Role of Mobile Application Data in Driving Revenue
Things are changing around us so fast that it can quickly become daunting to make the right decisions concerning our businesses to lay a strong foundation for sustainability and growth. Often at the very beginning of our mobile journey, we get caught up in a vicious circle of adding new SDKs, testing out new tools, moving from one marketing and monetization services solution to another, while already finding ourselves in tech debt. This challenge is one faced by too many startups in the space.
In these circumstances, it becomes even more essential to take the help of data. You see, your shot at success is tied to your ability to leverage data. Simply put, it depends on how good you are at making data-driven decisions. It is entirely under your control to exert ownership over your app data. Today, we’ll discuss how we must leverage our mobile data to drive revenue.
What is first-party data?
The data you assimilate from your app is called first-party data. You have to take responsibility for its collection, stewardship, and usage. Hopefully, your strategy makes sure all your data is people-centric. Each data point you generate in your app is your first-party data, be it user identities and profiles, installs and upgrades, crash data, event data, location tracking or push notifications.
How to leverage first-party data?
- For engagement targeting, start by segmenting your users for email, push notifications, and other targeted advertising.
- Then employ analytics. Use your data to test marketing effectiveness, cohort, retention, and other analytics.
- The key here is personalization. Leverage your data to deliver experiences that are personalized to your users.
- To improve your user engagement and app experience, make use of A/B test data and other forms of data.
How to use data to drive revenue?
- Start by collecting and exerting ownership over your data. Most app owners fail to do so. They prefer sending it off to push notification services, analytics services, attribution services, crash reporting services, and other marketing solutions services. Collecting and maintaining your first-party data is a crucial first step.
- Then, segment your users. Revenue generation demands that you identify, then segment your customers into classifications that allow you to deliver highly personalized and targeted messaging. This way you align your mobile strategies according to how your users are really using smartphones today. Else, this will have significant repercussions in the future.
- Till now, we’ve truly been discussing how to lay down the mobile application data groundwork to aid in the effective generation of revenue. Now, we’ll talk about deploying strategies that generate revenue in targeted consumer segments. Start with advertising, mobile advertising is exploding, and it is poised to grow a lot faster than any other digital advertising category. Within mobile, display and video seem to be the fastest-growing subcategories. Also, in-app mobile ads perform dramatically better than mobile web ads. Advertisers are seeking to position their brand to certain targeted audiences. How effective your monetization efforts are through advertising is primarily determined by your ability to deliver to those audiences. Rightly seizing and leveraging this vast amount of rich data will significantly influence the success of advertising.
- Secondly, in-app commerce includes charging for products or services within the app. Content distribution, eCommerce, and gaming are a few classic examples. Here too, delivering targeted messages like recommendations and promotions become essential for driving monetization. Collecting shopping cart funnel data, purchase data, and user behavior data are critical to understanding your users, segmenting them correctly, and then delivering highly targeted in-app engagements.
- When it comes to evaluating the effectiveness of targeting & revenue-generating strategies, remember, your purpose wasn’t really to drive down advertising costs. You’ve been working towards improved advertising effectiveness. Now, understanding the actual efficacy of a particular marketing strategy and as a result, making the right decisions is one of the most significant challenges faced by a marketer. Here, if you’ve not exerted control over your own data, you don’t stand a chance.
- Once you’ve figured out what works for and what doesn’t, it’s time to tune. Refine the strategies and segmentation which are working well, prune those that aren’t, test ideas by trying out additional strategy. Then repeat.
Your data should be fueling your mobile content and monetization strategies. Data is mainly foundational for smartphones since the explosive nature of change has put far too many marketers and application owners in a reactive stance. Instead of securing their data assets as a proactive method, most have merely reacted to the forces in the market by trying out one service after another as a means of driving mobile monetization and user engagement. Take control of your data, and in turn, the reins of your smartphone future will be in your hands once you’ve mastered the art of leveraging your application data for mobile monetization.