Duolingo · B2C · language learning app
Show one ad only after a lesson ends, and test it against retention
Retention mostly neutral, at most a slight hit, across ad tests
What they did
What happened
- Stage
- 2016, first ads
In their words
Why Your Free Users Are Your Real Growth Engine – Cem Kansu, Duolingo CPO
Cem KansuAnd if you're just watching metrics, I'm sure that might look fine, but when you test it, you're like, "What the hell is this?" Then you should know what you've introduced and obviously avoid the things that you wouldn't want to see as a user.
Cem KansuHence, our first test, and honestly even today, that's our only ad placement, is after you've completed a lesson, we show you an ad. Not during, not before, but always after, because we believe that doesn't interrupt your learning.
Cem KansuSo one is the qualitative. It should be a good user experience, and you should know that by testing the app yourself every day. The second one is quantitative. Measure everything you can, like is retention fine, is app closes fine? What's happening to your reviews?
Cem KansuYou might have to make some trade-offs. Ideally you wouldn't, but realistically, if you go from zero ads to some amount of ads, there is some risk that some curves might come down, but I think you should know what that cost is.
Cem KansuAnyway, that's through AB testing, that's how we measured it to be... Honestly, our retention was maybe a slight hit, but mostly neutral for most of our ad tests over time. That's one.
Cem KansuThe third one is there is, of course, you go from a free product to selling something, users won't always say thank you for doing that. Imagine if Uber started completely free and one day they said, "Okay, now we're going to charge for our Ubers." Users would hate that too.
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New tactics from the week's founder interviews, each linked to where it was said.
More from this episode
- Keep lessons free and sell learners' translations to news sitesSmall revenue; dropped by 2016 (price race and low translation quality)
- Charge $1-3 to fix a broken streakA good share of users paid; showed how much users value their streak
- Count ad complaints per million users and compare them to other complaintsMissing-course complaints were 3x ad complaints; ads launched
- Block gambling and sketchy ad types, even if it costs revenueAccepted lost ad revenue for better experience; no numbers
- Sell ads directly to brands and have app characters introduce themUsers like the format; slow to sell because it's custom
- Use the end-of-lesson ad slot to advertise your own paid planGuest says house ads beat programmatic ads; no numbers
- Run 3-6 month holdouts for changes whose effects show up lateNew push lifts can turn negative after about 6 weeks
- Sell a one-time ad-free month at $3, $5 or $10 to test demandUptake far above expectations; led to the subscription
- Launch a plan with no ads, offline use, and 'support our mission'About half of early buyers paid to support the app; started a run rate
- Offer a free trial even though the app is already freeOne of the biggest unlocks; guest had expected it to flop
- Tell users on the paywall you'll remind them on day 5 of a 7-day trialWon A/B tests by easing fear of subscription traps
- Change the buy button to say 'Try for $0.00'Beat 'Try for free' on both trial starts and trial-to-paid
- Give subscribers unlimited hearts so mistakes never stop their lessonsBig turning point: raised subscription conversion and retention
- Make paid features free when a test shows they earn littleTook a small revenue hit on purpose to grow free users
- Add new subjects inside the main app instead of launching new appsSeparate apps were 'hard mode'; in-app works better, but many users still don't know
- Offer live human tutors on demand in a higher-priced planFailed: users joined, panicked and left; later replaced by AI video call
Tags: ads, ad-placement, dogfooding, ab-test