Season 3, Episode 2: The privacy benefits of on-device processing (with Dieter Rappold and Felix Krause)
Feb 14, 2024
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Dieter Rappold and Felix Krause, founders of ContextSDK, discuss the privacy benefits of on-device processing for app personalization. They cover the integration of personalization in product development, availability of contextual signals, and the impact of personalization on commercial performance.
On-device processing is more privacy secure than other methods of personalization, as data doesn't have to leave the device, reducing the need for data transmission.
Personalization should be a part of the product development workflow, incorporating real-world context to create a more personalized app experience and enhance user satisfaction.
Deep dives
On-Device Processing and Privacy
On-device processing refers to running machine learning models on the device itself. This approach has become feasible due to improvements in hardware capabilities. On-device processing is more privacy secure because data doesn't have to leave the device, reducing the need for data transmission. Aggregated performance data may be sent off the device, but it does not identify specific users. On-device processing allows for real-time and efficient decision-making without relying on backend servers.
Integration and Continuous Improvement
Context SDK provides a custom SDK binary for each customer, pre-trained with a specific use case. The models live on the device and get smarter over time through continuous improvement. New models can be deployed over the air, optimizing decision-making based on data. The integration requires expertise in mobile SDK, data collection, and machine learning. It's a complex process that Context SDK aims to simplify, allowing developers to focus on creating a better app experience.
Personalization and the Product Development Workflow
Personalization should be a part of the product development workflow. It complements in-app usage and behavior data by incorporating real-world context. Considering the real-world context of users, such as motion data, battery level, time of day, and region, helps make better decisions and create a more personalized app experience. Personalization can be applied to various use cases, but it is commonly first implemented for upselling prompts and in-app purchases, leading to increased conversion rates and user lifetime value.
Building Decision Models and Achieving Success
Building decision models based on device contextual signals is a complex task that requires expertise in mobile development, data science, and infrastructure. While some simple integrations can be done by app developers, more sophisticated and impactful implementations may require specialized knowledge. Success in personalization has been achieved in various areas, including premium upselling, reducing prompt intensity, and improving conversion rates. The value of personalization extends beyond just monetization, as it can enhance user experience, retention, and customer satisfaction.
My guests on this episode of the Mobile Dev Memo podcast are Dieter Rappold and Felix Krause, the founders of ContextSDK, a tool that allows app developers to optimize and personalize their products using on-device contextual signals.
Dieter is a serial entrepreneur and investor, and he leads business operations at ContextSDK, and Felix is a well-known security researcher who previously founded Fastlane, which was acquired by Twitter and rolled into the Fabric app development platform, which was then acquired from Twitter by Google.
The topic of my discussion with Dieter and Felix is on-device processing. In our conversation, we cover:
What on-device processing is and why it is more privacy secure than other methods of personalization
How personalization should fit into the product development workflow
What sorts of contextual signals are available to be used in personalizing an in-app user experience
Where developers can achieve success in personalization
And how deeply personalization using on-device, contextual signals must be integrated into the product to materially impact its commercial performance.
Thanks to the sponsors of this week’s episode of the Mobile Dev Memo podcast:
INCRMNTAL. True attribution measures incrementality, always on.
Clarisights. Go to clarisights.com/demo to try it out for free. You’ll see why thousands of performance marketers trust Clarisights every day.
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