By 2020, the app industry revenue is estimated to grow to $188.9 billion globally, reports Statista, an online statistics database. Facebook spent $19 billion to buy WhatsApp, the mobile messaging company. WhatsApp now has roughly 1.5 billion users; over three times the number it had when the deal was announced four years ago. These are all indicators that small business owners should focus on how to market an app and drive revenue from them.
The “How to Measure Mobile App Marketing” report reveals businesses rely on social media marketing and app store optimization (ASO) to increase app usage, says Emily Clark, a writer for The Manifest and author of the new analysis. “This report can improve your marketing campaign, which can increase revenue and provide better monetization for your app company.”
But how do you measure the success of the app marketing strategy and what sources should you use to perhaps make it more fruitful?
How to Measure App Marketing Efforts
Given there are over 5 million apps in app stores, Clark says a business must market its app well to help it stand out in a crowded market. The Manifest surveyed 301 app developers and marketers. It learned most businesses use social media to market their apps; value measuring daily active users; and hire outside marketing agencies
Other key survey findings:
- Some 34% of companies use social media to market their app, while nearly 20% of companies focus on ASO.
- About 24% of businesses value ratings and reviews from app users to improve ASO.
- 34% of businesses consider daily active users as the most valuable metric to measure. Only 11% of companies, surprisingly, think revenue per user is the most important metric.
- More than 50% of all companies pay for both search and social media ads. Larger companies are more likely to pay for online ads.
- Over 65% of companies say they use either a mobile app marketing agency or a digital marketing agency to optimize their marketing campaigns.
But businesses must develop content designed specifically to their app’s audience on social media.
What is preeminent with businesses is activity. Some 34% of them cite the number of daily active users as the top metric to monitor an app’s success. Clark says boosting daily active users allow businesses to gain more downloads and build stronger customer loyalty.
When it comes to generating revenue, Clark says as more people begin to rely on the app, the more the app is worth advertising and developing.
She noted Snapchat was the first company to advertise its daily active users because it wanted to show it could compete with the value of television. She says the usage helped Snapchat convince advertisers to pay higher fees because the apps would reach more potential customers.
Plus, developers can increase revenue with different monetization practices such as a subscription-based model or offering in-app purchases, Clark says. This link offers more strategies to help build revenue.
Clark offered tips on how small businesses can boost their app popularity and have a stronger online presence:
Own Your Voice
Foster your own brand voice in social media that speaks to a certain audience and makes your company distinctive from rivals. Do this by identifying the audience you are trying to reach; brainstorming how to appeal to this specific group; launching unique content that will gain their attention and provide valuable information for their needs; and analyzing the metrics to see what was most effective
Improve your rank in the App Store by optimizing your app’s title, keywords, and description. Creating a unique title with integrated keywords will catch user attention and make your app rank higher on the search results page. This should lead to more downloads, daily active users, and revenue
Marketing is Key
Hire an outside marketing agency that understands the industry and has experience launching effective marketing campaigns. Outside media agencies can offer knowledge and expertise, tools, and connections.
Implement an effective monetization model that will increase app revenue. Some examples are the Freemium Model: Users download your app for free then buy a premium version once they want more features or extra content; and the Subscription-based Model: Users pay a monthly fee to access your app; or In-App Purchase Mode: Allows an app developer to sell such items as coins and games from inside the app.