Liftoff Platform

Leonid Litvak by Leonid Litvak | August 24, 2020

A little while ago, we announced Cost Per Revenue for UA, a unique model that optimizes for new users who generate the most revenue. 

Today, we’re excited to announce that Cost Per Revenue is now available for Re-Engagement.

How does Cost Per Revenue for Re-Engagement work?

Cost Per Revenue for Re-Engagement works like the UA product except it optimizes for existing users who generate the most revenue. This can be a repeat purchase, a subscription or an ad revenue event. 

For example, let’s say we have 2 existing users. User 1 takes 3 actions and makes $1 purchases each. User 2 takes 1 action and makes a $10 purchase.

  • From a CPA perspective, both users are equally valuable since both users made a purchase.
  • From a virtual events perspective (# of actions), user 1 is more valuable because they made a higher number of purchases.
  • From a Cost Per Revenue perspective, user 2 is more valuable because they generated the most revenue.

Cost Per Revenue goes a step further than CPA as it’s able to quantify the value of a user’s action. Re-Engagement customers transitioning from CPA to Cost Per Revenue campaigns have seen an aggregate 8-10% lift in ROAS.

What does this mean for you?

With Cost Per Revenue available for both UA and Re-Engagement, you can not only find new valuable users but also maximize value from your existing users. Cost Per Revenue is easy to set up by passing back revenue. 

To learn more, contact us. And stay connected by following Liftoff on LinkedIn.