{"id":8842,"date":"2016-05-23T12:47:00","date_gmt":"2016-05-23T12:47:00","guid":{"rendered":"https:\/\/tenjin.com\/?p=8842"},"modified":"2023-09-20T06:29:58","modified_gmt":"2023-09-20T06:29:58","slug":"how-optimizing-time-to-profitability-ttp-accelerates-growth","status":"publish","type":"post","link":"https:\/\/tenjin.com\/ja\/blog\/how-optimizing-time-to-profitability-ttp-accelerates-growth\/","title":{"rendered":"\u53ce\u76ca\u6027\u307e\u3067\u306e\u6642\u9593\uff08TTP\uff09\u306e\u6700\u9069\u5316\u304c\u6210\u9577\u3092\u52a0\u901f\u3055\u305b\u308b\u7406\u7531"},"content":{"rendered":"

In my last post<\/a> I talked about the importance of time to profitability (TTP). In this post I use two discrete scenarios that illustrate how TTP affects total user growth in your app over a period of time.<\/p>\n\n\n\n

Let\u2019s say that you have a starting budget of $1,000 with the average CPI for acquiring a user set at $1.00 and user churn at 0% (for simplicity). In scenario A we have a 1-day TTP and in scenario B we have a 2-day TTP.<\/p>\n\n\n\n

Assuming both scenarios start off with the same starting budget ($1000), CPI ($1), and user churn (0%), let\u2019s figure out how the amount of acquired users differs by scenario over 30 days.<\/p>\n\n\n\n

In scenario A, the app recoups the invested money on day 1, allowing the developer to reinvest that recouped money on day 2. As a result, you\u2019ll acquire 1000 users ($1000 \/ $1 CPI = 1000 users) on day 1, and day 2 you\u2019ll acquire another 1000 users for a total of 2000 users by the end of the 2nd day. This will go on for 30 days, effectively acquiring a total of 30,000 users.<\/p>\n\n\n\n

In scenario B, the app recoups the invested money on day 2. The developer can only acquire a new 1000 users every other day. As a result, after 30 days, the app only has a total of 15,000 users.<\/p>\n\n\n\n

Below is a graph that illustrates this difference in 1-day TTP and 2-day TTP.<\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

By the end of 30 days, an app campaign with 1-day TTP is able to acquire 2x more users than an app campaign with 2-day TTP.<\/p>\n\n\n\n

Moral of the story: KNOW YOUR TIME TO PROFITABILITY! It can dramatically affect how many users you can acquire in a defined period of time.<\/p>","protected":false},"excerpt":{"rendered":"

In my last post I talked about the importance of time to profitability (TTP). In this post I use two discrete scenarios that illustrate how TTP affects total user growth in your app over a period of time. 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