What is Mobile User Acquisition Marketing and How is it Different than DTC

New to app marketing? If you come from the world of "traditional" direct marketing, here's what you need to know to be successful in mobile.

User acquisition (UA) marketing and direct-to-consumer (DTC) marketing have a lot in common. But while they might seem pretty close to identical at first glance, these two strategies serve different purposes and require distinct approaches. Understanding the nuances between them is important if you're going to craft effective campaigns that drive results.

What is User Acquisition Marketing?

User acquisition marketing is a specialized form of marketing aimed at attracting and converting users to download and engage with a mobile app. The primary goal is to acquire new users at scale, driving installs and encouraging ongoing usage of the app.

In mobile UA, the focus is on optimizing campaigns to attract high-quality users-those who not only install the app but also engage with it over time: Opening it daily, making in-app purchases, subscribing, or achieving key milestones. This requires a deep understanding of user behavior and the ability to optimize campaigns based on performance metrics like Cost per Install (CPI), Lifetime Value (LTV), and Return on Ad Spend (ROAS), among other KPIs.

What is Direct to Consumer Marketing (DTC)?

DTC marketing (or direct marketing, if you're old school) is broader and involves selling products directly to consumers online, bypassing traditional retail channels. Once upon a time, DTC was the domain of infomercials and multi-page direct mailers, but the internet helped this practice become more targeted and cost-effective. It became even more effective with the rise of e-commerce and social media, both of which allow brands to build direct relationships with their customers. DTC marketing today covers a range of digital channels, including email marketing, social media ads, influencer partnerships, and paid search.

The primary objective of DTC is to drive conversions by reaching customers where they already spend their time. It's about creating compelling offers, building brand loyalty, and maximizing customer lifetime value through personalized, data-driven campaigns. Where mobile UA is app-specific, DTC focuses on promoting products and services, often through a company's own website or online store. Some successful, well-known examples of DTC brands include Proactiv Solution, Peloton, Warby-Parker, and Allbirds.

Key differences between mobile UA and DTC marketing

While both UA and DTC marketing aim to drive user engagement and sales, they differ in terms of strategy, execution, and measurement.

Customer journey

One of the most significant differences between Mobile UA and DTC marketing is the customer journey. The starting point of a mobile UA journey is typically an ad encouraging the user to install an app. From there, the goal is to guide the user through onboarding, encourage regular usage, and drive in-app purchases or subscriptions.

The DTC customer journey, on the other hand, usually starts with awareness-building campaigns that drive traffic to the brand's website or online store. Then, the focus shifts to converting visitors into customers through detailed product pages, frictionless checkout processes, and post-purchase engagement campaigns, like loyalty programs.

Channels and tactics

The channels and tactics used in mobile UA marketing are tailored to the mobile environment. This relies heavily on in-app advertising and app store optimization (ASO) but also includes channels that have evolved to become mobile-first, like search and social. UA marketers also rely heavily on analytics to track user behavior within their apps and optimize campaigns accordingly.

On the other hand, DTC marketing combines a broader mix of digital channels, which also includes search and social media, but adds in display ads, email marketing, and content-driven inbound marketing. The focus is on driving traffic to a website or online store, where the brand has more control over the user experience. DTC marketers can have landing pages tailored to the campaigns and ads they run; their point of conversion will almost always be on a page that they own.

Performance metrics

Performance metrics also differ between the two. Key metrics for UA are many and varied, but they often include Cost per Acquisition (CPA), Return on ad Spend (ROAS), Cost per Event (CPE), and others that focus on the user behaviors post-install. These metrics help UA marketers understand the effectiveness of their campaigns in driving not just installs but also long-term engagement and monetization.

In DTC marketing, the metrics are more closely tied to sales and revenue. Key metrics here include conversion rate, average order value (AOV), customer acquisition cost (CAC), and customer lifetime value (CLV), with return on ad spend (ROAS) as a shared KPI between the two. DTC marketers use these metrics to assess the profitability of their campaigns and the effectiveness of their sales funnels.

UA and DTC both offer opportunities - and challenges

For UA marketing, one of the main challenges is the highly competitive app marketplace. With millions of apps available, standing out and attracting high-quality users requires continuous optimization and creative testing. On top of that, mobile marketers have to deal with the complexities of app store algorithms and constantly changing privacy regulations.

That doesn't limit the opportunity, though. Despite restrictions, UA marketers still have plenty of data to work with from app user interactions to create personalized and targeted campaigns. As smartphone adoption grows and mobile becomes the primary point of entry to the internet, opportunities to reach users at scale seem almost limitless.

In DTC marketing, challenges often arise around soaring customer acquisition costs and the need to build brand trust in an already crowded landscape. With so many brands competing for attention online, DTC marketers are pressed to continuously innovate to win and keep customers. This might include adopting new technologies, like AI-driven personalization, and experimenting with emerging channels, like TikTok and live shopping.

That said, opportunities in DTC marketing are still significant. Both traditional and mobile web are wonderful places where brands today can create direct relationships with customers, gather first-party data, and build loyalty through personalized experiences. Beyond that, the introductions of social commerce and influencer marketing offer new ways to reach and engage with customers in authentic, meaningful ways.

While they share some common goals, DTC and UA marketing require distinctly different approaches. If you're a DTC marketer shifting your focus to app marketing, you've definitely got a good foundation for success, but understanding the nuanced differences between the two disciplines will help you raise your odds.

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