2023 won’t be remembered for a good start in terms of the global economy. Indeed, there are widespread fears of a looming economic recession, due to the Ukraine war, inflation and contingencies related to climate change. Therefore, many industries have been affected by such fears, resulting in companies cutting costs and trimming budgets.
Mobile advertising industry is gradually adjusting to this trend, and advertisers are facing the million-dollar question: how to increase app installs while cutting costs ? In this article we’ll outline several suggestions for advertisers in order to keep their apps growing while increasing profitability at the same time.
Optimize your Cost per Install
The first and most obvious action app developers can take is to optimize and lower their cost per install. Also known as CPI, cost per install is the price advertisers pay their marketing partners for each new install generated by their ads. It is computed by dividing the total amount of money spent on mobile user acquisition by the number of new users acquired.
When looking to increase app installs through user acquisition campaigns, CPI is often the main pricing model employed in such campaigns, and it can be fixed or variable depending on the negotiation between advertisers and app marketers. Let’s look at three different strategies which can help you decrease the CPI you’re paying in order to increase app installs:
- Leverage machine learning algorithms. DSPs and ad networks can help app developers by running programmatic app install campaigns using machine learning algorithms. These can rapidly analyze data and optimize app campaigns in order to target users who are more likely to download and install your app.
- Track the right KPIs. Looking only at installs and CPI is not enough. Instead, monitoring monetization KPIs such as CPA, ROI, ARPU and LTV allows you to understand how much in-app revenues your new users are generating. This way it’s easier than ever to assess whether your profitability and whether or not your efforts to increase app installs are too expensive.
- Target high-quality users. To increase app installs can be useless if such installs don’t drive any in-app revenues. That’s why it has become essential to know your ideal audience and allocate your budget accordingly. Paying only for users who spend money in-app will make you pay less for each new install.
Design a diversified and effective App Marketing Mix
However, mobile user acquisition campaigns aren’t the only means to increase app installs, and the best way to maximize your efforts is to develop a well-structured marketing mix. By combining multiple channels, it is possible to optimize your overall ROAS and to be profitable.
There are several strategies you can adopt in your app marketing mix, including:
- Optimize your app store listing: ensure that your app store listing is well-written, visually appealing, and includes relevant keywords to help potential users find your app more easily.
- Leverage social media: use social media platforms such as Facebook, Twitter, Instagram, and LinkedIn to promote your app and engage with your target audience. You can also use social media ads to reach a wider audience.
- Implement a referral program: encourage your existing users to invite their friends and family to download your app by offering them incentives such as discounts, free premium features, or exclusive content.
- Reach out to influencers: partner with social media influencers in your niche to promote your app to their followers. This can help you reach a wider audience and increase app installs.
- Focus on app reviews and ratings: encourage your users to leave positive reviews and high ratings on the app store, as this can significantly impact your app's visibility and credibility.
- Utilize email marketing: use email marketing to reach out to your existing users and promote your app's features and updates. You can also use email marketing to encourage users who have downloaded your app to refer it to their friends.
- Offer a free trial: offer a free trial of your app's premium features to entice potential users to download and try out your app.
By implementing these strategies, you can increase app installs without wasting money on costly advertising campaigns.