Why more ad channels for your subscription app doesn’t always mean less risk

Ad channel diversification, the strategy of spreading advertising budgets across multiple platforms, is often seen as a way to mitigate risks such as algorithm changes or privacy rule updates. However, the practice can become counterproductive if not managed carefully, as spreading resources too thin can dilute learning and slow optimization. The article explores the potential pitfalls of diversification, such as operational overhead and the risk of not exiting the creative testing phase, as illustrated by a case where a subscription app's return-on-ad-spend dropped significantly after splitting its budget among Meta, Google, and TikTok. It stresses the importance of having sufficient resources, expertise, and a robust measurement system before diversifying and suggests that focusing on optimizing a single channel might be more effective if the budget is below $100k/month. Real-world examples highlight both successful and unsuccessful attempts at diversification, emphasizing that the right approach depends on factors like available budget, audience constraints, and capacity for ad maintenance and creative production.