Wanted to give a 10000 feet view on digital marketing, if you have questions I can explain further. If the content is redundant, please flag, I will delete right away.
Please note: This is not copied material
Basic ecosystem consists of 3 players in digital marketing
Apologies for poor drawing
Roles:
Advertiser wants to campaign and access to people behavior / deep insights. S/he shares objectives, e.g. HUL, Dabur and Tata Consumer want to campaign 10 days before Diwali, some new products and understand (potential) customer insights. They share their intent, duration and geographic boundaries with DM (digital marketing companies).
Digital Marketing Company identifies appropriate publisher based on their specialization. This is a massive technology platform powered by big data, analytics and machine learning. The competitive advantage of this ad network (platform) depends on 1. Access to number of mobile devices with large geography 2. Deep insight capability This platform should be scalable and have an end to end management starting from campaign management to end payment. Usually payments are for thousands of users e.g. HUL might give Rs. 50 for 1000 users for their digital advertisers. Since DM’s don’t want to bombard their users ad’s, these companies cannot take infinite number of ads. Viewers of television programs are bombarded with ads, our experience with ads in digital space is not so bad. During peak seasons last few customers pay high premiums
Publisher creates content based on the information provided, DM would make payment for their services
Google and Facebook are biggest companies in this space, these 2 companies restrict their ads to their respective contents. They don’t advertise on somebody else’s content, e.g. advertisements on PhonePe cannot be from google or Facebook
Will be able to answer questions.
This thread is for education purpose only, I would take some examples for case study purpose, definitely not recommendations.
Affle in it’s earning call mentioned the following
" When we look overall at Affle’s business, I made two very distinct points and
would like to revisit them. One was on-device engagements with consumers as
part of our customer platform. What does on-device engagement mean? It means
that we work with OEMs and operators to make sure that our software, ads,
content and recommendations to consumers can be deeply integrated into the
on-device experience of the user at multiple touchpoints across the journey of
the consumer. This is done even before the consumer has launched a specific app
installed by them and used on their devices. The second part of the ecosystem is
called the in-app ecosystem. The in-app ecosystem is when we reach and engage with the customers while they use an app on their device. This means that we
now need to work with the app developers through ad exchanges, programmatic
traffic or premium app developers through direct integration of our SDKs or API
server to server integration. We have all the technologies to work on the in-app
ecosystem. Both of these ecosystems are closely linked as the same consumer is
around the same device and it is about a consumer’s journey. The consumer opens
the device, navigates through it, finds an app, uses it and closes that app. The
chain starts again by going back on the device and using another app or some
other folder. As the consumer journey is a natural interconnect between ondevice experience and in-app experience and further back to on-device
experience and the in-app experience. Within our plan in the Appnext ecosystem,
we are focused on the OEMs, handset manufactures and emerging markets. We
work with them to integrate our technology at various points on the device. The
monetization strategy for both these ecosystems is similar. As far as the
advertiser is concerned, they are sold ROI linked conversions. It does not matter
to the advertiser whether the conversion is happening on the device or any other
touchpoint. As long as we deliver a conversion which necessarily happens within
the app of the advertiser and we earn our revenue. Monetization strategy is
common but our reaching out to the consumer’s strategy either on the device or
in-app and it is blended perfectly. That is where our strategic differentiation lies" Reference 504dc31a-8321-4047-b64e-24e1f895d248.pdf (bseindia.com)
While both scenarios mentioned above are equally good, more flexibility to a DM lies in
on-device (having DM’s app on customers mobile) engagement. US listed company Digital Turbine has over 700 million devices that has their software installed, can be seen in the transcript of earnings call APPS - Earnings call Q1 2022 (docoh.com). Affle in the above referred document “Our CPCU business noted a strong momentum delivering 31.5 million
user conversions during the quarter”, did not share split numbers between in-device and partner apps. In-device app come with OEM partnership with upfront payment while partner apps are asset light. It is important to note that Reliance Industries recently announced a USD 250 million investment in Inmobi’s company and has committed to install Inmobi’s app on all Reliance-Google device to be launched later this year.
BTW: Digital Turbine claims Jio and Airtel as their customers
