Why Marketers Should Be Measuring Cost-Per-Action
As marketers move away from measuring and optimizing purely against the cost-per-install, today’s mobile marketer needs new guidelines for how to best manage CPA-optimized mobile advertising campaigns. The Liftoff Mobile App Engagement Index, which is based on an analysis of over 22.5 million app installs and 550 million post install events, identifies trends that can help you better understand how to optimize your mobile advertising campaigns. Here are some of the key findings.
Our analysis found that while it costs less to acquire an Android user who will register and share content, iOS users are much more willing to engage in transactional events, like making a purchase, booking a hotel, or subscribing to a paid service. A marketer needs to play both platforms based on their business goals and evaluating the value of the users over time on each platform.
Gender also plays a huge role in mobile engagement. While the average cost-per-registration is similar between both genders at around $9.54, women show more interest in shopping and sharing content on mobile. Men, on the other hand, are more inclined to make travel reservations or subscribe to paid services, by a margin of 4 percent. That is valuable information to know when figuring out what audience(s) to target with what message.
In addition, each category of apps has its own behavioral benchmarks. While social apps convert a whopping 76.3 percent of installs into registered users, financial apps have a much harder time, with registration rates lower than 45 percent. This makes sense, since financial apps often need access to sensitive, personal information, like your bank accounts. For sectors like finance, with higher barriers to engagement, providing educational information and cultivating trust are key.
As competition in mobile continues to grow, so does the cost to acquire active users. As outlined above, marketers need to approach and evaluate their marketing spend based on the type of app or category they are promoting. Marketers have a wealth of data and analytics available to them, but these resources are only as valuable as what is done with them — the action taken to optimize results.