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Paid User Acquisition for Mobile Apps: Strategies for Acquiring and Retaining Users for Your Mobile App

Submitted by Mobyink on Mon, 06/05/2023 - 01:38

Mobile apps have completely changed the way we use technology nowadays, one or more apps support everything we do in our life. With the rise of smartphones, these mobile apps have become an integral part of our lives. There are multiple millions of apps available in the market right now on several different platforms, and thousands of apps are being added every passing day. The rapid growth of this ocean of apps has become a problem for app developers, they are struggling to acquire users for their mobile apps and even if they have acquired users now it's very difficult to retain them. The solution to this is Paid User Acquisition. In this blog, we will take a look at the world of paid user acquisition as well as the different strategies for acquiring and retaining a user base for mobile apps.

What is Paid User Acquisition:

Paid User Acquisition is a process of acquiring users through various paid methods. This process drives traffic to the install pages on the mobile app store’s listings. They can also be utilized to re-target users who have already downloaded your app and to encourage them to take high-value post-install actions like registration, purchases, or referring the app to someone else. It is a crucial step of mobile app marketing because it can help achieve goals like increasing the number of downloads, improving retention, or boosting revenue.

There are many types of paid user acquisition like app store advertising, influencer marketing, social media advertising, etc. One of the most popular types of paid user acquisition is social media advertising. It allows companies to target audiences in a specific demographic and interest. Social media platforms like Facebook, Instagram, and Twitter have a very huge consumer base so the reach is extremely vast there.

Influencer marketing is another type of paid user acquisition method where the mobile app company partners with an influencer to promote the app to the followers of the influencer via the influencer.

And then there are other methods like app store advertising which means paying to promote the app inside the app store using ads or paying to be featured in the “recommended apps” section of the app store. There are more methods such as search engine advertising, display advertising, and video advertising as well.

One great example of a successful paid user advertising campaign is Uber’s referral program, where existing customers referring the app to someone would result in a reward for the existing and new customers.

Setting Goals for Paid User Acquisition

Setting clear goals help you to create a proper strategy for paid user acquisition. A proper strategy helps you focus on the specific outcomes and then measure the progress. There are some common goals for any paid user acquisition which are:
Increasing app downloads
Improving retention
Boosting revenue
Increasing brand awareness

Whenever you are setting your goals for paid user acquisition, it's crucial to keep in mind the SMART framework (specific, measurable, attainable, relevant, and time-bound). For example a goal like “increase app downloads” is very vague and doesn’t clarify the actual target to achieve, instead a SMART goal would be something like “increase app downloads by 25% within the next four months”.

Smart goals will not only help you measure your progress but will also help you in adjusting your strategy if required. It will ensure that the efforts in paid user acquisition are effective.

Creating a Paid User Acquisition Strategy

Creating a paid user acquisition strategy is a multiple-step process that starts with the identification of the target audience. Before doing anything you must understand who is your ideal audience, what they like, and what is the problem that your app solves for them. This information will help you create an ad that will resonate with them, and push them to help you achieve your goals.

The second step is the section on the right ad format for the campaign. This also depends heavily on your target audience. Video ads, display ads, native ads, etc are some of the formats available for advertising. It's important to choose the right format which will align with your goals and resonates with your audience.

Now the next step is a creative one which is to prepare an ad copy that’s compelling and persuasive. It must attract the attention of your target audience while communicating the unique value proposition of your app. In the end, it must encourage users to download and use the app.

Another critical step in the process of creating a paid user acquisition strategy is setting the budget. You need to allocate the budget effectively and determine how much you are willing to spend on the campaign. You must keep track of the performance of the campaign so that you can adjust the budget accordingly and optimize your return on investment (ROI).

Optimizing the campaign is the final step which involves many tactics like A/B testing, tracking metrics, adjusting targeting, and more. When we run multiple versions of the same ad to find out which version performs the best, it's called A/B testing. Tracking metrics like conversion rate, click-through rate, and cost per install can help measure the performance of the campaign and take decisions based on the data.

Paid user acquisition is a very effective method to acquire new users but it's crucial to maintain the balance between paid user acquisition and other organic acquisition methods. Organic acquisition is the method that acquire new user and retain current users without spending money on it, it includes methods like word-of-mouth, search engine optimization, etc.

Retaining Paid Users

For the long-term success and growth of your mobile app, it's essential to retain users, especially paid users. You must keep the users engaged with the app and keep pulling them back to the app, it will result in high retention rates, which in turn results in an increase in revenue and positive reviews. And positive reviews are a great way to attract new users organically.

It's essential to keep reminding the user about the app when they are not using it. Push notifications are used for that purpose, these are notifications that alert the user by appearing on the user’s phone when they are not using the app. These notifications help remind the user about the app by informing them about new features, updates, or promotions.

Another way to retain a user is to send in-app notifications. You can send some personalized messages according to the user's behavior or preferences in the app, it will make them feel more connected to your app. A more personalized experience with the app through notifications or customizations will help you retain users.

Some metrics like retention rate, churn rate, and user engagement will give you a lot of information about the user's behaviors, by utilizing this information you can identify the weak areas in the overall experience of your app and improve the retention of users.


Remember to balance paid user acquisition with other strategies like organic acquisition and referral marketing and to measure and optimize user retention for paid users.
We hope this blog post has been helpful in understanding paid user acquisition for mobile apps. Now it's time to start experimenting with paid user acquisition for your mobile app and watch your user base grow!

At last, we can conclude that paid user acquisition is a crucial brick in the wall of mobile app marketing. It's important to understand that there are many steps in paid user acquisition such as setting clear goals, creating a paid user acquisition strategy, creating an appealing advertisement, and optimizing the advertisement and budget for it. A well-rounded strategy following all the steps efficiently will result in it being effective in acquiring and retaining users for the mobile app.

And lastly, it's very important to maintain the balance between these paid strategies and organic strategies for acquiring and retaining users.

We hope you are more aware of the paid user acquisition and its strategies by now. Now you should experiment with whatever you learn to utilize these learnings and increase your user base.

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