GTM Sauce

Sub Club by RevenueCat · 2023-07-26

What it Takes to Succeed with Paid User Acquisition — Thomas Petit, App Growth Consultant

Subscription app growth consultant Thomas Petit on when paid UA can work: three checks before spending (goals, cash you can afford to lose, revenue per install), why algorithmic platforms need roughly $10-20K/month per platform (10-20 conversion events per campaign per day), starting small with Apple Search Ads, influencers or Google web search tests, a measurement stack that grows into an MMP, reading blended metrics by country and platform for incrementality, and a creative process built on testing radically different concepts from many producers.

Play the episode

14 tactics

A subscription app · B2C · Thomas Petit client

Hit 2x on Apple Search Ads, but only up to a limited scale

Client set a rule before working with Thomas: any channel that cannot return at least 2x straight from the money spent is not run. Thomas warned it would shut off many channels; on the one channel he manages (Apple Search Ads) they reach the goal but cannot scale beyond a certain point. Same ceiling seen with Google Ads for another client.

Mixedapple-search-ads
Sub Club by RevenueCat · 2023-07-26

A two-sided marketplace · Thomas Petit client

Looked expensive, but kept the other side from leaving

A marketplace had many sellers and no buyers in one category and the reverse in another. Paid acquisition was aimed specifically at rebalancing those categories, judged on keeping existing users from churning rather than on direct return.

Workedpaid-socialretention
Sub Club by RevenueCat · 2023-07-26

A VC-backed consumer app · B2C · Thomas Petit's early client

VC-backed startup that knew paid would be its main channel started UA before building an organic base. Goal set up front: at least 500 new users per day to iterate on onboarding and paywall and get retention data, with an accepted loss budget and a three-month deadline to learn retention, which messaging and creative work (for ads and the store listing), and to build the team, metrics and tools for scaling. Organic was built in parallel.

Unknownpaid-socialexperimentation
Sub Club by RevenueCat · 2023-07-26

A profitable subscription app · B2C · developer the host knows

Bootstrapped, very profitable app with strong ASO. Model: take revenue from 7-day free trial conversions, add an assumed 40% renewal of annual subscribers at year one, and allow paid UA as long as it is confidently profitable by day 366. Later renewals (60-70% of renewers) are upside. Relies on having enough cash in the bank to finance acquisition before money comes back.

Unknownpaid-socialfinancing
Sub Club by RevenueCat · 2023-07-26

Practitioner pattern · Thomas Petit (Thomas Petit client that requires 2x immediate return on paid, Thomas Petit marketplace client with lopsided categories, VC-backed startup where Thomas first ran the whole budget)

Below that, campaigns can't learn; $20 a day is money lost

Size budgets by event volume: each campaign needs roughly 10-20 optimization events (e.g. trials) per day. At ~$500/day (~$15K/month) a US subscription app might get 100-200 installs and 10-20 trials. So aim for five-digit monthly budgets, about $10-20K per platform, and optimize for downstream events (trials) rather than installs, clicks or impressions, because platforms keep high-converting inventory for advertisers optimizing on deeper events. Narrow manual targeting on Meta at ~$20/day is technically possible but penalized with poor delivery and high prices, and privacy thresholds leave both you and the platform blind. $50K/month is where 2-3 channels and budget splits become possible.

Workedpaid-socialpaid-search
Sub Club by RevenueCat · 2023-07-26

Practitioner pattern · Thomas Petit (Thomas Petit client that requires 2x immediate return on paid, Thomas Petit marketplace client with lopsided categories, VC-backed startup where Thomas first ran the whole budget)

Under $1 per US install on a subscription app, paid won't work

Three checks before any paid UA: (1) the real goal, dug into with repeated 'why' - minimum return per dollar and time frame, or non-return goals like velocity, critical mass, market share or marketplace balance; (2) cash availability - only gamble what you can afford to lose, since learning periods and payback delays are common; (3) current revenue per install by country and platform, noting the source mix (featured traffic lowers it, high-intent search traffic inflates it). Rules of thumb: under ~$1 per install in the US on a subscription app won't work; $0.20 has no chance; ~$1 can work for some games or cheap Android markets like Pakistan, Indonesia, Egypt.

Workedpaid-socialvalidation
Sub Club by RevenueCat · 2023-07-26

Practitioner pattern · Thomas Petit (Thomas Petit client that requires 2x immediate return on paid, Thomas Petit marketplace client with lopsided categories, VC-backed startup where Thomas first ran the whole budget)

Rarely profitable, but shows which keywords and messages make people tick

With $5-10K to test, skip algorithmic platforms. Start with Apple Search Ads (no optimization after the install, so small budgets work) and influencers (can buy $100 deals). Often before the app is ready, run Google web search ads on chosen keywords with $100-500 budgets and a zero return goal, sending traffic to a simple standalone landing page built in a builder like Unbounce or Instapage (Google forbids sending these campaigns straight to the store) that explains the app and redirects to the store. Use the learnings for ASO, imagery and ad messaging.

Mixedpaid-searchlanding-page
Sub Club by RevenueCat · 2023-07-26

Practitioner pattern · Thomas Petit (Thomas Petit client that requires 2x immediate return on paid, Thomas Petit marketplace client with lopsided categories, VC-backed startup where Thomas first ran the whole budget)

Measurement depends on the channel: influencers need little (a link system); Apple Search Ads uses its free attribution API (built into MMPs and tools like RevenueCat); Google Ads works best with Firebase; Meta via its SDK or an MMP. Get an MMP from the start if the app will clearly run multiple channels at scale, so data is unified and new networks (some, like TikTok and formerly Pinterest, require one) plug in without custom work. Always double-check platform-reported results against App Store Connect / Play Console analytics and in-house product analytics (Amplitude, Mixpanel, Firebase).

Unknownanalytics-attribution
Sub Club by RevenueCat · 2023-07-26

Practitioner pattern · Thomas Petit (Thomas Petit client that requires 2x immediate return on paid, Thomas Petit marketplace client with lopsided categories, VC-backed startup where Thomas first ran the whole budget)

Catches bad trials and losing segments that ad dashboards miss

Treat blended metrics as the only truth: track the trend of blended cost per subscriber and blended installs, trials and paying subscribers as spend goes up or down, not the absolute value. Run the analysis per country + platform segment (e.g. Brazil Android, US iOS), bundling small countries into groups by region or similar conversion. Clean out days with featuring, seasonality or product changes. Make budget allocation decisions from blended trends and channel-level tweaks (creative, ad group) from network-reported data. At small scale do it by pivoting in Excel or Looker Studio; at larger scale use MMM tools like Meta's Robyn, Google's LightweightMMM, Incremental (used 1+ year), Recast or metric.works.

Workedanalytics-attributionpaid-social
Sub Club by RevenueCat · 2023-07-26

Practitioner pattern · Thomas Petit (Thomas Petit client that requires 2x immediate return on paid, Thomas Petit marketplace client with lopsided categories, VC-backed startup where Thomas first ran the whole budget)

A rare winner can be 100x and change a company's course

Don't test 20 variants of one concept. Test radically different concepts, even unpolished: person vs animation, provocative vs bland, strong colours, lots of text, long vs short, open on the app vs on a person. Put ~20 ads in and let the platform pick: the ad getting most spend after 100-200 impressions is the winner (right ~99% of the time). Where a concept gets traction, iterate: reorder scenes, lengthen, swap the person, change one element at a time. Keep off-brand winners running but try to realign them with brand messaging. Don't trust intuition about which ad will win.

Workedpaid-socialexperimentation
Sub Club by RevenueCat · 2023-07-26

Practitioner pattern · Thomas Petit (Thomas Petit client that requires 2x immediate return on paid, Thomas Petit marketplace client with lopsided categories, VC-backed startup where Thomas first ran the whole budget)

Creator-made content has been winning on paid social for 1-2 years

Use several production sources at once: an in-house designer, multiple creators, agencies, and founders shooting selfie videos on an old phone (often the best performer at several companies). No single person's range can keep finding winners. Run broad targeting (country, 18+, iPhone) and let the variety of creatives find different audience pockets; never give all creative to one person or one creator.

Workedugc-creatorspaid-social
Sub Club by RevenueCat · 2023-07-26

Practitioner pattern · Thomas Petit (Thomas Petit client that requires 2x immediate return on paid, Thomas Petit marketplace client with lopsided categories, VC-backed startup where Thomas first ran the whole budget)

Too much clickbait crushes install rate and the platform stops delivering

Ads that just say what the app does rarely stop the scroll. Find what the audience is interested in (e.g. funny or hard facts about rain for a weather app) and use it as the hook in the first 1-3 seconds, then transition to the product, even abruptly or with an end card. Always make it clear it's an app so the store visit isn't a surprise. Avoid clickbait that drives engagement but not installs: platforms eventually punish ads whose impression-to-install-to-trial ratio is poor.

Workedpaid-social
Sub Club by RevenueCat · 2023-07-26

Monkey Taps · B2C · motivation quotes app maker

Best ad of all time for the app; didn't work when Thomas copied it elsewhere

Motivation app (Monkey Taps) ran an ad that was just a screenshot of one of its notifications, showing it was an app without explaining why it was better. Thomas tried the same trick for other apps with similar value props and never made it work.

Workedpaid-social
Sub Club by RevenueCat · 2023-07-26

Blinkist · B2C · book summaries app

Among the app's most successful ads, per Thomas

Blinkist ads showing a famous CEO and claiming they read huge numbers of books, making viewers want to be as smart and successful, then transitioning naturally to book summaries as the easy solution.

Workedpaid-social
Sub Club by RevenueCat · 2023-07-26

Numbers mentioned

WhoMetricValueContextWhen
personThomas Petit's consulting portfoliocounthundreds of clients
approximate
Clients over the past decade0:40
personThomas Petit's consulting portfolioad spendtens of millions of dollars
approximate
Ad spend managed over the past decade0:40
Thomas Petit client that requires 2x immediate return on paidroas2 x
goal
Minimum return required on any paid channel, straight from the money spent; reached on Apple Search Ads only up to a certain scale3:54
VC-backed startup where Thomas first ran the whole budgetnew customers500 users/day
goal
Target new users per day from paid UA to iterate on onboarding and paywall10:00
VC-backed startup where Thomas first ran the whole budgettime to milestone3 months
goal
Deadline to learn retention, messaging and creative from paid traffic10:20
Bootstrapped app developer with strong ASO the host spoke withpayback period366 days
goal
Paid UA allowed if it is confidently profitable by day 366 (trial conversions plus year-one renewals)8:23
Bootstrapped app developer with strong ASO the host spoke withretention40%
illustrative
Assumed share of annual subscribers renewing at year one8:41
Bootstrapped app developer with strong ASO the host spoke withretention60–70%
illustrative
Renewal rate of year-one renewers at the following renewal8:58
Sub Club member with a small paid UA budgetmarketing spendvery low five digits
approximate
Total cash available for paid UA (not per month)12:15
benchmarkMinimum monthly budget per algorithmic ad platform (Meta, TikTok, Google) for a subscription appad spendUSD 10K–20Kper platform /month
approximate
Below this, campaigns on algorithmic platforms are 'doomed to fail'19:00
benchmarkMinimum optimization events an ad campaign needs per daycount10–20 eventsper campaign /day
approximate
Conversion events (e.g. trials) per campaign per day for the algorithm to learn21:00
benchmarkWhat ~$500/day of paid social buys a subscription appconversion rate$500/day -> 100-200 installs -> 10-20 trials
illustrative
Rough funnel behind the minimum budget; varies with creative and trial rate20:23
benchmarkMonthly paid budget at which 2-3 channels can run in parallelad spendUSD 50K/month
approximate
$0-50K/month is the hardest zone to operate in19:44
benchmarkMinimum monthly fee for a freelance UA managercostUSD 1,000–3,000/month
approximate
Freelancers won't take a client below roughly this fee; agencies also have minimums19:20
benchmarkRevenue per install below which a US subscription app cannot make paid UA workarpuUSD 1per install
approximate
Less than $1 revenue per install in the US on a subscription app won't work; ~$1 can work for some games or in cheap Android markets (Pakistan, Indonesia, Egypt)27:26
benchmarkRevenue per install at which no UA manager can be profitablearpuUSD 0.2per install
illustrative
26:50
marketGoogle Ads share of Android user acquisition spendshare50–70%
estimate
Varies by market34:28
benchmarkBudget for pre-launch message tests with Google web search adsad spendUSD 100–500
approximate
Spent purely to learn which message attracts people; return goal zero23:44
aggregateWinning ad creatives across Thomas's clientsroas+100 x
illustrative
A rare real winner can be a 100x (not 10x) improvement and change the course of a company57:18
aggregateOff-brand 'ugly' winning ad at a Thomas clientrevenue+2 x
approximate
Off-brand winning creative brought twice the money58:47
benchmarkImpressions an ad platform needs to pick the winning creative out of ~20count100–200 impressions
approximate
The platform shifts most spend to the winner almost immediately and is right ~99% of the time55:51