Kochava Acquires Machine Advertising To Improve PostIDFA App Marketing
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Kochava, a real-time data solutions company for omnichannel measurement and attribution, has acquired Machine Advertising.
London-based Machine Advertising has developed app marketing technology that still works in a post-IDFA world. Apple removed the Identifier for Advertisers (IDFA) in 2021 to emphasize user privacy over targeted ads. This has made it difficult for adtech companies to understand how effective a particular marketing campaign is because they can no longer rely on data about individual users.
In addition to this change, Machine Advertising is one of the companies focusing on "scale," or any means of calculating the impact of a marketing campaign using new types of experiments, Kochava CEO Charles Manning said in a release. GamesBeat. Growth is one way that an attribute or moving average can work in a post-IDFA world.
"We've been working on this for a while. It's another defining moment of how things are changing and how advertising is measured and viewed," Manning said. "We have our eyes open to see how the world is changing. This, in my opinion, It will be very valuable to marketers in the future, not as a replacement for the attribute, but as an addition."
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The acquisition of Advertising Machine will enable Sandpoint, Idaho-based Kochava to enhance the company's measurement solutions with its ever-incremental measuring machine (AIM) product and further expand its presence in Europe, the Middle East and Africa.
Kochava was already working with Machine Advertising on search ads, so they got to know the company and liked the way the team interacted with Kochava.
"Machinery's focus on delivering ever-larger product sizes aligns perfectly with our goals of delivering immediate value to our customers," Manning said. "As a customer-focused, innovation-driven company, we are always looking for best-in-class solutions to add to our solution set."
Approaches to measuring the effectiveness of digital advertising have changed significantly in recent years. Direct response and performance-based campaigns have traditionally relied on last-click attribution methods. But thanks to the new data protection measures, this can no longer happen so easily. (In fact, the Federal Trade Commission is suing Kochava for alleged privacy violations with its metering solutions; Kochava has denied the allegations of data activity. It also bought another privacy-related company, and Manning says Kochava is still in the tribunals).
Described by others as a dim candle in the dark, Apple's SKAdNetwork replacement relies on this last-click attribute. It is a cloud-based mobile ad measurement framework that protects user privacy and delivers results 24 hours after an ad is served. Its function is to measure the impact of advertising from external measurement companies. And the information provided can be misleading.
explain the increase
This is where growth occurs. Based on interviews I conducted in March 2021, I've learned that marketing is only truly effective when it's incremental. The lift is the lift per goal achieved by an ad versus all other media spend and organic bids. When a particular media spend cannibalizes organic growth or overlaps with other media, the true value of a particular campaign is unclear because you don't see what's complicating the ad spend picture.
With something like SKAd Network, it's easy to fall into the trap of relying on "last touch" or the last ad that appears at a certain time before the user performs an action, like downloading a game. It is easy to assume that advertising is responsible for the action. But that's not necessarily true if you don't measure things correctly. The only way to discover the truth is through a well-planned experiment.
"Ultimately, the difference between attribution and lift is really post-click attribution and incremental lift, regardless of where the ad engagement happens in the customer journey," Manning said. “At the end of the day, customers just focus on spending until the lifetime value gains diminish. That's what increasing sizes is all about.
The key to any marketing experiment is that you need a control group. If you have two markets that are the same and you stop spending on ads in one market, you can measure the incremental effect by looking at the difference in downloads between your control market and the market where you stopped spending.
As one such experiment, imagine a marketer running a campaign in Germany and several other countries. Last Touch Attribution gives Germany around $1000 per day on day 7 for this campaign. This means that the last measured ad in Germany is worth approximately $1,000 in sales seven days after the start of the campaign.
An ideal way to measure growth would be to pause this campaign in Germany and compare the drop in German game revenue on Day 7 to a parallel universe where there was no pause. This is called parallel universe management. Since we only have one universe, we have to clone or rule Germany. As?
Using the model to combine many other countries in the middleweight, growth companies create a synthetic control close to Germany. A synthetic check with a weighted average of World Games Day 7 earnings in France, Great Britain and Italy suits Germany quite well in the long run.
Since you can only observe what happened in Germany after the break, you need a synthetic control to understand what would have happened in Germany if the break had not been taken.
If you stop spending in Germany but continue to spend in the other three countries, you'll see the difference in lost installs. The difference between Germany and the synthetic check after the break is actually $400 per day instead of $1,000. So these are the true 7th day highs. Based on an average daily spend of $4,000, you may have thought the ROI on your ad spend on day 7 was 25% when it was actually only 10%. The 7-day revenue is $600 less per day than expected. That's over $200,000 a year.
Kochava's vision of growth
According to Kochava, changes in the privacy landscape have led to an increase in closed gardens where clicks are not available to advertisers and where final click size cannot be used. Some platforms, such as iOS, have had a structural change to rely on alternative platform-level metrics, such as SKAdNetwork.
Changes in privacy have also opened the door for incremental media effectiveness measurement, which focuses on alternatives to post-click attribution and can be used across all media treatments, regardless of privacy constructs.
Traditional growth measurement is a lengthy process, producing results 30-60 days after a campaign launches. Measurement lags indicate the overall lag in optimizing your campaigns. Today's marketers are used to adjusting campaigns on a daily or hourly basis to better manage their resources and achieve effective results in real time.
"After IDFA's repeal, the question remains, how do I understand the effectiveness of my media?" Manning said. “As an advertiser and also a publisher, how can I help advertisers assess the value of my media resource? So the bottom line is that there are several different models of approaches to achieving growth.
This new attribution model "puts the two sides of the coin together based on these data points shared over time," Manning said.
The problem is that advertisers still want to know where they should be spending their ad dollars.
"If you don't know the actual device IDs, how much growth is there for a given channel or creative? You just look at a set of these devices and they're statistically accurate, but they're not identifiable. So that's Manning, growth at the forefront He said that it is one of the points of intersection of the extraction lines.
For the past four years, Kochava has been running a service organization that develops additional reporting modules for clients. It was a dedicated effort that took 30 to 60 days, and now they're trying to do it in real time so companies can make decisions by the day or by the hour.
"Machine Advertising was very interested in working with us" on products like the effectiveness of Apple's search ads, Manning said. “Our relationship is really starting to make sense. And in the end, we realized that they were building exactly what we were looking for."
There are about eight people in Car Advertising and 190 in Kochava.
During 2022, Kochava and Machine Advertising have partnered to leverage Machine's AIM product along with incremental growth analytics developed by Kochava for the company's clients. The result is a productive approach to delivering incremental metrics as an ever-improving display for Kochava advertisers. The AIM product is designed to work with Kochava and other measurement devices.
Kochava's AIM solution will work with other mobile measurement partners. As a result, there is no need to change the MMP as part of the idea of gradually adopting customers to a solution based on machine learning.
AIM is a marketing mix modeling tool that helps advertisers perform better by providing additional data in real time, Manning said. AIM helps advertisers understand the impact of factors like channel occupancy and seasonality. AIM then provides AI recommendations for optimal budget allocation. In today's uncertain economic times, AIM is an important return on advertising spend (ROAS) vehicle for CFOs anticipating a recessionary environment.
"We are excited to be working with Kochava, a company that shares our commitment to innovation and customer-focused values," said Gary Danks, CEO of Machine Advertising. “Our products fit perfectly into Kochava's already impressive portfolio, delivering unprecedented mobile measurement products and driving further success for our customers. Our team will support Kochava's EMEA expansion plans and as part of a larger organization we can take our vision to the next level and have a bigger impact in the industry."
Manning said that working with iOS is very different now that the IDFA has changed, and the same will happen with Google Play.
"The other shoe will fall on Android," he said. “Device identification cannot be easily expected. The added layer of insights and analytics that covers incremental growth is a game changer for marketers."
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