Well-Rounded UA Portfolios: How to Ensure Long-Term Success

With User Acquisition costs frequently being the largest line item of most mobile app companies’ expenses, it can not be understated how important it is for budgets to be managed effectively. While that can be less difficult in the short-term, protecting financial success over time requires forethought and planning. In part one of the Well-Round UA Portfolio series, we share what you should consider to ensure the long-term success of your user acquisition strategy.

Diversify Spend on the Major and Alternative App Stores

When it comes to divvying up a UA budget, there are many different ways to do it. First and foremost is how to split funding across the major mobile platforms.  Both iOS and Android have their distinct advantages to be maximized and install cost and user quality are important considerations when deciding where to allocate budgets. However, with upcoming public policy changes worldwide, these are not the only app distribution options to consider. The use of emerging alternative app stores can bring about significant cost savings. Finding the right balance between multiple platforms can not only reach a wider audience, it can also manage costs.  

Find a Balance with the Right Advertising Partners

Selecting the right balance of growth partners for a UA portfolio is a crucial step that demands attention. The traditional advertising giants, including Meta and Google, have unrivaled scale but their extensive reach often comes at a premium price. On the other hand, there are many smaller yet reputable AdTech companies that can easily be incorporated into an app’s marketing mix. Building partnerships with some of these firms can effectively reduce acquisition costs. It’s all about finding the right funnel equilibrium — broadening the top to lower costs while ensuring a steady stream of high-value users at the bottom to meet overall KPIs.

Test Non-Traditional Ad Formats

Selecting the right advertiser combination is certainly important but achieving the correct ad format mix is equally as impactful. These formats range from the more traditional ones, including videos and offer walls, to newer options, like on-device solutions and affiliate marketing. Testing these new formats can be highly beneficial for any UA portfolio. Allocating a portion of the budget to these types of experiments is crucial to finding new pockets of success. 

Take Advantage of Cross-Promotional Methods

Successful UA portfolios often include a variety of supporting strategies. Re-engaging lapsed users can be done with both inexpensive CRM programs as well as through paid campaigns. Prioritizing and maximizing channels such as email and push notifications will reduce the amount of resources needed for the paid retargeting campaigns. Optimizing both the App Store and the Google Play Store will not only improve the CVRs of paid traffic but will also positively impact the amount of organic app downloads. Many companies that have a suite of apps are also able to use internal cross-promotion activities to drive high-value users to their other products. With these powerful secondary layers, you can boost UA performance by using the tools you likely already have.

Creating a successful UA strategy focused on long-term profitability has many complex facets. We’ve discussed the importance of diversifying your budget across major and alternative app stores, striking the right balance with advertising partners, testing non-traditional ad formats, and leveraging cross-promotional methods to enhance your UA performance. As this series progresses, we'll delve deeper into these strategies, offering detailed insights into ad formats, alternative app store options, optimizing secondary layers, and much more in the months to come. 

Stay tuned for the rest of the Well-Round UA Portfolio series!

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