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Shifting from Volume to Value-based Marketing
Learn more about the importance of lifetime value (LTV) in today's mobile app economy from the experts at Facebook and AppsFlyer.
With mobile apps, brands can offer their products and services instantly, at a tap—and marketers have tremendous opportunities not only to reach consumers at scale, but also to boost user loyalty.
But with millions of apps now available and ever-increasing user expectations, issues like user loyalty, retention and profitability remain significant challenges for apps. And with this, the struggle between acquiring new customers and maintaining those with a higher lifetime value (LTV) becomes a problem that app marketers need to start addressing.
LTV informs marketers on how much they can spend to acquire a user and still remain profitable. As we’ve learned through previous Facebook IQ research, your most valuable customers are your most engaged. But loyalty is fragile. Apps finding less engagement may be losing customers with high LTV, and opportunities for growth.
To help marketers harness the power of data to drive growth, AppsFlyer teamed up with Facebook to create Lifetime Value: The Cornerstone of App Marketing. This report provides multiple LTV-related benchmarks for key verticals across key markets: organic vs. non-organic revenue, Android vs. iOS revenue, average revenue per user (ARPU), number of purchases per user, purchase distribution and more.
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The most sophisticated app marketers are integrating LTV as a key indicator of sustainable and profitable growth. By measuring LTV—and taking actions based on those insights—they are giving themselves a clear competitive advantage over those who only looking at CPI.
—Bryan Wang, Head of Marketing Science at Facebook Greater China
Marketers can play an instrumental role in their apps’ success by improving user loyalty and increasing LTV. The only way to achieve this is to rely on data, granular measurement and actionable analytics.
Download the full report on Lifetime Value:
Lifetime Value: The Cornerstone of App Marketing and watch our webinar to hear directly from the experts at AppsFlyer and Facebook.
What it means for marketers
Focus on lifetime value.
By measuring lifetime value, you can identify, engage and re-engage the audiences that help your business consistently grow over time. Learn more about measuring LTV and the specific benchmarks for your vertical in our report.
Invest in always-on advertising.
Because volume doesn't always lead to value, it is crucial for marketers to improve engagement and re-engage with their most valuable customers. Understanding the trade-offs between targeting new customers, re-engaging heavy users and retaining light users are crucial to sustaining business success.
