How $96,000 can buy you a top 10 ranking in the U.S. app store
venturebeat.com
venturebeat.com
I doubt this is intentionally misleading, since I can see no incentive for doing so, but it just goes to show that you have to be careful with infographics - they're very easy to lie with, even accidentally.
On the plus side, the promo was free (i.e.: no additional money to be part of it) and they had no requests for revenue sharing or the like.
Just a data point, I think that the app in itself plays a role... gaming and iOS are probably a better market for this kind of promo. (and, yes, app discovery is a serious problem).
I wonder if the result of all of these "discovery" apps will be a more complicated ranking system from Apple that takes into account more than just downloads...
Whenever running a burst campaign it is important to follow it up with sustained installs afterwards to try and maintain the rank for as long as possible to attempt to get some of the organic lift mentioned. It does not simply happen instantly.
$96K is a lot of money to spend if your goal is a top 10 non-game app. Not everyone can put up that kind of money.
And the more people do that (buying installs to kick off a campaign), the more expensive it becomes and more difficult to get in the top 10.
We were featured by Apple with our paid game (iPad only), and it got us up the charts quite fast (nowhere near top 10 though), but even with that, over a month we slowly tailed back to single digit sales. We didn't put much money into advertising though. But anyway, Facebook ads are working quite well for us now (much better than adwords).
Everybody who matters to whom? I understand what you're saying - it just seems like a very deterministic view on the state of the gaming industry.
But in the end, it's just a mad rush to be on the charts to get organics. Without that, it's kind of difficult with apps to make your money back from ad spending. It's not like you are advertising a hotel room where one purchase through your adwords can net you a 100+ dollars (plus all the room service that person will consume!). In apps, typically, you lose money buying users (if you were only counting ad-spend vs revenue from those users that installed).
Maybe Apple will implement something similar to Steam, where this is still possible.
The idea is for 100k they'll put youre add in front of 800k users, and 80k will install if its free. but only 1k will install if it costs money. numbers totally made up.
The ones that do charge cpi, if your conversion rate isn't high enough that theyre profiting[since they're paying per impression or could show an ad more likely to convert], theyll just kill your app and not advertise it.
So before this spending on paid installs happens you need to have metrics on the Customer Life Time Value (CLTV). Now since you are buying users this calculation could be off.
If:
Customer Life Time Value > Cost Per User Aquisition
Then:
Spend money to acquire customers
So if you rank high and word of mouths spreads then you hopefully have organic growth where user acquisition costs equate to $0.