Boosting ROAS the Smart Way: The Math Behind More Profitable Ads

Learn how to optimize ROAS with smarter strategies. Discover the math behind Return on Ad Spend and how improving Average Basket Size, Conversion Rate, and Cost Per Click can drive better ad performance and profitability.

I’d be honest. When I first moved into digital marketing from a background in math and quantitative finance, I saw things a little differently. While most marketers focused on creative storytelling and audience psychology (which are undeniably important), I naturally gravitated toward the numbers. I wanted to break down ad performance the way I would analyze financial models—through data, formulas, and strategic optimizations.

One of the biggest misconceptions I’ve seen in performance marketing is the belief that cutting costs alone improves Return on Ad Spend (ROAS). Many marketers think that slashing CPC (Cost Per Click) or reducing spending on “underperforming” campaigns is the key to profitability. But that’s only part of the equation.

ROAS isn’t just about how much you spend, it’s about how much value you generate from every dollar. And to truly optimize ROAS, you need to understand its mathematical makeup. In this post, I’ll break ROAS down into its three core components — Average Basket Size (ABS), Conversion Rate (CVR), and Cost Per Click (CPC), and show you the strategic levers you can pull to drive better ad performance.

Let’s get into it. 🚀

What is ROAS? (Defining the Formula)

Let’s start with the basics. Return on Ad Spend (ROAS) is one of the most critical metrics in performance marketing. It tells you how much revenue you’re generating for every dollar spent on advertising.

ROAS Formula:

For example, if you spend $1,000 on ads and generate $3,000 in revenue, your ROAS is $3,000 / $1,000 = 3

This means you’re earning $3 for every $1 spent.

While a higher ROAS is ideal, blindly optimizing for it by just cutting costs can be misleading. To truly maximize ad performance, we need to break it down further.

Breaking Down ROAS: The 3 Key Components

ROAS is influenced by three key factors:

1. Average Basket Size (ABS)

What it means: The average amount a customer spends per purchase.

Why it matters: If customers spend more per transaction, your revenue increases without needing more conversions.

2. Conversion Rate (CVR)

What it means: The percentage of visitors who clicked on an ad and made a purchase.

Why it matters: Higher conversion rates mean you extract more value from the same traffic.

3. Cost Per Click (CPC)

What it means: The cost of acquiring each visitor to your site.

Why it matters: Lowering CPC without sacrificing traffic quality means getting more conversions for the same budget.

Rewriting ROAS using these components:

This equation makes it clear: To improve ROAS, you need to increase ABS, improve CVR, or lower CPC. Let’s dive into how you can optimize each.

Strategies to Improve ROAS via Each Component

A. Increasing Average Basket Size (ABS)

Let’s take an e-commerce brand as an example. Instead of focusing on acquiring more customers, they increased revenue by maximizing how much each customer spends.

Tactics to Increase ABS

✅ Upsells & Cross-sells: Recommend complementary products (e.g., “Frequently bought together” or post-purchase upsells).

✅ Bundling: Offer product bundles at a slight discount to encourage higher spending.

✅ Free Shipping Thresholds: Set free shipping at a slightly higher value than the average order to push customers to buy more.

🛍️ Case Study: Ravin Boosting Average Basket Size (ABS)

Ravin, an online fashion retail brand, implemented Wiser’s product recommendation engine to enhance customer engagement. By displaying related and frequently bought together items on product pages, they achieved a 30% increase in conversions and a 12% increase in sales.

B. Boosting Conversion Rate (CVR)

Let’s say you’re running a subscription app. You get clicks, but many users drop off before converting. Improving CVR means turning more of those clicks into paying customers.

Tactics to Improve CVR

✅ Landing Page Optimization: Make checkout seamless, ensure fast-loading pages, and optimize for mobile.

✅ A/B Testing Offers & Creatives: Experiment with different CTAs, ad visuals, and pricing models to see what converts best.

✅ Trust Signals & Social Proof: Showcase reviews, testimonials, and security badges to reduce buyer hesitation.

🥗 Case Study: FastEasy Boosting Conversion Rate (CVR)

FastEasy, a mobile fitness app, faced challenges in efficiently conducting A/B tests for their campaigns. By integrating Reteno’s AI-powered marketing automation platform, they were able to run multiple experiments simultaneously without relying heavily on developers. This approach led to a 29% boost in conversion-to-subscription rates.

C. Lowering Cost Per Click (CPC)

A mobile gaming app wanted to scale its paid campaigns while maintaining profitability. Lowering CPC without sacrificing quality was the key.

Tactics to Reduce CPC

✅ Better Targeting: Use lookalike audiences, retargeting, and negative exclusions to focus on high-intent users.

✅ Ad Quality Score: Platforms like Google Ads reward high-relevance ads with lower CPCs. Improve ad copy, CTR, and landing page experience.

✅ Bid Optimization: Adjust bids based on performance insights such as time of day, device, and geo-targeting can significantly impact CPC.

🕹️ Case Study: Voodoo Games Lowering Cost-per-Install

Voodoo Games, a French mobile game publisher, by actively testing more than 500 videos a week for their hit game Mob Control, reduced their CPI and surpassed $200M in revenue at an average of 150% ROAS.

Final Thoughts: The Smarter Approach to ROAS

Improving ROAS isn’t just about spending more, it’s about spending smarter. By understanding the math behind ROAS and optimizing its key components — Average Basket Size (ABS), Conversion Rate (CVR), and Cost Per Click (CPC), you can make strategic, high-impact changes that drive better profitability.

At the core of all successful ad campaigns is data-driven decision-making. Testing, iterating, and refining based on real numbers, not just gut feelings, ensures that every dollar you invest works harder for you.

So, what’s your biggest challenge with ROAS? Drop a comment below, and let’s discuss! 🚀

Boost Your Brain & Productivity: Why Fitness is the Ultimate Work Performance Hack

Discover how regular exercise reduces stress, enhances focus, and increases energy—helping you work smarter, not longer. Learn practical, time-saving fitness hacks for busy professionals and unlock the ultimate performance advantage. Read now to transform your work and well-being!

I’d be honest. Earlier in my career, I believed that working long hours was the key to success. Hustle harder, grind longer, right? But I was so wrong. Instead of getting ahead, I found myself constantly exhausted, mentally foggy, and running on caffeine fumes. Burnout wasn’t a badge of honor — it was a productivity killer.

That all changed when I started prioritizing fitness. At first, I just wanted to feel healthier and lose weight. But what I didn’t expect was how working out transformed my mental clarity, energy levels, and overall performance at work. Suddenly, I could think clearer, stress less, and get more done in less time.

If you’ve ever felt drained before your workday even ends or like your brain moves in slow motion by 3 PM, you’re not alone. But here’s the good news: you don’t need more caffeine or longer hours, you need movement. Let’s dive into why fitness is the ultimate hack for sharper thinking, better productivity, and a stress-free work life.

The Science of Fitness and Mental Well-Being

First, let’s prove it with science! Exercise isn’t just about looking good, it’s a powerful stress buster and brain booster.

When you work out, your body releases endorphins (those feel-good hormones) while reducing cortisol (the stress hormone). This natural stress relief helps you stay calm, focused, and more resilient under pressure, exactly what you need in a high-performance work environment.

But it gets better. Exercise literally boosts brainpower. Studies show that regular physical activity improves cognitive function, memory, and focus, helping you retain information better, think faster, and solve problems more effectively. Ever notice how a quick workout leaves you feeling sharper and more alert? That’s because exercise increases blood flow to the brain, fueling it with oxygen and nutrients to keep you operating at peak performance.

So, how much exercise do you actually need? The World Health Organization recommends at least 150 minutes of moderate-intensity exercise per week — that’s about 30 minutes a day, five times a week. But here’s the thing: small, consistent efforts matter more than perfection. Even just 10–15 minutes of movement daily can lead to noticeable improvements in focus, mood, and productivity.

Fitness as a Productivity Multiplier

So, how does fitness actually translate into better performance at work? Here’s what happens when you exercise regularly:

✅ Sharper Focus & Mental Clarity: Say goodbye to brain fog and sluggish thinking. You’ll power through tasks faster and make better decisions.

✅ Stronger Problem-Solving Skills: Exercise enhances creativity and cognitive flexibility, helping you tackle complex challenges with ease.

✅ Higher Energy Levels: No more afternoon slumps! Physical activity boosts energy, so you stay alert and engaged throughout the day.

✅ Increased Resilience Under Pressure: Stressful deadlines? Tough negotiations? Regular exercise builds mental toughness, making it easier to stay composed and confident.

And here’s the best part, these benefits compound over time. The more consistent you are, the more you’ll notice the difference in your focus, efficiency, and overall work performance.

How to Make Fitness Work for You (The Busy Professional)

I get it, you’re busy. We all are. But here’s the truth: “No time” is just another way of saying “not a priority.”

The key to fitting fitness into your life isn’t about finding time—it’s about making time. And that starts with a mindset shift: see exercise as an investment, not a time sink.

Here’s how to incorporate movement into your packed schedule:

💡 Start Small – Even 10–15 minutes is better than nothing. A quick home workout, a short jog, or even a few push-ups between meetings can make a difference.

💡 Take Active Breaks – Instead of scrolling through your phone during breaks, take a short walk, stretch, or do a few bodyweight exercises.

💡 Use Movement Hacks – Try walking meetings, a standing desk, or taking the stairs instead of the elevator. These small changes add up!

💡 Make It a Routine – Personally, I aim to fit my workouts before dinner. Find a time that works for you—early mornings, lunchtime, or evenings—and make it part of your daily rhythm.

💡 Find a Training Partner – It’s easier (and more fun) when you have someone keeping you on track. I train regularly with my wife, and it has been a game-changer in staying consistent and motivated.

Final Thoughts: Take the Challenge

Prioritizing fitness isn’t just about health, it’s about working smarter, thinking clearer, and performing better. If you’re serious about levelling up your productivity and mental resilience, movement is the ultimate cheat code.

So here’s my challenge for you: Try adding just 10 minutes of movement every day for the next week. See how it impacts your focus, energy, and stress levels. You might be surprised at the results!

What’s one fitness habit that has helped you perform better at work? Drop it in the comments! I’d love to hear your thoughts! ⬇️

User Acquisition vs. Retention: How to Balance Both for Sustainable App Growth

Struggling to grow your app? Discover why balancing user acquisition and retention is the key to sustainable app growth. Learn data-driven strategies to optimize CAC, LTV, and engagement at every stage—from early traction to scaling success. 🚀 #GrowthMarketing #AppSuccess

I’d be honest. Early in my career, I fell into the classic growth trap — thinking that if we just poured millions into acquiring users, we’d build a thriving app. And for a while, the numbers looked great. Installs were skyrocketing, CAC was manageable, and investor decks were filled with impressive graphs. But then reality hit — users churned just as fast (or even faster!) as we acquired them. The growth wasn’t real. It was a leaky bucket.

That’s when I realized that sustainable app growth isn’t about choosing between acquisition and retention—it’s about mastering both. You can drive downloads all day long, but if users don’t stick around, you’re just burning cash. On the flip side, obsessing over retention without feeding the top of the funnel can leave you stagnant.

In this article, I break down:
✅ Why focusing only on acquisition is a costly mistake
✅ How strong retention improves LTV and reduces CAC over time
✅ A data-driven approach to integrating both strategies based on your app’s growth stage

The Growth Trap: Why Focusing Only on User Acquisition is Costly

It’s easy to get caught up in the numbers game—pumping money into ads, watching downloads roll in, and feeling like your app is taking off. But here’s the reality: if users aren’t sticking around, you’re not growing—you’re just spending.

Many app companies fall into the “growth at all costs” mindset, prioritizing new user acquisition before ensuring that their product delivers long-term value. The result? High CAC with low retention, leading to unsustainable growth.

A prime example? The early days of many food delivery and ride-hailing apps. They threw massive incentives at users—free rides, discounted meals, referral bonuses. It worked for short-term installs, but when the discounts disappeared, so did the users. Without a solid retention strategy, these companies burned through capital with little to show for it.

User acquisition is important, but without strong retention, it’s like filling a bathtub with the drain open.

The Retention Advantage: Why Keeping Users is the Real Growth Lever

Acquiring users is just the first step—keeping them engaged is where the real growth happens.

✅ Improves Lifetime Value (LTV): The longer a user stays, the more revenue they generate.
✅ Lowers CAC Over Time: Higher LTV allows you to spend more efficiently on acquisition, improving return on investment.
✅ Drives Organic Growth: Engaged users naturally refer others, reducing reliance on paid marketing.

A simple framework for thinking about retention:

👉 Acquisition → Engagement → Habit Formation → Loyalty

  • Acquisition: Bring users in through targeted marketing.
  • Engagement: Deliver immediate value to keep them interested.
  • Habit Formation: Create experiences that make your app part of their daily routine.
  • Loyalty: Turn users into advocates who bring in more users.

Think about apps like Duolingo and TikTok—they don’t just attract users, they create behaviours that keep them coming back. Through gamification, push notifications, and personalized content, they build habits that drive long-term retention.

Finding the Right Balance: A Data-Driven Approach

So, how do you strike the right balance between acquisition and retention?

Data is your best guide. Here are the key metrics to monitor:

📊 CAC (Customer Acquisition Cost) – How much are you spending to acquire a user?

📊 LTV (Lifetime Value) – How much revenue does a user generate over their lifetime?

📊 Retention Rate – What percentage of users stay after X days?

📊 Churn Rate – How quickly are users dropping off?

📊 DAU/MAU (Daily/Monthly Active Users) – How engaged is your user base?

Your strategy should shift based on where your app is in its growth journey:

🚀 Early-Stage Apps – Use acquisition to test product-market fit. The goal is to validate demand quickly and iterate based on user feedback.

📈 Scaling Apps – Once you have a commercially viable product, shift focus to scaling acquisition while building core retention mechanisms (onboarding, push notifications, loyalty programs). The goal is to improve engagement and reduce churn.

🏆 Mature Apps – Growth becomes more about sustainable expansion. This is where upsells, community building, and referrals take center stage. The goal is to turn your users into your biggest advocates.

Final Thoughts

At the end of the day, real growth isn’t about choosing between acquisition and retention—it’s about making them work together. You can’t just fuel the fire with new users if the bucket is leaking, and you can’t focus only on retention without a steady stream of fresh users coming in. The most successful apps master the balance, using data to fine-tune when to push for scale and when to double down on keeping users engaged.

So, where does your app stand today? Are you struggling to acquire users, or is retention the real challenge? Drop a comment—I’d love to hear your thoughts and swap insights! 🚀

2023 Digital Marketing Predictions

At this point, doing a 2023 prediction now seems to be cheating. I admit that predictions are hard and it probably took me longer than I should to assemble my views. While better late than never, hopefully this will spark conversation and hold us accountable for our predictions. 

AI-Powered Digital Marketing

Let’s start with an easy and obvious one – something I have already wrote about previously. Whether we like it or not, the rise of AI in Digital Marketing is upon us. 

2023 is probably the first year we see the start of real competition to Google’s Search dominance in the form of Microsoft’s new AI-powered Bing. However, this hype about AI has already transcended Search marketing, and many Ad Tech businesses are eager to incorporate AI into their products. 

With AI providing efficiency, what this means for Digital Marketers is the need to go beyond building deep technical expertise and instead focus on soft skills like problem solving, strategic thinking and creativity.

Focus on Enhancing Customer Lifetime Value

From a macro economic standpoint, 2023 is set to continue the tailwinds of a turbulent 2022. Rising interest rates, inflation and a potential recession.

With such a gray backdrop, more companies will probably prefer to be conservative with their digital marketing budgets. As such, to obtain growth in revenue, companies will need to extract higher value per user. 

Companies should therefore focus on product and monetisation to enhance their customers’ LTV. Improving LTV will also reduce the opportunity cost caused by the rising interest rates.

Apple to Extend its Digital Advertising Dominance

Since Apple released iOS 14.5, the importance of Apple Search Ads to Digital Marketers has grown drastically. This has clearly revealed Apple’s ambition in the digital advertising space.

Apple’s strengths lies predominantly in its ecosystem. With full visibility of its audiences within the iOS ecosystem, Apple is in the best position to provide personalised ads and measure its effectiveness. 

All Apple needs now, is to build its own ad exchange and demand-side platform.

Privacy Forces Transition to Probablistic Tracking

Towards the end of 2023, Google is expected to finally release its Privacy Sandbox initiative where it will reduce cross-site and cross-app tracking. This is almost equivalent to Apple’s iOS 14.5.

So, Digital Marketers should prepare for a world without deterministic tracking such as device IDs or cookies. The broad solution to this is probabilistic tracking and it is likely that advertising platforms will resort to using this. 

Tiktok to Finally Overtake Meta and Google

Let’s face it. Attention spans are dropping globally. (If you made it to this point, kudos to you!) We have been saying it for years that video as a medium is the next big thing. Specifically in 2023, short-form videos will takeover the world. To combat Tiktok, Meta and Google have both released their own versions in the form of Reels and Shorts respectively. 

It is probably still a stretch that Tiktok may actually overtake the two behemoths in 2023. But with as the fastest-growing platform dominated by youths, it is clear that the future, for now, lies in Tiktok’s hands.

In all, 2023 will definitely be another interesting year for digital marketers.

What other futures do you see yourself in 2023?

Digital Marketers: 7 Skills to Have in 2023

Recently with a little more time on my hands, I was curious to find out what companies/recruiters are looking for in Digital Marketers. But going through the many job descriptions on LinkedIn, it seemed to be a mammoth of a task, an especially menial one.

So, I decided instead to use some simple text analytics to mine out the keywords used in these job descriptions. First, using “digital marketing” as a keyword on LinkedIn, I took 30 job descriptions as the raw data. After that, I used a text mining package on R to analyse it for keyword frequency and associations.

Here’s what I found out.

Taking together the keyword frequencies and associations, provided me with a list of skills I believe would be important for Digital Marketers to have now.

1. Teamwork and Team Management

While Digital Marketing may oftentimes be thought of as an individual contributor, this is hardly the case. To run an effective digital marketing campaign, multiple cross-functional teams need to work hand-in-hand.

I will say the critical teams here would be the Performance Marketing, Creative, Data and Product Teams. Effective digital campaigns require these four teams to work together to produce data-driven potent ads that are successful in driving users to convert in the product conversion funnel.

As such, a Digital Marketer in 2023 needs to be able to work well with cross-functional teams, and/or be able to manage such teams.

2. Media Campaigns

Needless to say as digital marketers, we need to have the right technical skills to run media campaigns. However, I will go a step further here to highlight two points – the breadth of media campaigns and hands-on experience.

As we move towards a world powered by artificial intelligence (AI), Digital Marketers need to be more than single ad platform specialists. Being able to understand and manage multiple campaigns across different ad platforms will be vital.

In addition, with a looming recession, companies may be forced to tighten their resources and thus more Digital Marketers will be expected to have hands-on experience in managing the campaigns.

3. Drive Customer Growth

A huge part of what Digital Marketers do is to drive user acquisition. However, it is important to note that growing the customer base does not stop at the top of the funnel. It goes way deeper than that.

Digital Marketers need to be able to bring in quality users who will end up as valuable customers. This means focusing on bringing in relevant users, and working closely with Data and Product teams to retain customers.

4. Business Strategy

With increased help from AI, Digital Marketers need to move beyond technical expertise and towards other skill sets such as strategic thinking, creativity and problem-solving. 

At the end of the day, digital marketing needs to help the company achieve its business goals. The more strategic Digital Marketers are, the better position they will be in to formulate strategies and tactics to bring success to their company.

At this point, an astute reader might be saying “Hey Mervyn, there are only 4 skills here. What happened to the other 3?”. To that, my answer is that the remaining three are from a book I have read recently – Think Again by Adam Grant. 

5. Think Like a Scientist

To level up as Digital Marketers, we need to develop the habit of thinking again. Instead of simply forming opinions based on experience, come up with hypotheses, test them with data and arrive at your conclusions. 

When building up our skill set to be more strategic, we Digital Marketers should approach business strategies as experiments.

6. Abandon Best Practices

More often than not, we Digital Marketers resort or fall back to what we think are ‘best practices’. However, in doing so, we are preventing ourselves from further improving our current routines. 

What we need to do is to focus not just on results but also on the process. A bad process with a good outcome is luck, and a good process with a bad outcome might be a smart experiment. We need to adopt process accountability and continually pursue better practices.

7. Make Time to Think Again

Last but not least, we need to make time to think again. The world of Digital Marketing and Technology is ever-changing, and thus it is imperative that we set aside time for us to rethink and learn. 

Take the time to assess how much you are learning, or how much closer are you moving towards your goals. All this will help you decide on your next steps, your next experiment or your next campaign. 

Ultimately, we are rapidly moving towards a world filled with artificial intelligence and automation. Digital Marketers of today need to evolve as well to ensure that we stay relevant and continue to contribute substantially to our companies.

Are you up for the change?

AI-Powered Search Engines: 3 Ways It Will Change Digital Marketing

I got to be honest. Writing this article, I had help from ChatGPT (an AI language model). While not to the extent of it (he, she or they?) writing the article for me, but good enough proof that the future of work is indeed changing.

First, a quick premier to set the context. 

What is ChatGPT and why is it causing an AI browser war?

ChatGPT is an AI language model developed by OpenAI. Since its web interface version was released to the public in November 2022, it has taken the world by storm due to its capability to generate human-like text and its ability to perform a wide range of tasks such as answering questions, summarising text, and producing creative writing.

Most recently, Google fired the first salvo when they announced their own experimental AI chat service, Bard, which will be accessible in the upcoming weeks. A couple of days later, Microsoft (which has already invested $1 billion into OpenAI) announced that it is launching a new Bing with OpenAI’s GPT-4 model (ChatGPT was built using GPT-3 which only has data until 2021). This will provide a ChatGPT-like experience within the search engine. In addition, Microsoft is planning to include AI features in their Edge browser as well.

This kicks off the AI wars between Microsoft and Google. As we pray that this will not degenerate into an ending like The Matrix, let’s check out the three biggest impacts AI-powered search engines will have on us Digital Marketers.

Search Marketing To Take Larger Proportion of Ad Marketing Spend

With access to the user’s search history, location and behaviour, AI-powered search engines will deliver highly personalised search results and advertisements that can be used to create more effective targeted marketing campaigns. This would lead to higher conversion rates and better ROAS (return on ad spend) for digital marketers. As a result, it would be expected that our investment in Search Marketing will only grow in importance.

Furthermore, with Microsoft’s Bing returning with a vengeance like a Jedi, we will no longer be able to get away with just Google SEM (search engine marketing). Time to broaden our Search Marketing repertoire and pick up Bing advertising.

Increased Efficiency Leading to a New Breed of Digital Marketers

Imagining having JARVIS (Ironman) or Griot (Black Panther) helping you with your manual tasks. It is highly possible that AI-powered search engines may automate many of our manual tasks such as keyword research and bid management. This will free up precious time and resources and thus allow us to focus on more strategic initiatives.

This means that we as Digital Marketers will need to develop and focus on other skillsets besides technical expertise such as strategic thinking, creativity and problem-solving. 

Unique Content is Required to Stand Out

As AI-powered search engines focus more on conversational results instead of the traditional search query results, search engines will likely drive fewer clicks to your content.

In a world where AI may synthesise large amounts of data to produce a summarised answer, sites with similar content will be buried away. Therefore to stand out, an even greater importance will be placed on creating unique content. A tip here would be to add your own unique view on top of what AI services like ChatGPT provides.

In conclusion, AI-powered search engines will transform digital marketing by improving the ROI through enhanced targeting, creating a new breed of digital marketers, and forcing content creation to be more unique. 

What other ways do you think AI-powered search engines will affect us as Digital Marketers?

The Duopoly of Facebook and Google

In Economics, we learn that in an Oligopoly, the consumer suffers because of potential collusion leading to higher prices and lack of consumer choice.

Google and Facebook Rigged the Ad Market

With a combined share of ~53%, the digital ad space is currently being dominated by Google and Facebook. In such a duopoly (a special form of Oligopoly), collusion is always a possibility, and it turned out to be true when Google colluded with Facebook to favour its own exchange.

Oligopoly Trend is Not Waning

This problem of Oligopoly is definitely not going away anytime soon. It is exacerbated by further consolidation in the ad supply space (Applovin acquiring Mopub & ironSource acquiring Tapjoy) and Facebook/Google withdrawing further behind their walled gardens.

What can be Done?

Brands / Advertisers definitely have their work cut out for them. To stand out and succeed in time to come, I believe advertisers would need to focus on the following:

  1. Grow their product’s core value: Costs of digital advertising will be on the rise, and thus it will be important to provide real value to customers/users.
  2. Increase their users’ lifetime value: With the rising costs, revenues need to go up by either extending your customers’ lifetime or improving the ways you are monetising.
  3. Diversify to market disrupters like TikTok: We need to start diversifying to other digital marketing channels so that we do not continue to feed to their duopoly. It is probably easier said than done, but this is why we need more disruptors like TikTok.

The digital ad space will certainly start to feel tighter but do not mistake that for it being smaller.

We just need to grow bigger and better with it!

Netflix: King of All Entertainment

I am really excited that the direction in which Netflix is taking – marrying video and gaming entertainment. Through this acquisition of video game developer – Night School Studio, Netflix has shown where they are heading next.

Videos and Games are Complementary

Videos and games have always been intricately intertwined. That is why there are so many video games adapted from movies. Think Spiderman, Lord the Rings, Star Wars and etc. Likewise, there have been movies adapted from games such as Warcraft (horribly done, nonetheless).

Imagine completing the Squid Game series and immediately jumping off to play a video game version of the game, or finishing Money Heist and playing a GTA-like game where you are participating in a bank heist.

There are so many possibilities and if executed well, Netflix may really dominate the entertainment space in our lives.

Format Matters

Viewing habits differ when we are viewing long-form or short-form content. Long-form content is typically consumed when we have set aside a good block of time whilst short-form content is consumed on the go.

Personally, I believe the gaming genre needs to match the video format (long vs short form). As such, I also see great potential for short-form video platforms like TikTok including hyper-casual and casual games into their ecosystem.

Entering a new phase

The first collision was when Media Studios acquired comic houses – Disney acquiring Marvel and Warner acquiring DC. Now that the Media Studios have become Video platforms (thus competing with Netflix), they are onto acquiring gaming studios.

At the end of the day, all these companies are just competing for our entertainment hours, and there is limit to it. So it is not surprising that consolidations and collisions will keep happening. I believe that before long there will a company or few selected companies that will fully dominate our entertainment activities of video, gaming, reading and even sports (think metaverses).

Videos are Entertaining

Amazon is definitely gearing up in its competition with Netflix & Disney in the video entertainment arena by acquiring MGM Studios for $8.45B. However, I think what is most interesting is the differences in their business approach.

Video entertainment is engaging

While Netflix and Disney’s core businesses are video entertainment, Amazon’s core business is e-commerce. As such, video entertainment forms part of Amazon’s customer engagement strategy.

Gaming competes with Video as engaging entertainment

Even more interesting, is that this usage of entertainment as customer engagement is gradually transiting to other areas as well, especially instant games.

I believe in the near future, more apps (especially e-commerce & super apps) will want to engage their users with games and prizes on their platforms.

Truly an exciting space to watch!

Never Forget Your Mother-Tongue

Growing up in Singapore, we get the privilege of mastering both the English language and our mother-tongue, which in my case is Mandarin Chinese. By a stroke of luck, it turned out that these are probably the two most important languages in this age.

Never forget your mother-tongue

In most of my professional years, English was all I needed. Even when I needed to speak to colleagues in Mandarin-speaking countries, I managed to get by. Even then, Mandarin is not used for professional terms but just for pleasantries and water-cooler talk. 

Recently, as the world changes, I realised that it is getting increasingly harder to avoid using Mandarin in the professional setting. To be honest, I am not used to this and started to think back on how I have neglected my mother-tongue.

‘Higher Chinese’ Education is Less Chinese Education

Through the Singapore education, I managed to get into an SAP (Special Assistance Plan) High school. As part of the SAP programme, it is mandatory to take Higher-Chinese as a subject. At the high school level, there are two levels of the Chinese language – Chinese and Higher Chinese. The Higher Chinese subject is considered the more difficult of the two.

So taking Higher Chinese, one would naturally assume that I should be well-versed in mandarin. While I will say that I do have a certain level of proficiency in Mandarin, I must be honest in that the way I learnt the language was for the examination. 

And there is a simple reason. Because I wanted the option to not take Chinese as a language in Junior College. The deal is if we do well enough in ‘Higher Chinese’ in High school, we do not need the subject in Junior College. The incentive of no longer needing to learn Mandarin spurred me on to work hard and do well enough in the O-levels to get the exemption.

Not Needing Mandarin

So without having to take Chinese in Junior College, there is no real need for me to brush up on my Mandarin since I was seventeen. My experience with the Chinese language was relegated to only listening and speaking.

Over time, I am pretty sure that my proficiency in Mandarin has definitely stagnated or even declined. While I may often joke about my wife not being able to speak Mandarin properly, I think I am not pretty far behind. I am still very much able to follow day to day conversations but throw me into a business setting where I need to present in Mandarin using business terms and I will be a mess.

Never Too Late

Hopefully, it is never too late. I do have a decent foundation in Mandarin. I believe with enough hard work and determination, I am pretty sure I will be able to overcome my current language deficiency. 

What I need is a plan. A plan on how I can regain my proficiency in Mandarin and be able to use it confidently for work. Here is what I am thinking:

  1. Expansion of Vocabulary – I need to start building a list of business terms that I will need to know in Mandarin. 
  2. Experience in Reading Reports – I am going to force myself to read the Mandarin-version of proposals and documents from my Chinese business associates.
  3. Listening to News in Mandarin – To get myself used to listen to business conversations in Mandarin, I will need to start listening to the news in Mandarin. 

It is never too late.