The Growth Loop is a holistic approach to game growth which merges the monetization and user acquisition sides of the business to create a virtuous cycle of growth. There are four stages to the Growth Loop:
The first step is to acquire users, either organically or via paid channels. The goal here is to first assess the game’s marketability and second, maximize profit by acquiring users who will end up generating more revenue than they were bought for.
The second step is to monetize users, either with in-app advertising or in-app purchases or both. The goal here is to maximize ARPU while balancing user experience.
The third step is to analyze and then optimize that monetization strategy, using A/B testing to increase critical KPIs such as LTV and ARPU.
The fourth step is to analyze and optimize user acquisition in order to further increase IPM (installs per thousand impressions) and maximize profit, utilizing creative optimization best practices, anti-fraud efforts, bid optimization, and more.
Then the cycle starts over again, looping back to the first step.
To learn more about the Growth Loop and best practices for implementing this approach into your game growth strategy, visit our Growth Loop resource page.
