Learn about the success metrics for a mobile acquisition campaign, from downloads to user behavior, to ROI in this week's Whiteboard Wednesday.
Hello everyone, my name is Richard Sgro; I'm a Senior Solutions Consultant here at Localytics and I'd like to welcome you to Whiteboard Wednesday. Today, we're going to talk about measuring the success of an acquisition campaign. There are a number of different things to keep in mind when figuring out the right networks to tap. Today, we are going to help you get the most value from that, assuring the effectiveness of your acquisition campaign.
The first thing to consider if you're running the acquisition campaign is if you're driving downloads of your app. If your application isn't being downloaded, your acquisition campaign is not working; it's not doing its job.
The corollary of the downloads situation isn't always true; just because users are downloading your app doesn't mean your campaign is a success and you can go stick your feet up and have a coffee. You want to take it to the next level by understanding how the users are coming in from your acquisition campaign, a.k.a. the paid acquired users, and how they compare to the organic users.
Being able to look at that behavior and note how the users that are coming in organically are behaving is important. The users that are coming in from your paid acquisition channel, downloading the app based on links, should be behaving in the same way. In some cases, you may even see that paid-to-acquire users are doing awesome things in your app, becoming powerful influencers. You want your organically-acquired users to line up with the folks you're paying to acquire.
Once you've got a sense of how the two user-sources compare, you also want to take it to the next level and really understand the ROI. In thinking about ROI, it's important to poll lifetime value tracking. We get a lot of questions like, "I'm a streaming media app, is there a real way for me to measure lifetime value"? If you're an app like Hulu or Netflix, you want to think about LTV not in terms of dollars spent, but rather by other metrics.
You want to think about LTV in terms of movies watched or number of minutes streamed. Review the average lifetime value of your acquired users first. Find this value from the average cost of acquisition and then divide that by the average cost of acquisition to get a sense for what the return on investment is for the acquisition campaign. ROI can inform your decisions around whether you invest with that network or on a campaign path again. It can also give you a sense for how much value these users actually bring into your application.
The recap, we hit on three key things to look at when you're trying to take a measure of success of your acquisition campaign. The first is if it's driving downloads. If your acquisition campaign is not driving downloads, it's not working; full-stop. Once you're getting the downloads, you're not done yet. You want to take a look at how your organic users are comparing to the users that you're paying to acquire; ideally they'll behave similarly. In some cases, your paid acquisition users will behave in completely different ways. You want to track that behavior and keep an eye on these users.
Finally, once you have a sense of lifetime value in your application, you want to look at the ROI. Track average lifetime value of those users who you've paid to acquire, taking the average cost of acquisition and dividing the entire number by the average cost of acquisition to get a good sense of the return on investment for a particular campaign.
We at Localytics have tools that enable you to cross this spectrum of applications, from tracking users you've acquired from a particular campaign all the way to measuring ROI. Whichever analytics provider you chose, make sure you're getting those downloads from your acquisition sources, you're able to look at the organic versus the inorganic users, and you're checking ROI. Again, my name is Richard Sgro and I hope you found today's Localytics Whiteboard Wednesday helpful.
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