Can targeting make your business profitable?
I recently talked to a marketing expert who absolutely pulverized a mobile app developer’s cost of user acquisition. Before the change, the developer was paying $3-4 per user. Literally an hour later, the developer was paying 30-40 cents.
How did he do it?
The developer he met was targeting very broad categories. Think: “people who like golf.”
Tighten your targeting
That’s a wide swath of people — tens of millions of people — which generally means it’s expensive to target, particularly on platforms like Facebook. It also includes many who might not actually be passionate about golf. Narrowing focus and targeting people who like “Arnold Palmer,” the famous golfer, or “Golf Town,” a golf-specific retailer, reduces the population numbers to manageable numbers: from a few hundred thousand to half a million.
Just as importantly, it considerably tightens the focus, ensuring that really intense golfers are in your target pool, not just casual fans.
The result, in less than …