Today’s guest is none other than Eric Seufert, author of Freemium Economics and editor of the popular mobile blog Mobile Dev Memo. This is the exact interview from our very first virtual summit in 2018 where Eric shares why there’s a shift to programmatic targeting, the types of apps in the top grossing charts and what types of games can adopt a subscription-based model.
The Shift to Programmatic Targeting
A few years back, the ability to deploy money was scaled linearly with the team. With UAC and programmatic targeting, you don’t need a huge team of campaign managers because the process is automated — you can just hand it to Google and Facebook.
The shift to programmatic targeting is overall good. The whole process doesn’t segment countries. It targets everybody giving you as much as data as you need and then you decide where you show your ads because you can do all the analysis on the back end with its machine learning algorithms.
This approach is more about data science and creative experimentation and no longer about rigorous diligent campaign management and optimization.
Apps in the Top Grossing
In 2014 and 2015, most of the apps in the top grossing were games. However, that has since changed. In 2018, the apps in the top grossing were streaming or subscription based like Tinder and Netflix.
There was a transition away from the games dominating the top-grossing. perhaps because the users became more accustomed and more acclimatized to the environment of having subscriptions. Another reason is that big desktop-focused companies shift on mobile and offer subscriptions.
Games that can Adopt a Subscription-Based Model
Most core games and non-casual games can use subscription to monetize from their users. Among the games that are really doing well with subscriptions is Legendary Game of Heroes.