The world of mobile user acquisition is increasingly becoming a game of precision. As a User Acquisition Manager, you’re not just shooting for installs; you’re targeting high-quality users likely to generate revenue. One of the game-changers in this landscape is harnessing the power of estimated revenue to optimize Return on Ad Spend also known as ROAS. Let’s delve into how this strategy works and the benefits and potential pitfalls that come with it.
What is Estimated Revenue?
In the mobile ecosystem, each user action carries a certain value. Whether it’s a completed tutorial, a level-up, or a direct in-app purchase, you can assign an estimated revenue to these user events. This revenue isn’t necessarily real-time but is predicted based on your understanding of your user behavior and business model.
What is a Postback Event?
A postback event, as defined by mobile attribution leaders like AppsFlyer, is an HTTP request from an app to an ad network or vendor that communicates user engagement information, such as app installs, in-app purchases, or specific actions performed within an app. These events are triggered after the user clicks on an ad and completes a specified action, hence the term “postback”.
How Can Estimated Revenue Fuel ROAS Optimization?
When you send postback events with estimated revenue data to ad vendors such as Facebook or Google Ads, it opens a whole new world of possibilities. These platforms utilize machine learning algorithms that feast on the revenue data you provide, crunching the numbers to find patterns and commonalities among high-value users. They use these insights to optimize your ad delivery, targeting users who bear similar characteristics to your high-value cohort. The result? More bang for your advertising buck.
What Does This Mean for Your Campaigns?
Greater Precision and Efficiency
By incorporating estimated revenue data, ad platforms can get more precise in their targeting. This leads to more efficient ad spend, as you’re essentially guiding your ads toward the users most likely to yield a high ROAS. It’s like having a well-calibrated compass in a dense jungle of potential users.
Platforms like Facebook offer features such as Value Optimization, which automatically prioritizes ad delivery to users likely to bring more value (i.e., revenue). Your estimated revenue data fuels this, helping to drive more high-value installs.
What Are the Challenges?
While it all sounds very promising, this approach is not without its challenges.
Privacy Concerns and Regulations
The estimated revenue data you’re dealing with is sensitive, and mishandling it can lead to privacy issues. It’s crucial to respect user privacy and comply with data protection regulations. Changes in these regulations can also affect your ability to track and send postback events.
The effectiveness of your ROAS optimization largely depends on the accuracy of your estimated revenue. Inaccurate estimates can misguide your optimization efforts, resulting in wasteful ad spend.
Dependence on Quality Data
The ad platforms’ algorithms are only as good as the data they receive. Insufficient or low-quality data may lead to subpar optimization and targeting.
Leveraging Predicted.io for Precise Revenue Forecasts
Sailing through the mobile user acquisition landscape becomes substantially smoother with a trustworthy partner like Predicted.io. Renowned for its impressive 96% accuracy in revenue estimates, Predicted.io utilizes a unique multi-model approach to provide robust forecasts, simplifying your campaign planning process.
In addition to ensuring top-notch accuracy in revenue prediction, Predicted.io also manages data quality, allowing you to focus on strategizing and optimizing your ad campaigns. With the assurance that your data is reliable, high-quality, and privacy-compliant, you can make confident decisions. In essence, Predicted.io is your key to maximizing ROAS, proving to be an invaluable tool for any User Acquisition Manager.
Sending estimated revenue data to ad vendors offers a sophisticated way to fine-tune your mobile user acquisition campaigns. While it comes with its share of challenges, the potential to dramatically enhance your ROAS and acquire high-value users makes it an exciting frontier for User Acquisition Managers to explore.
As with any strategy, it requires careful planning, accurate data, continuous monitoring, and the flexibility to adapt to changes in user behavior and market dynamics. By mastering this approach, you can navigate the dense jungle of user acquisition, finding the high-value users that are key to your app’s success.
Remember, as Peter Drucker rightly said, “What gets measured gets managed.” In the realm of user acquisition, what gets measured – and estimated – can very well become your growth catalyst.