Post-IDFA user acquisition: what I’m seeing and where we’re going

“Everything is supposed to be getting easier!”

I was talking to a mobile marketer the other day and he told me that the overall stream of technological progress is that the complex becomes simple, the hard becomes easy, and the impossible becomes doable. But, he added, there seems to be an opposite flow in mobile marketing and specifically mobile user acquisition.

That’s a little hard to argue with.

iOS 14.5 and the IDFA apocalypse, iOS 15 and Private Relay, plus recent changes from Google in “data-driven attribution” and Facebook deprecating Advanced Mobile Measurement … 2021 has been a year of changes for growth marketers. And guess what: we’re not finished yet. There’s more change coming, more learning, and probably more disruption.

And yet, there are some things I’m seeing (and some things Singular is working on) that might just help reverse that current and bring some simplicity back to mobile measurement.

What we’re seeing post-IDFA

In 2021, everyone is re-evaluating their marketing mix. In general, user acquisition teams are allocating their marketing spend in six different ways:

  1. Flight to quality
    Known good channels with repeated proven success in the past
  2. Owned marketing
    Marketing with first-party data
  3. Organic social
    Social/viral marketing with organic reach
  4. Influencer marketing
    Measurement is hard everywhere? Let’s try influencer marketing, where this has always been an issue
  5. App Store Optimization (ASO)
    CTR is important but CVR is critical: let’s get better at converting the traffic we do get into actual installs
  6. Still fully measurable channels
    There’s a reason Android had a big spend surge right after iOS 14.5 dropped

Add it up and we’re still seeing spend aggregate to major networks, but with lower budgets. More budget is going to the Liftoffs, ironSources, and Unitys of the world where contextual targeting and SKAN both operate. Brand budgets are bigger since performance is harder. Owned and earned media have become more key to success. Cross-promotion between owned apps and partners is growing.

And, of course, there’s a significant shift to mobile web, where you can quickly and cheaply test multiple approaches and where you are operating on first-party data principles.

With the outflow of performance dollars to Android, CPMs rose there. But we also saw clueful and aggressive competitors doubling down on iOS and “getting a discount” on less expensive campaigns.

The IDFA and mobile measurement

The result of iOS 14.5 and App Tracking Transparency is pretty clear: the IDFA is no longer really relevant for performance marketing calculations. It’s still an important resources for deeper insights, but it has lost its place as the primary driver of measurement and truth.

Instead, marketers are turning to three alternatives:

  1. SKAdNetwork
    Even top brands and very good performance marketers have had issues making SKAN work, but once you get it right, SKAdNetwork provides the best source of data on iOS user-acquisition advertising campaigns. It’s simply the future and where you need to invest, including as iOS 15 gets widely adopted.
  2. Web-to-app flows
    Where it works and in certain verticals, we’re seeing significant action in web-to-app flows. Marketing on the web can be much cheaper. It can make you more flexible. It can enable more experimentation. You can deliver more information, and you can collect first-party data before sending someone to the App Store (or Google Play, in the case of Android).
  3. Fingerprinting
    Some marketers are trying to do fingerprinting or probabilistic attribution. We don’t support or recommend this, and we’ve been very clear that it’s not a good solution. It’s only even possible, of course, for non-SANs traffic, so it’s automatically limited to a quarter or so of the UA market. And we think it will get technically harder and harder to do as Apple continues to close the loop on privacy.

Ultimately, marketers need to rely more and more on aggregated data, whether in SKAN, from Facebook, via Tiktok view-through, or some kind of cohort modeling or media mix modeling approach. And especially you need to get good at understanding and using SKAN. We have many examples in our data where marketers who get it achieve impressive growth results with SKAdNetwork.

It does work. It also does, sometimes, need some debugging.

Note:

We can help with that.

Making SKAN performant because … it is the future

Start simple. Ensure you’re set up and integrated right. Build the infrastructure you need on the backend, and make sure your partners are receiving postbacks. Use the reporting you get to establish CPA.

Then evolve.

Use your existing first-party data to analyze what correlates to your high-value users within the first 24 hours. Is it one event? Do you need to mix a few pieces of data together in an SKAdNetwork postback to get more information? We’ve seen just in-app purchase revenue or ad monetization revenue work. As you get more sophisticated, you want to build towards getting a good pLTV prediction within the first day after install. If you can’t now, your app may need some retooling to enable this, particularly in the onboarding phases.

Then implement the conversion models you’ve built with your MMP’s tools. That’s simpler, quicker, and more reliable than reinventing the wheel.

Some of what we see working:

  1. Hyper casual games
    Using ad monetization revenue as the key conversion value can ensure you leverage SKAN really well (and yes, Singular offers that model right out of the box)
  2. Gaming apps
    Focusing on IAPs works extremely well as conversion values
  3. Subscription apps
    Subscription-based apps are more likely to use a number of events or a mix of IAP revenue and events for conversion values
  4. Fintech, services, e-commerce, travel
    Here we see a lot of experimentation with web-to-app funnels

Important: beware of privacy thresholds.

If you don’t hit enough volume per campaign, all your hard work is down the drain. The result is what looks like crazy CPIs for paid acquisition while the blended organic/paid still looks normal. In general, that means at least 30 installs per campaign per day. But because Facebook uses so many of your SKAN campaign IDs for internal tracking, target, and measurement, Facebook recommends 180 installs per campaign per day.

Put simply: unlocking privacy thresholds is the key to get a complete and usable view of your metrics with SKAN.

Ultimately, we see more and more clients being able to use SKAdNetwork and scale with it. Often, they’re big brands which are less likely to go against Apple’s policies and therefore more incentivized to make SKAN work. Bigger companies also clearly have more to benefit from cross-promotion and are more likely to have robust pLTV models in place. And bigger companies are also more familiar with running brand campaigns.

But smaller companies test faster, adapt faster, and can unlock significant growth with few channels, so they have their own advantages.

Making mobile marketing simple again

I’m not sure we can quite achieve this, and I’m not 100% sure we ever had it even when IDFAs were free. But mobile marketing certainly was simpler.

The future is simpler too, but it’s more complex to get there.

That future involves building out varying views of reality and integrating them intelligently into a single source of truth. At Singular, we’re looking at marketing performance from known and aggregated spend data, from deterministic last-click measurement, from probabilistic aggregated results data, from first-party data, and from other sources. All of those have their unique perspective on what is actually happening as marketers market, whether putting dollars to work or investing in organic promotion. Each of them has value.

But then they also need to coalesce into a single source of truth to provide a simpler modeled view of reality.

Sure, marketers need to always be able to dive deeper, to investigate raw data, to analyze assumptions and insights from the various perspectives … but they also need a reliable data-driven way of simply getting a real-time scorecard on their progress.

Everything changes.

That’s the one unchanging constant.

And the marketers I’m talking to understand that and live that. They’re continuing to build, to test, to invest, and they’re continuing to deliver results. And we’re continuing to support them in every way possible.

Traditional MMPs are dead. Welcome to next-generation attribution

“Ask not for whom the bell tolls. It tolls for thee.”
 – John Donne (paraphrase)

There’s a reason the first mobile measurement platform was initially called Mobile App Tracking. Traditional MMPs were built to follow the activity on your phone. Life was very simple:

  • See an ad. UDID
  • Click an ad. Deeplink
  • Install an app. Fingerprint
  • Complete level 3. GAID
  • Buy a power-up to storm the castle and rescue the fairy prince/ess. IDFA
  • Click on a cross-marketed ad and install another app. IDFV

Trackers powered the mobile growth machine by collecting impression, click, install, and conversion data and revealing it to app developers, publishers, and marketers. Now that’s changing. Today with the ongoing deprecation of freely available device IDs and the introduction of advanced privacy regulations and frameworks, that world is disappearing.

Those MMPs that cannot survive in a more complex world of different data from more sources with less certainty will disappear along with it.

 

A new world of marketing measurement

While you could trace the new world of marketing measurement in mobile back a decade or more (right back to when Apple and Google dropped hard-coded device IDs and switched to advertising IDs to boost users’ privacy), it really started in earnest in 2019. That’s when Google announced that app installs resulting from iOS search activity would be modeled, not granular, and … not shared with third-party measurement tools. Now, to give marketers an accurate picture of what they were actually achieving we had to blend data from multiple sources to provide a holistic view of performance.

This spring iOS 14.5 turned the dial to 11, of course.

IDFA is now scarce, and while SKAdNetwork returns deterministic data about installs and conversions, none of it is tied to a device or person. Plus, while Android still offers an advertising identifier, the GAID, we see Google experimenting with FloC and other privacy-centric technologies that likely foreshadow additional changes and increased fragmentation of marketing data and best practices between the major mobile operating systems.

This comes close to eliminating the traditional role of the MMP.

Suddenly, a mobile measurement company must be more than a simple tracker to be useful to marketers.

If you are just an MMP, you see ad impressions. You measure clicks. You keep track of app installs. You cross-reference those with clicks and perform attribution. You get post-install events and calculate ROI and ROAS. As we all know, this is exactly the functionality that is being increasingly limited.

But it’s important to remember something critical:

This has always been only one chapter in a much larger story.

 

Looking at the bigger picture

For traditional MMPs, app installs happen by magic. They are created ex nihilo … one moment there’s nothing and the next POOF … a click, an install, and maybe a conversion.

That is not how a marketer sees app installs, however.

A marketer selects an audience, makes a campaign, designs creatives, chooses channels, picks partners. When the marketer gets a click, it’s not a surprise. An install is not a happy coincidence generated by random variables. A conversion doesn’t magically show up out of the blue. They happen as a result of all that planning … which a traditional MMP has zero visibility into.

Among the marketing measurement companies commonly referred to as MMPs, Singular is the only player with insight into all the key chapters of that growth story. And unlike other MMPs out there, Singular is well-positioned to help marketers optimize for growth at every stage of the journey … whether it’s mobile-centric, web-enabled, or multi-platform.

That’s because our goal has always been to connect as many data sources as possible: upper funnel and lower funnel, across channels and devices, campaign data and results, costs and ROI, bids and budgets … should I go on?

And, of course, our goal has always been to combine that data in interesting ways. The consequence is that Singular provides insights traditional MMPs can only dream of.

Want visibility into your creative performance? You’re going to need upper funnel data: campaigns, creative, impressions, clicks. Want to make them most effective for analysis? You’re going to need to combine that with lower funnel data: installs, actions, engagement, conversions. Want incrementality? You need every data source and piece of metadata, you need normalization and standardization, you need upper and lower funnel. Want cross-platform and cross-device? You need web as well as mobile.

This new reality is much more complex than the old one. It requires many different data sources.

If you’re merely a mobile SDK, you only see a fraction of the activity.

What you need is an MMP with a complete marketing data infrastructure — beyond just a mobile tracker — to empower growth marketers to see the entire marketing picture, get the full growth story, and capture the kind of advertising insights you need to optimize. You need tools that futureproof your efforts for a vastly changed (and continually changing) marketing ecosystem.

 

Different marketers have different needs

Singular isn’t the solution for everyone, and the next-generation attribution we’re building won’t fit every marketer’s need. But it is built for two specific types of marketers.

1) Mobile-first marketers: app is the majority of your product
Clearly, an MMP-style solution has typically been the solution of choice for mobile-first app marketers.

As an official MMP, this has always been a key part of our offering. However, we built it as a component of a complete mobile marketing infrastructure: collecting additional data sets and integrating directly with your internal systems.

Now more and more mobile-first growth marketers are seeing the benefits of this broader solution.

Non-MMPs can’t help: they can’t measure what you need to optimize. Traditional MMPs understand your business, but their hands are tied behind their backs in a changing world with less deterministic device identifier-based data. This marketers needs more than what a traditional MMP can offer: need extended visibility from data that can never be taken away … and security that comes with knowing you are protected as future change occurs.

In this emerging reality with Singular’s breadth of data sources and out-of-the-box cross-platform attribution, app marketers can own a full solution in one product.

2) Omnichannel marketers: app is part of your overall solution
Brand marketers in CPG or fintech or travel or other verticals have different challenges.

You need mobile measurement that only a traditional MMP can provide, but you probably also need additional tools, perhaps web-native and desktop, perhaps marketing clouds and CRM, to feed, run, manage and measure other components of your marketing activities.

There isn’t one solution that gives you everything, but Singular not only provides marketing measurement for mobile but also for web, or email, or anything else digital, and provides tools that neither traditional MMPs nor web-native marketing platforms can offer. And, of course, Singular integrates well into your suite of growth management tools.

 

Next-gen measurement: reinventing simplicity in an era of increasing complexity

What worked for traditional MMPs was simplicity: assigning attribution based on the last click, checking source apps and channels, viewing campaign ROI, generating insights about what to stop, what to start, and what to scale. In our past mobile marketing reality, this was not difficult.

That reality is changing.

And that level of simplicity is increasingly just not an option for marketers anymore.

Now you need all the data you can get. It comes in differing levels of granularity. It comes in multiple datasets from multiple partners. It includes campaign data like creatives, bids, and budgets. It combines attribution data like outcomes, installs, sales, conversions, achievements. It’s from the web. It’s from mobile. It’s SKAdNetwork, and it’s IDFA and GAID. Now you have to combine these data sets for both deterministic outcomes and probabilistic correlations to positive outcomes. Media mix modeling and incrementality are both paths to the same thing: understanding what builds value and generates desired action.

Singular is in the best possible position to help app and brand marketers achieve this. We’re the global experts in bringing it all together and making it fit. And we’d love to show you how we make the complex simple.

 

Talk with us

Interested in learning more about how you can futureproof your marketing growth with next-gen analytics and attribution?

Let us know. We’ll be in touch.