Our thesis is simple: we believe that companies with strong communities have a competitive advantage in today's market. In recent years, we've seen the rise of platforms like Facebook, Instagram, and TikTok, which have built massive user bases by fostering strong communities. These platforms have not only attracted millions of users, but they have also created a space for brands and businesses to connect with their audience in a more meaningful way.

Our thesis is simple: we believe that companies with strong communities have a competitive advantage in today's market. In recent years, we've seen the rise of platforms like Facebook, Instagram, and TikTok, which have built massive user bases by fostering strong communities. These platforms have not only attracted millions of users, but they have also created a space for brands and businesses to connect with their audience in a more meaningful way.

But what exactly is a community-driven company? It's a company that prioritizes building and nurturing a community of users, customers, or fans. This community becomes an integral part of the company's growth strategy, as they not only provide valuable feedback and insights but also serve as brand advocates, spreading the word about the company to their own networks.

So how can a company successfully build and leverage a community? One strategy that has been proven effective is cross-promotion. By partnering with other companies or brands that have a similar target audience, companies can tap into an existing community and expose their product or service to a new set of users. This can be done through various channels, such as social media shoutouts, email newsletters, or even in-app promotions.

However, it's important to carefully consider whether cross-promotion is the right strategy for your company. If you already have an ad monetization component in your game or app, cross-promotion may just be another revenue-generating network. In this case, it's crucial to closely monitor churn rates to understand the impact of cross-promotion on your user lifetime value.

One key advantage of cross-promotion is the ability to gain insights into your overall portfolio. By analyzing the behavior of users who have churned from one game to another in your portfolio, you can determine if cross-promotion is increasing their lifetime value. This data can then inform your decision-making process and help you decide which segments to target with cross-promotion.

To effectively segment your users, it's important to understand who are the players that are risky to approach with cross-promotion and who would be more open to experimenting on. Paying users with a high lifetime value should generally be excluded from cross-promotion and ad monetization efforts. On the other hand, users with high security levels, who have been playing the game for a long time but haven't converted recently, are prime candidates for cross-promotion. These players are likely to pay, but not necessarily in the game they are currently playing. By showing them other games in your portfolio, you can potentially increase their lifetime value and drive additional revenue.

In order to effectively implement cross-promotion, it's important to have the right tools and technology in place. IronSource's bidder solution, for example, allows you to separate the cross-promotion network from the main ad network and target specific segments with tailored promotions. This level of control and customization can greatly enhance the effectiveness of your cross-promotion efforts.

At The Community Fund, we believe in the power of community-driven companies. By prioritizing community building and leveraging strategies like cross-promotion, companies can gain a competitive edge and foster long-term growth. However, it's important to approach cross-promotion with caution and carefully consider its impact on churn rates and user lifetime value.

Actionable Advice:

1. Understand your segments: Take the time to analyze your user base and identify which segments are more receptive to cross-promotion. By targeting the right audience, you can maximize the effectiveness of your efforts.

2. Test cautiously: Before fully implementing cross-promotion, conduct small-scale tests to assess its impact on churn rates and user lifetime value. This will allow you to make informed decisions and minimize potential risks.

3. Utilize the right tools: Invest in technology solutions that allow you to effectively manage and optimize your cross-promotion efforts. Tools like IronSource's bidder solution can provide the level of control and customization necessary for success.

In conclusion, cross-promotion can be a valuable strategy for community-driven companies looking to expand their reach and drive revenue. By carefully analyzing your user base, segmenting your audience, and utilizing the right tools, you can effectively implement cross-promotion and reap the benefits of a strong and engaged community.