User Acquisition Cost – How do you calculate it? How do I know how much each app user is worth to your business?

Can you imagine your life without the apps you use daily? It seems that the app age has been a part of our lives forever, but as a matter of fact, it only started a little over a decade ago. While the app age has definitely matured, it’s still growing and evolving constantly. The app age has allowed us to access a variety of services and information quickly and easily and has given us greater control over our lives. As this trend continues, it is likely that the app age will continue to shape our lives in increasingly dramatic ways.

If you own an app, it doesn’t matter the vertical or size, you are constantly on the lookout to keep your app growing its user base which in turn will grow your revenue and profits. To achieve this, you constantly need to invest in marketing and in your app promotion. This is like trying to fill a bucket with water – you have to continuously pour water into it to keep it from emptying out. Similarly, in order to keep an app’s user base growing, you have to continually invest in marketing and promotion to maintain the momentum.

But how do you know if all that promotion and hard work of attracting new users is paying off?

User Acquisition Cost (UAC) is a critical metric that measures how much a business spends to attract new customers. It is an essential parameter to track for businesses of all sizes, especially for startups that are still trying to establish themselves in the market. In this blog post, we will discuss how to calculate UAC and how to determine the value of each signup to your business.

Calculating User Acquisition Cost

The formula for calculating UAC is simple. It is the total amount spent on marketing and sales divided by the number of new customers acquired during that period. For example, if you spent $10,000 on marketing and sales in a month and acquired 100 new customers, your UAC would be $100.

However, it is important to note that UAC should not be looked at in isolation. It should be compared to the lifetime value of a customer (LTV) to determine if the cost of acquiring a customer is worth it. If the UAC is higher than the LTV, the business is losing money. On the other hand, if the LTV is higher than the UAC, the business is profitable.

Determining the Value of Each Signup to Your Business

To determine the value of each signup, you need to calculate the average revenue generated per customer. For example, if your business generates $100,000 in revenue from 1,000 customers, the average revenue per customer is $100. Therefore, each signup is worth $100 to your business.

However, it is important to note that not all customers are created equal. Some may generate more revenue than others, so it is essential to segment your customers to get a better understanding of their value to your business. For example, customers who make repeat purchases or refer other customers are more valuable than those who make a one-time purchase.

Why are all these calculations important? Because once you know how much each user is worth, you’ll know how much you can invest in your app growth. Also, when you invest your time segmenting your audience, users, and high-profile or returning users, you’ll know where to invest more in your marketing efforts. The more you know about your users, the better you can target your efforts. This can help to maximize your return on investment and ensure you get the most out of your marketing budget.

Lifetime Value (LTV) is the total revenue that a customer will generate over their lifetime using your app. LTV solves the problem by telling you how much value a newly acquired user brings to your app – and by extension, gives you a cap for how much you should spend on acquisition costs. Mobile app LTV should be the primary barometer for your mobile marketing budget because it effectively assigns weight to each and every user (or a user average).

How to use LTV to optimize your app marketing strategy and budget allocation?

To optimize your LTV, you need to consider three factors: average purchase value, number of purchases, and retention period. Average purchase value is how much a user spends on your app each time they make a purchase. The number of purchases is how often a user buys something from your app. The retention period is how long a user stays with your app before they stop using it.

To increase your average purchase value, you can use strategies such as upselling, cross-selling, bundling, or offering discounts and incentives. To increase your number of purchases, you can use strategies such as personalization, loyalty programs, referrals, or push notifications. To increase your retention period, you can use strategies such as improving your app’s user experience, providing value-added content or features, or re-engaging users who are at risk of churning.

By measuring and improving these three factors, you can optimize your LTV and allocate your marketing budget more efficiently. You can also use LTV to compare different user segments, channels, platforms, or markets and identify the most profitable ones for your app.

The Return on Ad Spend (ROAS) is a marketing metric that measures how much revenue you earn for each dollar spent on advertising. To calculate ROAS, divide the revenue generated from an ad campaign by the cost of that campaign.

Conclusion

In conclusion, UAC, LTV and ROI are essential metrics to track for any business. By calculating UAC and comparing it to LTV, businesses can determine if their marketing and sales efforts are profitable. By determining the value of each signup, businesses can better understand the revenue potential of their customer base.

If you’re looking to grow and maximize your budget in the best way possible, contact us today.
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The food delivery industry is booming, even in this current time as the world grapples with the Covid-19 pandemic fallout. Many businesses are feeling the pinch and delivery food apps are no exception.
In this current, post-Covid era, when people re-consider every order, it’s more important than ever for delivery food apps to find ways to maximize their reach and increase their customer base.
There are several ways to do so, for instance, companies like DoorDash are partnering with grocery stores and other retailers to provide delivery services, expanding the range of goods they can offer and enabling them to reach customers who may not have previously considered ordering through their platform.

One of the most effective ways to do this is through app install campaigns.

App install campaigns are a great way to reach potential new customers and increase downloads of your app. These campaigns can be targeted to certain demographic groups or geographic areas, and they can be tailored to fit the needs of your business. With the right approach, app install campaigns are a powerful tool for increasing your customer base and expanding your business.

App Marketing Strategy

App install campaigns can be conducted through various media channels, including online search, display, and video ads, as well as social media, email, and SMS. Online search ads are a great way to target users who are actively seeking out delivery food apps, or a certain promotion that might meet their budget. Display ads are a great way to reach passive customers who may not be actively searching, while video ads are an effective way to showcase the features and benefits of the app. Finally, social media, email, and SMS can be used to re-engage with existing customers and remind them to download or re-use the app.

To make sure you’re working smart and precise, here are key points to consider:

Audience:

First, invest in your user’s personas, and understand their different needs that will later be met by the creatives. Doing so will help you create more effective ads that will target the right people and make the most of your budget. It’s also important to focus on data insights to make sure you’re getting the best results from your campaigns. This will allow you to refine your strategies and make sure your ads are reaching the right people. Once you’ve identified your target audience, you can create and launch the campaign. Monitor the results and adjust as needed to ensure the most successful outcome. For instance, you may discover that your target audience is more active in a certain platform than another, and you can adjust your budget accordingly to meet those more relevant to your next promotion. Finally, measure the success of the campaign and use the insights to inform future campaigns.

Vast reach:

You know the rule, that 80% of a company’s revenue is generated by 20% of its customers. While understanding that, you always need to continue growing and expanding your app user base that will become or replace those under the 20% group. It is important to note that, while focusing on the 20% of customers that bring in 80% of the revenue is beneficial, it is also important to continue to grow and expand your user base. This is because that 20% of customers can change over time, and it is important to have a steady flow of new customers to keep the revenue steady.

Keep expanding your user database, as you always need to maintain an open source of new users. Thus always keep investing in your app user acquisition campaign. Make sure to use various channels to reach new users, such as social media platforms, influencers, and performance-based channels to keep that fresh source of new users. Monitor your efforts closely and adjust your campaigns accordingly. Utilize analytics to further optimize your user acquisition strategy.

To get the most out of your app install campaigns, it’s important to have a clear strategy and understand the key elements of a successful campaign. First, you need to decide which platforms you want to target. With the right platform, you can reach the right audience and maximize your campaign’s reach. Social media platforms are a great place to start, as they are often the most cost-effective and offer the most potential for reaching your target audience.

– Value proposition: You need to communicate clearly what makes your app unique and why users should download it. Doesn’t everyone love free deliveries? By offering unique features like free delivery, you can attract more users and differentiate your app from competitors. It creates a sense of value for users, as customers are more likely to purchase from a business that offers something extra. This sets you apart from competitors and increases the chances that customers will choose your app over others. You can highlight your app’s features, benefits, offers, ratings, reviews, or anything else that sets you apart from your competitors. For example, you can offer free delivery for the first three orders, as 7NOW does in their app install campaigns.

– Creatives: You need to catch your users’ attention and entice them to click on your ad with eye-catching visuals and engaging copy. You can use images or videos of your delicious food, testimonials from happy customers, or catchy slogans that appeal to your users’ emotions. You can also use different formats and sizes for different channels and devices, and test which ones perform better.

App Installs

– Optimization: This ongoing process is vital for your campaign’s success. You need to monitor and measure your app install campaigns’ performance and optimize them accordingly. Your app analytics program should track key metrics like impressions, clicks, installs, retention, revenue, ROI, and more. You can also use campaign automation to adjust your bids, budgets, creatives, and targeting based on real-time data and feedback.

It’s also VERY important to focus on data insights to make sure you’re getting the best results from your campaigns. This will allow you to refine your strategies and make sure your ads are reaching the right people.

Finally, you’ll want to track the performance of your campaign (across all channels) to make sure it’s achieving the desired results. To do this, you’ll need to measure the number of downloads, the average time spent on the app, and the customer feedback. With this data, you can adjust your strategy and make changes to ensure your campaigns are as effective as possible.

Mastering app install campaigns for delivery food apps in a post-Covid era doesn’t have to be a challenge. By taking the time to develop a clear strategy and focusing on creating compelling content that resonates with your target audience, you can ensure your campaigns are successful and help your business reach its full potential.

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If you have a mobile app that you want to promote and grow, you need to have a solid mobile app marketing plan. Mobile app marketing is the process of reaching and engaging your target audience through various channels and platforms, such as social media, search engines, ad networks, and programmatic advertising.

But how do you choose the right platforms for your mobile app marketing? And how do you create a marketing plan that suits your goals and budget? In this blog post, we will answer these questions and help you get started with your mobile app marketing strategy.

What are the platforms for mobile app marketing?

There are many platforms that you can use to market your mobile app, depending on your objectives, target audience, and budget. Here are some of the most common ones:

– Social media: Social media platforms like Facebook, Instagram, Twitter, TikTok, and Snapchat allow you to reach a large and diverse audience with various ad formats, such as video ads, carousel ads, story ads, and more. You can also use social media to create organic content, such as posts, stories, reels, and live streams, to build awareness and engagement with your app. Social media marketing is ideal for creating brand awareness, driving app installs, and fostering loyalty and retention.

– Search engines: Search engines like Google and Bing allow you to bid on keywords that are relevant to your app and show your ads to users who are searching for them. You can also use search engine optimization (SEO) techniques to rank your app higher in the organic search results. Search engine marketing is ideal for driving app installs, increasing app visibility, and generating qualified leads.

– Ad networks: Ad networks are platforms that connect advertisers with publishers who have ad space on their websites or apps. You can use ad networks to display your ads on various websites or apps that are related to your niche or target audience. Like all media channels, ad networks also offer the use of various ad formats, such as banner ads, interstitial ads, native ads, and more. Meaning you don’t have to costume create new ad units for wide distribution. Adding ad networks as a source into your media mix is ideal for reaching a large and relevant audience, driving app installs, and increasing app revenue, mainly as they are performance-based channels making it also very cost-effective for your media plan. 

– Programmatic advertising: Programmatic advertising is the process of buying and selling ad space using automated software and algorithms, such as a DSP. A DSP is an easy-to-use, highly-targeted platform to display your ads on various websites or apps that match your criteria, such as location, device type, demographics, interests, and more. Using Zoomd DSP, you can also target an audience based on location, which is great if you also have offline assets that people visit. Programmatic advertising offers various ad formats, such as video ads, rich media ads, rewarded ads, and more. Programmatic advertising is ideal for reaching a highly targeted and engaged audience, driving app installs, and optimizing app performance.

Mobile App Marketing- The Checklist

How to create a mobile app marketing plan?

Now that you know the different platforms for mobile app marketing, how do you create a marketing plan that works for your app? Here are some steps that you can follow:

– Define your goals: What do you want to achieve with your mobile app marketing? Do you want to increase app downloads, user retention, app revenue, or something else? Having clear and measurable goals will help you choose the right platforms and strategies for your app marketing. It doesn’t have to be just one goal, or it can be one goal at a time. When launching a new app, you first want to reach a big database of users, regardless of the ROI they produce. So a goal of high volume of installs, or registrations can be the first target you focus. Once you have enough users on your app, it’s time to proceed to another goal which is to increase user retention, which will require a different plan or and approach. For each goal, a different plan is required along with which media channels to use and what creative to produce.

– Identify your target audience: Who are the users that you want to reach with your mobile app marketing? What are their demographics, preferences, behaviors, pain points, and motivations? Knowing your target audience will help you create relevant and personalized messages and offers for them.

– Choose your platforms: Based on your goals and target audience, choose the platforms that suit your mobile app marketing best. You can use one or more platforms depending on your budget and resources. For example, you can use social media to create brand awareness and loyalty, search engines to drive app installs and leads, ad networks to reach a large and relevant audience, and programmatic advertising to optimize your app performance.

– Create your content: Based on the platforms that you choose, create engaging and compelling content that showcases the value proposition of your app. You can use different types of content, such as videos, images, text, audio, and more, depending on the platform and the ad format that you use. Make sure that your content is clear, concise, and consistent across all platforms and channels.

– Set your budget: Based on your goals and the platforms that you choose, set a realistic and flexible budget for your mobile app marketing. You can use different methods to allocate your budget, such as cost per install (CPI), cost per action (CPA), cost per mille (CPM), and more, depending on the platform and the objective that you have.

– Track and measure your results: Based on your goals and the platforms that you use, track and measure the results of your mobile app marketing. You can use different tools and metrics to monitor and evaluate your performance, such as impressions, clicks, installs, conversions, retention, revenue, and more, depending on the platform and the objective that you have.

– Optimize and improve: Based on the results that you get, optimize and improve your mobile app marketing. You can use different techniques to test and refine your content, audience, budget, and strategy, such as A/B testing, split testing, multivariate testing, and more. Keep experimenting and learning from your data to achieve better outcomes.

Marketing Strategy for Your App

Conclusion

A cohesive app marketing plan is a crucial part of growing and scaling your mobile app business. By choosing the right platforms and creating a solid marketing plan, you can reach and engage your target audience effectively. If you need help with your mobile app marketing, you can contact the experts Zoomd. With our vast global reach and different user acquisition technologies, you can be sure we can help you create and execute a successful mobile app marketing campaign.

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In today’s competitive mobile app landscape, effective advertising is paramount to driving app downloads, increasing user engagement, and ultimately boosting revenues. App advertising strategies encompass a wide range of techniques that help app developers and businesses reach their target audience, optimize visibility on app stores, and grow their app’s performance. In this article, we will discuss the top five things you should know about app advertising to maximize app revenues and achieve business growth. 

Define Your Target Audience and Their Needs in App Advertising: 

Understanding your target audience and their needs is the first step for successful app advertising campaigns. By identifying your ideal users and conducting thorough market research, you can tailor your advertising strategies to resonate with their preferences. This ensures that your campaigns are more likely to reach the right people and generate higher engagement. Knowing your audience also helps you identify the best platforms to advertise on and the type of content that will likely perform better. Incorporate relevant keywords such as “advertising,” “app advertising,” and “advertising mobile apps” to optimize your messaging, design, and targeting efforts. 

App Store Optimization (ASO) for Effective App Advertisement: 

App Store Optimization (ASO) is crucial for increasing visibility on app stores and attracting organic downloads. Optimize your app by strategically incorporating keywords like “app advertisement,” “increase app performance,” and “grow your app” in your app’s title, description, and metadata. Focus on creating a compelling app store listing that highlights your app’s unique features, benefits, and screenshots to capture users’ attention and improve conversion rates. 

Advertising App

Choose the Right Platforms and Channels for Advertising Apps: 

You probably have an awesome app that you want to promote and make more money from, you need to choose the right platforms and channels for advertising. There are many options out there, but some are better than others depending on your goals and budget. For example, you can use popular sources like Google, Meta, TikTok, or programmatic platforms with ad networks. These can help you reach a large and diverse audience that is interested in your app’s category and features. But don’t limit yourself to just one platform. You should explore all the possibilities and create a media plan that covers all the bases. You can also advertise your app through DSPs and ad networks, which gives you more control and flexibility over your campaigns. They can also help you optimize your performance and visibility, and get more installs for your app by targeting the right users at the right time and place.

Leverage Word-of-Mouth and Influencer Marketing for App Advertisement: 

Word-of-mouth and influencer marketing can significantly impact app downloads and user engagement. Encourage your existing users to share your app with their network by implementing referral programs and incentives for successful referrals. Partnering with influencers in your app’s niche can also boost brand awareness and attract new users. Incorporate keywords like “advertising apps for business” to optimize your reach in the business community. 

Implementing MMP and Analytics for Measuring App Performance: 

To optimize your app advertising efforts, it’s essential to track and measure your app’s performance accurately. Implement a reliable Mobile Measurement Partner (MMP) to gather data on installs, engagement, and revenues. Analyze user feedback and reviews to gain insights into user satisfaction and identify areas for improvement. By incorporating keywords such as “advertising app performance” and “increasing app revenues,” you can make data-driven decisions and continually refine your advertising strategies. 

App advertising is dynamic and can be sometimes a complex process that requires a deep understanding of your target audience, effective optimization techniques, and strategic promotion across various platforms. By defining your target audience, optimizing your app’s visibility through ASO, choosing the right advertising platforms, leveraging word-of-mouth and influencer marketing, and implementing MMPs and analytics, you can increase app revenues, enhance app performance, and achieve sustainable growth. A successful plan and execution are all about mixing different channels, digging deep into the data that your campaigns produce, and keep testing new channels and approaches along the way.

Advertising for apps?

Stay informed about the latest trends in app advertising with Zoomd to adapt your strategies accordingly, and continually refine your approach to stay ahead of the competition in the ever-evolving world of mobile apps.