Written by: Ayet Bayrami
Welcome to the first part of a 4-post series, which we at iQU aim to bring you over the next few months! This week, we will begin by discussing the most relevant performance marketing deal metrics, along with their positive and negative aspects. By the end of this post, you, will be able to decide which of them are appropriate for driving your performance marketing campaigns’ results.
Plus, read about our exclusive e-book content on the subject at the end of this post!
The dominating deal metrics in performance marketing are CPC, CPI, CPA, CPL, CPAU/CPP and CPS. It is imperative to note that each of these will be described below from iQU’s perspective, as some might be used differently in other industries:
- CPC (Cost per Click) means that you pay for every user that clicks your ad.
- CPI (Cost per Install) indicates that you will pay only for users that have installed your app. It is important to mention that this metric applies only for mobile performance marketing.
- CPA (Cost per Action) implies that you will only pay if a user has taken a specified action. The most commonly used of said actions is the fulfillment of a user registration.
- CPL (Cost per Lead) is often used interchangeably with CPA, however, is usually limited to the objective of receiving the user’s e-mail address, in exchange for a payment to the publishers.
- CPAU/CPP (Cost per Active User/Cost per Player) are being used in cases, in which you’d want to pay for an activity that is deeper in your funnel than a sign-up. An example here is that you want a player to sign up, download, open and start playing the game, before a payment occurs.
- CPS (Cost per Sale) means that you only pay once your product has been sold to the user.
Each of the aforementioned deal metrics comes with their respective up’s and downsides, as discussed next:
CPC (Cost per Click)
- Pro: Instead of paying for people who view your ad, you pay only for people who show interest in your product by clicking to learn more. Furthermore, CPC is accepted by most big advertising platforms, such as Facebook and Google. Therefore, you will be able to reach a significant amount of people.
- Con: The people clicking on your ad might not convert after clicking said ad. Additionally, you might be spending your money on platforms that send you bots or forced clicks. In reality, such fraud has led to digital advertising losses worth billions of dollars in recent years.
Fortunately, the fact that iQU utilizes a multi-channel approach of some of the most trusted gaming traffic sources online, as seen above, guarantees that you will be protected from said fraudulent tactics.
CPI (Cost per Install)
- Pro: You only pay for users who install your app.
- Con: People might install your app, but never actually open it. In fact, according to Fortune, less than 20% of all apps are opened on a regular basis after the initial installation. Moreover, in some cases, you could fall victim to fake installs.
CPA (Cost per Action) / CPL (Cost per Lead)
- Pro: You only pay for users who take a specified action.
- Con: People might leave your sales funnel after taking said action.
CPAU/CPP (Cost per Active User/Cost per Player)
- Pro: You pay for users that have not only shown an interest in your product, but have actually started using it. Essentially, people are experiencing your product, which is what you should generally be aiming for, anyway.
- Con: Firstly, you will have to pay a higher payout than for a CPA, since it will be harder for partners to get users so deep into your sales funnel. Secondly, you might need a more advanced tracking system to measure certain events within your product. Luckily, iQU offers such a solution in the form of Post Conversion Tracking, which measures the converted players’ progression within the game, and sets up payout points based on reaching certain in-game events.
CPS (Cost per Sale)
- Pro: You only pay for sales and therefore minimize your risk dramatically.
- Con: Since the majority of risk of advertising your products stays with your partners, the reach will be rather limited, unless you grant a reasonable part of your revenues to your partners.
Which Are the Best Metrics for Your Campaign?
Now that we have listed the benefits and downsides of each of the deal metrics, we would like to give our take on them. Based on our experience, we typically see CPI, CPA and CPL as the most desirable campaign metrics for several reasons:
- Firstly, each of them generally requires a lower payout, as the publishers are more willing to accept such offers.
- Secondly, they all guarantee that the players’ details can be accessed for the purposes of re-targeting them in future, resulting in improved retention internally and churned players externally.
- Finally, regarding our advertiser clients, these metrics have always led to them meeting their goals.
However, choosing the right deal metric is just the tip of the iceberg. There are so many other factors to consider, from onboarding players to utilizing your games’ platforms and genres, and much more! That’s why we at iQU want to present you with our extensive overview in the form of a free e-book, which contains all 4 parts of this series, as well as several exclusive ad payout guides, so that you can get the best ROI from your next performance marketing campaign.
And if you’d like to read some other extracts from the e-book, you can find them linked below:
- PART 2: On-Boarding Your Players Easily – Registration Flows & Landing Page
- PART 3: Making Use of Game’Types, Platforms & Genres
- PART 4: Geo-Based Tier Segmentation & Payout Guides
With over 8 years of experience in online performance marketing, our team has proven time after time that we have the necessary expertise to help you manage your campaign budgets and reach your targets!
Interested in scheduling a game campaign consultancy, free-of-charge? Then be sure to contact us here!