A/B TESTING AT VUNGLE Case Solution
Introduction & Problem Statement
Vungle is an advertising company, which is located in the UK andwas founded by Zain Jaffer and Jack Smith in the year 2011. Initially the company was facing the problem of low revenue as compared to the expenses but after the three rounds of investments, the company achieved a significant growth. Currently, the total revenue of the company is about 25.5 million and total workforce of the company is about 70 employees.
It is expected that the company is following the procedures of video adds in order to encourage the consumers to download apps and with the passage of time the number of add viewers increased continuously and it is expected that more than 100 million people saw an advertisement which is a significant success for the management of the company.
Recently the company performed AB testing over the processes of the company from beginning to install an app and the management of the company is considering that which option is providing better results and could help the company in order to make the operations more effective.
The Mobile Advertising Ecosystem: Market, Operations, and Pricing
It is expected that mobile advertising industry is growing continuously with the introduction of IOS and Android technology. With the advancement of technology, it is expected that most of the consumers in the US and in the world spent about 3 hours and phones or on tablet and more than 80% of that time on apps which shows that there is a significant potential of growth in the mobile advertising industry.
It is expected that this significant growth in the mobile market and increase in the ratio of mobile consumers generates about 75% revenue through mobile advertising and it is also expected that the revenue through mobile advertising will be greater that the revenue through PC online adds by the end of the year 2017 which shows that there is a significant potential of growth and as a result the management of Vungle could take competitive advantage by attracting greater market share.
Vungle Company is operating in in-app video advertising and it is expected that by the end of the year 2014, mostly the company will use in-app video advertising instead of mobile banner ads which is considered as a cheap source of advertising and this shift from banners to video marketing will help companies by making their operations and marketing strategies more effective which will result in increase in profitability by reducing cost..................
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