George Carens On How Samsung Ads Is Helping Streamers Meet The Churn Challenge
In this TVREV Thought Leaders Circle video and follow-up Q+A, Samsung's Director of Data Operations, George Carens, explains the "Churn Challenge"—the high rates of churn that many streaming services are seeing, and how Samsung is using its proprietary data to help them retain subscribers. To learn more about the Churn Challenge, download Samsung Ads' latest report, Spotlight On Churn.
ALAN WOLK (AW): Can you explain the Churn Challenge and its significance for streaming apps?
GEORGE CARENS (GC): With the vast array of streaming options available, consumers are frequently switching between apps. Recent data from Samsung indicates that many apps see a significant drop in active users over a span of five to twelve months. This shift in user behavior is quite remarkable.
AW: How has the streaming boom impacted app owners' approach to managing churn?
GC: As TV viewing transitions from linear to streaming, consumer behavior has evolved. Previously, viewers stuck to around twelve linear channels. Now, according to Samsung TV data, they typically use three to four apps monthly. This shift has intensified competition among app marketers to retain users. Loyalty and retention have become paramount. If a user remains inactive for about four months, re-engaging them becomes a challenge.
AW: How do retention strategies differ from acquisition?
GC: While acquisition remains essential, the emphasis has shifted towards retention and engagement. Engaging users is crucial for an app's long-term health, especially with the introduction of ad-supported tiers. Higher engagement translates to more ad impressions and revenue. Nowadays, the average revenue per user, which combines subscription and ad revenue, is a standard metric in earnings reports.
AW: How is Samsung aiding streaming services in boosting engagement?
GC: Samsung recognizes the strong correlation between loyalty, retention, and engagement. Regular app users tend to remain consistent over time. To address this, we've introduced a three-part retention and engagement solution. To start, we help app owners to analyze their subscriber base. Next, we assist in crafting targeted messages for different user groups. Finally, we measure the impact of these strategies.
AW: Can you elaborate on the program's workings and the metrics you consider?
GC: A notable success story involved an app publisher who targeted audiences at risk of churning. The program we designed for them saw an eightfold increase in retention.
AW: How do users interact with these ads, and how does Samsung facilitate this interaction?
GC: Users can click directly on ads, which takes them straight to the app. Samsung offers an app store-like experience, fostering a direct relationship between app owners and consumers. We categorize users based on their engagement levels and tailor our approach accordingly. This strategy is applicable to all app types, with many larger apps even forming dedicated retention teams.
AW: Can you delve deeper into the advertising methods Samsung employs?
GC: Certainly. Our advertising arsenal includes native ad units, TV displays, sponsorships, and CTV video on Samsung TV+. We also offer combined video experiences.
AW: What sets Samsung's audiences apart from other streaming audiences?
GC: Samsung TV owners typically have higher incomes, are often families with children, and include a significant number of millennials. These demographics are particularly appealing to advertisers.
