Paid User Acquisition – A good way to grow your audience?

Every App Publisher with commercial intent behind his app has one desire: to publish the one app everyone wants to download on their devices from the app stores. The problem for most developers is the gap between a desire and a real plan to succeed. You can go many ways to advertise your app like social media, organic growth from app store optimization or, if your budget allows it: Paid User Acquisition trough Advertising. The difficulty you will face is to find the best course of action for your app, based on your competition and, of course, the user base you want to acquire. Let’s set some foundations you should look at for every kind of user acquisition you can take and see if it can be useful to use Paid User Acquisition as part of your plan.

The Foundation of a successful user acquisition strategy

Analysis of User Acquisition

Let’s start with a conclusion you must be aware of: not all installs will be equal for your success. Depending on your goals and your perfect user, you will find that some users are providing more value than others. This is something you have to understand for your future advances. This can also mean that 10.000 random installs can bring you less money then 100 installs from highly active users. This all depends on your monetization strategy as well as your Key Performance Indicators (KPIs). For reference, here are the three most important KPIs you should measure:

  • Daily or Monthly Active Users (DAU / MAU): Your active users over a specific timeframe give you an idea about the number of users that are still opening and interacting with your app after a given time span. As you hopefully understand, based on the assumption that you monetize your app with ads or an in-game-shop, the amount of active users is crucial. More ads get viewed, more clicks occur and more purchases are made from those users, that actively use your app. Of course, there are different ways to increase the likelihood of your users to open your app repeatedly, like push notifications or login rewards.
  • User Retention Rate: The Retention Rate is the Number of Users that remain loyal with your app, so keeping it on their devices and engage with your app. This is another factor that you should be tracked from your analytics to target the best possible user base with your user acquisition strategies.
  • Average Revenue Per User (ARPU): If you can measure the revenue generated from your average user, you can focus your marketing efforts on acquiring users that generate revenue that is higher than the average. These users are the ones you should care about the most to maximize your business value. Create a profile about the top spenders, track which channels you used to acquire those users and focus on exactly those channels.

Of course, there are more KPIs you should track and more Factors that Affect your App Store Ranking. But with a focus on those three, you have a good foundation to start measuring the success of each individual acquisition strategy and each individual channel. This will help you determine the best performing strategies, on which you should focus the most.

As soon as you know all of those Indicators, you can measure the average revenue of a user from a certain channel and compare it with the amount you have to spend to acquire this user. This can show you that, even thus you can acquire a user that brings in an average of $2 for, a channel with an acquisition cost of $2.5 is useless for your business. The most cost-effective way will most likely be your App Store Optimization, followed by the channels that you can leverage any kind of cross interaction between users, i.e. Shares on Social Media. But what other channels can be used?

Which strategies can also be used to acquire users?

User Acquisition Strategy

After you set up your analytics and made your KPI measurements, you can start to explore new ways to acquire users. These are most commonly:

  • An Optimized App Store Page
  • Social Media
  • Paid User Acquisition

Let’s see what you have to look for with paid advertising for your acquisition strategy and how you can use it to reach your desired market and increase your reach.

Cost Per Install (CPI) Campaigns: These are probably the most fundamental advertising strategies for apps, and the most used. The reason for it is simple, you get what you pay for: App Installs.  Compared with other advertising cost models like CPM (Cost Per Thousand Impressions), you only pay for the complete conversion. This is commonly done by showing your advertisement in another app or a website, that increases the likelihood of installation. A longer running campaign will most likely yield better results for you, as most data-driven campaigns will be optimized to show the ad in front of the people that are most likely interested in your app and are going to install it. With this, a much higher number of conversion is possible, compared to cost-per-click (CPC) or CPM advertisements.

Boost campaigns are especially often used with the CPI Cost Model, as they can provide fast results and leverage your advertising success. Boost CPI Campaigns have a short time frame in which the ads are shown to as many people as possible. This has two major advantages:

  • Your App gets increased visibility to a lot of individuals and you can expand your existing user base quickly.
  • You App Store Chart Position is directly influenced if enough downloads occur in a short time frame, which can help acquire organic users as well.

A better Position in the App Store Rankings leads to higher discoverability – like the jump from the second page of a Google Search to the first. If done correctly, such a campaign can help you to acquire organic downloads over the long run as the number of organic installs is increasing and can leverage your Position and stabilize it at the top. For this, most commonly incentivized traffic is used.

You can find incentivized traffic in two kinds:

  • The users get incentivized to install the app directly or
  • The user gets an ad shown (most likely a video) for a bonus within another app.

The strategy behind incentivized users that install an app is typically an attempt to acquire a fast increase in users in order to enhance app store ranking for discoverability. Numerous Advertisers discover that when the set is incentivized, that customer tends to have a reduced LTV compared to users from other traffic types. This may seem like a shortcoming, but more Relying on the application and the Advertiser’s technique, this short-coming may be responded to by the uplift in organic traffic delivered from the improved discoverability.

By incentivizing a customer to involve with an advertisement or a demo, the Advertiser is getting the individual’s approval to show them an advertisement as opposed to disrupting their experience. Individuals that pick to download and install the app after enjoying the advertisement are typically greater high quality as they are extra involved while seeing the advertisement and even more educated when they set up the application.

Plenty of mobile marketing experts like a mix of a preliminary ruptured CPI project to acquire customers as well as develop an interest with short-lead times, followed by longer-term CPI campaigns that develop a target market of high-quality customers with time.

When your discoverings from each project are used back to these techniques, it creates a tactical cycle that drives customer acquisition while delivering all the incredible functions of your application to a growing audience. Since’s a win.

Daily and also Monthly Active Users (DAU, MAU) – DAU and also MAU are made use of to see how energetic your individuals are within your application after mount. Depending on your application and also means to get customers, these associates of individuals might differ in the value they deliver to your business. Snapchat established it can make more loan from a new customer in the United States than it might from a new user in Vietnam, so it concentrated on growing its user base in industrialized markets to enhance the overall revenue possibility of their application target market. The method of incentivizing an individual to install an application is typically pursued in an attempt to obtain a quick boost in customers in order to enhance app shop ranking for discoverability. Many Advertisers find that when the mount is incentivized, that customer has a tendency to have a lower LTV than individuals from other web traffic types.

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