"For example, CPA models tend to be very popular with on-demand apps or apps with subscription models based on, say, a free trial event. Examples of these include fitness apps (such as Peloton and Obe Fitness) or entertainment or VOD apps (such as Showtime, VUDU etc). In these instances, CPA is preferable as a performance model because it's easier to optimize towards a certain fixed price based upon fixed subscription fees and expected conversion rates."
"Alternatively, eCommerce or gaming apps which tend to offer different items at different values or make different products available for repeat purchase (such as food, shopping, games, etc.) are not necessarily going to reap the same kind of benefits from a CPA model. Verticals that have more of an emphasis on repeatable actions are necessarily valued differently based on how marketers are defining ROI."
"Understanding monetization models also relies on an even clearer understanding of user motivations. Some apps, like Duolingo or Lumosity, offer free content without a paying subscription. For a certain % of users that free content is more than enough. Apps with users that don't offer enough motivation to subscribe will find that it disproportionately impacts performance models, particularly CPAs. Monetization models are also shaped by"
App marketers choose cost-per-action (CPA) when monetization features predictable pricing and conversion, enabling optimization toward fixed acquisition costs. CPA works well for on-demand and subscription-based apps that use free trials and fixed subscription fees, such as fitness and VOD services. Apps with variable item values, repeat purchases, or complex lifetime values—such as eCommerce and gaming—receive less benefit from CPA. Free-content apps with low incentive to subscribe reduce CPA effectiveness because a share of users will never convert. Marketers must evaluate app category, user motivations, conversion rates, and purchase frequency before selecting a performance cost model.
Read at Thedrum
Unable to calculate read time
Collection
[
|
...
]