Use data from Q5 to boost mobile app growth for the entire year – TechCrunch

Are you in doubt about how you can improve the marketing performance of your mobile app in the spring without experimenting and extra costs? Take advantage of the results of the high winter season, also known as Q5.

The huge amount of data received during the winter holidays can improve your marketing strategy and boost your app growth. Here’s how to extract insights that will make this approach work, improve your advertising strategy, transform hypotheses into proven facts, personalize your product, and increase lifetime value.

What (or when) is Q5?

Q5 is a high season for marketing in the mobile app area. Although it only takes place during the winter holidays, its results correspond to the entire quarter’s revenue. But it’s not just a winter story. Q5 can also be used in the spring and summer season.

Why is Q5 data so valuable?

  • You get a more expensive audience. The e-commerce business period ends just after Christmas, when mobile apps come into play. As e-commerce is the biggest rival of mobile apps in terms of digital advertising, reduced e-commerce ads free up the apps market, allowing app campaigns to have more reach for less money. They also get access to a more expensive and as a result more affluent audience at a lower price than usual.
  • Gain a deeper understanding of user behavior. Many people make decisions at the beginning of the year to become better versions of themselves. The “New Year’s resolution” mindset makes people ready to invest in themselves. And that makes Q5 incredibly successful for apps for fitness, health, self-growth and education.
  • Higher engagement rates. During the Christmas holidays, people spend more time at home and of course on their phones. Therefore, app ads get more of their attention.

All of these reasons help mobile apps grow in profit. For example, revenue from the Headway app increased 200% compared to other periods.

Diagram of Headway app data from Sensor Tower.

Headway app data from Sensor Tower. Image credit: Highway

Four ways to leverage data from Q5 right now

Improve your creative advertising strategy

During the 5th quarter, you can estimate your hourly traffic more efficiently to build a daily trend. Because you are getting a lot more traffic than usual, trends are starting to emerge. After building your daily trend, you can extrapolate it to the following periods.

For example, we noticed that our ads performed better morning and evening – right at the commuter times. We could not see this trend clearly during normal times, but a significant amount of traffic during the 5th quarter made it crystal clear to us. So based on this discovery, we’ve changed our advertising material. Now we tell people that they can effectively spend their downtime with our app.

Estimating traffic on an hourly basis can help identify the best advertising material much faster. You will incur fewer inefficient costs when you notice them and start scaling in different variations. And as a result, you get more revenue from top performers.

When our team notices an ad that performs best, we scale it in a variety of ways. For example, changing the placement or using an image with a different ad text. Once, we decided to experiment more and randomly rotated a bed on a postponement ad. The creative continued to perform with the bed in a new position and was even more successful than the previous version. From then on, we have not hesitated to change such small details, because even minor adjustments can be significant for Facebook ads on a large amount of traffic.

Image of a Headway app ad

Image credit: Highway

Turn your hypothesis into proven facts

During the 5th quarter, marketers usually try out new ad material and ad placements that they were reluctant to use at other times of the year. It’s a great strategy to follow because you can check your hypothesis on a much wider audience and draw some conclusions. But do not limit this approach to the Q5 period only. Use proven advertising techniques to boost your upcoming year’s marketing strategy. But how do you apply it in practice?

Previously, we thought our Instagram feed was the best ad placement for us and did not believe that Reels would work that well. We tested this ad placement a few times, but it did not work effectively enough. Therefore, we put it aside and decided to try it on a massive audience during Q5. In the end, it worked well. With a large amount of cheaper traffic, we not only validated Reels as a successful ad placement, but also created a strategy for our regular ads on Instagram Reels.

Improve marketing metrics through cheaper access to expensive audiences

Subscription model apps can increase their LTV (customer lifetime value) by gaining new audiences that were not available before. How does it work?

Let’s say you’re usually reaching out to users with a CPM of $ 15 (cost per thousand). You want users with a $ 25 CPM, but they are expensive for you. As prices fall during the 5th quarter, these “expensive” users become “affordable”.

But why do you need more expensive users instead of reaching your good old $ 15 CPM users at a much lower cost? For the higher the CPM, the greater the purchasing power of the users. Therefore, users with a $ 25 CPM are more likely to convert to purchases than those with a $ 15 CPM. So a more expensive audience has a higher potential to buy a subscription to your app after the trial period and a better chance of renewing it after a month or a year.

As you get more users with greater purchasing power in your app, LTV increases. This approach also helps you accumulate a safety margin for subsequent less favorable periods for your app.

Now that you know your users better, you can personalize more

A huge amount of data from new advertising material, new users and new advertising techniques gives you many insights you can use during the year after the 5th quarter. So do not miss your chance to maximize this insight.

First, analyze and draw conclusions by observing user behavior during this period. How did they behave in your store, during onboarding, on the payment wall and during the trial period? Is there a connection between the creative that the users came from and their behavior in the app? Second, you need to turn that insight into an action plan to improve your product and customize it more.

This method improved our work: During Q5, we noticed that our decision fatigue ad material became one of the best, and many users converted to buyers because of it. Therefore, we had two hypotheses: First, this topic is extremely relevant to our users, and we need to create more content about it. Second, users like the layout of the advertising material so that we can use its visual element for the home screen. We tested both hypotheses, tested them and got positive results. As a result, we use both approaches in our app.

Using these methods, you can return to insights from Q5 throughout the year to improve your marketing strategy and your product.

William

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