Be in the Know
- The streaming showdown continues. Apple will be launching its own streaming service come April 2019. They’ve been at it for a while, acquiring rights and sourcing original content.
- Slack has done the complete opposite of slacking off. The popular collaboration tool now has over 10m daily active users and over $900m of cash on hand. #Winning
How to Budget for User Acquisition
How much is a new customer worth to you? That’s a loaded question.
We’re gonna break it down with some key considerations and how to actually come up with a budget.
- Risk: We’re not talking about the board game. When considering a UA (user acquisition) ad play, you first need to consider how much you’re willing to risk without a 100% guaranteed return.
- Opportunity: If you’re throwing dollars at UA, you’re inevitably giving up something else. Whether it’s product development, team expansion, etc. It’s crucial to consider your opportunity costs before you go all in.
- Common sense: “Spend it if you got it” applies here. But what if you don’t got it? A low spend will likely result in a low-quality user and a negative ROAS (return on ad spend).
How to come up with a budget:
- Define the company and product goals.
- “Define the campaign parameters for reaching those goals (demographic attributes, technical specifications & geographic location).”
- Start with a preliminary budget and validate the draft against ‘market conditions and media partner capabilities.’
- Get buy-in for the budget and always, always have a handle on how much cash you have to spend and where it’s being spent.
Dive in deeper below. 👇🏼
UA Budget Estimator
To help you further dial in your budget, let’s figure out how much you’ll need to spend to reach your growth goals.
The folks at Mercury.Black developed a simple budget estimator. The user guide is included right on the spreadsheet.
What we like: It’s relatively simple to come up with a top-line budget figure.
What we don’t like: So far, so good.
Ready for a great marketing play? Expensify teamed up with 2 Chainz and Adam Scott (aka Ben Wyatt from Parks and Rec) to create the world’s first music video you can expense.
Who doesn’t like a chance to win some free cash? Not only are they getting people to download the app, but they’re getting people to use it in a fun way.
Well played Expensify, well played.
Ads from the PastAds from the Past
“Something out of a James Bond movie.” This Panasonic Swing-Way from 1968 was ahead of its time. Imagine rolling up to party with this bad boy. People are thinking it’s just a radio and then BAM. Next thing you know, you’re spinning records.