More and more advertisers are taking their marketing functions in house. The Martin Sorrell’s S4 Capital acquisition of Mighty Hive demonstrates the types of investments being made to capitalize on the trend.
According to CNBC and Adweek stories and confirmed by WPP’s Chief Executive Mark Read, Walmart had decided to take its digital advertising in-house and away from WPP’s agency Triad, a blow given the likely value of the Walmart business.
“It’s the latest move in a trend that reflects the greater control brands want over their advertising teams: The Association of National Advertisers in the U.S. found that 78 percent of its members had some kind of in-house agency in 2018, versus 58 percent in 2013. Some brands are looking to in-source different elements of their marketing, including digital advertising, creative or design and media buying.”
“For hotel reservation site Booking.com, running a lot of marketing using in-house teams makes sense because of the volume of online ads it needs to create…But Booking.com’s Chief Marketing Officer Pepijn Rijvers said that while setting up in-house functions does carry a large outlay — he has around 50 people working on media planning, ad design and audience research — it’s an investment that has been worth it.”
“GDPR has also meant that some companies are bringing data marketing in-house, and because of the risks involved if something goes wrong, the C-suite is now more invested in data, says Manning at MediaLink. “It’s actually at the heart of a company because the risk profile associated with it now is so great, particularly if you have a data breach, particularly if you infringe GDPR you can’t afford (to take that risk). Data has now become a board level area of interest, as opposed to just being a marketing area.”
Managing data and audiences can be costly and time consuming for one single advertiser to manage. Skydeo helps advertisers BYOD – “bring your own data” to Facebook, Google and programmatic platforms by licensing our mobile marketing platform as data as a service.
Skydeo Attends Startup AutoBahn in Stuttgart
Redefine Your Company Based on the Company You Keep
Skydeo COO Eric Simon presented Skydeo’s AppGraph & PlacesGraph solutions for a packed house at Mercedes Arena in Stuttgart today. Skydeo’s unique mobile insights helps auto makers better understand their car buyers mobile interests and behaviors in different regions around the globe.
Skydeo’s Eric Simon presenting in German at Startup Autobahn.
STARTUP AUTOBAHN is the ultimate innovation platform that unites global young tech companies with the unrivalled tech expertise of Silicon Valley and the best of German engineering. We are a neutral innovation platform moderating an in-depth and curated collaboration between our partners from the industry and young tech companies. Our network of investment firms and mentors further helps the growth of tech companies. Our home is Stuttgart – the birthplace of the automobile, one of the leading IP regions of the world, and a hub of business, engineering, and groundbreaking inventions.
Our namesake is the high-speed German highway – the only one in the world without a speed limit. And just like the Autobahn, STARTUP AUTOBAHN is about accelerating joint projects between young tech companies and our corporate partners.
Skydeo participated in the Marketing and Sales groups discussions regarding
- Advanced Advertising
- Performance Marketing
- Customer Experience
- Connection of Online and Offline Commerce
STARTUP AUTOBAHN partners and attendees included: Plug & Play, Daimler, Porsche, Hewlett Packard Enterprise, DXC Technology, BASF, ZF Friedrichshafen, Deutsche Post DHL Group, Webasto, Murata, HELLA, BENTELER, The Linde Group, AGC Glass, Wieland, PostNL, Jardines Matheson, CEPSA, and Covea.
Dropbox and Spotify going public is good news for the mobile marketplace so we decided to compare the two apps and their users in Skydeo. Skydeo surveyed over 250 million users from our panel of 875 million uniques. We also tracked new app downloads during October & November 2017 for both sets of apps.
- 12% of Dropbox users had Spotify.
- Dropbox users were 48% more likely to have Spotify installed than non-Dropbox users
- 22% of Spotify users had Dropbox.
- Spotify users were 57% more likely to have Dropbox installed than non-Spotify users.
Dropbox and Spotify Users in US by Carrier
According to the Dropbox S-1
Our future growth could be harmed if we fail to attract new users or convert registered users to paying users.
We must continually add new users to grow our business beyond our current user base and to replace users who choose not to continue to use our platform. Historically, our revenue has been driven by our self serve model, and we generate more than 90% of our revenue from selfserve channels. Any decrease in user satisfaction with our products or support could harm our brand, word of mouth referrals, and ability to grow.
Additionally, many of our users initially access our platform free of charge. We strive to demonstrate the value of our platform to our registered users, thereby encouraging them to convert to paying users through in product prompts and notifications, and time limited trials of paid subscription plans. As of December 31, 2017, we served over 500 million registered users but only 11 million paying users. The actual number of unique users is lower than we report as one person may register more than once for our platform. As a result, we have fewer unique registered users that we may be able to convert to paying users. A majority of our registered users may never convert to a paid subscription to our platform.
In addition, our user growth rate may slow in the future as our market penetration rates increase and we turn our focus to converting registered users to paying users rather than growing the total number of registered users. If we are not able to continue to expand our user base or fail to convert our registered users to paying users, demand for our paid services and our revenue may grow more slowly than expected or decline.
Based on Dropbox new app downloads during October & November, their ability to attract new users is strong. It will be interesting to see if the IPO hype increases new downloads over time.
Skydeo AppGraph Insights
According Jeff Bussgang, VC and HBS Lecturer :
Dropbox has a magical business model and the data in the S-1 proves it. The company reports that “we generate over 90% of our revenue from self-serve channels”. Think about that for a minute. The free product is so attractive that it drives massive adoption and the conversion from free to paid is so obvious and smooth (more usage leads to more storage leads to paid product) that the company has a customer acquisition engine that derives from a simply great product and a compelling value proposition. Forget sales and marketing, at Dropbox, the product itself is a massively effective and efficient customer acquisition machine.
Does it cost too much to service all these free customers? Happily, Dropbox is following a cost curve of declining storage and cloud costs. Gross margins have soared from 33% in 2015 to 54% in 2016 to 67% in 2017. If a CEO tells you she is going to increase gross margins from 33% to 67% in two years on a $1 billion revenue business, you would check her in to an insane asylum. Dropbox did it easily.
Locations of Spotify Users
Locations of Dropbox Users
What is People-Based Marketing?
A primer by LiveRamp and Digiday.
Skydeo provides mobile insights and audiences that enable people-based marketing efforts to scale for mobile identity.
What is PeopleBasedMarketing