This past week’s Episode 60 of Friday Live included an industry news update from Matt Given (CEO of Intelivideo), SVOD business tips and tricks from Ashley Podoll (Marketing Manager of Intelivideo), and a question of the week from our viewers.
Check out our recap for all the top highlights from the show!
The Subscription Revolution
Each week, Given provides viewers with a news update from the OTT space. This week’s update was from Barron’s – an old-school business periodical that recently published an article on, “How Subscriptions Are Remaking Corporate America”. The article discusses how we are living in a “subscription economy,” and that many services and products nowadays are gravitating towards a subscription model.
Barron’s piece makes several strong points, supporting the subscription model. Subscriptions offer a way for companies to get off the “product hamster wheel,” enabling them to resell their first product every month, rather than starting at zero, as they would with the transactional model.
The subscription model is valued much higher than the transactional model, because revenue is more predictable. As long as businesses can continue drawing in new subscribers, they’ll be in good shape.
A couple other notable points from the article are that many SVOD companies today have to work harder to advertise, because large companies like Google, Amazon and Facebook own all the advertising revenue.
Also, subscription services like Netflix and Spotify acquire content in two different ways – they either pay a one-time fee for content or pay for ongoing rights. Netflix writes a check to develop its own shows or acquire rights to a show/movie, while Spotify pays ongoing rights to artists, per song listen. Paying for the content out right is the better of the two options, as you recoup that investment overtime from ongoing subscribers.
Apple App Store Search Advertising
Up next, Podoll covered Apple app store search advertising – a new form of paid search advertising.
What is app store search advertising?
When you’re searching in an app store – whether it be Google Play or Apple – and you’re looking for a particular app, an ad will show up at the top of the screen, relating to that app. These ads help users find related apps that they are interested in.
Apple opened up their app store search advertising within the past couple years and is now on track to make more than $500 million in 2018 from the offering. They offer two different versions, app store basic and app store advanced. The advertising platform has become incredibly popular. It is inexpensive – around $0.88/install – and conversion rates are up to 50%.
Here are some suggestions, if you’re planning on utilizing Apple app store search advertising:
- Determine the lifetime value of your installers, early on in the process. Start with a small budget and learn behavior before investing more money.
- Test the Apple algorithm with Basic, against your Advanced Apple campaigns. Then set your parameters, and don’t go over a certain budget per day.
- Apply your best practices from keyword search advertising. Your app store search advertising strategy should be the same as your search advertising strategy on Yahoo, Google, etc.
- Make your ad direct and relevant. Start simple and then build up!
- Think about Siri AI and phrases used. What are people asking Siri? Capture “speech” as well as search typing.
- You should try in-app purchasing for your app!
Question of the Week
This week’s question from our viewers was…
Q: What platform should I use to survey subscribers?
Thanks for reading our Friday Live recap blog!
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