Basic Guide to Starting Mobile Marketing #1
Marketing in a business is crucial. In fact, it is often considered as the main weapon for a company in reaching out to the community, to introduce products and to convince people to use their products. With the development of technology, the marketing world also develops. In addition to the phenomenon of shifting from conventional marketing to digital marketing, the high use of smartphones in the global community has also resulted in the emergence of a new, more specific type of marketing, namely mobile marketing.
Today, many people depend on their smartphones for various aspects of life. Starting from finding information, interacting with brands, choosing the products they like, to conducting various financial transactions, including buying and paying some money for the products they choose. It is not wrong to mention that mobile marketing is king. Because the use of smartphones today has surpassed other channels such as desktops, let alone televisions. So, mobile marketing is the best means for brands to reach their users.
Defining Marketing Objectives
Before starting a marketing activity, it is very important to determine the objective alias general goals that we want to achieve. Because with different objectives, the steps and strategies implemented will also be different. The metrics and parameters of success that need to be measured are also different. Broadly speaking, there are two objectives to choose from, namely the branding campaign and the performance campaign.
If our main objective is branding, then the main goal is to increase people’s insight into the brand we have. The main metrics that can be measured when we run a marketing campaign of this type are the number of times our ads appear and how many people see our ads. The pricing model for this campaign is based on views. Branding campaigns are generally run programmatically so they can adjust to the target segmentation and budget they have.
If our main objective is conversion (for example purchasing a product, downloading an application, or filling out a personal data form), then what is being done is a performance campaign. The metric that needs to be measured is the end result of the marketing campaign. Performance campaigns are generally run through ad networks to be more precise distribution. After determining the objectives, then we can then set the performance indicators, aka KPIs.
In digital marketing, there are many terms and abbreviations for metrics that can be measured and determine the success of a marketing activity, as well as being an indicator of performance for you, among others, as follows.
- Active Users (DAU, WAU, MAU) – total active users who use your application for a certain period of time (daily, weekly, weekly, monthly).
- Cost per Acquisition (CPA) – the average cost incurred to acquire one user.
- Cost per Install (CPI) – the average cost incurred to produce one install application.
- Cost per Mille (CPM) – the average cost incurred by an advertisement to get 1,000 impressions.
- Click-Through Rate (CTR) – the rate of people who clicked on your ad. This metric can also show how effective your ad will appear to the audience.
- Conversion Rate – the percentage of users who complete the desired action (buying goods, registering, installing applications, etc.).
- Retention Rate – the percentage rate of users who continue to use the application after a few days of installing.
- Churn Rate – the opposite of retention rate, which is the percentage of users who stopped using your application.
- Uninstall – related to churn rate, which measures how many users uninstalled your application and when they did it.
- Lifetime Value (LTV) – profit prediction based on the continued use of the application by the user. The measurement is based on the number of users and the funds they spend on the application.
- Return on Investment (ROI) – measures and evaluates the effectiveness of marketing activities by comparing the costs incurred with the income earned.
- Return on Ad Spend (ROAS) – the part of ROI that specifically measures the costs incurred for advertising and revenue earned.
- Average Revenue per User (ARPU) – Measures the average income earned from users over a period of time.
- Average Revenue Per Daily Active Users (ARPDAU) – Measures the average income earned from daily active users. This metric can also help you see how effective monetization is done, both from advertising and in-app purchasing (IAP)
- Re-engagement Rate – the level of engagement that is regained by users in remarketing campaigns
The determination of the right KPI for each marketing activity can have a big impact on mobile marketing. KPI analysis on a regular basis can also be a reference to adjust marketing strategies quickly, for example by stopping steps that are deemed ineffective, or adding investment to effective steps.
After the KPI is determined, there are still a number of steps you need to take when starting to run mobile marketing. The next step will be explained in the next article.