Device-level discovery has disrupted the app economy status quo: Elad Natanson

Elad Natanson, Founder & CEO, Appnext, an Affle company, talks about device-level discovery, and its effects on the app economy. “As a third-party platform, we bridge the gap between smaller developers and leading smartphone manufacturers and carriers. We open the door for these developers to millions of new users that they otherwise would not have had access to. In this sense, device-level discovery has disrupted the app economy status quo – there is nothing stopping smaller developers from becoming the next big thing,” he says in this interview with Adgully. Excerpts:

Device-level discovery has been Appnext’s most successful innovation. Why do you think it has been so well-received by marketers and users, compared to other user acquisition channels?

Marketers have recognised the value in being able to tap into the mobile journey of their ideal users. Basically, device-level discovery has circumvented the broadness of other user acquisition channels, where marketers are forced to take a one-size-fits-all approach to targeting users. Instead, marketers deliver personalised and contextual recommendations and reach users at the most impactful moments on the most valuable piece of advertising real estate – the device home screen.

It goes without saying that marketers are also hooked on the results of device-level discovery. That is, higher conversion rates compared to other UA channels, its accessibility for developers to seamlessly engage with users, how it drives long-term value, and the brand strengthening benefits.

We know that consumers want a personalised smartphone experience. How has device-level discovery helped facilitate this?

At the heart of device-level discovery is some of the industry’s most sophisticated behavioral-driven technology. Our AI-powered Appnext ‘Timeline’ tech processes critical pieces of user data, such as age, sex, language, location, device model and browsing habits, to hone in on user intent and serve relevant app recommendations. The continued development of our proprietary technology has been critical in providing the most personalised smartphone experience possible.

It is also exciting to think that device-level discovery is actually shaping consumers’ expectations for their smartphone experience. People are increasingly expecting hyper-personalised, real-time experiences. The assumption now is that they will receive a fully customised experience. More and more, users do not want to go searching for the app or service they need. Rather, they feel a relevant app should be delivered to them at the exact moment they need it. This is impacting how entire industries are developing their own business models.

On-device discovery has been made possible by AI-driven technology that analyses user data in real-time. Will emerging technologies, such as 5G, further improve both data analysis and the subsequent generation of app recommendations?

Of course, how far Appnext’s technology develops is always somewhat dependent on up-to-date mobile infrastructure. A real-time smartphone experience is reliant on connectivity and in many parts of the world that remains a problem.

We’ve heard so much about 5G over the last few years and there has been a huge global investment in this technology. It is forecast that by 2023, there will be around a billion 5G connections worldwide, so I imagine we will start seeing the widespread benefits of 5G in the immediate future. It is estimated that 5G will be up to 100 times faster than 4G and there will be a big decrease in latency, which obviously means crystal clear video streaming & calling, super fast downloads and seriously high-definition game play. But 5G will also bring enhanced data collection and crunching – we will know more about our users, what they want and what makes them tick.

Personally, I’m excited about how 5G will enable richer and more powerful mobile experience. People will be literally carrying around immersive experiences in their pockets. 5G is an opportunity for brands to connect with their users in more profound and memorable ways.

How has device-level discovery impacted the overall app economy? How does it particularly benefit smaller app developers?

This was actually a major problem that we set out to solve with the development of on-device advertising – how we could open up the market to smaller developers who don’t have huge marketing budgets. We have moved device-level advertising away from the ‘closed shop’ market that it was before when it was dominated by the industry’s biggest players. As a third-party platform, we bridge the gap between smaller developers and leading smartphone manufacturers and carriers. We open the door for these developers to millions of new users that they otherwise would not have had access to. In this sense, device-level discovery has disrupted the app economy status quo – there is nothing stopping smaller developers from becoming the next big thing!

Where does device-level discovery go from here? Give us an idea of how it can evolve even further?

First, on-device advertising will continue developing so that devices ‘understand’ users intuitively, which will usher in the most advanced era of smartphones to date. Second, it is interesting to consider how device-level discovery relates to the entire Internet of Things. It’s amazing to think that as this vast network of interconnected devices, sensors and software expands, so too will the sophistication of our app recommendations. Theoretically, this could benefit an individual’s wellbeing, for example, by monitoring key health indicators and recommending services accordingly. Ultimately, the IoT will lead to a micro-level understanding of consumers, allowing us to analyse and respond to their immediate surroundings and needs.