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UA (User Acquisition)

What is User Acquisition?

User Acquisition (UA) refers to the strategies businesses employ to acquire new users, typically with the aim of growing revenue. 

Within the streaming industry, UA is focused on gaining engaged viewers or subscribers through marketing campaigns and exclusive content. While Subscription Video on Demand (SVOD) platforms primarily engage in UA to expand their paying subscriber base, Ad-Supported Video on Demand (AVOD) platforms aim to increase user numbers to maximize ad impressions, thereby generating revenue without directly charging their users.

How is User Acquisition measured?

The effectiveness of user acquisition efforts is typically assessed through Return on Investment (ROI), which compares the value of a user against the cost incurred in acquiring them. This metric helps gauge the profitability and efficiency of user acquisition strategies.

SVOD platforms monitor key metrics, including Cost Per Purchase (CPP), conversion rates, and churn. CPP determines the expense for acquiring each new subscriber, conversion rates show the percentage of users who transition into paying subscribers, and churn measures the pace at which subscribers cancel or discontinue the service. Streaming platforms aim to reduce both CPP and churn rates to expand their subscriber base effectively and profitably.

AVOD platforms and FAST channels, on the other hand, keep an eye on metrics like Advertising Return on Ad Spend (Ad ROAS) and Gained Hours of Viewing (HOV). These measures reflect how actively acquired viewers engage with content and impact ad revenue.

How do I scale my User Acquisition efforts?

┬áBy prioritizing performance-driven user acquisition, advertisers can effectively scale their efforts while maintaining profitability. For streaming apps and platforms, it’s vital to work with a UA partner that can tailor strategies to fit their specific business model, whether SVOD, AVOD, or FAST.

To learn more about how Wurl can assist in achieving user acquisition goals within your profitability targets, check out ContentDiscovery and schedule a demo!

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