” We have an immense amount of information about how players play video games,” he said. “Our DNA has constantly been about experimentation and utilizing information to enhance the player experience.”.
With Chartboost on board, Zynga has the ability to extend its focus to money making and acquisition for itself and for online marketers.
Welcome to the first-party.
Zynga and Chartboost arent going through a normal combination process.
Although the 2 share their particular road maps and mutually advantageous features to boost Chartboosts information science designs, Chartboost will continue to run its third-party market.
And while Chartboost accesses first-party information from Zynga, that data isnt shared with its 3rd parties, and Zynga does not have access to any of Chartboosts third-party information.
But the tie-up does give the combined business more visibility into how advertisers are investing and just how much of that money really reaches publishers. “We can make much better choices on our own behalf,” Chartboost CEO Rich Izzo told AdExchanger.
” All roadways result in first-party information,” Izzo said.
Mobile online marketers and developers are focused on first-party because third-party data signals are less clear these days, and the weather condition isnt set to alter for the better.
Not unlike AppLovin, which also owns a portfolio of mobile games that work as a source of first-party information– and not unlike practically anyone in the mobile advertisement community today– Zynga is competing with signal loss. (Hey there, Apple.).
” Certain things occurred that have made the marketplace considerably less efficient than in 2015, and we want to gain back that effectiveness,” Koenigsberg said. “Using our first-party data in a privacy-compliant way is the finest method to do that.”.
Nevertheless, the situation is far from stable.
In August, Zyngas CEO, Frank Gibeau, informed investors that Apples AppTrackingTransparency (ATT) structure made it more pricey to get new gamers. (Thats why observers are noting an unusual phenomenon on iOS: greater CPMs combined with lower efficiency. Advertisers now should buy more advertisements to attain the very same or even fewer app installs or conversions they made with targeted campaigns prior to ATT.).
Owning its own DSP at least assists Zynga minimize the third-party network charges it pays out to the huge acquisition platforms like Facebook and Google.
” Im not rather sure if its Zynga spending less or Zynga getting more worth for each dollar invested,” Koenigsberg stated. “Thats something well learn in time.”.
But the evidence remains in the math. If, for example, Zynga spends $1 to get a user and just 70 cents reach the publisher, that means its quote was effectively just worth 70 cents. With Chartboost, Zynga can pay more straight to publishers while spending less total, due to the fact that the intermediary charges accumulate back to the company.
That stated, Zynga isnt angling to stop working with partners. Facebook and Google will probably always be in the mix.
” But the margin we utilized to pay for every dollar you invest– we do not have to pay that anymore,” Izzo said “And from there you can either save the cash or you can spend a lot more and produce greater value and growth.”.
( Chart) BoostedZyngas ongoing investment in ad tech was especially interesting Take-Two.
After its acquisition of Zynga earlier this year, Take-Two CEO Strauss Zelnick informed GamesIndustry.biz he expects “$ 500 million in yearly income synergies” over the next couple of years, leaving out new game releases.
” That merely speaks to doing a better job utilizing our integrated one billion-person customer database, doing a better job with data analytics [and making use of] their Chartboost [advertising] platform,” Zelnick said. Chartboost has a bunch of different offerings as part of its stack, consisting of a DSP, an exchange, an advertisement server and a mediation layer. Whereas a common waterfall may have 100 line products, Chartboost can allow thousands, Izzo said.
Although Chartboost does provide in-app bidding, the majority of the publishers it deals with still rely on a hybrid method that involves a waterfall setup.
Zynga isnt necessarily pressing for one technique over the other, Koenigsberg stated, despite the truth that most of the significant ad networks are progressively moving towards innovative bidding.
” Were efficiency based,” he said. “If the advanced bidding line products perform much better than waterfall line products, thats what will get more traffic.”.
In August, Zyngas CEO, Frank Gibeau, informed investors that Apples AppTrackingTransparency (ATT) structure made it more costly to obtain brand-new gamers. (Thats why observers are noting an unusual phenomenon on iOS: higher CPMs paired with lower efficiency. Advertisers now need to purchase more advertisements to attain the exact same or even less app installs or conversions they made with targeted projects prior to ATT.).
If, for example, Zynga spends $1 to acquire a user and only 70 cents reach the publisher, that means its bid was successfully only worth 70 cents. With Chartboost, Zynga can pay more directly to publishers while investing less overall, since the intermediary fees accrue back to the business.
Ad tech business are buying video gaming companies, and video gaming business, like Zynga, are buying ad tech.
In May, Zynga, maker of FarmVille and Words With Friends, invested $250 million to get in-app money making platform Chartboost.
Dont call Zynga– which itself was acquired by Take-Two Interactive in January for $11 billion– a “content fortress,” says Scott Koenigsberg, Zyngas primary item officer.
( Mobile strategist Eric Seufert coined the term “content fortress” to explain entities that own a big quantity of first-party data and content, in addition to the ad tech to monetize it.).
Bringing Chartboost into the fold is more about “creating a better decision engine” that serves third-party developers as much as Zynga itself, Koenigsberg stated.