The global investment on user acquisition via mobile applications is expected to reach $94.9 billion by 2025, a 20% increase over current levels. As the market grows in size, User Acquisition (UA) becomes more competitive. This will make it even more difficult for app marketers to differentiate themselves and stand out, especially given how most app marketers now focus on installs rather than conversions.
Furthermore, a comprehensive marketing strategy that combines both Retargeting and UA campaigns is required to achieve high retention rates and maximize ROI by focusing on quality installs that can convert.
To stand out in this sea of ads, app marketers must develop strategically driven campaigns. Furthermore, it provides an opportunity to change the focus from installs to conversions, prioritizing quality over number.
“Quality over quantity” is age-old advice that every professional has heard at some point. Using this guidance has often yielded positive results.
Have you ever wondered how this works in the realm of app marketing? Should you prioritize installs or conversions as an app marketer? What are the drawbacks of a quantity-first approach? Would a quality-first approach produce better outcomes?
Install Focus Vs Conversion Focus
Installs
The focus is usually on the number of installs, so generating a bigger number of installs is critical for these efforts. This method involves casting a wide net to capture as many installs as possible, which frequently results in losing sight of conversions. It’s important to remember that when you target everyone, you’re not targeting anyone!
This method can lead to increased costs for identifying and converting high-value users. Although focusing solely on the number of installs may appear sufficient at first, it is critical to assess the quality of these installs and whether these customers will convert in the future. Furthermore, focusing on the quantity of installs can increase the risk of fraud in your advertising.
Conversions
This technique focuses on install quality and on attracting high-intent users who are more likely to convert. Driving campaigns that are designed for conversions and targeted to specific user demographics can result in more conversions, which can lead to increased ROI.
It tries to develop a long-term and influential presence by recruiting users who are both genuinely engaged in the app and valuable to acquire. This entails recruiting users from various groups based on their tastes and activity, such as searching for or using comparable apps in the past. Furthermore, it lowers conversion costs while reducing the low value and risk of fraudulent installs. This not only improves user quality, but also enhances LTV.
How will a quantity-focused approach affect your campaigns?
A quantity-focused approach might result in low-value installs and users that have no actual interest in the software. The goal of seeking install attribution has significant consequences, including poorer conversion rates and the danger of fake installations. Although this approach is likely to result in more installations, it is neither cost-effective nor sustainable.
Furthermore, users’ lack of genuine curiosity leads to low retention rates. These low retention rates can be ascribed to greater long-term retargeting costs, which result in higher ad spending during retargeting campaigns. This would also result in the loss of actual conversions who may become loyal customers for your app owing to a lack of user segments, tailored marketing, and a comprehensive strategic approach.
Targeted Precision: A Quality-Focused Approach
The quality-focused strategy is consistent with creating conversion-focused marketing that emphasizes high-intent users. Although quality-first approaches may result in reduced install rates, the benefits to the app are significant. Prioritizing high-intent consumers can lead to improved conversion rates while minimizing the danger of fake installs.
The quality-first approach aims to create campaigns that target high-quality users in order to maximize engagement and conversion rates. In the long term, selecting high-intent users will result in cheaper retargeting expenses when creating high-impact advertisements. This makes this strategy both cost-effective and sustainable.