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In this issue: that Applovin is so hot right now. Let's figure out why. Also, I'll never stop quoting Zoolander.

A storm is coming. We want you to be prepared. 

Many economists think a recession is on the horizon. The stock market is tanking. An unprovoked trade war is on. Is your marketing strategy prepared for this?

Join us on March 17 at 2 pm eastern for a webinar with some of Northbeam's top experts. We'll discuss:

•  How to navigate the tariffs and trade war situation
• How to adapt to a looming TikTok ban
• How to adjust for a potential recession's impact on consumers 

Register here!

This week's data

More extreme swings in Snap and YouTube data as some whales move their budgets around. These platforms make up such a small portion of the total budget that big advertisers - Northbeam or not - have an outsized influence on the overall auctions. If you see wildly varying performance there from an auction standpoint, don't sweat. Focus on your engagement metrics instead when trying to understand how your ads are performing. 

The bull's case for Applovin ads

In case you live under a rock, Applovin is the new hot topic in DTC right now. Applovin is a mobile game & app ad network that is breaking into the DTC space with a new algorithm, new ad placements, and a self-service ad platform that they’re fast-tracking for public use. While traditionally mobile app ads were focused on mobile games, Applovin is piloting ecommerce ads. And the early results are insane: Sean Frank from Ridge says it’s delivering “Meta-like results.”

People are hype on Applovin because it offers an opportunity for cheap customer acquisition. Marketers are still focused on last-click, a habit we’ve tried to break them from, and a strategy that impressions-focused platforms want to serve. It looks like Applovin is doing just that. 

But why does it work so well for ecommerce? Seven hypotheses, with supporting research. 

1. It’s a new type of ad that people weren’t expecting to see. These mobile game ad placements… you know what they look like. Users of these games are probably fatigued from the ads they’ve been seeing. The creative genius of modern DTC marketers probably makes these ads feel like a breath of fresh air. One part of this great engagement behavior is the novelty of it all. Not to mention the improvement in quality.
   
   
2. The reach is fantastic. Applovin’s network reaches 1.4 billion users, putting it on par with TikTok’s 1.5 billion. Fifty-five percent of adult Americans play mobile games once per week, which will soon put that audience over 200 million people. For comparison: Americans play more mobile games than watch cable television.
   
   
3. The context is perfect. Escaping stress and boredom are the core reasons for mobile gaming. This puts people in a different headspace - instead of doomscrolling, they’re looking to amuse themselves. This opens their hearts and minds to the idea of a new product, of engaging with a new novel ad that surprised them. It’s a different psychological context than television watchers, who use commercial breaks for the bathroom or snacks. Or people stuck in traffic looking at billboards.
   
   The unique psychological context of these ads has a huge - if difficult to measure - impact on their performance. We don’t talk enough about an audience’s psychological context and how it affects ads. Matthew Sweezy, Principal of Marketing Insights at Salesforce, wrote a great book on this.
   
   
4. You’re sliding ads inside a dopamine hit. These games are obviously designed to generate dopamine hits that keep users engaged. The longer a user stays in-app, the more ads they receive, the more money the app makes. Slot machines have mastered this. While Addiction.com recognizes that mobile games are a rising addiction, scientists are still unsure if video games are technically “addicting” or not. Either way, anybody who has played a video game knows it feels good to win at the game. How does this benefit marketers?
   
   Brand association. It’s not just about what platforms, news websites, or communities you’re associating with: it’s the emotional context. Legacy brands understand this. They often refuse to run ads on porn websites or will pull down ad spend during stressful news cycles. If your ad is appearing sandwiched between two stressful news stories, then your ad is less likely to be impactful.
   
   But on Applovin, your audience just got a tiny dopamine hit from beating their Candy Crush high score. They’re feeling good - prime time to hit them with an ad.
   
   
5. The ad formats make it easy to re-use existing assets from other ad platforms. While most vertical-video-focused ad platforms will tell you to copy over existing assets that work elsewhere, there’s often a cultural or form component that holds back performance. What creative works on YouTube Shorts, for example, may not work on TikTok because of the cultural differences between the two apps. Or even the editing style might make the creative feel “out of place” which will pull down performance.
   
   On Applovin, this does not apply. The sheer novelty of the placement and the stark differences between the ad and the game content means this is a blank slate for you to play with. In this way, I believe that pre-existing assets can outperform on Applovin without too much adjustment, which is how brands were able to see such great results in the beta.
   
   
6. Applovin is doing a great job with the tech. From the algorithm itself to the support provided, Applovin’s done an excellent job speaking to the needs of the DTC community. They understand what performance marketers value and what results are required for us to succeed. They’ve even put together a wiki guide for ecommerce marketers launching on Applovin, which will probably grow into a huge source of inspiration and guidance as they come out of beta.
   
   
7. When tracked with Northbeam, it gives a whole new set of touchpoints to the customer journey. Let’s face it: every ad is a battle for a user’s attention. In the limited amount of time that a user is holding their phone, they are available to receive ads within whatever app they’re using. Before Applovin, users on mobile games weren’t available to DTC advertisers. That’s a whole slice of time now available to us.
   
   Now DTC advertisers can reach their audiences across the most common apps they’re using: social, email, and finally mobile games. It’s a huge win for frequency, brand awareness, and reach. If you’re using Northbeam, you can track all those touchpoints in one place and measure their profitability. 

🗺️ The marketer's guide to customer journey mapping. Some guidance from our team.

🌱 How home-hydroponic brand Gardyn slashed their Meta spend by 70% while maintaining equal revenue. A masterclass. 

🛍️ DTC brands are already preparing for an economic slowdown. Some notes from the front lines of retail. 

🚨 JOB: Paid Social Growth Manager // Monica Vinader // London/Remote: a hot UK jewelry brand is looking for help. Reply to this email to see the JD. 

🚨 JOB: Head of Growth // Niural // NYC: An AI-focused role for someone seeking B2B. 

🚨 JOB: VP Growth Marketing // Dermstore // NYC: A skincare-focused big bucks role.

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