The Power of App Advertising: Turning Dollars into Gold

Friday, September 08, 2023

App Launch Blog/App Launch/The Power of App Advertising: Turning Dollars into Gold

The Power of App Advertising: Turning Dollars into Gold

Here's how I turn $1 into $8 consistently using ads

Hey fellow app founders!

Ever had those trolls commenting on your videos, telling you that ads don't work? I get those comments all the time, and I can't help but chuckle because they're inadvertently boosting my engagement.

If ads truly didn't work, why would I be pouring $6,000 per month into them?

Now, I know that might sound like a hefty sum, but for me, it's just business as usual.

Why? Because we're consistently closing six new clients every month.

- And here's the magic formula: our Customer Acquisition Cost (CAC) is $1,000
- while our Customer Lifetime Value (LTV) hovers around $24,000
- Our average client pays us $3,995 per month, with some going as high as $5,995 and others as low as $1,995.

Now, I can already hear some of you saying, "But revenue doesn't equal profit!" And you're absolutely right, but before you shout it out in the office (or maybe you should?), let me break it down.

We're bringing in around 30% profit, which translates to $8,000. So, would you spend $1,000 to make $8,000 in pure profit? I know I would.

That, my friends, is the power of advertising.

Sure, not everyone can replicate these results overnight. It takes time and experience, but I'm here to share a secret recipe that I use for myself and every client:

- Hook
- Problem
- Solution
- Call to action
- Doubts/credibilities/social proofs
- Call to action 2

Boom! You've got the blueprint for making ads profitable. It's simple, but it's not necessarily easy.

Let's dive into a quick case study:

Last month, we launched a finance app offering 5.5% APY checking accounts – a deal almost as good as the S&P with zero risk.

- They came to us with a Cost Per Install (CPI) started at $14
- by the second month, we slashed it to a mere $6.23
- Now, we're reaping the rewards with 2X the customers
- resulting in a CAC of less than $20 and an LTV of over $50.

So, here's the question: Would you spend $20 to get $50 back?

I certainly hope so, because that's the essence of smart business.

And remember, this is just the beginning. Wait until we hit month 6!

That's the magic of advertising.

However, if you're not yet monetizing, don't expect to strike it rich with ads alone.

But don't worry, I've got solutions. Most of the apps that come to us aren't monetized yet, and that's where we work our magic.

I hope this insight helps you on your app journey. If it did, feel free to forward this blog post to a fellow founder and let's all get a little richer together.

CEO of Viral App Launch

P.S. Did someone forward you this blog post? If so, you can subscribe here to get one free growth hack every week, no spam, no BS. Here’s the link

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Hi, I'm Jonathan

CEO Of Viral App Launch

I've spent the last 10 years of my life launching growth hacker marketing campaigns for tech startups. Before that, I bootstrapped a fitness app, then eventually launched a venture-backed Language learning app.

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