Making The Transition to ROI-Driven Optimization
Over the last few years, marketers have shifted from media metrics to lifetime value (LTV) and increasingly, ROI-based optimization. Improvements in cost data collection have shifted the industry focus from metrics like click-to-install conversion rates to cost-per-install (CPI), cost-per-action, and ultimately, ROI-based optimization. The impact to businesses has been profound.
Marketers know that optimizing based on their CPI can be damaging and misleading. A low-quality install at a low CPI will not improve your performance. However, optimizing towards LTV or retention alone can also be highly misleading. High revenue users acquired at a very high cost can still be net revenue negative. Matching cost with early engagement and LTV data provides marketers with actionable ROI reporting (providing your data is accurate).
Our first-party internal data has found that marketers who measure their media cost in AppsFlyer generate 50% higher revenue 90 days after an install. Marketers optimizing based on their ROI end up with higher LTV and stronger bottom-line impact.
With the recent addition of cost-reporting across over 30 new networks, AppsFlyer’s cost and ROI reporting now covers well over 80% of all marketing-driven installs. For marketers, this means that four out of five of your installs now report their associated costs, revenues and ROI!
If you haven’t enabled cost reporting, now is the time to get started. Just follow the simple setup in your media source integrations. It’s often as easy as clicking a button. Please note that in the interest of maintaining full data integrity and data stability, all cost reporting in the AppsFlyer platform is based entirely on direct integrations with well over 100 partner media sources. We do not rely on scraping or third party services to collect media cost data.
If you haven’t yet started measuring your media cost data in AppsFlyer, please speak with your success manager or schedule an AppsFlyer demo today.