How APPRECIATE has been driving ROAS without IDFA

Digital Fyber Focus is our online series hosting top industry players, thought leaders, and experts to share actionable insights and perspectives about different industry topics and react in real-time to current events that are going on in our ecosystem. 

 

Shortly after Apple’s June announcement, Fyber released its first batch of contextual targeting parameters. In November 2020, we collaborated with APPRECIATE to test the impact of leveraging these data signals on LAT traffic, as compared to IDFA traffic. Appreciate implemented creative optimization mechanisms, publisher and app optimizations, as well as multiple device-related parameters saw a 30% uptick in ROAS, 25% lower CPIs and cheaper eCPMS. 

 

Moments away from a post-IDFA world, Itai Cohen, VP Marketing & Corporate Strategy at Fyber caught up with Yossi Zattelman, Director of Client Success at APPRECIATE – to see how their performance ranks now – three months later.

 

APPRECIATE’s Journey – time and data provide deeper insights

 

Same average CPIs in both LAT and IDFA traffic 

Yossi emphasized that for the time being, competition for LAT inventory is significantly lower than it is for IDFA traffic because there are buyers who are very dominant on IDFA inventory that have yet to reach the same scale on LAT inventory. The reduced competition creates an opportunity to buy more impressions for a much lower price, but so far, according to Yossi, this dynamic did not lead advertisers to reduce the CPI rates for LAT inventory, and those remain similar to CPIs on IDFA inventory

 

CPMs and IPMs on LAT traffic are substantially lower than on IDFA traffic

Yossi shared that APPRECIATE has been able to acquire LAT impressions at scale for prices that range at 50% to 70% lower than CPMs for IDFA traffic. However, the reduced targeting accuracy in the absence of identifiers did also negatively impact IPMs, and it takes significantly more impressions to drive the same number of installs. 

 

Itai shared that from Fyber’s perspective at the exchange-level, the CPM gap between LAT and IDFA traffic was in the 50-70% range, but as more buyers started scaling their LAT activity on Fyber Marketplace, CPMs have been consistently climbing and the gap currently stands at 20% to 40%, depending on the ad format.  

 

ROAS on LAT traffic can reach up to a 10-30% increase

When we circle back to the post-install events and KPIs down the funnel, APPRECIATE sees similar retention rates for users acquired through IDFA inventory and LAT inventory. This dynamic, combined with the lower CPMs described above, yields superior ROAS on LAT traffic ranging between 10 and 30% increase compared to IDFA traffic. 

 

Leveraging on contextual targeting parameters

The shift away from user-based targeting re-introduces the importance of age-old, tried and tested contextual signals such as day-parting and days of the week in determining a campaign’s bidding strategy. These signals are now complemented by new, SDK-based contextual parameters that SSPs like Fyber introduced to the bid stream, and Yossi says that in the case of APPRECIATE, all of these data points are leveraged in order to train its algorithm and improve performance on non-identifiable inventory. 

 

“Everyone should start buying LAT traffic now because that will be the majority of traffic that we are going to have, so don’t stay behind” – Yossi Zattelman, Director of Client Success, APPRECIATE

 

Where do things stand from an ad exchange point of view?

 

Since June 2020, the number of buyers actively buying LAT traffic impressions has doubled. As more buyers continuously scale their activity and spend on LAT traffic, the increased competition is driving an increase in eCPMs, as well as the overall number of LAT impressions being bought.  This equation helps determine the market price for those impressions, and with the increase in eCPMs, advertisers will be able to generate positive ROAS on LAT traffic.   

 

APPRECIATE’s key message

 

Yossi added that buyers and publishers need to know exactly how they perform on LAT traffic. It’s critical to understand how many installs are actually coming from Apple, and determine the change coming from MMPs to SKAdNetwork conversions.

 

“Don’t wait until the change happens, get as much information as possible, because this is the new world and you need to prepare for it”

 

 

Our on-demand Digital Fyber Focus with APPRECIATE covers more on:

  • The differences in KPIs between IDFA and LAT campaigns
  • The DSPs approach to buying inventory post-IDFA
  • How are other advertisers preparing?
  • Best practices for advertisers buying LAT traffic
  • How you can leverage contextual targeting parameters to maximize performance

 

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