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Insights & Events
30 April, 2018
Due to the nature of an organic install it is sometimes easy to forget they aren’t free.
An organic install occurs when a user downloads an app without directly responding to a mobile advertising campaign. The install is not attributed to a specific install source and therefore considered organic.
However there are a number of costs associated with organic installs that are often overlooked.
A user rarely installs an app without having had previous exposure to a brand. A study revealed that 70% of people have seen or heard of an app at least once prior to installing it. So chances are your user has come into contact with your mid-funnel marketing activities on their path to conversion. This could be via your social channels, on and offline advertising, app store optimisation, PR activities or any other way you get your app in front of its target users.
Source: Tune, 2016
All of these marketing efforts build brand awareness and help push users further down the funnel towards that install. Every event that allowed a user to interact with your brand deserves some amount of credit and some amount of cost to acquiring that organic user.
If you use cost-per-click (CPC) and cost-per-impression (CPM) campaigns to boost brand awareness, chances are you’re paying for fraud. While ad fraud is present in all models, CPC and CPM ad types can be more susceptible to it than cost-per-install (CPI) campaigns. This is due to it being much easier for a fraudster to mimic a click or an impression than it is to replicate an install and in-app activity.
When using CPC and CPM in your mid-funnel marketing tactics the cost of an organic user increases as a portion of your ad spend is absorbed by ad fraud. That doesn’t mean you should stop CPC and CPM as these are important models to drive awareness but it is necessary to note that cheap CPC/CPM generally means a less targeted and engaged audience.
Organic traffic also isn’t free of fraud. With organic traffic being classified as any conversion that cannot be attributed to a specific source, it does not mean its the perfect install. Therefore you are likely paying for fraud with organic traffic also. The rationale behind this is fraudsters tend to test the waters of their fraud tactics before putting it into action stealing attribution for paid installs to gain a profit.
When it comes to successful user acquisition, organic and paid tactics work hand in hand. To fully capitalise on your mid-funnel investments, CPI campaigns get users that are sitting on the fence, over the line. Your brand awareness activities push users further down the funnel, but CPI campaigns get the job done. Without CPI campaigns, your UA strategy is leaving users (and money) on the table.
The reality of an organic install is you have in fact paid for it, just at a different point than you would a typical ‘paid install’. It is important to consider the associated costs with all marketing tactics that influence a user to install your app regardless of which point it occurs in the user journey. This will help you refine your user acquisition strategy and have a more thorough understanding of your user acquisition costs.