Maximize your user LTV with Cost Per Revenue (Now Available for UA and Re-Engagement)
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.