7 mistakes in app user acquisition and 7 ways to avoid them

Exploring mobile applications is not an easy task. Standing out in the Apple App Store and Google Play Store, which each have more than 1.5 million apps, takes some skill. In order to be successful, most game developers need to invest some marketing dollars in acquiring paying users. Below are the seven deadly sins of mobile user acquisition and how to minimize these threats.

1. No soft launch

User acquisition is only implemented after preparation. While a soft launch strategy may be relevant to the overall game design, it is especially important before implementing user acquisition. No game developer wants to pay a lot of money to direct users to an unpolished game. If a game is not tested and validated by users, the return on investment will likely be lower than expected.

Soft launch means launching in a relatively small country with a similar background and setting some benchmarks for payment, retention and other dimensions. More importantly, soft launch can help game developers understand users' likes and dislikes. Knowing more about what the core user group identifies with can help increase payments, and higher payment rates can give developers more options when looking for ways to acquire users.

2. Not setting a standard for success

It’s obvious that the primary goal of most user acquisition campaigns is to generate revenue and increase profits. However, there are many small but very analytically valuable elements in this process, and each step should be analyzed in depth.

Do we do A / B testing on our ideas? That's fine. But is the purpose of the test to increase ad click-through rate or conversion rate? After conducting a user acquisition campaign, you need to compare two different types of user sources. Do we have enough patience to pay attention to those users with high retention rates ? Or do you prefer users with better payment performance? Set a goal to guide you at every step in the user acquisition process.

3. Not understanding average revenue per user (ARPU)

The question on everyone’s mind when running a user acquisition campaign is “how much can I spend while still making a profit?” A common mistake in mobile performance marketing is not evaluating how much revenue a user can generate before launching a campaign.

Whether you measure user value by average revenue per user (ARPU), lifetime value (LTV), or some other metric, it’s important to have a clear criteria for what’s worth investing in. If the average user spends only $1 playing the game over their lifetime, there is no reason to invest $2 to acquire each user.

4. Single online channel

There are many ad networks and platforms for user acquisition in the mobile space. Putting all your eggs (installations) in one basket (network channels) makes it difficult to seize the full opportunity of acquisition actions.

First, diversification helps you keep your cost per install lower and compare different sources. Furthermore, if the campaign is extended over a period of time, there is a risk of saturating a single network channel. Saturation means that as your app is exposed to more users, the conversion rate will gradually decrease.

Imagine if saturation really happens, let's say App A has a rare 10% conversion rate. This means that for every ten users shown an ad for App A, one will download it. While these people continue to play the game, the nine people who did not download the app will be pushed ads for App A again. The likelihood that they will choose to download the second time will be lower than the first time, so the overall conversion rate will decrease.

To avoid saturation, push your ads to different online channels. Although it may be more troublesome to conduct user acquisition activities on multiple channels at the same time, the rewards are worth it.

5. Overestimating organic downloads

Don’t be too naive and expect users to find your app on their own and tell their friends how great it is. There are now tens of thousands of apps that make this optimistic scenario almost impossible.

Ranking in the top ten free apps will significantly increase organic downloads. However, this is not a reasonable goal for the vast majority of game developers with limited spending. TRADEMOB has an infographic about Outbreak Operations, showing that in February in the US, it cost $100,000 to get a game app into the top 10 free apps on iOS.

Most secondary category listings don’t generate enough downloads to be targeted in user acquisition campaigns. For game developers, finding some paid channels can sometimes be more effective than competing on the charts.

For developers, app features can be another source of organic downloads, but these have their own challenges. Getting featured in the Apple and Google stores is extremely difficult. Although they can be featured prominently in their respective online stores, these platforms generally only reserve such displays for apps that are new features in addition to the operating system or have added new integrations. Some apps may be included in a special topic because of their fun and fine workmanship. The vested interests that Apple and Google have gained in the special topic game cannot be underestimated.

Online magazines and review sites can sometimes influence download numbers, but they typically need to review and describe hundreds of apps every day. Unless a game developer has connections with someone in a particular channel, it's unrealistic to expect to drive the majority of downloads through these types of descriptions.

Many people say that burst activities can be very effective if done well. Also, don't expect your app's ranking position on the list to bring about a significant increase in downloads.

6. Over-reliance on incentivized downloads

Incentivized users only provide the value needed to rank on the leaderboard. Most of these people download and install the app and simply use it just to get the corresponding rewards when the advertisement appears. They have little interest in the game, so their ARPU/LTV and retention will be lower than non-incentivized users. The cost per install (CPI) is lower and the number of users acquired is increasing, but game developers rarely make breakthroughs because even if they attract incentivized users, their payment rate is relatively low.

In the Google Play store, purchase-incentivized downloads are weighted less heavily in the ranking algorithm than ratings, reviews, engagement data, uninstall rates, and other metrics. The only reason for this deal is to give advertisers a positive return on their investment.

Purchasing incentivized downloads is only effective if the publisher’s app’s audience is similar to the target demographic.

7. Not categorizing users

Every successful user acquisition campaign will have many pain points addressed in it. It is important to evaluate the data of each user because it can help you understand which resources and strategies can be effectively applied in acquisition activities.

The data points used for classification can be as simple as ad type (video vs. non-incentive appeal), device type, and geography. Depending on the partners you work with to drive your user acquisition campaign, you may be able to get more point-based data, such as the type of publisher or even the specific source of apps.

Segmenting users and analyzing their spending and retention can help us determine what information and resources will help cultivate profitable users.

To avoid the seven deadly sins of user acquisition, we should:

1. Soft launch the game in test markets

2. Set goals to achieve at each step

3. Understand your ARPU/LTV and how much you can invest in each user

4. Enrich network channels

5. Don’t expect organic downloads to drive significant growth

6. Always be vigilant about the quality of motivated users

7. Categorize users and acquisition actions

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