In this episode, we explore why early-stage founders should resist the temptation to diversify their ad spend across too many channels. While it may seem like a good strategy, spreading your budget thin can hinder growth. I’ll walk you through the mechanics of ad algorithms, explaining why fewer channels can lead to better results. We’ll dive into the importance of focusing on self-attributing networks and how driving more conversions in one or two places can accelerate learning and performance. Tune in to understand how optimizing your ad strategy early on sets the foundation for scaling successfully across multiple platforms.

If you are an early-stage founder, running ads on too many channels could be holding back your growth. Here’s why. A lot of founders come to me and ask, how many channels should they be running on. I think that’s the wrong question to ask because each channel needs conversions for the algorithm to learn.

The more conversions you provide the algorithms, the faster the algorithm learns, and the faster your performance improves. Let’s just say you’re splitting a very small budget across four or five channels, spending, say, 100 to 200 a day. None of them get enough purchases or conversions. And if none of them get enough purchases or conversions, none of them perform well.

The solution: Focus your budget on one or two self-attributing networks so that you can drive enough conversions for faster learning.

The faster the algorithms learn, the more your performance improves, and the sooner you can ramp up to other channels.

BEFORE YOU GO

I have a very important favor to ask, which as those of you who know me know I don’t do often. If you get any pleasure or inspiration from this episode, could you PLEASE leave a review on your favorite podcasting platform – be it iTunes, Overcast, Spotify, or wherever you get your podcast fix. This podcast is very much a labor of love – and each episode takes many many hours to put together. When you write a review, it will not only be a great deal of encouragement to us, but it will also support getting the word out about the Mobile User Acquisition Show.

Constructive criticism and suggestions for improvement are welcome, whether on podcasting platforms – or by email to shamanth@rocketshiphq.com. We read all the reviews & I want to make this podcast better.

Thank you – and I look forward to seeing you with the next episode!