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What are the basics of Mobile Advertising?

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Mobile advertising is generally with the purpose of finding and acquiring new customers. Sophisticated customer acquisition programs closely monitor their customer acquisition cost (CAC) and make sure to keep that cost well below the lifetime value (LTV) of the customers they acquire.

Cost per acquisition is sometimes conflated with the more common advertising term, cost per acquisition (CPA), but the cost per acquisition expressly refers to acquiring a new customer, where CPA refers to action like an app download or completing a lead generation form.

Customer acquisition programs often involve two distinct phases of turning individuals into customers. They are:

– Identify Potential Customers

– Qualify Leads Further

It’s not hard to see the benefits of customer acquisition: Every business wants more customers. But, simply getting more customers usually isn’t enough.

Companies also need to find customers affordably. They can’t spend $20 to acquire a customer that is only worth $10.

While it’s good to get “more customers” – sophisticated businesses hone their customer acquisition efforts based on what they believe each prospect will ultimately be worth. Smart customer acquisition managers don’t just track the first sale – they look at customer lifetime value as well.

You can get started with mobile user acquisition tools from Facebook – App Install Campaigns – and Google – App Campaigns.

There are several mobile advertising advantages and disadvantages, but because the advantages outdo the disadvantages, here is a closer look at why they’re winning.

  1. The Increasing Time Spent on Mobile Devices
  2. Relevance – Spot-on Target
  3. Immediate
  4. Mobile ads are interactive
  5. Conversion oriented & cost effective


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