A subscription app · B2C · Marcus Burke client
Compare cost per trial with trial-to-paid rate for each age group
Ages 25-34 cost the most; older users looked under-served
What they did
What happened
In their words
Marcus Burke - How to Build a $2M/Month App (Copy Me)
… a yearly plan of an app, which is what many apps like force people to do. Like age composition is getting younger and you're optimizing for a trial, then you want to be careful because oftentimes trial to paid is going to be lower. That doesn't mean one audience is better than the other. It just means that oftentimes on younger people, you need a stricter goal because they're not as valuable long-term. If you look at your kind of cost per target
mapped against your age groups, enrich that with what you know about your audience down funnel. So like what's your trial to paid version based on each age bucket? You should be requesting that in onboarding so that you can then look at basically later behavior of users from these age groups. Then this can be a very telling chart. For example, here we see that 25 to 34 is the most expensive one, which comes down to a lot of money being invested there, meaning you're quite aggressive. So costs go up.
While, as I said before, trial to paid conversion can be quite a bit higher for older age groups. So if this cost per target here is a trial event, then I would really question whether this is the wisest investment or whether you're not under indexing on these older age groups, which potentially are a lot more valuable down funnel. You're looking at age, cost per trial. Like what was the relevance of the trial in this? This is the cost per event …
… isn't a subscription. It doesn't mean you made any money. Your trials are going to be cheaper from the lowest quality audiences because one, they're not as competitive. Other people aren't looking to access those buckets as much. And then young traffic ends up just being like a lot cheaper. So hence you can buy kind of young cost per trials or low quality cost per trials at a very low price. but that also means they convert poorly down funnel
while on the other end, premium ones are going to be more expensive. So it oftentimes gives you this inverse pattern where on younger age groups, trial start rate is high, they're cheap. So you're acquiring them at very low cost per trial, but then their trial conversion is actually the lowest while on the older age groups, it's the other way around. So you might see a kind of, I don't know, 100% higher trial start cost on a user 65 plus, but they're also going to convert a lot better. And that's kind of that gap that you need to, as a media buyer, to infer when you're buying media so that you're not just relying on Meta buying the cheapest traffic, which isn't necessarily the best.
What would you do for this if you saw this chart right here? I would look into their product analytics, figure out, well, what's their trial to paid conversion per age group? And if it's the same pattern as for 99% of apps that older people convert better, I would one, consider using value rules to push them into these older segments by telling Meta someone that is 45 plus might be 30, 40% more valuable for us. And the other thing is you want to …
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Tags: meta, age-breakdown, placement-composition, trial-quality, down-funnel