#Singapore #JOYY Inc. #BIGO Ads #mobile app growth

Introduction

In the fast-evolving landscape of mobile apps, developers often find themselves juggling various metrics that dictate growth and profitability. Traditionally, mobile app growth has been tackled by separate teams, with user acquisition focusing solely on attracting users and monetization teams honing in on revenue generation. However, BIGO Ads, an advanced advertising platform under JOYY Inc., argues that a more interconnected approach could enhance user retention and overall app value.

The Challenge with Traditional Metrics

The prevalent method relies heavily on cost-per-install (CPI), effective cost per mille (eCPM), and short-term return on ad spend (ROAS). While these metrics play a crucial role in measuring user acquisition efficiency, they tell only part of the story. As David Ruggiero, Business Development Director for Europe at BIGO Ads, points out, "A cheaper install is not necessarily a better user."

Cheap users may arrive with minimal investment, yet they often leave at an alarming rate or contribute little to revenue post-installation. Conversely, a higher-cost user who remains engaged can yield significant long-term value through in-app purchases, ads, or subscriptions.

Broadening the View on User Engagement

It’s essential for user acquisition (UA) teams to look beyond mere install costs. Other performance indicators like engagement, retention, revenue, lifetime value (LTV), and payback periods should be examined to deliver a holistic view of user quality. Implementing a broader framework that prioritizes these elements helps create a sustainable growth model.

Similarly, monetization cannot simply be viewed through the lens of eCPM, as higher ad rates do not equate to enhanced value. In fact, increasing ad pressure might provide a temporary financial boost but can ultimately compromise user experience, retention, and long-term profits. An effective monetization strategy should balance revenue from multiple channels while considering user interaction and satisfaction.

Facilitating a Cohesive Strategy

BIGO Ads advocates for a unified approach that integrates both acquisition and monetization strategies. When UA teams and monetization teams optimize their metrics independently, it can lead to conflicting goals. For instance, a UA team might attract users that achieve a quick ROI, yet these users may not sustain their engagement. Meanwhile, a monetization team could focus on quick revenue plays that diminish long-term user appeal.

The solution proposed by BIGO Ads is a shared understanding of player value, combining acquisition costs, advertising, in-app purchases, subscription revenue, retention rates, payback, and enduring profit margins. This comprehensive viewpoint allows developers to ascertain the real impact of their growth strategies, especially in regions like Europe, where evolving privacy regulations limit access to user-level data.

The Role of Paid Growth

While paid user acquisition is a vital component, it is most effectively harnessed when scaling a product that already excels in user retention and monetization. Relying solely on paid acquisition to offset poor onboarding, low retention rates, or an immature monetization strategy is unsustainable.

BIGO Ads is dedicated to assisting advertisers with user acquisition solutions tailored to engage valuable users while enabling app publishers to monetize effectively through a global demand for advertisers and real-time in-app bidding. The ultimate goal is not merely to optimize single metrics but to empower developers to make strategic growth decisions based on the lasting value of their acquired users.

Conclusion

The mobile app sector is dynamic and complex, urging developers to adopt a comprehensive growth strategy that integrates user acquisition with monetization efforts. By facilitating a collaborative model, BIGO Ads aims to help app developers better navigate the intricate journey of user engagement, ultimately leading to sustained success and profitability.

For additional information on BIGO Ads and its innovative offerings, visit bigoads.com.