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The math behind Smadex
The limits of Fixed CPA acquisition
Smadex analyzes hundreds of first and third party data points, defining a Predicted LTV score for each user characteristic, feeding its algorithm to create a acquisition portfolio strategy reaching each cluster of users according to its expected value to the business and the predicted market Customer Acquisition Cost (mCAC).
This way, you pay for the real valueof each user and you maximize scale, while keeping campaigns limited by your targeted CPA goal .
Most advanced App Marketers are looking for two things: a profitable Customer Acquisition Cost and scale. The typical programmatic algorithm is built around bidding for impressions, trying to get as many as possible as long the CPA goal is reached. This usually means advertisers end up paying more for users that generate lower value to their business and not pushing enough for users of higher value (and higher Acquisition Cost).
How Portfolio-based bidding works