10 Mar 2014

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Discuss the Pros & Cons between Incentivized companies & promotional companies.

In this rapidly growing app industry, developers and marketers are consistently looking forward to pick the best mobile app marketing strategy available in the market with the sole purpose of sustaining the quality user acquisition. Today after considerable advancement of the market, the developers have got number of options in formulating the right mobile app marketing strategy for user acquisition and this includes choosing between companies offering incentivized ad campaigns or promotional companies that offer non-incentivized marketing campaigns. While each mobile app marketing company comes with its own benefits, we will discuss the definitions and their pros and cons which will certainly help the developers or advertisers to choose the best way to optimize their ad campaigns.

What are incentivized companies?

These companies aim to provide platform to the advertisers to witness incentivized traffic for their apps. The audience that opts to engage with these advertisement gets a reward in return. These rewards can be in the form of virtual currency that can be utilized in the in-app features or in the form of credit purchase in return for completing a specific goal that could be either downloading an app or clicking on a particular feature; all that would instigate deeper user engagement. There are quite a lot of ad networks that provide reward based ad campaigns through different kinds of ads and ad content. These ads are based on different pricing models such as CPI (cost per install), CPC (cost per click) and CPM (cost per thousand).

Thumbs up: Incentivized ad campaigns are capable of driving user acquisition faster and easily at comparatively lower cost. Developers opting for these campaigns can expect a sudden increase in the installation numbers through increase in the incentivized traffic.
Thumbs down: The traffic generated through incentivized sources usually attracts the users with lower lifetime value, which certainly doesn’t build a beneficial segment of users for the developers. These users tend to take actions just to attain the rewards who by the course of time might not consider engaging with the application.

What are promotional/non-incentivized companies?

The aim of non incentivized mobile app marketing company is to generate natural or organic traffic as it doesn’t reward the audiences for their engagement with the ad or for any sort of actions from their end. These advertisements tend to grab the attention of the audiences who have shown a deliberate interest towards the ad. However, promotional companies try to have a grip over target audiences on the basis of various segments based on age, gender and geolocation.

Thumbs up: Organic traffic tends to be a cluster of users with a higher lifetime value as they themselves have chosen to engage with the app and its features. This suggests that the developers can expect to encounter higher user acquisition that would bring in higher Rate Of Investment with a considerable increase in the value of the app in the market.

Thumbs down: Producing results through organic traffic might end up being little more time consuming compared to the incentivized ads. Moreover, the non-incentivized promotions can prove to be more expensive than incentivized ads.

The decision of choosing any one source for generating traffic for your application is entirely dependent upon your goals and the amount of resources you are planning to deploy in your marketing strategies. The ultimate goal of developers should be to keep monitoring the quality of the mobile user acquisition on constant basis to maximize Rate of Investment at regular intervals by formulating the best marketing strategies.

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