What's the advantage of identifying app users with high lifetime value in a Google App campaign?
Proactively target an audience with most-engaging video assets.
Focus marketing efforts only on those users who are already engaging with an app regularly.
Send push notifications to high-value users, reminding them to use an app.
Focus marketing strategies on similar users who bring long-term value to a business.
Explanation
Analysis of Correct Answer(s)
The primary advantage of identifying users with a high lifetime value (LTV) is to inform your user acquisition strategy. By understanding the characteristics and behaviors of your most valuable existing users, you create a powerful "seed audience." Google's machine learning algorithms can then use this data to find and target new, similar users who are highly likely to also become valuable customers over the long term.
- This approach shifts the campaign focus from simply driving a high volume of installs to acquiring high-quality users who contribute more significantly to your business's revenue and profitability.
- It is a core principle of value-based bidding strategies, where the goal is to maximize the long-term value of the users you acquire, leading to a better return on ad spend (ROAS).
Analysis of Incorrect Options
- Focusing only on already-engaging users: This describes a remarketing or re-engagement strategy, not a strategy for acquiring new valuable users. While important, it's a different objective.
- Sending push notifications: This is a Customer Relationship Management (CRM) or app engagement tactic, not a function managed within a Google App campaign's targeting settings for new user acquisition.
- Targeting with most-engaging video assets: This is a creative optimization tactic. While you should always use your best-performing assets, the unique advantage of identifying high-LTV users is about refining your audience strategy (the "who"), not just your creative strategy (the "what").