What is cost per order (CPO)?

Cost per order (CPO) is a key performance indicator (KPI) measuring the average total cost to a business of selling and fulfilling a single order. 

This metric takes into consideration all associated costs, from advertising to warehousing to packaging. It’s often used in eCommerce, retail, and logistics to evaluate how profitable a company is and how efficient its marketing and operations are. Tracking CPO can also guide decisions on pricing. 

A low CPO indicates that your business is achieving sales at a relatively low cost, which often translates to healthy profit margins. A high CPO may suggest you need to optimize your marketing efforts or cut costs to stay profitable. 

How to calculate cost per order

When calculating CPO, consider both direct and indirect costs to get an accurate picture of the total price of doing business. Here are some costs you should factor in.

Direct costs

• Product costs: The cost of goods sold (COGS), including raw materials and labor.
• Shipping costs: The cost of transporting the product to the customer, including fuel, labor, and equipment.
• Packaging costs: The cost of packaging materials, such as boxes, bags, or wrapping paper.
• Handling costs: The cost of handling and processing the order, including labor and equipment costs.
• Fulfillment costs: The cost of fulfilling the order, including labor, equipment, and supplies.

Indirect costs

• Research and development costs: The cost of developing new products or services, including research, design, and testing expenses.
• Overhead costs: The cost of overhead expenses, such as rent, utilities, and insurance for your business. 
• Marketing and advertising costs: The cost of promoting the product or service, including advertising, marketing, and promotional expenses.
• Order management costs: The cost of managing orders, including software and equipment. 
• Inventory holding costs: The cost of holding inventory, including storage, handling, and maintenance costs.
• Customer service costs: The cost of providing customer service, including phone, email, and chat support.
• Warranty costs: The cost of warranty claims, including labor, parts, and shipping costs.
• Returns processing costs: The cost of processing returns, including labor, shipping, and handling costs.

To calculate your cost per order, you’ll need to add up all these direct and indirect costs and divide the total by the number of orders processed. This will give you a comprehensive picture of how much each order truly costs. 

Cost per order formula

To calculate cost per order, you can use the following formula.

For example, if your total costs for a month are $10,000 and you processed 1,000 orders, your cost per order would be:

Cost per order example

Let’s say you have an online store that sells kitchen gadgets and utensils, and your average order value is $85. You received 300 orders last month and your total monthly expenses were $19,200. When you break down all the associated costs, you can see the granular cost of each order.

Direct costs

• Product cost: $12
• Shipping cost: $5
• Packaging cost: $2
• Handling cost: $2
• Fulfillment cost: $3

Total direct cost: $24

Indirect costs

• Labor cost: $10
• Overhead cost: $5
• Inventory holding cost: $2
• Order management cost: $3
• Customer service cost: $2
• Returns processing cost: $1
• Warranty cost: $1
• Marketing and advertising cost: $5
• Research and development cost: $2
• Administrative cost: $5

Total indirect cost: $40

Total cost per order = ($19,200 / 300) = $64

In this scenario, you can see the business is making a profit: The store earned $6,300 more than it spent in a month. To lower your CPO, and further increase profits, you could look through each line item of cost to find room for savings and try to raise the number of orders. While direct costs multiply with each order, many indirect costs stay flat, bringing the cost per order down with increased sales.  

Advantages of using cost per order

CPO provides a bird’s eye view of your business profitability and the actual cost of selling and fulfilling an order. Overall, using CPO as a key metric helps businesses optimize their operations, improve profitability, and make data-driven decisions to drive growth. Let’s look at the advantages in more detail:

1. Identifies areas for cost reduction

By tracking CPO, you can identify areas to reduce or optimize cost, paving the way for higher profits.

2. Supports data-driven decision making

Using CPO as a KPI enables you to make data-driven decisions about pricing, marketing, and operational strategies.

3. Compare profitability between channels

When you segment out your CPO by marketing or sales channel, you can identify which channels are the most profitable. For instance, some channels may have higher acquisition costs than others and some may have a higher rate of returns.

4. Encourages efficiency and productivity

Understanding your CPO helps you focus on streamlining processes and improving productivity, resulting in lower costs and higher profitability.

5. Helps with budgeting and forecasting

Measuring CPO helps you predict your future costs and revenue, making it easier to create accurate budgets and forecasts.

6. Improve customer lifetime value

When you track CPO, you can identify opportunities to increase the average order value through loyalty programs, upselling, and cross-selling. By focusing on customer needs and satisfaction, you’ll generate repeat orders and referrals, increasing retention and lifetime value. 

7. Improves supply chain optimization

CPO highlights areas where supply chain inefficiencies are impacting profitability, so you can optimize your logistics and inventory management.

Cost per order vs. alternative metrics

CPO is useful in helping you understand costs in relation to sales, but it isn’t the only metric you should look at. Consider these alternative metrics which, alongside CPO, can enhance your understanding of your eCommerce business. 

CPA (cost per acquisition)

CPA measures the cost of acquiring a first-time customer, primarily through marketing and advertising. It’s closely related to CPO because it measures profitability correlated to sales. However, CPO gives a much fuller picture that includes COGS, fulfillment, and repeat purchases.

CPC (cost per click)

CPC is the cost of each individual click on an ad, regardless of whether or not it leads to a purchase. Use CPC to gauge how effective a campaign is at driving interest in a product, or as a bidding strategy for digital advertising.  

CPL (cost per lead)

CPL measures the average cost of generating one lead in your pipeline. For example, if you spend $50 on advertising and generate 10 leads, your CPL would be $5 per lead. This helps you assess how expensive your lead acquisition is and which channels are most cost-effective.

CPS (cost per sale)

CPO and CPS are closely related. CPS measures the total cost of acquiring each order, but does not include direct product costs or shipping and fulfillment costs. This metric tells you more about your marketing efficiency than it does about your operations. 

Tips to reduce your cost per order

Once you know your CPO, it’s time to start optimizing. There are two general strategies for optimizing CPO: lowering costs and increasing orders. Try these seven tactics to accomplish both. 

1. Optimize your marketing efforts

If you’re tracking marketing metrics like CPC and CPL, you can pinpoint which marketing channels are more cost-efficient than others. 

Let’s say you ran paid ads on Facebook, Instagram, and LinkedIn for the same campaign. Facebook cost $1 per click, Instagram cost $1.50 per click, and LinkedIn cost $3.50 per click. You may consider diverting funds from LinkedIn to Facebook and Instagram to optimize your spend, unless you can prove that the LinkedIn clicks resulted in more sales. 

To go a step further, use attribution to understand which marketing campaigns and channels are actually leading to purchases, then increase your investment in them. For instance, you might run a Google Ads campaign for multiple keywords. If your analytics show that the more expensive keywords are resulting in more sales, it’s a good idea to continue running them. 

2. Increase average order value

Consider using personalized product recommendations, upselling, and cross-selling to encourage customers to buy more with each purchase. You can also offer subscription services and free shipping or exclusive discounts to customers who make a purchase above a certain amount. The higher your average order value is, the more you’ll optimize costs like shipping and overhead. 

3. Remarketing campaigns

Remarketing campaigns encourage users to re-engage with a brand or app. You could focus on customers who looked at an app or website but never made a purchase, or customers who once made a purchase and are now inactive. 

These customers are more likely to engage than a person who’s hearing about your product for the first time, making it more cost-effective. Technology like programmatic advertising enables companies to nudge inactive users across multiple touchpoints, like web and mobile. 

4. Process orders faster

Slow order processing can add up to higher costs for a business, like longer warehousing and rush fees for expedited shipping. To avoid this, implement a streamlined order processing system to reduce manual errors and increase efficiency. Invest in staff training, and explore ways to automate tasks such as order processing and inventory management. 

5. Lower shipping costs

Shipping makes up 88% of eCommerce fulfillment costs in the US, so lowering it can make a big impact. Start by negotiating with shipping providers to get better rates for your business, or consider using third-party logistics providers to reduce costs. Use the most cost-effective shipping options for each order.

6. Reduce packaging costs

While packaging represents a smaller proportion of costs, every little bit still counts. Implement a packaging optimization strategy to reduce the amount of packaging used for each order. Consider using refillable or reusable packaging options to reduce waste and save money.

7. Automate tasks wherever possible

Look at automation options to streamline your operations, save time, and reduce cost. Examples of business automation include:

• A customer relationship management (CRM) system and marketing automation software to streamline sales and marketing
• A chatbot for common customer service queries
• An automated inventory management system to track inventory levels, alert you when items are running low, and automatically update your website

Key takeaways

Tracking CPO gives a comprehensive picture of how much each order truly costs your business. With this knowledge, you can identify areas to reduce or optimize costs, paving the way for higher profits.

• A low CPO means your business is achieving sales at a relatively low cost, while a high CPO can be a sign of inefficiencies or high costs.
• To calculate your CPO, add up all the direct and indirect costs of fulfilling one order. Then, divide that by the total number of orders you completed. 
• For a fuller picture of business health, track CPO in conjunction with related metrics, like CPA, CPC, CPL, and CPS. 
• Understanding CPO helps you make data-driven decisions for a more efficient and profitable business. This includes identifying ways to reduce costs, increase customer lifetime value, and optimize marketing channels and logistics. 
• To reduce CPO, look to increase average order value and reduce costs. Strategies include optimizing marketing efforts, increasing average order value, running remarketing campaigns, processing orders faster, lowering shipping costs, reducing packaging costs, and automating tasks wherever possible.

The post Cost per order (CPO) appeared first on AppsFlyer.

AdAttributionKit, introduced at WWDC 2024, is Apple’s new attribution framework designed to enhance user privacy and comply with regulatory standards across various marketplaces. It builds on SKAdNetwork with expanded capabilities, and starting from iOS 17.4 the two systems will coexist.

What is AdAttributionKit?

AdAttributionKit is Apple’s innovative attribution framework designed to enhance user privacy and comply with regulatory standards across various marketplaces, including the Apple App Store. 

Introduced at WWDC 2024 and built on the robust foundation of SKAdNetwork (SKAN), AdAttributionKit offers expanded capabilities and better integration for app attribution.

What can AdAttributionKit do?

One of the key features of AdAttributionKit is its re-engagement capabilities, which allow advertisers to measure conversions from ads clicked by users who have already installed the app. 

This is a significant enhancement for marketers focused on user retention and re-engagement strategies. By consolidating all attributions, AdAttributionKit aims to streamline attribution reporting and improve the accuracy and efficiency of campaign performance analysis.

AdAttributionKit also introduces a new developer mode, simplifying the development and testing processes by providing real-time data and debug information. This makes it quicker and easier to identify and resolve attribution issues, ensuring reliable and accurate attribution mechanisms.

What does this mean for SKAN?

AdAttributionKit will be supported from iOS 17.4 onwards, with some features still in beta and slated for release in iOS 18. This means advertisers and ad networks can start planning to use the new AdAttributionKit capabilities, while still relying on SKAN during the transition phase. The interoperability between the two systems ensures they can co-exist without causing data duplications, with the most recent ad impression taking precedence.

AdAttributionKit retains several key capabilities similar to SKAN, including cryptographically signed postbacks and support for 64 conversion values. These features ensure secure and privacy-centric attribution while allowing advertisers to measure the effectiveness of their campaigns.

Advertisers are being encouraged to adopt AdAttributionKit to benefit from its new capabilities, including expanded marketplace support and enhanced re-engagement tracking. However, there is no immediate pressure to switch, as both frameworks can coexist, and you can keep existing SKAN conversion schemes without creating new measurement strategies. This makes it easier for marketers to adapt and optimize their campaigns effectively.

The post AdAttributionKit appeared first on AppsFlyer.

What is viewability?

Viewability is crucial for you as an advertiser — it determines whether users actually see your ad placements. It’s a metric that measures the likelihood of your ads being noticed by those visiting websites or apps.

Note that viewability is not the same as impressions.

Traditionally, an ad impression is counted whenever an ad is served onto a webpage, regardless of whether the user actually sees it. Think of it like those flyers left on your doorstep — just because they’re there doesn’t mean you’ve read them.

With viewability metrics, you can ensure your ads aren’t just loaded but also seen by users. Viewability is typically measured as a percentage, indicating the portion of ad impressions meeting certain criteria for being considered “viewed.”

So, what are these criteria?

Ad visibility criteria 

According to the Interactive Advertising Bureau (IAB), an ad is considered viewable if it meets the following criteria regarding its visibility on the user’s screen:

• For display ads: At least 50% of the ad’s pixels are in view on the user’s screen for a minimum of one second. This means more than half of the ad must be visible within the specified time frame to count as viewable.
• For video ads: At least 50% of the ad’s pixels are in view on the user’s screen for a minimum of two consecutive seconds, as video ads may need a bit longer to capture the user’s attention.

These criteria ensure you’re paying for ad impressions more likely to be seen. 

By setting minimum viewability thresholds, you can gauge ad placement effectiveness and plan your advertising strategies wisely.

Keep in mind that viewability standards may vary slightly across industries or specific advertising platforms, with different SSPs using different measurements. 

For example, for large-size creatives (display ads sized at 242,500 pixels or more), Xandr and OpenX consider an ad viewed when 30% of the creative is visible for one second. Nonetheless, the IAB’s guidelines are widely accepted as a benchmark for measuring viewability in digital advertising.

How to measure viewability

Measuring viewability involves comparing the number of ad impressions that meet the viewability criteria to the total number of ad impressions measured. 

To calculate viewability, use the following formula:

Let’s break that down:

• Total viewable ad impressions: The number of ad impressions that meet the criteria for being considered “viewed.” These impressions are typically counted based on whether a certain percentage of the ad’s pixels are in view for a specified duration (for example, at least 50% of pixels visible for one second for display ads).
• Total measured ad impressions: The total number of ad impressions that were measured, regardless of whether they met the criteria for viewability.

You multiply by 100 to obtain a percentage. 

Here’s an example to bring it to life:

Suppose you ran an ad campaign and measured 10,000 ad impressions in total. Out of these, let’s say 6,000 ad impressions met the criteria for being viewable.

Here, your ad campaign’s viewability is 60%. This means that 60% of the measured ad impressions were viewable according to the specified criteria.

Measuring visibility benefits both advertisers and publishers

Viewable impressions give you, the advertiser, insights into how well your ads are being seen by users. 

At the same time, they help publishers ensure your ads are displayed correctly to their audience. Here’s how they generally measure it:

1 — Measurement based on ad container

Some measurements focus on the ad container rather than the ad itself. So, if the container meets certain criteria (like having at least 50% of its pixels in view for a set time), the ad is counted as viewable. 

However, this can be tricky because it doesn’t guarantee that users saw your ad. For instance, if your ad is at the bottom of a webpage and a user never scrolls down, they may miss your ad altogether, even if the container is visible.

2 — Measurement based on the ad itself

Other methods focus directly on the ad. They measure if a certain percentage of the ad’s pixels are visible for a set time. This gives a clearer picture of whether users actually see your ad.

Both methods have their pros and cons, but most advertisers like focusing on the ad itself. After all, you want to ensure your ad content is actually seen by users. It’s also useful for publishers, helping them offer high-quality ad placements that benefit both advertisers and their audiences.

Which viewability KPIs should you measure?

1 — Ad calls/Ad requests

Ad calls, also known as ad requests, indicate how many times an ad is displayed on a page during a user’s session. While ad calls don’t guarantee views of your ad, they show the opportunities for impressions.

2 — Average viewable CPM

Average viewable CPM is the average cost for 1,000 viewable impressions (the M stands for mille, which is Latin for thousand). It shows how much you’re paying for impressions actually seen by users, excluding those that weren’t viewed.

3 — Active View

Provided by Google, Active View is a tool that helps publishers measure and report on viewability. It’s native to Google Ad Manager, AdSense, and AdMob.

4 — Burned budget

Burned budget shows how much of your ad spend has been used to buy ads that weren’t seen by your audience — essentially wasted money.

5 — Measurable cost

Measurable cost is the total cost of all ad impressions that were measured. It helps you see how much of your budget went towards impressions you could keep tabs on.

6 — Measurable impression

Measurable impression is the number of ads served that your reporting tool was able to measure. 

Note: Not all impressions can be measured — factors like technical issues, ad blockers, or certain types of ad placements can all prevent measurement. Knowing how many impressions you can measure compared to those served helps you understand how reliable your ad performance data is.

7 — Measurable rate

Measurable rate refers to the percentage of impressions your reporting tool was able to measure, out of the total impressions served.

8 — Viewable CTR

Viewable CTR measures the number of clicks on viewable impressions. It shows the engagement of visitors with viewable ads (ads that were seen).

9 — Viewability rate

Viewability rate is the percentage of impressions that qualify as viewable. It indicates how many impressions were seen by users.

10 — Viewable impression distribution

The viewable impression distribution metric shows the percentage of both measurable and non-measurable impressions that were seen by users. It helps you understand how viewable impressions are spread across your ad campaign, so you can better optimize placements and strategies for better visibility

Why is viewability important?

Tracking viewability is crucial for both advertisers/marketers and publishers.

• From the advertiser’s/marketer’s perspective, viewability ensures ad placements are actually seen by real human users.

Without viewability metrics, you might be paying for ad impressions that are not being viewed, essentially wasting your ad budget. In contrast, when you bid on viewable inventory, you can improve return on ad spend (ROAS) and ensure you’re getting the best possible value for your investment. 

What’s more, viewability allows you to measure ad performance more accurately and optimize campaigns accordingly, leading to higher conversions.

• From the publisher’s perspective, viewability is useful for maximizing ad revenue. 

While some publishers initially feared the shift to viewability-based payments would lose them revenue, others saw the opportunity to position their inventory as premium and command higher bids. With high-viewability ads becoming more important, viewable CPM (vCPM) might replace the old standard, CPM.

Additionally, understanding and tracking ad viewability metrics helps publishers boost their ad revenue. They can offer advertisers better placements, making sure ads are seen by users. This keeps advertisers happy and helps build long-term partnerships.

How to improve your viewability score

1 — Create and offer quality, relevant content

Quality content that resonates with your target audience has a twofold effect: it attracts and engages the viewer.

So, make sure to conduct thorough audience research to better understand your target user’s preferences, pain points, and interests. Additionally, tailor your content to provide value and relevance, whether it’s through informative articles, entertaining videos, or compelling graphics. 

All this encourages users to spend more time on your webpage, leading to boosted ad visibility.

2 — Improve ad position

Aim for prime ad placements that maximize visibility. For instance, Google found that above-the-fold (ATF) video ads have a 73% viewability score on average, compared to 45% for below-the-fold (BTF) ads.

How do you identify the best positions? Conduct A/B tests to identify the most effective ad placements based on user engagement metrics.

You can also consider implementing dynamic ad insertion techniques that optimize ad placement in real-time based on user behavior and content relevance.

Then monitor and adjust your ad positions regularly to capitalize on high-performing placements and improve overall viewability.

3 — Use appropriate ad sizes

Ad size is another factor that directly impacts visibility and engagement.

Larger formats command more attention and have a higher viewability score. Case in point: A 2560 x 1440 video player has a 95% viewability rate, whereas an 854 x 480 player size has an 88% viewability rate. 

However, you must strike a balance between size and user experience.

Avoid oversized ads that detract from content readability or disrupt the user journey. Instead, use ad sizes that complement the web page or app layout and seamlessly integrate with the surrounding content.

A good tip is to conduct usability testing to evaluate the impact of different ad sizes on user experience and adjust accordingly.

4 — Ensure faster loading times

Any website with ads that take longer to load negatively impacts ad viewability. This holds true even if the website itself is fast.

So you should optimize ad creatives and landing pages to minimize loading times across various devices and network conditions.

You can do this by:

• Compressing images, streamlining code, and using caching techniques to reduce latency and improve page load speed.
• Prioritizing lightweight ad formats that load quickly without compromising visual quality.
• Reducing passbacks to decrease the number of ad calls between servers. Fewer ad calls lower page latency and boost ad viewability.

Another effective option is implementing lazy loading for BTF ads. This defers loading non-essential ad content until the user is most likely to see it. No point in implementing lazy loading for ATF banners, as you want them to upload right away for users.

5 — Optimize for different channels and devices

Users see your ads across multiple channels and devices, so it’s crucial to optimize the experience for each one. 

To start, adopt a responsive design approach that renders ads seamlessly across devices, including desktops, smartphones, and tablets. Then customize creatives and formats to suit each platform’s unique characteristics and the user behavior associated with it.

In addition, leverage advanced targeting capabilities. This way, you can deliver personalized ads based on device type, location, demographics, and browsing history.

Finally, continuously monitor cross-channel performance metrics and iterate your performance optimization strategies to enhance viewability across all touchpoints.

6 — Place above-the-fold content strategically

While top-of-page placements may seem prime, they often suffer from “banner blindness” as users habitually scroll past them. 

That’s why we recommend focusing on the “scroll zone,” which refers to the area just below the top. Place your ads strategically within content or at mid-page positions, where users engage more actively, leading to higher viewability rates.

7 — Optimize your header bidding stack

Optimizing your header bidding stack involves strategically managing the order and setup of your header bidding partners. 

The first step? Dig into the details of each seller’s performance data. Look and prioritize for partners who consistently bring in high-quality ad placements that are actually seen by users. 

Next, keep refining your bidding strategy based on what’s happening in real-time. Adjust the prices you’re willing to pay and the order in which you let partners bid to make sure you’re getting the most out of each ad placement.

8 — Use stick ads (when appropriate)

Stick ads, also known as sticky ads or persistent ads, remain fixed in a specific position on the screen as users scroll through content. Like this:

When used correctly, stick ads significantly improve viewability by ensuring your ad remains visible to users for an extended period. 

But take care not to compromise user experience in your quest for maximum viewability. 

Overusing these ads can lead to ad fatigue and user annoyance, ultimately undermining the effectiveness of your advertising strategy. So, test stick ads thoroughly to find out the best timing, position, and length. Make sure they blend well into the user’s journey.

9 — A/B test to improve viewability

A/B testing involves comparing two or more versions of an ad or webpage to determine which one performs better in terms of viewability. 

But the whole process isn’t just about tweaking colors or headlines. It’s also about understanding the best ways to make an impression on your audience. Look at the results to refine your advertising approach and optimize for maximum viewability over time.

When doing A/B tests, analyze the data thoroughly to grasp how users interact with various ad styles, positions, and creative options. Don’t be afraid to try out new ideas to grab and retain users’ attention.

10 — Only refresh ads that pass viewability criteria

Ad refreshing, or ad refresh, is the practice of dynamically reloading ads within a web page or app after a set time to increase impressions. However, this can be a double-edged sword.

While ad refreshing can boost ad numbers, it also makes it tricky to know if people are actually viewing them. To navigate this issue, your best bet is to take a strategic approach.

Only refresh ads that have already met your viewability standards during their first display. This way, you prioritize quality over quantity, ensuring that ad impressions aren’t wasted on placements that aren’t viewed. Instead, you focus on serving ads that have a higher chance of being seen by users.

Challenges for measuring viewability

When you start optimizing viewability, be prepared for the following challenges:

• Ad fraud: Sophisticated fraudulent techniques, like making fake traffic look real (impression laundering) or using bots to fake views (bot traffic), fool the tools that measure ad views. This makes it seem like more people are seeing the ads than they really are, tricking advertisers and publishers.
• Poor ad placement: Ads may end up in less visible areas of a webpage due to factors like page layout or user behavior. This makes it hard to know for sure how many people are actually seeing the ads.

Balancing visibility with user experience: Ensuring ads are visible without compromising user experience demands finesse. Ads that pop up a lot might be seen more, but they could also annoy people.

The future of ad viewability 

Below are some potential developments we believe will shape the future of ad viewability. Let’s check them out,

Cross-platform viewability

Going forward, the focus will be on making ads look good and work well on all screens. This means using designs that adapt to different devices and picking platforms that deliver ads smoothly across screens.

Impact of privacy

With stricter rules and greater awareness around online privacy, companies will have to get people’s consent before tracking them. Consequently, more advertisers will prioritize finding ways to measure ad success that also respect user privacy. 

AI optimization for viewability

AI and advanced machine learning technologies will transform how ads are optimized. Companies will use them to determine who to show ads to and create ads that resonate with audiences. AI will also help place ads where they’re most likely to be seen.

Advanced measurement techniques

As the industry progresses, better and more accurate measurement techniques for ad viewability will emerge. Innovations may include using sophisticated algorithms that can predict if ads will be seen before showing them. These advancements will provide deeper insights into ad performance and facilitate campaign optimization.

Key takeaways

• Viewability measures the likelihood of your ads being seen by users rather than just loaded on a website or app. To count as viewable, an ad needs at least 50% of its pixels to be visible on a user’s screen for a certain time. This ensures advertisers pay for ads more likely to be seen.
• To measure viewability, compare the number of viewable ad impressions to the total measured ad impressions, usually shown as a percentage. 
• Key metrics for viewability focus on how often your ad is displayed and viewed, and how effective your budget spend is. Examples include ad calls, average viewable CPM, measurable rate, and burned budget.
• Advertisers can boost viewability by improving ad position, using the right ad sizes, ensuring faster loading, and optimizing for different devices. Optimizing header bidding, A/B testing, and refreshing ads also help.
• Challenges in optimizing viewability include ad fraud, poor ad placement, and balancing it with user experience. 
• In the future, expect ads to be viewable on all devices, with clearer rules and privacy-friendly measurement methods. AI will make ads more targeted, while better tools will measure how well ads are seen and engaged with.

The post Viewability appeared first on AppsFlyer.

What is last-touch attribution?

Marketing attribution helps you understand how specific touchpoints contribute to a conversion (the user taking a desired action). There are various different models to determine this, but last-touch (or last-click) attribution is one where all the credit is given to the final marketing channel the user engaged with before converting. 

It’s like a game of soccer. After a string of several passes and dribbles, eventually one player shoots the ball and scores. Even when one player might’ve dribbled half the field leading up to the goal, the last player to touch the ball gets the credit for the goal.

How does last-touch attribution differ from other attribution models?

The user journey to downloading an app is rarely straightforward – it can be a winding road of watching a TV ad, seeing a billboard, then engaging with multiple social media posts before installing the app.

Different attribution models give credit to different points along that journey. While last-touch keeps things simple, focusing on only the final interaction, other models have more complex weighting systems to provide a fuller picture.

Whichever model you use, the aim is to understand how your marketing touchpoints contribute to driving conversions. That enables you to allocate resources to the best-performing channels, improving campaign performance and ROI.

Single-touch vs multi-touch attribution 

Single-touch attribution models assign full credit to one touchpoint along the user journey – typically the first or the last touch. 

Multi-touch attribution models are a lot more complicated, assigning different weights to different touchpoints along the journey. Here are the different attribution models and how they stack up against last touch attribution.

First touch 

Also known as first interaction or first click, first-touch attribution gives full credit to the very first touchpoint the customer engages with. This single-touch attribution model helps measure the effectiveness of top-of-funnel campaigns to see how many new leads are entering the marketing pipeline.

Linear

Linear attribution is a multi-touch attribution model that assigns equal weight to every touchpoint along the customer journey. A social media post, TV ad, and remarketing ad would all be given the same credit.

Time decay

Time decay is a multi-touch attribution model that gives more weight to touchpoints closer to the time of conversion. If a purchase cycle takes 30 days, 10% credit will be given to the first few days, 30% to the following two weeks, and 60% for the final week.

U-shaped

U-shaped attribution is a multi-touch attribution model that assigns more weight to first and last touchpoints. Every touchpoint in between gets equal credit. The most common distribution is 40% to the first and last touchpoints respectively, and 20% shared across the middle interactions.

W-shaped

W-shaped attribution is a multi-touch attribution model that assigns the most credit to three touchpoints in the customer journey: first touchpoint, intermediate touchpoint (the one that is most impactful in the consideration and decision stages), and the final touchpoint. 

Advantages of last-touch attribution 

Last-touch attribution is the easiest model to understand and implement. Giving 100% credit to the final touchpoint makes it easy for marketers to laser in on the channels that work best. 

This model looks at the bottom of the funnel to see what’s directly contributing to the conversion, which is effective when evaluating the performance of marketing campaigns with shorter sales cycles. 

Using last-touch attribution also reduces the risk of errors, as it’s so easy to measure. Sales teams tend to be more aligned with last touch as they’re more likely to be contributing to this part of the funnel.

Disadvantages of last-touch attribution 

Simplicity also comes with drawbacks, the main one being that last-touch attribution doesn’t look at the full user journey. As mentioned above, the path from a lead to becoming a customer can include touchpoints across multiple marketing channels – from word of mouth, to social media, and CTV advertising – that all contribute in their own way.

Giving 100% credit to only the last touch can be misleading. Early touchpoints may have more impact than expected, and the lack of depth with last-touch attribution overlooks important variables when looking at the full picture. This can lead to short-term thinking, and overemphasize marketing efforts that may be working now while neglecting the long-term benefits of others.

Who should use last-touch attribution?

Last-touch attribution is particularly effective for high-volume transactions with short sales cycles. This means you’re targeting a large audience that makes purchase decisions quickly. 

Last-touch is also effective if you don’t have the resources to properly set up more complicated attribution models. Complex models like time decay or W-shaped attribution take in-house data scientists and developers to ensure the full marketing funnel is measured accurately. While last-touch may not be the most effective, a good plan today is better than a perfect plan tomorrow.

The future of last-touch attribution

With the growing complexities of data privacy regulations, marketing attribution needs to continually adapt and innovate. Last-touch attribution may not be perfect, but its simplicity likely means it’s here to stay — even as alternative solutions emerge. 

One of these solutions is likely to be artificial intelligence (AI). The ability to process large volumes of data and connect the dots of user behavior mean AI can accurately predict who is more likely to convert. Predictive analytics and modeling can be dynamically adjusted in real-time, attributing different weights depending on the individual user journey. 

Today, last-touch attribution is popular with connected TV (CTV). Whereas traditional TV advertisers had to rely on probabilistic attribution based on Nielsen data, CTV advertisers can send viewers directly to a website or app. This gives them more detailed data and makes last-touch attribution a simple but effective model.

Key takeaways 

• Last-touch attribution is the marketing attribution model that credits 100% of a conversion to the final touchpoint the user engaged with. 
• Unlike more complex multi-touch attribution models, last-touch is simple to set up and easy to understand, making it ideal for marketers focused on channels contributing directly to conversions. This is best for businesses with shorter sales cycles, and those that don’t have the resources for complex measurement.
• The downside of last-touch is that it overlooks the full customer journey, potentially misleading marketers to ignore the positive influence of other marketing touchpoints. Oversimplification can result in missing long-term opportunities.
• Despite its limitations, last-touch will continue to be popular for its simplicity, especially for CTV. However, as data privacy evolves, AI may offer more privacy-compliant ways to measure and attribute conversion accurately, shifting reliance away from last-touch models.

The post Last-touch attribution appeared first on AppsFlyer.

In digital marketing, ad revenue is income generated through online or in-app advertising. 

What is ad revenue?

Ad revenue is income generated through advertising. In the digital marketing world, this advertising may be on the web, through CTV (connected television), or within an app (more on this below). 

For app and website owners looking to make the most of their digital real estate, ad revenue can be a significant source of income. Globally, internet advertising revenue has been climbing steadily in recent years, and the trend is set to continue:  

App ad revenue

In-app ad revenue is an important source of income for apps today, especially when many are free to download. Think of it like the ads you see on traditional TV: You don’t have to pay to watch your favorite show, but the channel makes a profit from the commercials that you view. 

The same goes for apps — with the added benefit of reaching a highly targeted and engaged audience. 

With global in-app advertising expected to reach $352.70 billion in 2024, this is a market that app marketers don’t want to miss out on.

How to calculate ad revenue

The formula for calculating ad revenue is:

To break that down:

• Ad impressions refer to the total number of times an ad is displayed within the app.
• eCPM (effective cost per mille) represents the average revenue earned per 1,000 ad impressions. 

When you multiply the total ad impressions by the eCPM, you can determine the overall ad revenue generated by your app. 

Good ad revenue is considered one that generates a high return on investment (ROI). To achieve that, you need high eCPM, optimized ad placements, diverse ad formulas, and targeted audiences. 

How does ad revenue work? 

Publishers (app or website owners) generate ad revenue by selling digital ad space, known as inventory, to brands that want to get their message in front of a particular audience. 

Here, we’re focusing on the app world — and different apps offer different types of inventory that serve different purposes and goals. 

• Native ads: These ads make an effort to blend seamlessly into the content of an app. The benefit of this method is that it’s less intrusive and matches the look and feel of the app. Think of ads on a Facebook feed that look like regular posts. 
• Display ads: This is a more traditional form of advertising that offers a range of sizes and formats, including static images or interactive media. Banner ads (see below) are a popular example. 
• Video ads: An increasingly popular form of advertising, these ads are engaging and immersive. They can appear at various points in the app user journey.
• Takeover ads: These ads capture a user’s attention by taking over all, or a large portion, of the screen. While they can be effective, takeover ads must be used strategically to avoid disrupting the user experience. 
• Banner ads: A staple of digital advertising, banner ads are typically rectangular ads placed at the bottom, top, or side of a mobile app. 

The rise of programmatic advertising

We mentioned above that publishers sell inventory to brands looking to reach their ideal audience. Today, the majority of those deals are done using programmatic technology. 

Programmatic advertising is the automated buying and selling of ad inventory. It uses real-time bidding and algorithms to match advertisers with the most relevant ad placements. 
This approach allows for in-app bidding, where advertisers can compete in real-time to display their ads. Publishers can use waterfall optimization techniques to prioritize and maximize the revenue they generate from ad inventory.

The benefits of ad revenue 

Ad revenue offers a number of benefits for publishers looking for an easy way to monetize their apps: 

• Simple setup process: Setting up ad placements within your app is generally a straightforward process, so publishers can start earning ad revenue quickly. 
• Generates revenue from otherwise dead space: All apps have unused or under-used areas. Ad placements can turn these “dead spaces” into revenue-generating opportunities.
• Easy to optimize: Optimize ad revenue over time by testing different ad formats, placements, and targeting strategies. 
• Scalable: Ad revenue potential increases over time as an app’s user base grows. 
• Attracts more viewers: Ads can help drive more traffic and engagement to your content, as users are incentivized to interact with the ad-supported experience. 
• Diversifies income streams: It’s always good to have multiple income streams. Adding ad revenue together with other strategies, including in-app purchases and subscriptions, means you don’t have to rely on a single source of revenue. 
• Offers insights into user behavior: By monitoring how users interact with your app, you can better understand your audience and optimize content and monetization strategies.  

The disadvantages of ad revenue

Despite all the advantages, ad revenue does come with a few pitfalls that publishers need to watch out for: 

• Reduced control over what appears on your content: You have less control over the specific advertisements displayed on your app when relying on ad networks to fill ad inventory. 
• Volatility of revenue based on traffic: Ad revenue is directly related to the amount of traffic and engagement an app receives. Fluctuations can lead to a drop in ad revenue.
• Risk of turning off your audience with non-relevant ads: Displaying ads that aren’t relevant or appealing to your audience can negatively impact the user experience and potentially drive users away. 
• Difficulty of striking the right balance: It can be hard to maximize ad revenue while maintaining a positive user experience. With too many in-app ads, customers may become frustrated and therefore less engaged.

How to increase ad revenue

There are a variety of tactics that can help increase ad revenue in apps: 

• Focus on the user experience: Users come to the app for its purpose, not to consume ads. It’s important to make ads relevant and non-intrusive to keep audiences engaged and loyal, which in time can boost ad revenue. 
• Learn about — and experiment with — ad placement: Strategically placing ads in high-visibility areas of an app, and testing the ad placements, can up ad performance significantly. 
• Create original content and update it regularly: By keeping an app up to date and interesting, publishers can attract and retain a loyal audience. This will lead to more ad impressions and higher revenue potential. 
• Optimize the number of ads displayed: Try to find the sweet spot between number of ads and great user experience. 
• Measure performance: Monitor metrics such as eCPM, click-through rates, and overall ad revenue so you can make data-driven optimizations. 
• Diversify ad types and formats: Using a variety of ad types and formats can attract a wider range of advertisers, as well as keeping things interesting for users. 
• Choose the right partners: It’s important to partner with reputable ad networks and platforms that offer competitive rates, advanced targeting capabilities, and reliable fill rates to boost ad revenue. 
• Offer exclusive sponsorships: Gain reliable and potentially higher-value revenue streams by giving sponsorship opportunities to select advertisers. 

Increasing ad revenue with AppsFlyer

AppsFlyer helps you boost your ad revenue through more accurate marketing performance measurement. This improved visibility lets you focus on data to make better decisions together with ad partners, optimizing profits and results for both sides. 

Key takeaways

• Ad revenue is income generated from advertising. In the digital marketing world, this includes ads on web, CTV, and in apps. 
• In-app advertising is an important revenue stream for mobile app developers, offering access to highly engaged, targeted audiences.
• The formula to calculate ad revenue is: Ad revenue = Ad impressions x eCPM. A good ad revenue is one that brings a strong return on your investment.  
• Publishers generate ad revenue by selling ad inventory, which is available in various forms such as native ads, display ads, video ads, takeover ads, and banner ads.
• Programmatic advertising, including in-app bidding and waterfall optimization, is a significant part of the ad revenue landscape.
• Benefits of ad revenue include a simple setup process, monetizing otherwise unused space, scalability, and diversification of income streams. Ads can also increase traffic to your content, while user data and insight helps you optimize your app. 
• Disadvantages include reduced control over ad content, revenue volatility based on traffic, ad blocking, and the challenge of balancing ad revenue with user experience.
• Tactics to increase ad revenue include focusing on the user experience, experimenting with ad placements, creating original content, optimizing ad numbers, measuring performance, and choosing the right partners. AppsFlyer can support you by providing accurate and visible performance data, leading to better decision-making. 

The post Ad revenue  appeared first on AppsFlyer.

What is cost per lead (CPL)?

Cost per lead measures how much it costs a business on average to acquire one lead. A lead is a potential customer, either an individual or a company, who’s taken an action that indicates they’re likely to make a purchase. Typical actions include things like creating an account, requesting information, or adding items to a shopping cart. 

Generally speaking, a lower CPL is considered better than a higher one. 

Why is CPL important? 

Monitoring your CPL helps your business identify which lead generation channels are most cost-effective, and which may need adjustments or a reallocation of resources. If your lead acquisition is too expensive, it might mean that your marketing strategy isn’t effective or that certain channels aren’t worth the investment. 

When you track marketing attribution, you can analyze your channel-specific CPL. This lets you increase your investment in cost-effective marketing channels, while tweaking or discontinuing investment in channels that don’t deliver value.

CPL also helps you budget appropriately for your marketing campaigns. For instance, if your goal is to increase your leads by 50% in a quarter, you can use CPL to estimate how much to increase your marketing budget to reach your goal.

Additionally, you can use CPL to gain insights into other metrics, like cost per sale and customer lifetime value, to assess the health of your business. 

How to calculate CPL

To calculate CPL, first choose the timeframe you want to measure. This is typically by month, quarter, or year. Next, calculate your total marketing spend for the period: this includes ad spend and administrative costs (in-house payroll, consultants, fixed costs, and so on) for marketing and outbound lead development.

Divide this by the number of leads you acquired in this period. You can clean your data to differentiate qualified leads from unqualified leads if you choose. (Qualified leads are those that meet the criteria most likely to result in a sale.) However you define it, this calculation will tell you the average acquisition cost for a lead.

To sum up, the formula for CPL looks like this:

CPL example 1

Let’s say that Company A has one marketer with an annual salary of $80,000. The company spends $40,000 on ad spend and sponsorships, and another $20,000 on other costs like video production. 

If they bring in 2,800 leads in a year, then their CPL averages $50. 

CPL example 2

Here’s a channel-specific CPL example. Company B spent $15,000 on a Google Ads campaign in Q2 and paid a digital marketing agency $3,600 to manage the pay-per-click campaign. As a result, the company gained 620 leads. 

What is a good CPL?

There’s no absolute benchmark for a good CPL, but there are some guides. B2B leads typically cost more to acquire than B2C. A study by Sopro named $100 as an average CPL across industries, but don’t compare yourself too quickly without context. 

To assess your number, you need to consider:

• The type of business you run
• Your industry
• Your lead-to-sales ratio 
• Your customer lifetime value

A CPL should be lower than the value a sale brings into your company, or you’re losing money. For example, a $200 CPL would be too high for a consumer product worth $20, but would be justified for a B2B sale with a customer lifetime value in the thousands of dollars. 

CPL benchmarks by industry

Each industry has different lead acquisition costs. Consider this sampling of industry CPLs from Sopro:

• Education: $40 CPL
• Hospitality: $73 CPL
• Retail: $87 CPL
• Business services: $144 CPL
• SaaS company: $180 CPL
• Healthcare: $386 CPL

CPL benchmarks by marketing channel

Like industries, marketing channels vary wildly by cost and effectiveness. Not every marketing channel is appropriate for every business or industry, but it’s worth exploring cost-effective marketing channels to lower your CPL. 

Least expensive marketing channels:

• Referrals: $25 CPL
• SEO: $35 CPL
• Email marketing: $50 CPL
• Social media marketing: $65 CPL

Most expensive marketing channels:

• PPC: $175 CPL
• Direct mail: $250 CPL
• Cold calling: $300 CPL
• Events and trade shows: $1,000 CPL

CPL vs other metrics

The benefit of measuring your CPL is the insights it gives you into other areas of your marketing performance. These three metrics, while different from CPL, can be paired with it to give a fuller picture. 

CPL vs CPA (Cost per action)

While CPL measures the cost of acquiring potential customers who show interest, cost per action (CPA) calculates the cost of specific actions like purchases or sign-ups. Analyzing both metrics together helps assess your lead quality, optimize campaigns, and determine return on investment (ROI) more effectively.

For example, if CPL is low but CPA is high, it may indicate issues with the conversion process or targeting. You can then make adjustments to improve overall campaign performance. 

CPL vs CPC (Cost per click)

CPC measures the cost your business incurs each time a user clicks on your online ad. This metric is common in PPC and display ad campaigns. Like CPL, CPC helps you analyze your ROI and optimize campaigns.

One difference is that CPC evaluates the effectiveness of ad campaigns in driving traffic, while CPL gives insight into the quality of leads generated from those campaigns. Higher CPC may indicate competitive ad spaces or inefficient targeting, while higher CPL may suggest you need to optimize your lead generation strategies. 

CPL vs CPS (Cost per sale)

Cost per sale measures the total cost of converting a lead into an actual sale or customer. By comparing CPL with the number of leads that convert into sales, you can calculate the conversion rate and assess the effectiveness of your sales process. 

When you identify areas where leads are dropping off or conversion rates are low, you can improve your performance with data-backed decisions. 

How to lower your CPL: Best practices

Lowering your cost per lead takes a sustained effort over time. A smaller CPL can be achieved one of two ways: lowering your marketing spend or increasing your leads. Use the following strategies to improve performance and bring your CPL down. 

1. Targeted audience segmentation

Tailoring your marketing efforts to specific audience segments can significantly reduce CPL. When you advertise to too broad an audience or use the wrong channel, you waste marketing spend on someone outside your ideal buyer persona. By understanding the demographics, behavior, and preferences of your target audience, you can lower your CPL. 

2. Personalized messaging

As you hone in on your ideal buyer with audience segments, deliver personalized messaging for a greater impact. HubSpot found that three-quarters of marketers believe a personalized experience increases sales and the likelihood of a contact becoming a repeat customer.

3. A/B testing

Test different elements of your campaigns such as ad copy, visuals, call-to-action buttons, or landing page layouts to identify what resonates best with your audience. A/B testing lets you make data-driven decisions that optimize performance and drive down CPL over time.

4. Alternative marketing channels

Pay-per-click advertising costs have gone up significantly in recent years – Wordstream found that Google Ads CPL rose 20% in 2023. To avoid the sticker shock of paid ads, explore non-traditional marketing tactics like email marketing, public relations, organic social media, and content marketing to attract inbound leads. 

5. Marketing automation

Marketing automation tools streamline lead generation processes by automating repetitive tasks such as email marketing, lead nurturing, and scoring leads based on their interactions with your content. This not only saves time but also helps lower CPL by targeting high-quality leads more efficiently.

Key takeaways

• CPL, or cost per lead, indicates the average cost to your business of acquiring a new lead (potential customer). 
• Calculate CPL with this simple formula: Total marketing costs / Number of leads = CPL.
• A good CPL varies by industry and channel, but should always be lower than the value a sale brings in. 
• Monitoring CPL helps businesses identify cost-effective lead generation channels, optimize marketing budgets, and gain insights into overall marketing performance and ROI.
• Comparing CPL with cost per action, cost per click, and cost per sale gives a fuller picture of marketing effectiveness, enabling you to optimize campaigns. 
• Strategies such as targeted audience segmentation, personalized messaging, A/B testing, exploring alternative marketing channels, and leveraging marketing automation can help reduce CPL over time.

The post Cost per lead (CPL) appeared first on AppsFlyer.

What are Universal Links?

Universal Links are Apple’s iOS version of deep links, which are unique URLs that direct a user to a specific webpage or a piece of content within an app. If the user doesn’t have the app installed, the Universal Link will send them to the app store to download it. Once it’s installed, they’re directed to the intended section on the app.

What are the differences between Universal Links, app links, and deep links?

Universal Links, app links, and deep links are essentially the same thing, but there are some small differences you should know about. Deep link is the umbrella term for links that direct a user to a website or a destination within an app. Android refers to these links as app links, while on iOS they’re known as Universal Links. 

On a more technical level, there is a difference in URL formats: 

• A deep link uses a custom scheme with a path that defines the action: appname://open-app?name=appname. 

• Universal Links, on the other hand, are still web URLs that open a web page if the app isn’t installed: www.appname.com/app-page. 

This means deep links only work if the app exists, while Universal Links have a fallback to the web page. 

Benefits of Universal Links

The main benefit of Universal Links is improving user experience, which results in higher conversions, retention, and engagement. Let’s take a deeper look at how this works.

Uninterrupted user experience

Making users jump from one app to another is a distracting and disruptive experience. When a user clicks your Universal Link, it will direct them to exactly where they need to be — whether it’s the app store, or a specific piece of content within your app.

Increased retention rates

Universal Links play a key role in bringing users into your app. And once you get them through the door, it’s easier to keep them engaged with personalized recommendations, ongoing deals, and other retention-boosting tactics. 

Let’s say a user clicks on your ad for the latest sneakers. Instead of directing them to the website — where they might get distracted — a Universal Link can direct them to the exact product within your app (stopping off at the app store if they don’t have it installed). 

That’s a positive experience for the user, and a chance for you to showcase the benefits of your app so they keep coming back.   

Boost app conversions

The sooner a user gets to the content they’re looking for, the more likely they are to convert. And Universal Links conveniently remove the friction of users searching for your app in the app store, installing it, and looking for the page they initially planned on visiting. 

And let’s not forget Universal Links are universal – they work across any device or platform, meeting users wherever and however they choose. 

Build a secure user path

Universal Links leave no room for hackers to hijack links or send users to a fraudulent app. Developers are given full control of directing users across different channels in a safe environment.

How to implement Universal Links

As well as all the benefits mentioned above, Universal Links are easy to implement. Here are the steps to start using them in your app:

1. Obtain the app bundle ID and prefix ID.
2. Associate your app and your website. Specify the URLs that your app handles. This is a crucial step to ensure your Universal Links can’t be attacked. Limit available actions to minimize the risk to user data. For example, don’t let the Universal Links delete content or access sensitive information about the user. When testing, use improperly formatted URLs.
3. Update your app delegate to respond when it receives an NSUserActivity object with the activityType set to NSUserActivityTypeBrowsingWeb. Here’s Apple’s documentation for reference.
4. Configure mobile apps to register approved domains.
5. Configure the URI scheme.
6. Test the URI scheme.

Troubleshooting Universal Links

Although they’re simple to implement, there are a few issues you may encounter when setting up Universal Links. 

Apple has set out an 8-step diagnostic procedure to help you figure out what’s going wrong with your Universal Links – this is a good place to start if you run into difficulties. 

We’ve also addressed a couple of common challenges below. 

Blacklisted apps

Universal Links won’t work on any apps blacklisted by Apple. Apps that will always work include Messages, Mail, WhatsApp, Gmail, and Inbox. 

Link wrapping, click measurement, link redirects

One common issue with marketing automation tools is sending Universal Links through an automatic redirect to measure performance. The result is that users are redirected to the web fallback URL instead of the app. This essentially kills the main functionality of Universal Links, affecting marketers who manage paid ads or have click measurement enabled with their email service providers (ESP).

The solution is to work with a deep linking provider that has direct integrations with ESPs and provides attribution measurement.

Measuring for success with Universal Links

While we’ve covered the general advantages of Universal Links, it’s important to see how they’re benefiting your app specifically. Here are a few KPIs you should measure:

Click-through rate (CTR): Measures the percentage of users who click on a Universal link, compared to the total number of users who view it. A high CTR shows the link is relevant and engaging.

Conversion rate: Measures the percentage of users who complete the desired action after clicking the Universal Link. This can be anything that’s important to the success of your app, including making a purchase, signing up for a subscription, or installing the app. 

Retention rate: Measures how many users engage with the app after clicking on the Universal Link. This metric is even more compelling when you measure it against users who did not come from a Universal Link. You may also consider measuring session durations and bounce rates in the process.

To learn more about these and other app marketing metrics, watch our video:

Key takeaways 

• Universal Links are deep links for iOS devices that direct users to specific content within an app or webpage. Users who don’t have the app installed are first directed to the app store, and then onwards to the relevant in-app location. 
• Deep link is the umbrella term for links that redirect users to a specific location. Universal Links are the iOS version, while Android calls them app links. 
• Universal Links can help improve user experience, and in turn boost engagement, retention, and conversion rates while building a secure user path.
• Apple provides guidance to help you implement Universal Links and troubleshoot any problems you may encounter. 
• Tracking metrics like click-through rate, conversion rate, and retention rate provides an insight into the success of your Universal Links.

The post Universal Links appeared first on AppsFlyer.

What are retail media networks?

Retail media networks (RMNs) are a type of ad platform that offers advertisers the ability to reach their target audience on their onsite (or owned) channels as well as across their offsite (or third-party) channels. By running campaigns on retail media networks, brands can collaborate with said networks to build segmented audiences that are tailored to hit their business goals. 

Retailers possess valuable insights into customers’ preferences that can help advertisers tailor their offerings to their needs. This enables them to provide advertisers with access to valuable first-party data that was previously unavailable. From the advertiser’s perspective, this means the opportunity to reach specific consumer groups precisely when they are ready to make purchases and according to their needs.

A gaming brand, for instance, might team up with an electronics store to advance downloads of their app by targeting audiences interested in gaming consoles. Using retail media networks, they can reach these audiences on both their own and third-party channels.

With cookies soon becoming obsolete, retail media offers a reliable way to reach audiences while respecting their privacy. According to the IAB, traditional user acquisition and retention methods may become ineffective. However, leveraging data collaboration platforms with privacy-enhancing technologies ensures business continuity by enabling effective acquisition and retention strategies.

What are the benefits of retail media networks?

Next, let’s dive into the multifaceted benefits for involved parties that make retail media networks a game-changer in modern commerce.

Retailers

• Increase their bottom line: Selling ad space to third-party brands creates an additional revenue source for retailers, diversifying their income. Retail Media Networks allow retailers to directly link advertising expenses to sales, offering a straightforward measure of ROI and improving attribution modeling.
• Monetize first-party data: Leveraging their access to data, retailers can collaborate with brands to build precision targeted audiences.
• Enhanced collaboration: Retail Media Networks promote stronger ties between retailers, advertisers, and customers, creating a collaborative environment for mutual success.

Advertisers (also referred to simply as ‘brands’)

• First-party data access: Advertisers better understand consumer preferences and buying patterns through the valuable insights from RMNs.
• Precision targeting: RMNs empower advertisers to precisely target specific consumer groups, enhancing the effectiveness and engagement of their campaigns.
• Adaptability without cookies: As third-party cookies diminish, RMNs provide advertisers with an alternative targeting approach, maintaining efficiency in reaching their audience.
• Comprehensive reporting: Advertisers receive comprehensive feedback on the entire advertising cycle, from impression to purchase. This enables ongoing enhancement of campaign strategies through closed-loop reporting.

Customers

• Improved shopping experiences: RMNs contribute to an improved shopping experience by presenting customers with relevant and personalized ads, helping them make informed purchasing decisions.

How does a retail media network work?

Retail media networks provide a powerful avenue for brands to reach their target audience effectively. 

By using this type of digital advertising, retailers and brands are able to provide consumers with a better and more relevant purchasing experience. 

Here’s how a retail media network works.

1 — Leveraging first-party data

At the heart of the retail media network is the retailer’s first-party data, gathered from past customer purchases. This valuable information serves as the foundation for tailored advertising campaigns.

Retailers offer brands the chance to leverage this data to create highly targeted campaigns for their products, thereby improving sales.

2 — Diverse digital channels

Brands gain a platform to advertise across a wide range of channels. This includes the retailer’s onsite channels, such as their own websites and apps, as well as their offsite channels, which includes third-party media channels, such as the ad networks that the retailers themselves advertise on. 

3 — Varied ad products

Advertisers can choose from a range of ad products within the retail media network. These include, among others: 

• Display ads
• Sponsored products
• Sponsored brands
• Search ads
• Email ads
• In-app/in-store ads
• CTV ads

…and the list goes on

The flexibility of these formats allows brands to customize campaigns to meet specific marketing goals.

4 — Business model evolution

Retail media networks offer retailers the opportunity to evolve their traditional business model. By adding digital advertising revenue streams, retailers can strengthen both their top and bottom lines. 

This shift is particularly attractive as ad businesses typically boast higher margins compared to traditional retailing.

5 — Necessary infrastructure

However, RMNs aren’t a plug and play solution: you need a robust data collaboration infrastructure in place.

Data collaboration platforms ensure privacy compliance and effective audience targeting by securely sharing data among partners while protecting consumer privacy and adhering to regulations. They also enable the measurement of campaign effectiveness by connecting purchase data to advertising efforts.

Examples of retail media networks

Here are the best and emerging retail media networks you’ve got to check out.

1 — Amazon Advertising

With a dominant 75% share of the predicted $45 billion retail media spend, Amazon’s unrivaled market presence and customer base make it a powerhouse for advertisers. Since its inception in 2012, Amazon has continually expanded its advertising offerings and capabilities, setting industry standards along the way.

Key features of Amazon Advertising include access to Amazon Stores, allowing brands to stand out in a competitive marketplace, and Amazon Brand Registry, providing brand protection. Amazon also has an extensive repository of first-party customer data, crucial for targeted advertising efforts, supported by advanced tools like AMC Audiences.

Amazon’s focus on non-endemic advertising and the Fulfillment by Amazon (FBA) service, ensuring swift nationwide shipping, further cements its status as a top-tier RMN. 

2 — Walmart Connect

Walmart is not only a well-known brand but also a powerful retail channel with a substantial inventory and a strong physical presence. Their retail media network platform, Walmart Connect, effectively combines in-store and online shopping, even displaying web-based reviews on store shelves, enhancing the overall shopping experience.

Walmart stands out with a significant percentage of items filled from their stores, ensuring quick shipping and giving them a competitive edge over rivals like Amazon. Additionally, their Walmart Fulfillment Services contribute to smoother shipping processes for sellers.

Continuously improving its advertising options, Walmart has introduced features like New Predictive Targeting and expanded Display Auctions to help brands reach their audience effectively. Strategic partnerships with TikTok, Roku, and Meta further validate Walmart’s commitment to precise audience targeting and accurate campaign measurement.

3 — eBay

For advertisers, eBay offers Promoted Listings Standard ads, which boost visibility at a low cost. It has recently introduced Promoted Listings Advanced ads in CPC format, allowing above-average and top-rated sellers to appear at the top of search results for specific keywords.

With nearly 30 years in the game, eBay has proven its ability to adapt to changes. The company has made strategic moves like acquiring Certilogo for AI verification and introducing the GAI Magical Listing feature. To stay ahead, eBay consistently introduces new services. A recent example is the launch of a luxury consignment platform to compete with platforms like Poshmark.

Ranked as the 4th largest marketplace in terms of retail ecommerce sales, eBay is an excellent option for businesses looking to expand internationally.

4 — CVS

Here’s how it works: CMX uses customer data gathered by CVS, including information from various stores and loyalty program participants. Advertisers then customize ads for individual customers, which appear on platforms such as the CVS website and other websites.

While most shoppers don’t exclusively use the CVS website, CVS possesses valuable insights due to the widespread use of its ExtraCare loyalty card. Moreover, it also teams up with other companies like Instacart and Target to reach even more people with their ads.

With numerous stores and services like Care Pass, CVS effectively targets ads by understanding diverse customer preferences. The seamless integration of stores with advertising efforts positions CVS as an effective platform for companies to connect with their audience and boost brand visibility.

5 — Target Roundel

Target is a big retail player in the U.S., with lots of stores and online shoppers. Its advertising arm, called Roundel (formerly known as Target Media Network), is quite impressive. Think of it as a club for advertisers, giving them access to over a thousand partners, including big names like Coca-Cola, Microsoft, Unilever, and Disney.

What’s cool about Roundel is that it offers all kinds of ads — not just regular ones but also on social media like Pinterest and Facebook, and even on Google Shopping. It also makes use of Target’s many physical stores, making it easy for brands to reach people shopping in-store.

Target also has a loyalty program called Target Circle. Advertisers love it because it gives them useful info about what customers like. With Roundel’s Target Product Ads and Search Ads, brands can use this info to get people to buy stuff both online and in the actual stores.

Key takeaways

• Retail media networks (RMNs) are digital marketing channels owned by retailers, encompassing websites, apps, and other platforms. They provide space for retailers to advertise their products or sell advertising slots to other brands, making them an integral part of modern commerce.
• Amazon Advertising, Walmart Connect, eBay, CVS Media Exchange (CMX), and Target Roundel are notable examples of successful retail media networks. Each platform has its unique strengths, with features like extensive market presence, physical and online advertising integration, and partnerships enhancing their effectiveness.
• RMNs operate through various digital channels, leveraging retailers’ first-party data to create targeted advertising campaigns. Advertisers can choose from different ad products, and the closed feedback loop ensures continuous optimization of campaigns.
• For retailers, RMNs offer benefits such as generating extra income, directly linking ad spending to sales, and increasing visibility. Advertisers gain access to valuable first-party data, precise targeting, adaptability without cookies, and comprehensive reporting. Customers experience improved shopping with personalized ads.
• Businesses looking to leverage RMNs should weigh their potential benefits, understand the challenges, and choose platforms aligning with their goals. While you get an effective way to reach target audiences, successful implementation requires investment in technology, adaptation to a B2B sales model, and careful management of privacy concerns.

The post Retail media networks appeared first on AppsFlyer.

What are microtransactions?

Microtransactions (MTX) are a business revenue model where users make micropayments within apps to access special features, characters, abilities, or content.

If you’ve ever played Call of Duty or PUBG, chances are you’ve made a microtransaction, a common feature in gaming apps. 

Developers regularly update these games to maintain player interest, which users support through in-app purchases and subscriptions, gaining additional perks to enhance their gameplay. At the same time, developers get the necessary funding to make these updates and expand.

But here’s the thing: microtransactions aren’t just for games anymore. They’re starting to change how we buy stuff online, chat with friends, and even get news and entertainment.

Experts say that the market for these online microtransactions could be worth billions more than it is now, growing at 10.4% CAGR. For context, this will boost the market size from $73.27 billion in 2023 to $80.88 billion in 2024. 

That’s a huge jump, showing how much people are into buying in apps.

The rise of microtransactions 

South Korean gaming company Nexon introduced the idea of buying cosmetic items like clothes and accessories in their game, The Kings of the Winds, using real money back in 1999.

But Nexon didn’t stop there. The company also used microtransactions in another game called QuizQuiz that same year. Then, in 2000, another company called Sulake jumped on the bandwagon. It allowed players to buy virtual furniture and other cool stuff with real money in their game Habbo Hotel.

As the years rolled on, more game developers caught on to the idea. They started offering games for free, like League of Legends. Gamers could play the base game without spending a dime. But if they wanted extra items or boosts, they would have to buy them with microtransactions. 

However, microtransactions really took off when smartphones and app stores became super popular. 

Suddenly, everyone had easy access to games and could make these little purchases with just a few taps. Online gaming communities and multiplayer games were booming, making microtransactions a big part of the gaming world.

Games like FIFA and Clash of Clans have played a huge role in making microtransactions even more popular. They showed players how much fun it is to enhance their gaming experience with these small purchases. 

Examples of microtransactions

Generally speaking, you can categorize microtransactions into two categories:

• Fixed rewards: Users receive a fixed reward for specific actions. Examples: skin purchases and character upgrades.
• Random rewards: Users get a reward randomly for a particular action. Examples: loot boxes and crates.

Keeping this in mind, let’s dive into the main types of microtransactions you can consider offering in your app:

1 — Small purchases

These microtransactions allow users to buy in-game items or advantages for a small fee. For example, in games with limited lives, players can purchase extra lives to continue playing without waiting for lives to regenerate. These purchases are typically cheap, often costing a dollar or less, making them accessible to more players.

2 — Skins and customization

Players can personalize their gaming experience by purchasing cosmetic items like character skins, outfits, or accessories. These items don’t affect gameplay but allow players to express their cool, unique style within the game world. For example, in a shooting game, players might buy different weapon skins or character outfits to stand out from other players.

3 — In-game currency

Users exchange real money for virtual currency within the game and use it later to purchase items, upgrades, or other in-game content. Buying in-game currency can be handy for players, letting them get what they want faster. But some worry it could make the game unfair, giving an edge to those who spend more money.

4 — Loot boxes

Loot boxes are randomized microtransaction bundles that contain a variety of in-game items, ranging from common to rare. 

Users purchase loot boxes with real or in-game currency and receive a random selection of items each time. While loot boxes can add excitement and surprise to the gaming experience, they’ve also been criticized for resembling gambling mechanics and potentially exploiting players’ desire for rare items.

5 — Expansion packs

Expansion packs are major content updates or expansions released after a game’s initial launch. These packs often introduce new storylines, characters, locations, or gameplay features, significantly expanding the game’s content and replay value. 

Players can purchase expansion packs as downloadable content (DLC) to access additional gameplay experiences beyond the base game.

6 — Bonus purchases

Bonus microtransactions offer additional rewards or incentives to players when they make a purchase. For example, buying a bundle of in-game currency might come with extra bonus currency or exclusive items as a reward for the purchase. These bonuses aim to provide added value to players and incentivize them to spend more money on the game.

7 — XP boosters

Players can accelerate their progression through the game by earning experience points faster. Purchasing XP boosters lets players level up more quickly, unlocking new content and abilities faster than through regular gameplay. 

However, this can create an imbalance between players who choose to pay for boosters and those who prefer to progress naturally.

8 — Pay-to-unlock

Pay-to-unlock microtransactions let players skip parts of the game by paying to access locked content, characters, or levels. Instead of completing tasks or challenges, they can simply buy their way through. 

Unlike XP boosters which usually focus on gaining levels, these offers give players flexibility in how fast they are able to access certain parts of the game. But it might take away the satisfaction of beating the game without shortcuts.

9 — Limited-use items

Some games offer consumable items or power-ups that players can purchase for temporary boosts or advantages. These items typically have limited uses and can be replenished by purchasing more with real or in-game currency. 

This way, players can gain temporary advantages without permanently altering the game’s balance.

10 — Holiday themes

During special occasions like Halloween or Christmas, game developers release themed content such as exclusive items, characters, or decorations. These holiday-themed microtransactions add a festive touch to the game, encouraging players to engage with the seasonal content.

Why are microtransactions important?

If you’re still wondering if implementing microtransactions is worth the effort, here’s a list of potential benefits for your app:

Maximizes revenue generation

The small payments from microtransactions add up quickly, becoming a significant source of revenue for your game. 
Consider games like Fortnite or Candy Crush. Players spend micro amounts to buy in-game items or upgrades. This steady stream of income allows you to fund ongoing development, marketing efforts, and server maintenance without solely relying on initial game sales.

Consequently, it ensures a more stable income flow over time, increasing financial sustainability.

Enables sustained game development and upgrades

Microtransactions provide the necessary funds to support ongoing game development and upgrades. 

With a steady income from microtransactions, you can afford to invest in new features, content updates, and bug fixes to keep your game fresh and engaging. Grand Theft Auto Online, for instance, regularly releases new expansions and content updates funded by microtransactions. 

This continuous development cycle helps retain existing players and attract new ones, ensuring sustained app success in today’s saturated gaming market.

Expands game reach

Another microtransaction benefit is more accessible gaming. 

By offering free-to-play options with optional microtransactions, you remove financial barriers for the wider audience. For example, Pokémon GO allows players to download and play for free, but they can choose to spend money on in-game items or boosts. 

This accessibility expands your player base, increasing potential revenue streams and creating a more inclusive gaming community.

Improves player experience at a low cost

Players can tweak characters, unlock levels, or access exclusive content through microtransactions, enriching their game experience. All without the hefty upfront costs.

For instance, League of Legends offers cosmetic skins and character unlocks through microtransactions, letting players personalize their gameplay without breaking the bank. This cost-effective approach fosters user engagement and loyalty, paving the way for long-term revenue growth.

Challenges for microtransactions

In addition to the benefits, microtransactions also have a dark side. Be prepared to encounter the following challenges:

Handling unfair advantages

When players can simply buy powerful items or upgrades, it makes the game unbalanced. Those who spend more money progress faster or perform better, leaving others feeling frustrated or left behind. 

This undermines the spirit of fair competition and may lead to resentment among players.

Balancing fair progression pathways

Ensure players can still progress and enjoy the game without feeling pressured to make purchases. Progress should be based on skill and effort rather than the ability to buy unlocks or boosters. 

Finding this balance is essential to preserve the integrity of the gameplay experience and keep players engaged in the long term.

Navigating regulation and compliance

The gaming industry faces increasing scrutiny regarding microtransactions, particularly concerning their potential to resemble gambling. Governments and regulatory bodies are taking a closer look at these practices, leading to calls for stricter regulations and compliance measures. 

You need to figure out the changing rules and laws and make your microtransaction systems fair and clear to users.

Tailoring monetization strategies

Microtransactions don’t work for every game, especially ones where players already pay upfront or expect everything in the base game. 

In these cases, you need to think about different ways to monetize your gaming app. This could mean adding more stuff to buy through expansion packs, asking players to subscribe, or offering different plans with special features. 

The key is to understand what your players want to figure out how to make money from your game.

Safeguarding against addiction risks

The randomness of loot boxes can make people spend too much money without realizing it. And as we touched on above, there’s a similarity to gambling that may get people addicted — and that can be a problem.

Think about how loot boxes and other microtransactions might affect players. Then implement measures to stop addiction by ensuring players know how to play responsibly.

The future of microtransactions

As microtransactions evolve, they’re expanding beyond gaming. One area of growth is in-car online payments, where you may soon pay for things like parking or food without leaving your seat.  

eSports is another area where microtransactions are growing. Players can buy virtual items or support their favorite teams, enhancing their gaming experience. Media companies might also start offering articles or videos for small fees instead of requiring subscriptions, giving people more flexibility.

What’s more, artificial intelligence could play a big role in realizing this future. 

AI can learn about users and offer personalized deals, making microtransactions more appealing. It could also make transactions smoother, with AI chatbots helping consumers navigate purchases easily. 

As technology advances, AI might be key to shaping how microtransactions work and making them more versatile and accessible across various industries.

Key takeaways

• Microtransactions are virtual purchases made within apps using real money. They’re a vital revenue stream for apps and games, funding ongoing development and upgrades. Microtransactions also make gaming more accessible by removing financial barriers and fostering a more inclusive gaming community.
• Common examples of microtransactions transactions include character customizations, loot boxes, and in-app currencies — all aimed at enhancing player experiences. Players can also pay to progress faster or unlock extra content.
• Challenges for microtransactions include concerns about unfair advantages, balancing progression pathways, regulatory compliance, tailoring monetization strategies, and safeguarding against addiction risks.
• Despite challenges, the future of microtransactions looks promising, driven by advancements in technology and the expansion of microtransactions into diverse industries beyond gaming. Growth areas could include in-car payments, eSports, and media. 
• AI presents opportunities for personalized deals and smoother transactions in microtransactions, potentially reshaping their future and enhancing accessibility across industries.

The post Microtransactions appeared first on AppsFlyer.

What is Android Privacy Sandbox?

The Android Privacy Sandbox is Google’s proposal for managing privacy-centric advertising, measurement, and attribution on mobile devices. 

This is a multi-year, open-source project aimed at pushing privacy standards forward while minimizing cross-app and cross-site tracking. The sandbox includes developer programs, design proposals, integration guides, API references, and more. 

Previously, Google introduced the Chrome Privacy Sandbox, which aimed to eliminate third-party cookies and minimize the use of Google Advertising ID (GAID). Android Privacy Sandbox officially marks the end of GAID, and thus the end of user-level insights on Android as well. GAID was critical for marketers, helping with attribution, personalization, remarketing, and third-party data sharing. 

What are the goals of the privacy sandbox?

In Google’s eyes, Apple’s “blunt approach” to privacy didn’t work: they believe forcing advertisers and developers to find an alternative on their own was not sustainable. Instead, Google’s strategy is to collaborate with them to provide an alternative path forward for everyone. 

Of course, this isn’t entirely altruistically motivated, as Google is financially incentivized to innovate their ad business, which accounts for 78% of their revenue.

Keep information private

From major data breaches to increasing distrust of social media platforms, consumers have become increasingly concerned about online privacy over the past few years. The trend was accelerated by Apple’s bold move: introducing the App Tracking Transparency framework, while simultaneously shifting their marketing messaging to “Privacy. That’s iPhone.” 

Google’s goal is similar – stay ahead of the curve and ensure they provide private solutions for their customers. 

Fund online publishers and developers

As discussed above, the goal is to share user data with third parties without compromising security and privacy. This now includes the removal of advertising ID. Google will need to preserve and build on their $238 billion ad business by slowly deprecating cookies and GAID, while providing new tech solutions to replace them.

Collaborate to set privacy standards

Google aims to collaborate with publishers, developers, advertisers, and even legislators, putting the company in a strong position to lead discussions on navigating privacy concerns. 

How does it work?

A good place to start with the sandbox is knowing that there are lots of parallels with Apple’s IDFA opt-in requirements. Google states that they’ll be phasing out the Google Advertising ID (GAID), while offering new tools to continue delivering personalized ads on free content. Here are the main components under the hood.

SDK runtime

Android uses app sandboxing, which helps the integration of third-party code via SDKs, while also setting guardrails for them. The SDKs are hosted within the sandbox, which also runs the potential risk of hosting (and, more importantly, sharing) undisclosed user data. SDK Runtime enables stronger guardrails, including a modified execution environment and limited permissions and data access rights for SDKs.

Attribution API 

Most mobile ad campaigns use Advertising ID to identify audiences across multiple channels and devices. The Attribution API registers attribution sources through certain triggers on an app or website. It then matches the triggers to the sources, and aggregates the data. 

The API has some limitations, including the limited number of bits available for event-level reports. There are also rate limits for available conversion triggers, and the number of ad techs per attribution source. 

Topics APIs

The Topics API aims to allow advertisers to serve ads based on a user’s interests, inferred from their app usage. The topic is observed by a caller, which is an app or third-party SDK within an app. The number of topics is limited to 469, to reduce the size of fingerprinting, and purposely excludes sensitive categories like religion, race, or sexual orientation.

Protected Audience (previously FLEDGE)

The Protected Audience API allows advertisers to create custom audiences based on app behavior, to enable remarketing and customer audience targeting without using private information. 

In simple terms:

How does Android Privacy Sandbox differ from Apple’s ATT?

While the goals of Apple’s ATT framework for iOS devices and Android Privacy Sandbox are the same, there are some major differences in execution.

The introduction of SKAdNetwork was disruptive. And to many, the Android Privacy Sandbox will be less so, because it provides a suite of tools to make the transition smoother for stakeholders.

Although Google is moving away from GAID, Google Referrer isn’t going anywhere (in the foreseeable future at least). This unique URL passes from the Play Store all the way to the conversion, giving advertisers insights into the user journey. iOS doesn’t have this capability at all. 

What are the potential challenges?

Changing times come with their own challenges. Here are a few you may encounter when working with the privacy sandbox.

Technical issues in adopting existing measurement strategies 

The first and biggest challenge is the technical implementation of the privacy sandbox itself. To get started, you need to complete the enrollment process, set up your development environment, configure permissions, and set up devices to use the Privacy Sandbox on Android. Since the program is still in beta, Google is slowly rolling out beta APIs which will have technical hiccups along the way (and won’t be available to everyone immediately). 

Limited data

Yes, the golden age (for advertisers) of unlimited user data is long gone. Anything in comparison to the wild wild west of mobile advertising will feel like a downgrade in terms of data access. As mentioned in a previous section, increased privacy measures mean limited datasets, forcing advertisers to think more creatively about how they want to target new audiences within Google’s guardrails. 

Data accuracy

The cost of privacy is weaker data signals. While we’ll be able to achieve granular and rich data, you’ll have to trade immediacy for accuracy. If you want quick reporting, there’s a higher chance the data will not be as conclusive, to protect the privacy of those few users. But reports with a longer callback will prove to be more accurate.

What are the future trends for Android and privacy?

Google highlights that this is a multi-year effort for a reason. Introducing massive changes to a multi-billion dollar industry requires time, and more importantly, lots of testing. Here are a few trends that we believe will take shape in the near future.

First-party data + AI

Collecting first-party data around in-app behavior is crucial for advertisers to offer tailored messaging and creatives. Today, AI tools supercharge first-party data by reaching new audiences similar to yours, predicting audience segments based on user-level behavior, and segment audiences based on behavioral patterns that may be missed by the human eye. This level of granularity will become increasingly difficult to achieve as we move to a privacy-first ecosystem. 

Deep linking and referrals

Deep linking will become more crucial for advertisers and developers to track in-app behavior while providing a seamless user experience. Deep links are links that direct the user to a specific page on a mobile site or app, without leaving the app altogether. This ensures users remain within your app’s ecosystem, and provides rich data that yields granular insights for your campaigns. 

How to prepare for Android Privacy Sandbox

While these changes may sound daunting, there’s a lot you can do to make the transition as smooth as possible. GAID isn’t going to disappear overnight, but taking proactive measures to maximize your campaigns in a privacy-centric world will save you a ton of headache down the road. Here are a few ways to get started.

Review your techstack

This change will impact your entire data ecosystem. Your MMP, CRM, and ad agencies will enter a trial by fire. There will undoubtedly be a learning curve to identify the most effective ways to advertise. Start by taking stock of your current techstack, and getting familiar with the new APIs within the sandbox.

Enroll and register for the beta program, and set up your devices

Enroll in the Privacy Sandbox program to get started. The developer enrollment program verifies each app that calls APIs, adding a protective layer in a controlled environment to minimize the misuse of data. Be sure to read the guidelines and understand that your enrollment will be made public.

Identify use cases and design them within the framework of Sandbox to test if they work

Since the privacy sandbox is still in its early stages without any clear timelines, a good place to start is by identifying your unique use cases. Then visit Google’s resource to see how other apps have solved them. 

Speak to your MMP about measurement solutions 

To prepare for the inevitable deprecation of GAID, your MMP should already be building solutions and testing the APIs to help solve for any data gaps — it’s definitely a top priority for us here at AppsFlyer. Working with your MMP ahead of time will help you make the transition gradual, avoiding a last-minute bombshell.

Key takeaways 

• The Android Privacy Sandbox is Google’s initiative to build a mobile ecosystem that preserves user privacy while allowing advertisers and developers to provide personalized experiences.
• The three main goals are to keep information private, fund online publishers and developers, and collaborate to set privacy standards.
• The simplified changes are as follows: targeting is becoming Topics, measurement is becoming Attribution API, and remarketing is becoming Protected Audiences API.
• Potential challenges in implementing the sandbox include technical implementation, limited data, and data accuracy.
• Android Privacy Sandbox is a multi-year project that will be shaped by trends like first-party data and AI, and increasing use of deep linking. 
• There will be a transition period, but it’s a good idea to get ahead now by reviewing your techstack, enrolling for the beta program, and getting your devices set up. You should also identify your own use cases and discuss the changes with your MMP. 

The post Android Privacy Sandbox appeared first on AppsFlyer.