The battle for high-quality mobile users has never been more fierce. Find out how companies who are killing it in UA are achieving phenomenal success — without paying through the nose.
Most apps fail. That’s the simple, brutal, but honest truth for developers entering the mobile app market. As we reported earlier, 70 percent of apps will not generate more than 5,000 downloads, and 60 percent of them will never be updated. While the odds certainly aren’t favorable for global developers, that’s not stopping them from adding close to 2,500 new apps daily on iOS, Google Play, and Windows Phone. It’s imperative for app makers to have a competitive user acquisition strategy in place — not just to win over the average user, but to land high-quality users who will use your app on a regular basis.
Conceiving a winning user acquisition strategy, however, takes on many forms and if not handled properly, could jeopardize your business. A poor strategy for monetizing your app may lose more users in the process than gain.
For these reasons and more, we produced a VentureBeat Insight report about mobile user acquisition, comprised of data based on 230 app developers with over 9,000 active apps and 397 million monthly active users
While cost-per-install by placing digital ads across various media is the favorite marketing method for developers, it’s actually the least effective way to acquire high-quality users. Sure, CPI marketing campaigns are safe because you’ll know how much it will cost to ensure it’s on budget, but the users you’ll be acquiring via CPI channels — ranging from $1-$10 — are low-return users. Over two-thirds of users acquired via CPI have a lifetime value below $10, including almost one in six with LTV profitability of zero. You’ll need more than an audience of hold-outs to make your app thrive in the digital marketplace.
Now, compare the disappointing results of CPi to cost-per-lead (CPL) — an online advertising pricing model indicating exact revenue earned by a publisher for creating a lead for an advertiser — where LTV users began at $26 and go up from there.
The few publishers investing in CPL marketing campaigns are acquiring users worth 2X of CPI users on average. Publishers using CPL as their primary method are seeing users averaging $44.25 versus the $26 LTV for companies using CPL as their first user-acquisition method. Fantastic results for a marketing campaign surprisingly deemed unfavorable by developers.
This is but a taste of the richly-filled Insight report about mobile user acquisition, but it you want all the valuable nuggets of info delivered quickly and efficiently, sign up for this webinar today. VentureBeat analyst Jon Cifuentes will tell you what you need to know about acquiring high-quality users in the most cost-effective ways possible.
Don’t miss out.
In this webinar, you’ll:
- Learn the price app publishers are currently paying to acquire quality users across several categories
- Review the top user acquisition platforms and why
- Understand the role of timing in UA
- Maximize organic installs of your mobile application
Jeff McConathy, VP of Engineering, Trulia
Wendy Schuchart, Moderator, VentureBeat
More speakers to be announced soon.