Hi there,
Thanks for reaching out. Happy to give you some initial thoughts and guidance on the situation with your app advertising and those activation rates you're seeing. It sounds like a frustrating spot to be in when you're getting installs but not the core usage you need.
From what you've described, you've hit on the absolute key issue straight away: you're optimising for the wrong thing right now. Getting someone to install the app is just the first step, especially for a tool like yours that requires specific action (sending an invoice) to deliver value to the user and to you. Optimising solely for installs is like optimising for website traffic when you actually need leads or sales. You'll get volume, but not necessarily the right *kind* of volume.
You need to shift your focus entirely to that 'first invoice sent' event. That's your true conversion goal, and it needs to be the primary signal you feed into your advertising platforms for optimisation. This is crucial for any SaaS or app where the real value exchange happens post-signup or post-install. I've seen this loads of times with different SaaS clients; you gotta track and optimise for what actually matters for your business, whether it's a trial started, a key feature used, or in your case, that first invoice.
We'll need to look at your tracking setup first...
Before you can even *begin* to optimise for 'first invoice sent', you absolutely must have robust tracking in place to reliably report that event back to Google Ads (and any other platforms you might use). Are you using something like Firebase or Google Analytics 4 (GA4) integrated with your app? Is the 'first invoice sent' event specifically defined, tracked, and imported as a conversion action in your Google Ads account? You'd need to verify that these events are firing correctly when someone sends an invoice and that Google Ads is receiving them. If this isn't set up perfectly, the platform simply doesn't know what you *actually* want, and it'll keep optimising for easier, less valuable events like installs.
Without accurate, reliable tracking of that specific in-app event, any optimisation efforts will be guesswork, and you'll continue burning cash on users who never reach that critical milestone. This step is non-negotiable and is often where things fall down in app campaigns.
Thinking about which platforms might be best...
You mentioned using Google App Campaigns. While these *can* optimise for in-app events if set up correctly, they are quite automated and give you less control over who sees your ads compared to standard campaigns. They're often good for mass-market apps going after high volume of installs, but maybe less ideal for finding specific types of users like freelancers actively seeking a solution.
My thoughts here are similar to when we've worked with other B2B or prosumer services. People looking for accounting help, invoicing tools, or ways to get paid faster are usually problem-aware and actively searching for a solution. This strongly suggests that Google Search Ads could be a much better fit for you. You can target specific keywords that freelancers would type into Google when they need an app like yours. Stuff like "freelance invoicing app", "best way to bill clients as a freelancer", "software to send invoices fast", "get paid quicker sole trader", things like that. This brings in traffic with high intent – they are literally looking for what you offer right now.
You'd likely want to send this traffic to a dedicated landing page on your website first, rather than straight to the app store listing. On this page, you can sell them on the benefits, explain clearly how the app solves their specific pain points around invoicing and payments, and get them excited enough to click through to download. This two-step process (Search Ad -> Landing Page -> App Store) can help qualify users better than sending searchers directly to an app store page that might not fully convey the value proposition.
Could other platforms work? Potentially. LinkedIn Ads could allow very specific targeting of freelancers by job title or industry, but it's typically much more expensive per click/conversion than Google Search, and people on LinkedIn aren't necessarily in a 'searching for a solution' mindset. Meta (Facebook/Instagram) could work using interest targeting (freelancing, small business owner, relevant groups etc.) but again, they aren't actively searching there. Given the clear problem-aware nature of your potential users, Google Search seems like the most logical place to start for finding high-intent traffic.
Addressing that low 3% activation rate...
Okay, this is a massive red flag, and honestly, it's probably the most significant issue you need to tackle. A 3% activation rate (from install to first invoice sent) means that 97% of the people who install your app *never* get to the core function. This low percentage suggests that even if you bring in the most perfect, high-intent users through your ads, something is going seriously wrong *after* they download the app.
This isn't an advertising problem anymore; this is an app experience problem. Just like a website with a terrible user experience or a product page with missing info will kill conversion rates regardless of how good the traffic is, a confusing or difficult app onboarding process will stop users in their tracks. I've seen similar issues with eCommerce clients where they get traffic but no adds to cart – usually points to product photos, descriptions, pricing, or overall trust issues on the store itself, not just the ad traffic quality. Your situation sounds very similar but applied to the app itself.
You need to deeply analyse what happens the moment someone opens your app after installing. Is the signup process seamless? Are they immediately shown how easy it is to send that first invoice? Is the value proposition crystal clear inside the app? Are there too many steps? Does it require complex setup? Do they hit a paywall too early? Put yourself in the shoes of a busy freelancer who just downloaded the app hoping for a quick fix to their invoicing pain. If they get confused or frustrated in the first few minutes, they're gone.
I'd highly recommend using analytics tools (like GA4/Firebase) to track user behaviour *within* the app after install. See exactly where users drop off in the onboarding flow or before they get to the 'send invoice' feature. Get friends, family, or even some target freelancers to test the app from a fresh perspective and give brutally honest feedback on their initial experience. Fix any points of friction. Sometimes even minor things, like unclear button labels or a confusing first-time user flow, can decimate activation rates.
Until you significantly improve this activation rate, spending more on ads will just mean paying more for users who also don't activate. You need to get that percentage much, much higher – ideally into double digits at least – before scaling ad spend aggressively.
Thinking about the costs and goals...
You mentioned paying $8 per install. That rate itself isn't necessarily outrageous for a B2B or prosumer app. We've had B2B campaigns with trial costs around $7-$22, and even B2B registrations coming in at similar price points (£7, $2.38). The issue isn't just the $8 install cost; it's the $8 install cost *combined with* the 3% activation rate. That means, on average, you're paying roughly $8 / 0.03 = $266 to get one user to send their first invoice. Your target is under $25 per activated user. You are currently paying over 10 times your target cost! This calculation really highlights that the activation rate is the core problem driving your high cost per activated user.
By improving the in-app activation flow, you could theoretically keep the $8 install cost but increase the activation rate from 3% to, say, 20%. Then your cost per activated user drops to $8 / 0.20 = $40. Get it to 30%, and you're at $8 / 0.30 ≈ $26.6, much closer to your goal. This shows the immense leverage you have by improving that post-install experience.
Once you've improved the activation rate significantly, you can then focus on optimising the ads (through Google Search or improved App Campaign setup targeting the in-app event) to reduce the initial install cost *while still maintaining* a good activation rate. But the app itself needs to be able to convert users first.
How to find someone who understands this lower-funnel stuff...
You're right to be wary of agencies who only talk about downloads or top-of-funnel metrics. When looking for help with an app like yours, you need to filter for agencies or experts who have a strong track record specifically with app *activation* and optimising for key in-app events, not just user acquisition volume. Don't just ask about installs or CPI (Cost Per Install); ask them about their experience with tracking tools like Firebase or GA4, how they define an 'active user' for different apps, how they work to improve in-app conversion rates, and what metrics they prioritise (like Cost Per Activated User, LTV, ROAS). Look for people who talk about the user journey *after* the download button is clicked. Ask them about their experience with B2B SaaS or prosumer apps, as the dynamics are quite different from B2C gaming or social apps.
Finding the right expertise here is key because getting the tracking, the campaign structure, the targeting, and the messaging right for lower-funnel app conversions is complex. It requires a deep understanding of both advertising platforms and how they integrate with mobile analytics, as well as an appreciation for the user experience within the app itself.
Here’s a quick overview of the actionable steps I'd recommend you focus on:
| Priority Area | Recommended Actions | Goal/Metric |
|---|---|---|
| Tracking & Measurement | Verify 'first invoice sent' event is firing correctly in app. Ensure event is tracked in Firebase/GA4. Confirm event is imported & verified as a conversion action in Google Ads (and any other platforms). |
100% accurate tracking of key in-app conversion. |
| App Onboarding & Experience | Analyse user behaviour post-install using analytics. Identify key drop-off points before 'first invoice sent'. Gather user feedback on initial experience. Simplify and improve the onboarding flow. Clearly highlight the value and ease of sending the first invoice within the app. |
Significantly increase activation rate (Install -> First Invoice Sent) from 3% to double digits. |
| Advertising Strategy | Consider testing standard Google Search Ads targeting high-intent keywords. Develop dedicated landing pages for ad traffic. Ensure ads & landing pages clearly communicate the app's core benefit (easy invoicing). Once activation improves, shift Google App Campaigns optimisation goal strictly to the 'first invoice sent' conversion action. |
Drive higher quality users more likely to activate. Reduce cost per activated user towards the $25 target. Improve overall ad ROI. |
Tackling the app's activation rate first is probably the most impactful thing you can do right now, regardless of the advertising platform. Even the best-targeted ads won't convert users if the product experience itself is a barrier.
Wrapping things up and next steps...
Dealing with low activation and high cost per activated user is a common challenge for apps, especially in the B2B or prosumer space where user behaviour is more complex than simple downloads. It requires a combined approach looking at advertising targeting, messaging, tracking setup, and critically, the app's post-install experience.
Navigating all these elements and ensuring the tracking is bulletproof while simultaneously optimising campaigns and feeding insights back into product development can be complex and time-consuming. This is often where expert help can make a significant difference, especially someone who has specific experience with app activation, SaaS conversion funnels, and the interplay between paid acquisition and in-app user journeys.
If you'd like to chat through this in more detail and get some more specific pointers tailored to your app, I'd be happy to jump on a free consultation call with you. It might help to have someone external look at your setup and app flow.
Regards,
Team @ Lukas Holschuh