at these different stages of their life cycle.

John Koetsier: You’ve seen hundreds of apps and hundreds of businesses, and you said, this is your favorite thing. 

So I want to ask you a question about it, because I know that in some of the startups that I’ve done, I’m somewhat resistant to that. Maybe somewhat I’m being kind to myself, and I’ve seen that elsewhere and companies that I have advised and consulted with or that worked in.

Speak to that person who wants to go do something, build something, create something and not spend their time on all this kind of squishy stuff that is hard and is not the way they typically think because they’re a creator, they’re a doer, they’re a builder, not this philosophy and all this stuff.

Speak to them of the apps that you’ve worked with, the ones that have been successful. Is there a correlation between their success and their willingness to do this upfront work? 

The Mom Test: everyone is lying to you

Hannah Parvaz: I would say absolutely there is unless somehow you are wise beyond human realms and you can predict all of these things. I speak to a lot of companies, for example, and they, and I ask them, do you talk to your customers?

And the first thing they say is, yeah, I send out surveys, all, I send out a lot of surveys. 

We do this, we send out quarterly surveys and don’t get me wrong. I think surveys are fantastic for some purposes, but if you’re trying to get to the bottom and to get to the real truth, then you’re not going to be able to get that in the survey.

So there’s this really great book called The Mom Test. You might’ve heard of it. It’s about a hundred pages long, so you can read it very quickly or get an audio book and listen to it while you’re on a walk. But the kind of theory behind this book is that everyone is accidentally lying to you without them knowing it.

It’s an accident; they don’t realize. 

For example, I was working with one company. I’ll tell you a story if that’s all right. 

I was working with one company called Curio and this is an audio journalism product. And I was working with them five, six years ago, and whenever we started, they had a tagline, which was “intelligent audio for busy people.”

This was on all of the ads, very kind of functional, great. It’s audio journalism, you’re listening to it. So great. And when I started to talk to people and talk to the customers, I was asking them, how come you’re using this product? And they would say I’m really busy and I want to learn.

And that makes sense: intelligent audio for busy people. 

So then I would ask them. Okay, if you’re so busy, why do you want to learn so much, and if you’re learning … how have you ended up using this? And they say I’m commuting. And so I want to listen, in case I’m standing up, or I want to be walking.

There was a huge kind of commuting use case here. And I want to feel like I’m using my time wisely. 

And I would say, why, but why is that? Why do you not want to just sit on the tube and pick your nose and play Candy Crush? You could be doing anything. 

John Koetsier: I’ve always wanted to do that.

Hannah Parvaz: Easy, the path of least resistance. 

And they would tell me then, but I want to understand the world better. Okay, so now we’re getting somewhere. And so then I would say, why do you want to understand the world better? This is where the gold comes. And so then they would start to tell me stories about … I go around to my mom’s house and she’s married to a new man and he’s a professor and he’s always talking about all this stuff and I have no idea what to talk to him about, so I always seem, I always feel like I’m not very clever.

I want to seem more interesting. 

And again and again, this phrase, I want to seem more interesting. 

And so this is the power of simply talking to customers. And it’s not like I pulled out this theme out of two conversations. It was, I spent, as soon as I joined that company, I spent the first three months with one of my main focuses on talking to customers.

And so then we started experimenting around this messaging, see more interesting, does this seem smarter? Does it seem interesting? Is it interesting? Is it, and we tested out a lot of different messages and we ended up landing, after hundreds of iterations, on “becoming the most interesting person in the room.”

Which is a line of copy you might have seen around, like some of the biggest apps in the industry now are using this same headline after we used it at Curio. 

Because it’s something that really taps into your ego and it’s something that again and again performed, not just in the UK and the US, but in every country that we tried it in, this was effective, and this is why now you’ll see this line which came out of a bunch of different conversations being used all over the place, because it’s just effective, it taps into something in turn in deep inside you.

The 5 whys and the recursive why

John Koetsier: Love it. I absolutely love it. 

Who doesn’t want to be interesting and have people interested in you … it makes a ton of sense. 

One of the things I took from what you said was you’re a recursive why person. You keep asking why. You get an answer and you ask why. 

That can get you punched in the nose sometimes.

Hannah Parvaz: It can, but you just need to do it with a smile. And also I did, I know I said why a few times there, but I actually tried to keep away from the word why itself too. And so I usually would say something like, how come, how come you ended up doing this? 

And this is because the word why actually upsets a lot of people because deep down they feel like they’re a kid being told off. Like, why did you do that? 

And this is something I spent a lot of time looking into as well, just to make sure I was able to have the best and most effective conversations possible. And so I usually keep away from why, even though there’s a theory called the five whys, so all of your answers are five whys deep it’s still good to use some different words instead of being that kid, which is fun as well. And you have to come at these things by building a sense of rapport with the person. 

I always say at the very beginning of any of these conversations, get to know them a little bit first. Don’t just jump in with kind of very extreme technical or personal questions, share something about yourself, if you can, how are you relating to them and making them feel your customers feel human and safe in this conversation.

John Koetsier: Love it. Love it. I’m glad we had a chat before we started recording. 

Hannah Parvaz: Yes, we built some rapport.

John Koetsier: Exactly. No, that’s awesome. 

So we’re going to get to all the hardcore growth stuff. So for everybody who’s listening and saying, okay, I got to ask why, I got to talk to my users, got my customers, my subscribers, all that stuff … we’re going to get to the hardcore questions about what tech and how I start campaigns and do I need an MMP right away and my metrics and all that stuff …

But I got to dive just a little deeper here on this, knowing your customer, knowing your user, is this even the case? 

Let’s say somebody says, I’m building a game, it’s just about fun that is common to 97. 83% of humanity. I don’t need to have these conversations. Are they right? Or are they wrong?

Games and little hits of dopamine

Hannah Parvaz: I would say that it’s still valid and relevant because with your game someone is still trying to do something and trying to achieve something and that might be just feeling dopamine hits.

That might just be feeling again and again I’m completing these levels but that’s why there are so many kind of tricks of the trade that work so well for games, and I think a lot of the time we can learn a lot from how games are produced and how games operate, letting someone experience a win very quickly even though it’s a very easy level, how can we transfer that learning to our apps and to our kind of other products as well?

What are we doing to get people to that kind of activation threshold as quickly as possible, because that’s what games are mastering. And I see a lot of people going from games to out of games now or gambling to out of gambling, because they’ve got so, so good at this. And now they know how to translate for and translate this knowledge across.

John Koetsier: I like those little hits of dopamine. We’re all digital drug dealers, right? Absolutely. Okay, here we go. Let’s dive in. 

That same person comes to you, this new app, some budget, big plans, right? They want to grow. You’ve gone through this process. They’ve identified, okay, this particular person, this segment, that’s who we’re aiming for.

Here’s their challenges, here’s their problems, here’s what we can solve. Here’s what we’re gonna do and here’s how we’re gonna approach it. Okay? 

So now they want to actually. Grow and they’re going to start investing some budget. Where do you kick off? Where do you start?

Levers and metrics

Hannah Parvaz: So once we’ve understood our customers, the problems that we’re solving, what are our levers as well? So what are the key areas that we can focus on? And usually these are going to be something aligned with acquisitions. 

So something like installs, something aligned with activation, something aligned with retention. So we want to be able to establish these and then figure out what’s the first area that we want to impact, really.

And so for a lot of companies to begin with, that might be acquisition. And so we will think about how does your product work? What are the kind of natural acquisition lanes that you have. And so a lot of the time it’s a bit like sorting, you don’t get to choose your lanes, they choose you in a way.

And so if you’re a kind of D2C subscription app, probably you’re going to want to start with doing some advertising. But if you’re a super social viral network effect product, then probably you don’t need to do any advertising to begin with … what we’re going to do is work out how we’re getting people activated as quickly as possible and how we’re making it as shareable as possible.

And of course, we always need to bring in all of these elements into our product. 

It’s just about if you’re a small team, where do you focus first? And it’s about how are we aligning everyone in the business around this main focus? So whether that is activation or acquisition or retention or whichever awareness to begin with.

I would normally probably not be starting with awareness for a very small product because we still want people to come through with my companies. We’re spending 1% of our budget roughly on awareness ads. We’re spending everything else on direct response because we need to get the people in, we need to be able to monetize.

Experimenting, theories, hypotheses

And so after we’ve decided our lanes, then we would start experimenting. Let’s say we’re going to go after a paid ads channel. This is where things start to get a little bit hairy. And so what we want to do is go back to this kind of … what are people trying to achieve and start testing our messaging?

So we’re always going to have some hypotheses. We’re going to have some rough theories about, I think this message will resonate with these people, but also in this kind of post May 2021 world where we’ve got a bit less visibility we want to make sure that what we’re doing and what we’re bidding on is right.

And yes if that’s the route that we’re going down and we’re thinking that we want to have visibility on any of our ads, for example, then we should be implementing an MMP, a mobile measurement partner so that we can see that traffic so that we can post it back and so that we can keep our app a little bit lighter so we don’t have to keep bothering our developers about every new SDK that we want to add in.

Yeah, you want me to continue?

Start at the bottom of the funnel

John Koetsier: Yes, absolutely. But I’m going to interject for half a moment. 

Because what I love about what you said is you didn’t start with, okay, we’re going to buy ads on Meta. We’re going to buy, we’re going to invest in TikTok. We’re going to go and do some programmatic and stuff like that.

It reminds me of when I was chatting with Rory Sutherland, it’s got to be a year ago or so.

Famous … infamous Ogilvy marketing guru, if we want to call it that way. And he said, start at the bottom of the funnel, start at the bottom of the funnel. What’s happening there? What’s happening there?

Work your way back up and you just follow that exact path.

Hannah Parvaz: Exactly, and I, there’s a lot of companies and some of the ones with the fastest growth that I’ve seen are ones that aren’t caving to this, sometimes if you see pressure to just turn the tap on, turn the tap on and see what happens. 

It’s companies that are, maybe they’re spending a little bit of money at the top of the funnel just to get a few people trickling through if they need to, but not spending a lot of time optimizing on it, but then seeing how these people are performing.

3 months on retention: from 20% to 52%

One company that I’ve been working with for the last year, we had started with some acquisition work. We were getting people in, it was performing, but what we were seeing was that our day 30, for example, was like 20%. So we knew that, but with a free product, a free social product, we can increase this.

So what we did was we spent the next kind of three months focusing on retention. How are we increasing our day 30 retention? 

And by the end of that, we got up to 52% day 30 retention, which is very high. 

And then we moved to activation. So we were like, how can we make sure people are going to go do this action, these actions that we need them to do.

And then we fixed this, we did a really great job with that. And then we were in a good place to be able to turn on our paid ads properly and really start putting a lot of people through this funnel. And yeah, it’s been going very well ever since with obviously as a free app as well, you can build in a lot of virtual currency, social viral features, yeah …

John Koetsier: I’m a trillionaire in multiple currencies that don’t matter. 

Slower and harder and longer than you think or want

But I want to draw out something that I’ve heard now twice that you’ve said, and I want to highlight it because I think it’s really important. I’ve worked in Silicon Valley. I spent 3 years commuting into San Francisco every other week.

I’ve worked in startups or assisted or advised or consulted with startups for the better part of, I want to say a decade and a half, maybe two decades. And everybody wants instant, everybody wants results now or tomorrow or this week. And now three times, maybe twice, you’ve said: “I took three months,” right?

And here you just said, I took three months to examine what was happening to users who were in the app and what they were doing and how, and you increased the retention there. 

And earlier you said you took three months largely talking to customers. 

And I just want to bring that out because … yeah, you might have a Threads story and go to 100 million users instantly, (but there’s more to that story because the engagement is dropping, obviously) and you might have a Pokemon Go and you get a billion users, and it just keeps going and going and going, but for most people, the real story, the actual story is slower and harder and more involved and more effort and more knowledge and processing.

That’s a really strong insight for people who are super impatient, like me. To have sink in.

Hannah Parvaz: Yeah, there are 160,000 apps released every month. So there are always these anomalies like Threads, Pokemon Go, which have of course come from these giant companies where there’s been a lot of kind of brand awareness, let’s say, up front, but with companies that are potentially category creating.

I was having a call yesterday with someone who’s doing a product, which is absolutely category creating, no one is doing this yet, there isn’t awareness for these solutions.

Problem unaware vs solution unaware

People are often probably “problem unaware,” but they’re 100% solution unaware because there hasn’t been a solution like this before. 

And so whenever you’re exploring these areas, you need to understand the landscape and actually with the companies where I’ve spent, when I’ve been working internally with them and we’ve spent two, three months working on something … it’s by that kind of time that the founder is like, why is nothing happening? 

But it’s by that time that you’ve understood everything and then you can turn things on and then it works. And so I was working with one company which had been around for two years when I joined. And whenever I joined, they were doing about seven actions, like seven redemptions per week … seven uses per week.

A year and a half later, we were doing 7,000 per week, which is a fairly big increase.

And this is the process. 

You understand your customers, you understand how they operate, what is on their mind, what are they actually trying to achieve? There’s a theory called Jobs To Be Done which is an amazing theory about just what people are actually trying to achieve. So like with the audio journalism company I mentioned before, the functional jobs to be done are, keeping my brain occupied while I’m commuting, making my commute a bit more entertaining.

But an emotional job to be done is I want to seem more interesting. 

And we need to understand the landscape of our users’ mindsets as well as the market and so on. The market’s very important too, but our customers and what they need is really the most important part for our business.

Your superpower: do the work that others won’t do

John Koetsier: And I just wonder that maybe for some of the people who are founders or early stage employees at smaller apps right now, who are listening right now, maybe that can be your superpower. 

Maybe this can be your superpower. 

Do the work that others aren’t willing to do. Do the work that others don’t don’t even know to do.

Do that work before you spend the $500,000 that you raised in seed funding or the $7 million you got in, Series A or something like that, and do that work and get that kind of growth. After you’ve slogged for some time, okay, let’s talk a little bit about metrics. 

What are the metrics that tell you something’s working here?

Metrics madness: Don’t spend 80% of your time optimizing the first 2 minutes of app use

Hannah Parvaz: That, I mean, ultimately at the end of the day, the kind of main metric is how many people are purchasing my product. So that everything starts from there. What’s the lifetime value of someone that’s coming in? 

And I’ve had lots of discussions, especially with developers and data people around … at  one company I worked, we were running a lot of experiments and they were saying the success of every experiment should be measured based on lifetime value …maybe an estimated lifetime value. You can’t necessarily look at that when it’s a week-long experiment, for example. And so ultimately lifetime value is a lifetime value over customer acquisition cost is key.

But also what we want to do is look at our North star metrics. So for the majority of subscription app businesses, I have a handy little formula that everyone can jot down, but it’s for a subscription app business, for example, we want to have a cadence, then an action, and then a revenue associated metric.

And so this looks like something like:

  1. Weekly listening
  2. Subscribers
  3. Journaling

Subscribers, or purchasers or, and so on. And this helps represent you as a business and your needs. So that has the subscriber side. And then you also are representing the customer. So they are coming back. They are getting value from using your product. 

That’s why they keep returning.

And a lot of the time I’ve worked with companies and they’ve said, subscribers is our North star metric. And adding subscribers at all costs means that within those companies, they spend 90% of their time optimizing the first two minutes of the product because 80% to 90% of trials come up within the first two minutes of someone downloading your app.

And then the rest come up later and they long tail out over forever, but the majority of these will come from the first two minutes of someone downloading your app and signing up. 

And time again, I’ve seen companies who are revenue, subscribers at all costs just spending time on there and getting great numbers of trials through but then everyone’s just churning out. People aren’t renewing, people aren’t sticking around because the product itself hasn’t been worked on because they’ve just been … I’m spending money on ads, so I need to get subscribers to pay for my ads to get more subscribers to pay for my ads and they forget about everything else, which is how are the customers feeling and how are they being retained?

Like, how are they receiving value from you? 

You can’t build a brand around building the best funnel

John Koetsier: It’s so interesting because if you take that insight and you bring it back to the very beginning of our conversation, who am I serving? What are their needs? What do they want? What are they trying to avoid? All that stuff. 

If you get that right, then you’re more likely to get this end part right as well and optimize your product and your product experience and your user experience rather than like … your job … your goal in life is not to be the best at getting people through a funnel. 

I mean, that would suck. That would really suck. 

I mean, hey, you’d make a lot of money probably, but would you really be fulfilled? “I make the best funnels.” Okay. Maybe some people think that’s their gig, but maybe you want to make somebody’s life better.

Maybe you want to make them have a little bit of fun. 

Maybe you want to help somebody create better habits or be the most interesting person in the room or something like that. 

Those are things that you can build a brand around. Those are things that you can build a team around. Those are things that people can sign up for as a mission to join your company and maybe stay with your company because it’s meaningful.

It has something to it. 

So if people get that first part they’re more likely to get this part, right? 

Talk to me about when you start knowing that the snowball is rolling downhill. You’ve talked a couple of times about, I took three months to do this, I took three months to do that. We’re doing seven activations a month and now it’s 7,000 …

When do you know that the snowball, which is just sitting there and then maybe moving a tiny little bits in the beginning, is actually starting to go downhill?

Hannah Parvaz: We look at the numbers … so you can’t grow what you don’t measure, so we track everything

John Koetsier: You can’t grow by accident?

Three key drivers: acquisition, activation, retention

Hannah Parvaz: You can, but you don’t know, and so what I would say is obviously we’ve got our North star metrics.

We also have these three little things called key drivers, usually. So these are the metrics I was referring to before, usually acquisition, activation, retention, but there’s usually a real kind of solid metric associated with them. 

So once we start to see that these metrics are reaching our targets then, we can move to another metric or lever to impact. And then, and then hopefully, we started right at the bottom, we’re moving up to the top of the funnel. Once we start seeing that we can put money in and we can start getting that sweet money back, then it’s time to turn that tap on, so with some of the companies I’ve been working with, it has taken six months or so to get them to be able to reach kind of day zero payback with their monetization. 

You’re not going to get a positive ROAS on day one instantly

But we say to everyone at the beginning and most people know, for example, with performance, you’re not going to get a positive ROAS on day one straight away.

It takes a bit of time. It takes learning. It takes experimentation. And so I’ll say the time at which we know that the snowball’s going is when we hear people talking about it, when we don’t understand where the people are coming from as well. I ran one campaign, which you can talk about later last year, which went viral five times.

And it ran for two weeks and by the end of the two weeks, I was walking down the street and I heard someone cycling past talking about the campaign and I was like this is success …

John Koetsier: Wow. Wow. That’s awesome. Let’s transition that because this has been great. I could chat for another half an hour. We have limited time, it’s late for you. And there’s other things on my calendar. I mean, as much as I like to spend all day here, can’t do it, but might have to have you back, there’s so much more we can chat about. 

I wanted to end with just a couple of more lighthearted things. 

One campaign that rocked

One campaign that totally blew it out of the water … absolutely went nuts. Completely rocked in and you already hinted that we’ll hear more hopefully. And then one campaign that you thought would be so awesome, but completely cratered. Go for it.

Hannah Parvaz: Absolutely. So the one that blew us all away was last year, with a company called Uptime, we launched this campaign called Quit Social Media.

And it was a campaign around a study to get people to quit social media for two months, and we would pay them £2,000 pounds to quit social media for two months. And so we promoted this and sent it out as a PR story. We were accepting one person.

And so we sent this out, it got picked up by all kinds of British national press.

Great. we thought, we’ll get a couple thousand applicants. That’ll be enough, it will give us some backlinks. 

So then I had some, an amazing lady on my team. We scripted out a video for her. She read it, and we posted it on TikTok. We put about £10 pounds behind it, very minor amounts. And this was a couple of days in, and we had a kind of Google form, I think, that people were submitting.

And, by this point we had a couple thousand applicants. I was like, sweet. We’ve hit our goals. So we boosted this post and just as I was about to go to bed, I decided to check the applicants and all of a sudden there were about 50,000 applicants and I was like, huh, like Scooby Doo. And I immediately added a question, which was, how did you hear about this … so that we could try and understand. 

And we started to get people coming in and saying, this campaign has caused a controversy in my country. And we started seeing Twitter accounts with millions of followers were posting about it. It was on Sky News Arabia. It was on Newsweek. Anyway, an Instagram page called Puberty posted about it as well, which has … maybe they’ve got 30 million followers, quite a few followers.

We ended the campaign anyway, with a quarter of a million, 250,000 ish applications to take part in the study. And we spent about two grand on the cost of the study, and then a hundred pounds or so on boosting because we did a small boost on TikTok, a small boost on Facebook and a small boost on Instagram.

It was to the extent that with a company called Uptime it was uptime.app, there was another company called uptime.com … Uptime.com were writing to us saying, we’re getting hundreds, we’re getting thousands of support tickets asking how to apply and how do we … we don’t know what to do.

And we were like we didn’t tell them to go, we can’t really do anything about that. And then on one of the last days of the campaign, someone was cycling past me talking about, did you hear about this campaign? You can get paid £2,000 pounds to quit social media. And I was like, this is so funny, it just started out as something small and it just kept growing and growing.

We then managed to, trying, working very closely with the product team the whole time, it’s very important to keep aligned there … we were able to build out specific flows in the app. We built collections around social media. We sent offers to people who were applying, we got tens of thousands of downloads and subscriptions and so on from this campaign as well.

So they really transferred from what was, I hope we get a few backlinks to this is a substantial marker on the company overall from a very kind of silly, small, expectedly small campaign. So that one I’d say really blew up.

John Koetsier: Amazing. Amazing. Amazing. It’s so incredible when something that you do becomes part of the zeitgeist, becomes big like that.

And it probably only happens a few times in most people’s careers. So we love chatting about our children that grew up to be millionaire models, sports heroes, titans of industry, all this stuff. Have you had any redheaded stepchild?

One campaign that flopped

Hannah Parvaz: You’ll know that every person in growth’s whole career is built on things not working, really.

That’s the first thing to know. I’m constantly running, I mean, with one of my companies on my own, I ran over a hundred experiments in one year by myself without thinking about all of the other people in there and all the experiments that they were doing. 

And within that, we had about 45ish percent of them were successful, which means that more than half of them weren’t successful.

But that’s still a great success rate for an experiment. And, one thing that I actually sent out an email to the company about this and said, 55% of these were failures. And someone replied to me this was about five years ago and it changed my mindset a little bit saying, none of these were failures because we learned something from all of them.

So they weren’t failures. Your hypothesis was just not right. And that really helped me reframe things. Even when things aren’t completely right, that’s fine. We learned from it. And so we did recently.

John Koetsier: That’s what you tell the CFO when you spend a million dollars on an ad campaign and it gets you nothing.

“We learned a lot from this.”

Hannah Parvaz: But you know what? If you do accidentally spend a million dollars or you accidentally send out an email to a hundred thousand people, like what do you learn from that? I remember one company where a CRM person accidentally sent out a push notification to the entire user base that just said “dot.”

John Koetsier: Could have been worse, could have been worse, could have said something nasty!

Hannah Parvaz: This was the best open push notification that was ever sent.

And people, we learned like people probably clicked on this ‘cause they had no idea what was going on. They were like, I’m intrigued. And so we had our most kind of active user day ever and things like that. 

But I’d say, a recent one was we spent … with one of our companies we had tried out something with one kind of famous influencer for one product that the company has.

And we were like, cool, it’s working with this one product. So it will work with the other products. So we then sprung for an expensive deal with this creator for the other product … that didn’t work. But you know, we learned that … align this creator with this product, not this one.

And, at the end of the day, everything’s an experiment, so as long as you’re learning from it, I think, and you’re owning it, that’s very important, taking ownership of these things too, and saying, this is why something worked, or why something didn’t work and documenting it, then, I think it’s all good.

John Koetsier: I one hundred percent agree and we can joke about it and I’ve joked about it a little bit here, obviously, but realistically, the biggest failure is always being so scared to try something that you don’t do anything or you don’t try enough because guess what: that one campaign years that blew up, it was probably one of 50 or one of a hundred or something like that.

99 didn’t blow up. 

But if you stopped at 98 and you didn’t do the 99th or the 100th, you wouldn’t have had the massive success. 

You can’t really account for virality. Sometimes you just have an ad that just beats everything else for a year. I’ve heard about that. That’s your hero. That’s your champion ad and you can’t beat it for a year and you get really pissed off about that, but you should also be happy about it because you made something great.

And sometimes you do 50 campaigns that don’t work, but you keep trying and somehow the magic pixie dust of the internet just spreads on it and good things happen.

Hannah Parvaz: Absolutely. You need to just keep to the process. There’s a process there for a reason, like around experimentation, around validation.

And it’s so important to just keep to that process because once you do, and that’s your muscle memory, then that’s where you find the gold, if you want to be chipping away at that block, trying to find your David underneath. Because it is there. You just need to keep on trying …

John Koetsier: love it. Hannah, this has been such a fun 40 minutes longer than I anticipated. Sorry for keeping you longer. I’ve really enjoyed it. I think I’ve learned a ton. I’m really impressed. 

Thank you so much for your time.

Hannah Parvaz: It’s been such a pleasure, John. Thanks for having me. And thanks everybody for watching and listening.