Tasked with growing the business quickly, performance marketers often turn to scaling their ad spend to scale their userbase. But when you increase spend you often see efficiency disappear as the cost of acquiring new users goes up.
This guide digs into why this common challenge occurs. Then it offers 7 steps that performance marketers can take to overcome it so they can get back to growing their business efficiently and profitably. For example:
Why scaling spend can damage ROI
“There is a finite pool of users who are interested in downloading your app. And the algorithms powering your advertising on the key digital platforms (such as Facebook and Google) are highly trained at finding these people.
So once you have emptied that pool of potential users you have to look elsewhere to find people who are simply less likely to be interested in your offer. By investing more money in order to scale, you are now forced into finding a broader base of users who are of ‘lower quality’.
Therefore, scaling up your UA spend isn’t as simple as turning up the volume. You need a plan that addresses all aspects of your app’s performance marketing to drive scale in a way that is profitable.
And any plan to do this needs to consider these 7 steps…”