Gone are the days when advertisers were relying on the install volume and post-install events in analyzing campaign performance. Though app install remains as one of the most common key performance indicators (KPI), nowadays in an app marketing campaign, app marketers are increasingly becoming interested in optimizing campaigns directly on the return on investment (ROI).
An effective mobile app marketing strategy to acquire high lifetime value (LTV) users is cross-promotion. This allows app marketers to take advantage of their already existing or lapsed high LTV user base by promoting a new app to them. For example, an app developer has an existing app and has just launched a new app. Considering that both apps fall into the same category, the advertiser can promote the new app to the high LTV users of the old app. The theory behind this is if the users are driving the return on investment (ROI) of the old app, they are highly likely to do the same for the new app since the two are in the same category.
Mobile advertising and attribution are based on click-through conversions rather than impression (view-through) conversions. The direct correlation between the click and the app install is a stronger attribution than the indirect correlation between the impression (ad view) and the install. Despite the fact that the real value of impressions is difficult to quantify, the value gained from the impression measurement should not be overlooked.
Acquiring high LTV users - no matter what method - is a big challenge, but retaining and keeping them engaged is another. Many apps are failing to maintain user interests and keep them engaged for a long duration. A study from eMarketer states that “only 24% to 29% of iOS users who installed an app used it again within 24 hours of their first app session.” Retention rates fall to a single digit by the thirty-day mark and according to research, the rates are worsening by the year. Thus, retargeting strategies emerge and are becoming widely used by many app marketers.
As the mobile app industry continues to evolve, app marketers are beginning to look beyond app installs to measure the campaign success. Instead, they are choosing to focus on the quality of users and consequently, the return on investment (ROI) of each campaign. The theory is that the more high-quality users they can acquire, the more likely it is that the campaign will achieve stronger ROI. This can be attributed to the believe that ROI is driven by the amount and value of in-app purchases high-quality users will make.
Every mobile app is unique. It is designed to satisfy its user’s needs in a way that is better than all other apps. And yet, some apps boast of a healthy ecosystem of hundreds of millions of users while others can barely get off the ground. What makes one app achieve user glory while another app falters?
For a long time, creative has been the holy grail of advertising. Something that is a pure art and cannot be quantified or optimized. Even with the proliferation of digital media and cheap computational power, optimization was something that was done after the ad creative was finalized. But this basic premise is being increasingly challenged.