Profitable App Growth - Week of June 30
CPI = Pricing Clue ROAS ≠ Magic Product > Marketing
📌 Quick Thoughts from Samet
This week is packed with actionable insights: using CPI to shape subscription pricing, creative testing strategies, realistic approaches to ROAS, and reflections on the relationship between product quality and marketing success. Let's dive right in.
💰 How CPI Shapes Your Subscription Pricing
Your CPI (Cost Per Install) should directly inform your subscription pricing. If you struggle to keep CPI below $4 in install-optimized campaigns (considering trial campaigns typically inflate CPI by 3-5x), you may need to price your subscription at least between $40 and $80.
Of course, this strategy hinges on having a solid IPM (Installs per 1,000 impressions), something I've previously detailed. Still, keep dreaming big, low CPI and high pricing are achievable; I’ve seen clients succeed there too.
🎨 Creative Testing: The Power of Sprints
I strongly recommend testing creatives in distinct waves or "sprints" rather than incremental continuous tests. Sprint testing pushes you out of your comfort zone and encourages entirely new angles for user acquisition.
For instance, for one client’s weight loss app, we tested separate angles specifically targeting male and female users. For another app designed for writing, we ran campaigns highlighting use-cases from professional writing to playful flirting and conversational engagement. Allow your creative team the freedom to experiment, the results might surprise you. But for Meta, this means you will use manual targeting options instead of advantage+.
📊 ROAS Reality Check
Recently, I saw a post highlighting Apple Search Ads (ASA) for their high intent. But intent alone doesn’t guarantee strong Return on Ad Spend (ROAS). Here’s my simplified but realistic framework:
ROAS ≈ (Intent × Fit) ÷ Cost
Intent: This reflects user readiness to act. It’s high on Apple Search, medium on Google Ads and trial-optimized campaigns, and typically low on Meta/TikTok install campaigns. Purchase optimization campaigns also generally yield high intent.
Fit: How effectively your messaging matches user expectations. Keyword alignment, ad copy, and creative concept drive this factor. It's straightforward to test this using Google and ASA since copy or KW heavily influences campaign success.
Cost: The overall user acquisition cost, often determined by CPM or CPI. Typically, Meta tends to be cheaper for low intend, Apple pricier, and TikTok volatile.
Note: Funnel strength (onboarding, paywall, retention) is consistent across channels, so it isn't channel-specific in this ROAS equation.
✨ The Ultimate Validation of Subscription Apps
The best moment as a subscription app owner is seeing someone start a trial, cancel it, and then return one or two weeks later to purchase a subscription. This clearly validates both effective marketing and strong product-market fit.
🏆 Great Product Makes Great Marketers
Marketing success heavily relies on product quality. At my former gaming company, a billion-dollar enterprise with many games, the successful titles were mainly driven by exceptional products, complemented by smart marketing decisions.
When hiring a "successful marketer," always evaluate how much their achievements depended on the product and other team members. For example, a marketer involved with a lower-revenue game like "Agent Alice" may not inherently be less skilled than one associated with the high-revenue "June's Journey." Context matters greatly.
Source: AppMagic
🎯 IPM Benchmarks: Channel and Optimization Specific
Generic IPM benchmarks aren’t helpful without context. Always use channel- and optimization-specific benchmarks. Personally, when evaluating creative effectiveness, I consistently use U.S. install-optimization campaigns as my baseline.
🚦 Freelancer, Consultant, or Fractional?
Understanding these roles clearly can greatly benefit your growth:
Freelancers execute specific tasks. They’re externally managed, reactive, and work short-term on hourly or project-based engagements.
Consultants provide strategic advice. They're also reactive, typically working short to mid-term, advising clearly on specific issues or challenges, often through retainers or hourly rates.
Fractionals combine ownership and execution, proactively setting direction as embedded team members. They lead growth strategies, often through ongoing monthly retainers, balancing strategic oversight with execution.
One person can be all three. And choosing the right role depends entirely on your specific growth needs and internal capabilities.
🤖 AI and Authentic Writing: A Reality Check
AI-generated writing might sound polished and confident, but it can’t capture genuine clarity of intention or authentic messaging. Real understanding and authenticity can't be outsourced.
🍬 Ad Lessons from Candy Crush
Picture the most successful Candy Crush ad from the last year. Was it flashy CGI, elaborate AI-generated creatives, or dramatic fake gameplay?
Surprisingly, according to AppMagic ad creative report, the best-performing ads for Candy Crush are incredibly simple and straightforward, clearly demonstrating the game's core mechanics. For games, simplicity and direct gameplay focus work best.
However, if your app involves broader content (like fashion or social engagement), your ads should prominently feature that content.
🌍 Keyword Ranking Anomaly
Recently, I've noticed that downloading an app using an English keyword in a foreign market affects its ranking across all English-speaking markets. Is this a known phenomenon? I'd love to hear your thoughts in the comments!
Thank you for reading. See you next week! 👋
Samet Durgun, Growth Therapist 🌱