- Posted by Timur Taepov
- On April 27, 2015
- CPA, CPI, LTV, mobile ads
And welcome welcome to the new episode of the App Marketing – Growth Hacking Podcast. Nowadays most companies use bought media to increase their user base, reach the top of app store charts and achieve the mass audience. Ron Brightman the CEO of a mobile performance marketing network has shared useful tips on how to do it in a right way.
So pay more attention and let`s start!
First of all, it`s important to understand why you should buy media. It gives you volume. Getting mass audience will grow your database and increase the valuation of your app. Furthermore, media gives you a positive ROI (Return On Investment). In other words, generation of more revenues from the users, than the price for these users, enter for an app a positive cycle of user acquisition, where the more users they buy – the more profit the app makes.
So what steps should be undertaken?
It is advised to test your app well before launching a massive campaign. One of the most important tools is a third party tracking platform, which allows you to attribute which channels and partners help you acquire, engage and retain users. It can help you to work easily with any of the hundreds of mobile networks that are integrated with this platform.
Segmentation and Targeting
Well, according to Ron it is wrong to target the most relevant user audience on the start. It is crucial to target the right segments but they might be in unexpected places. If you are targeting a specific audience it brings exceptionally high costs that usually result in negative ROI. Most app developers and networks use targeting just by OS, geographic location and traffic type. Additional targeting in mobile, for example by gender, age, or city, is possible, but not so common. The final result is that it’s not cost effective and is almost never used by any of the main developers and is not available by most networks. Still segmentation and targeting is the safest rate to reach positive ROI.
Not all sources are created in the same way. Actually, LTV variation by traffic source is usually greater than by OS or country. That`s why, it is a good idea to choose the right networks to work with, and if the network provides low quality traffic, to replace it with another. You need to be careful there.
The most commonly used optimization method in the performance-based realm is launching of a wide and, based on the tracked and measured results, narrow down to the best performing segments. The key goal of above segmentation options is to reach the right matrix of the best performing segments of OS, country, source and type which produce a ratio of LTV > CPA.
So that`s it with this podcast. I`ve tried to do my best. Hope, it was helpful for you. See you next time!