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AppLovin You … Next Quarter
AppLovin didn’t have a very good Q4 by the numbers, but shares leaped by 30% after the company reported earnings on Wednesday. What gives?
Although revenue declined 11% year over year to $702 million, AppLovin still beat analyst predictions. The company also offered optimistic revenue guidance for Q1, which it expects will fall somewhere between $685 million and $705 million – topping Q4, traditionally everyone’s biggest quarter.
A large chunk of AppLovin’s revenue (44%) comes from its software business, which grew 24% year over year, thanks mainly to its user-acquisition solution and ad exchange.
Revenue for AppLovin’s apps business, by contrast, which includes a portfolio of owned gaming content, has been in a quarter-over-quarter decline since Q4 2021. (AppLovin has said in the past it will restructure its apps business and focus more on software.)
The fact that AppLovin’s software biz is “dramatically outpacing” its apps is noteworthy, writes Eric Seufert at Mobile Dev Memo, because it suggests the software platform is outperforming the broader mobile market and gaming in particular.
Apple’s ATT and a reversion to pre-COVID-19 consumer-behavior norms have a tendency to do that.
It will be interesting to see whether AppLovin delivers on its Q1 guidance despite the less-than-favorable environment.
Order Up
Food delivery services are building ad products around streaming media. (Which makes sense – who doesn’t like to stuff their face while watching TV?)
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Daily Roundup
But it’s also a sign of how subscription-based membership and loyalty programs have reshaped the potential for marketing partnerships.
Uber, for instance, is introducing a post-checkout ad unit, timed to launch with the Super Bowl, that will be served to Uber Eats customers as they track their orders, with Paramount+ as its pilot partner, Adweek reports.
(Paramount+ was also a launch brand for Lyft Media in November when it tested a marketing offer whereby customized cars – in this case, pickup truck replicas from the hit show “Yellowstone” – picked up unsuspecting riders who also got a free week of Paramount+.)
Just one day after Uber’s news, Roku and DoorDash announced a partnership for restaurants and merchants to place shoppable ads on Roku. Roku users will also get a six-month trial of DoorDash’s subscription service, which usually costs $10 per month.
Uber, by the way, is also a Super Bowl advertiser. It’s promoting its Uber One membership paid membership program. Paramount+ is a Super Bowl advertiser, too.
UGC You Later
Ecommerce brands want to strike more influencer partnerships for user-generated content. Problem is, they’re being inundated with cold pitches coming in from side-hustling influencers offering UGC by the cartload.
There’s simply too much outreach from would-be influencers, which makes it hard to vet for quality and find people who can authentically endorse a product, reports Thingtesting, an information resource on DTC brands. Many of these UGC creator pitches often come through the same channels as genuine customer requests, which means they end up burying complaints or customer feedback that a company wants to get to immediately.
But the influencer influx is also creating an opportunity for companies to curate TikTok and Instagram influencers for online brands and birthing startups testing new influencer monetization playbooks.
Bounty, for example, which launched last year, offers cashback on purchases through its brand and merchant partner program when users review and promote items on TikTok.
Rembrand, meanwhile, a new startup that launched this week, is a virtual product placement service to integrate brands into creator productions and help influencers monetize beyond platform advertising rev-share programs.
But Wait, There’s More!
Yahoo shrinks: In addition to laying off 2% of its workforce (including half its ad tech group) Yahoo will shut down its SSP and its native ad network Gemini, defaulting instead to its deal with Taboola. [Axios]
Criteo flaunts its retail wares as sell-off speculation mounts. [Digiday]
Former Google and Salesforce leaders have a plan for their own AI and machine learning startup. [CNBC]
Instagram influencers still out-earn their TikTok peers. [Ad Age]
The ubiquity of camera phones and the lure of internet popularity means that everything – and everyone – can be content. [BuzzFeed]
Privacy equity firm Francisco Partners is nearing a deal to buy Sumo Logic, a data analytics business, for $1.7 billion. [WSJ]
You’re Hired!
Moloco hires Tal Shaked, a former machine learning architect at Snowflake and Google, as chief machine learning fellow. [release]
Former Amazon tech and product VP Tim Kohn joins Akeneo as its tech and product advisor. [release]
Vince Amalfi joins Mirriad as VP of sales and brand partnerships. [MarTech Series]
