Increasing the value proposition of performance marketers

January 14, 2020

“Why do I even need an agency or DSP? I can just go and buy the same traffic myself.”

2020 marks a new decade for Ad Tech, and as the cliché goes, our industry is changing so fast! Media companies come as go, as technologies and user preferences change constantly.

The Ad Spending trend line, however, didn’t change. WARC predicts another year of growth in 2020, with Global Ad Spend reaching $656b.

Another positive piece of data is Liftoff’s report from September 2019, showing app marketers are testing more media partners, with about 50% of partners experimenting with more than 4 channels. However, despite the graphs being positive, the competition is huge, and advertisers are not settling for the old performance marketer value proposition anymore.

Why is that?

One of the reasons is that in-house media buying became very accessible to advertisers, with numerous service providers helping even small to medium companies take media buying in-house at high scales using a very minimal team thanks to automatic optimization capabilities and open auctions. 

Offering direct, fraud free and brand safe traffic, or even reaching KPIs is not enough. If the advertiser feels like he can do it himself and save the commission – he will turn down the offer.

There are 4 main ways in which we believe marketers can increase their value proposition – 

  • Specialization in a specific market

Even though advertisers can take media buying in-house, it’s very hard to do it well.
That means, different media buyers will buy the same media, yet achieve different ROAS.

Here, the value proposition is clear – specializing in a specific niche enables you to tweak your product, business partnerships and optimization knowledge in order to achieve a high efficiency with your buying and optimization process, compared to the advertiser media buyer.

There are many examples of successful companies doing such specializations, choosing to specialize in mobile/retargeting/gaming/video or any other kind of combination which provide a genuine value.

 

  • Optimization toward Real Value – User LTV

A friend once told me – if you check my “Media Kits” folder and take a vodka shot every time you see  A.I or Machine Learning mentioned, you won’t make it past the first couple of mails.

Many fancy their optimization capabilities, and while some do have more advanced optimization algorithms than others, the real value is actually with the ability to optimize towards what actually matters at the end.

Real Value for advertisers, from our perspective, is the overall user Lifetime Value.
Instead of optimizing for installs, registrations or even purchase events, marketers should focus their abilities on optimizing directly toward LTV.

If, for example, you promote an app that monetizes both using Ads & In-app purchases, LTV optimization would optimize toward the total revenue generated by both Ads & IAP.
Optimizing towards LTV also has another positive side effect, as higher LTV users usually rate the product higher, refer it to others and support organic growth.

  • Creative Production

This is very useful for small to medium size companies, who don’t have a lot of resources to spend on creative production, but serves big companies as well, since even big companies don’t always have an infinite amount of marketing materials.
That’s to say, different languages, ad sizes, creative variations for optimization etc.

More creatives = more data points to optimize with. Therefore, many companies have added creative production to their set of services, and even built in-house studios, in order to offer a more holistic suite that supports the advertiser’s growth activity from all sides.

  • Product level value – Consulting & Strategy

This service is aimed toward small and medium sized companies mostly, as they will usually produce the most value out of it.

As marketers, you have records of hundreds of clients competing on roughly the same inventory. You hold data that contains unique insights advertisers can utilize.

For example, you can dig into monetization strategies, conversion flows, products UI/UX, creative materials and so much more that can drive conclusions as to what works and what not. This type of analytics is not extremely complicated, but could potentially provide huge value for companies that are in development or soft-launch phase.

Sometimes this could be the difference between the advertiser working on adding in-app-purchases, re-designing his service, or completely changing the creative strategy.

To sum things up –

There are obviously many more value propositions out there, but we believe these are perhaps the most crucial points every performance marketer could agree brings unique value to the advertiser.

At the end, our goal is to help businesses GROW. Open and honest communication between advertisers and marketing companies is the best way to make sure that we can improve and provide a genuine value. This drives innovation, stability and a happier environment for us all.

Do you agree with these value points? Do you have anything to add?
Comment 👇


If you are interested in learning about how appTV implemented these value points, feel free to give us a quick shout.

Cheers to a more valuable 2020,
The appTV Team

Author

David Eran Hundia