Understanding Cost Models and Key Performance Indicators (KPIs)
In the dynamic world of digital advertising, grasping the essence of cost models and KPIs is paramount. These elements are the backbone of understanding and optimizing the performance of your campaigns.
1. Cost Models: Your Foundation for Campaign Costs
Primarily, there are two cost models you'll encounter:
CPI (Cost per Install): This model involves payment for each first app open, triggered by the "Install" event that Aura receives from the tracking company. Essentially, CPI is the amount you pay for a user's initial engagement with your app.
CPD (Cost per Download): In this model, your payment is linked to the completion of an app download, whether it's a direct install or via redirection to Google Play. CPD ensures that you're investing in users who have actually downloaded your app.
2. Key Performance Indicators: Navigating Your Campaign's Success
These are the metrics that will guide your User Acquisition (UA) strategy, akin to a North Star, helping you chart the course to campaign success.
ROAS (Return on Ad Spend): This key metric measures the percentage of revenue generated from in-app purchases relative to the total ad spend. It tracks the effectiveness of your ad spend in driving profitable user actions.
eCPE (Effective Cost per Event): This indicator reflects the average cost for a specific user action within your app. It's calculated by dividing the total ad spend by the number of these actions, offering a clear view of what you're paying for each desired user interaction.
RR (Retention Rate): RR represents the percentage of users who perform a specific action (like opening an app) after a set period since their first interaction. This metric is vital for understanding user engagement and long-term value.
CPRU (Cost Per Retained User): CPRU measures the cost of retaining users who perform a particular event after their initial app launch. It's a crucial metric for evaluating the cost-effectiveness of user retention strategies.
By mastering these cost models and KPIs, you're not just running campaigns; you're steering them toward measurable success and greater ROI.
Remember, each element in your campaign is a piece of a larger puzzle. Understanding and optimizing these components can significantly enhance your campaign's effectiveness and profitability.