“Artificial Inflation” is an interesting phenomenon in the App marketing world. If you are a developer you may even not be aware of this situation.
Natural Inflation is a term used in economics to describe the increase in the price level of goods and services. As a result, each unit of currency buys fewer goods and services. Artificial inflation derives from this term. This particular phenomenon requires the existence of several variables that a connection between them might, but not necessarily, raise the resource price artificially:
– Large marketing budgets.
– Limited media (resource).
– A developer who truly believes that in order to get more, you need to spend more.
The fact is that there are a lot of players in the app marketing environment that constantly compete over the same limited media. Since the demand for the relevant media will always be larger than the supply, this huge variety of players will constantly compete over the same limited media by breaking their boundaries and go to their limits margin wise.
Finally one of them will reach out and ask to raise the payouts in order to scale up. It’s not that a new traffic is available and it costs more, it’s only an attempt to raise the margin (best case) or to overbid the competitors for the exact same media to be delivered from the requested channel.
The simple fact is that spending more isn’t a grantee for higher success rates. In fact, the actual result is that the developer is tempted to make unnecessary expenses by paying more for the same resource, not as a result of the natural inflation but as a result of an artificial one.
This artificial inflation phenomenon can be prevented by few simple steps:
Have a better control over your campaign with a one stop shop to all media sources out there.
Choose a partner who will be able to provide you a full transparency, if possible through a real time client side dashboard.
Choose a partner who will help you execute your strategy based on his reach experience and influence on the market.
Using these precautions will provide the most sterile environment on your way to a positive ROI with the optimal margin with no compromises.
Mark Kanish is a Senior App Promotion Account Manager at dmg