Advanced Bidding is a hit for music streaming platform Audiomack

Tuesday, October 08, 2019
By: Calvin Yeung

Founded in 2012 by Dave Macli and David Ponte, Audiomack is a youth-driven, artist-first music streaming platform that allows creators to share unlimited music and podcast content for free, along with tools to help them expand their audiences. Focused on emerging artists and scenes — Hip-Hop, Electronic, Latin, Reggae, Afrobeats, and other top and emerging genres — Audiomack has played a pivotal role in the careers of some of today’s most popular hip-hop artists, including Young Thug, Migos, A Boogie Wit da Hoodie, 21 Savage, Juice WRLD, and more. Notable releases exclusive to or premiered on Audiomack includes Chance the Rapper’s seminal Acid Rap mixtape, J. Cole’s fabled Truly Yours 1 and 2, Eminem’s eviscerating Machine Gun Kelly diss track “KILLSHOT,” and a series of freestyles from Nicki Minaj. Audiomack currently reaches more than three million daily active users, generating over three billion monthly streams. 

Audiomack leverages a hybrid combination of in-app subscription and advertising to monetize the mobile app. Thanks in part to MoPub’s Advanced Bidding solution and unique native demand, Audiomack has been able to provide a free platform for new and emerging artists to reach their audience at scale. 

Challenge:

Audiomack is always looking to find innovative ways to provide the best music streaming experiences for its users and with that, needs to ensure that mobile app monetization remains a sustainable economy to fund those innovations. Witnessing the benefits of header bidding in the desktop world - increased demand competition to ultimately higher total ad revenue, Dave Macli, CEO of Audiomack, was looking   for a mobile in-app bidding offering, in which ad networks are enabled to bid in real-time alongside DSPs.  

Solution and results:

Having been a long time customer of MoPub’s, Audiomack decided to implement Advanced Bidding as soon as the beta solution was available. They participated in a carefully designed, month-long A/B test that compared the results of the Advanced Bidding to standard mediation. The A/B test leveraged the causation methodology, unlike a simple pre/post-test (view the full explanation of the testing methodology here), which controlled for outside variables that could impact the results. It showed that Audiomack saw a 44.5% increase in average revenue per daily active user (ARPDAU) in the Advanced Bidding test group compared to the control group.  

“As an app publisher, finding an in-app equivalent for the desktop world’s header bidding solution was a tough feat, but MoPub’s Advanced Bidding solution changed the game for us,” says Macli 

Audiomack expects the impact Advanced Bidding to have on its yield to be even more significant as more ad networks that Audiomack works with become bidders as well. “I truly believe that in-app bidding will be the norm in the mobile ecosystem, it’s just a matter of when, not if. Networks and publishers that are late to the party are the ones who stand to lose out,” Macli says.  

Looking forward: 

Advanced Bidding aims to reduce the complexity of demand source management to improve publishers’ (specifically ad ops teams’) operational efficiency. Macli shares that “once we have all, or the majority, of the networks on Advanced Bidding, I expect more of our time can be dedicated to more strategic efforts.” 

More about MoPub’s Advanced Bidding solution: 

Since 2011, MoPub has connected app publishers and mobile ad buyers looking to buy supply in real-time across a variety of ad formats. Nearly from inception, the MoPub leadership team had the vision that one day all mobile app media would be transacted programmatically.

In 2017, the MoPub team conducted a lengthy R&D effort aimed at determining the best path forward to make the dream a reality. In December 2017, MoPub launched the alpha version of Advanced Bidding, a first iteration in the effort to replace the app ads waterfall with a unified auction. Since then, MoPub has made product improvements to launch the beta upgrade of the solution, and has been busy on-boarding beta publishers and ad network bidders.

MoPub’s Advanced Bidding participants include Facebook Audience Network, Tapjoy, and AdColony alongside MoPub Marketplace which has over 180 DSP buyers including the Twitter Audience Platform. Another 10 ad network bidders are in active implementation and testing phases.  

MoPub’s position as a primary network mediation layer and as a leading in-app exchange connected to over 180 demand-side platforms, including Twitter Audience Platform, gives us a unique ability to integrate Advanced Bidding without having to bias the platform towards one demand source or another. Keep an eye on our Advanced Bidding page for updated results and learnings as we add more publishers to our beta program this year. 

Click the image below to download the full case study: 


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