MAX Pro Tips 5: User Segmentation

Doug Borghese
Dec 22, 2022

MAX — AppLovin’s mediation platform — helps app developers enhance and optimize their monetization efforts through the industry’s largest selection of network bidders and a suite of robust features. 

One of the most effective ways to optimize is through tailoring waterfalls towards the value each user brings to your app. MAX’s user segmentation tools provide effective options to help you segment and target specific audiences to maximize revenue.

The challenge

A gaming developer with several well-known IPs has built a loyal audience base with users playing their apps for years. Because their primary source of user traffic is organic, they have no real need to do UA. 

Many of their long-time users are on older devices which can be more susceptible to app crashes – especially when they are served heavier ad creatives. These users also tend to yield lower revenues as they are also on older SDKs and app versions – making them ineligible for specific campaigns and ad types. Because of this, the developer needed a way to still monetize this cohort of users without compromising the app experience or building custom ad logic.

They also have an active base of users on newer devices that are able to engage with ads with no issue, so the developer can freely experiment with new types of advertising demand with them.

Finding a way to strike a balance of serving ads to these different segments of users was critical in driving continued growth for the company.

The approach

Using MAX, the gaming developer was able to plug into rich data to help them segment and target their user base with tailored waterfalls to optimize monetization and ad experience.

Automate insights through user-level revenue data

The developer was able to leverage User-Level Revenue Data API to understand in-app advertising revenue generated through MAX. The API enabled them to easily connect and ingest the data through their MMP. They were able to track what device, country, and network for each impression and the revenue it yielded. With this information, they segmented their users into high-value and low-value groups based on factors such as ARPDAU and LTV.

Flexible and customizable targeting options

The developer labeled these groups as custom keywords and passed them through the SDK to be targetable on MAX. From there, they were able to build waterfalls for each group with MAX’s Waterfall Segmentation feature, enabling them to target those user groups to the appropriate waterfall. Each waterfall consisted of unique network partners and price points based on the monetization value of each group that would drive higher fill and revenue. 

Optimal ad performance with selective initialization

Lastly, they created separate ad unit IDs within MAX and used Selective Initialization to initialize specific network SDKs that have proven to work on low-end devices, enabling them to optimize for technical health to ease the SDK load on these devices and avoid crashes.

The overall results

With MAX’s flexible and powerful user segmentation tools, the gaming developer was able to customize the ad experience for each user group which led to higher revenues and deeper engagement. These tools created an end-to-end workflow to better understand and optimize based on each group’s inherent value and the publisher’s goal for their apps. This enabled them to level up their monetization without having to build any custom ad logic on their end.

To learn more about user segmentation, speak to your AppLovin MAX account representative today, or submit a request to our developer support team.

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