User acquisition definition (UA) includes a total amount of money spent on attaining a new user for your website/app/platform or service. This term is used in strategic marketing planning in order to assess the budget, track changes, and optimize costs necessary for extending the audience base.
User acquisition: let’s define the importance
User acquisition helps to calculate how much money will be spent on attracting users during the period.
To improve customer lifetime value (LTV)
To reduce the period of user acquisition
User acquisition, what is a normal rate?
To understand what user acquisition rate is normal for your business, count the ratio: LTV: UA. LTV is all profit that a client generates during their lifespan as a client.
The sum of all marketing expenses/the number of customers who you managed to attract=user acquisition.
1:1 - your business needs optimization
2:1 - user acquisition costs fail to pay off
3:1 - the optimal ratio
4:1 - the business functions perfectly
User acquisition and SmartyAds
In order to get closer to the ratio 4:1 look for new channels of user attraction. With programmatic advertising, it is possible to run several ad campaigns, combine creatives, optimize, and measure results in real-time. SmartyAds provides full information about each campaign and user acquisition progress. You can generate statistics in different perspectives. KPI will help you uncover where your most converting customers come from, which creatives drive the best results and what needs improvement. Learn more!
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