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. 👇🏼
Tools
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.
Watch
Expensify This
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 Past
Ads 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.
