Vungle Executive Memo
Vungle Executive Memo MKTG 5721
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This 0 page Class Notes was uploaded by Frederick Notetaker on Monday March 21, 2016. The Class Notes belongs to MKTG 5721 at University of Missouri - St. Louis taught by Ho Kim, Ph.D. in Spring 2016. Since its upload, it has received 46 views. For similar materials see Digital Marketing Strategies and Measurement in Marketing at University of Missouri - St. Louis.
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Date Created: 03/21/16
Executive Memorandum Vungle Frederick Eccher Vungle is an inapp video advertising company 70 employees 255 mil in investments and listed as one of the most promising startups in Silicon Valley from 20122015 Their ads encourage users to download more apps reaching 100 million users a month Between 2012 and 2014 the mobile advertising market grew dramatically peaking around prime time tv hours for users Vungle was a platform used by publishers to advertise to users Vungles platform would determine the best advertisement to hit a user with when they opened up an app When apps were purchased publishers received 60 and advertisers the remaining 40 of revenues on average Electronic Revenue eRPM would vary from 27 dollars for installs per campaign 100 million impressions x 5 conversion rate 500000 instas at 2 dollars 1 million dollars if my math is sound A team had developed an advertising app at Vungle over 6 months that was outperforming the regular algorithm in its test campaigns In order to be sure they were not getting a false positive they wanted to test and compare the two algorithms statistically to get rid of personal bias After two weeks of hashing lJungle 0 mammogram L000000000 000000000 100000000 600000000 500000000 000000000 300000000 200000000 100000000 wwww W39H T39 39T39T39T39T39T39T39T T39T39F39 ECCCCEEEEEEEEEE EEEEE F39iv39nuiiraia39w w39a r aki Hwhuar Ld lrripressions Eonipletes Clicks lnstallls eFlF39lie l 00000000 00000000 r VUlng 39e g 50000000 0 039 39 00000000 30000000 20000000 10000000 Seriesl Series2 Series Series i Seri035 Impressions Completes Clicks InstallsconversioneRPM Comparing Vungle A s existing Algorithm to Vungle B s the teams new Algorithm it is clear to see two things Vungle A s Algorithm looks similar to Vungle B s Algorithm in Installs and eRPM But Vungle B daily eRPM was 131 higher than A s Given the increase I would recommend doing a 5050 test on the next campaign to see if the Algorithm kept holding up before recommending replacing A with B
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