The new model of mobile advertising is a CPE (cost-per-engagement) campaign, where the cost depends on the number of active users attracted.
The advertiser himself chooses how to determine the degree of user involvement in the application, so the CPE model is suitable for absolutely all kinds of applications.
Examples of engagement threshold:
- First in-app purchase
- Passing in-game training.
- Reaching a certain level.
- Sending a message or e-mail
- Filling in your profile
- Booking a ticket or hotel room
The cost of involvement is determined individually for each advertiser with the help of a test campaign. This means that the developer first launches a test CPI campaign to determine the average conversion rate of the users involved from the number of installations. Based on this data, a price is set for one user involved.
Based on this scheme, the advertiser who launched the campaign on the CPE model does not pay for users who simply clicked on the banner or installed and immediately deleted the application. Payment occurs only for users who are really interested in the application. In other words, the advertiser does not pay for the installation, it only pays for active users.
CPE campaigns have successfully passed the testing stage and are available to all advertisers today. The CPE model helps to significantly increase the average return on investment in mobile application advertising. CPE campaigns allow advertisers to get loyal users for a much longer period. It should also be noted that the risk of advertisers decreased significantly when comparing the CPE model with CPI, CPC and CPM campaigns. CPE campaigns are a new word in the world of mobile advertising.
The traditional advertising models via mobile devices have some drawbacks:
CPC model (cost per click): Some experts predict the decline of the popularity of CPC advertising in the coming years. This is due to the fact that in many niches the competition for a keyword is so high that not every advertiser will want to spend his money for promotion through the CPC affiliate program. In addition, the practice of so-called false clicks (“fake clicks”) on competitors’ announcements has become frequent.
CPA / CPO model (pay per action): it’s not easy to forecast the amount and rate before the start of the campaign, therefore it is quite difficult to plan the budget.
CPA means that all customers have the same value, although in reality one person places an order once and the other returns to the online store time after time. Paying for an action helps to attract a low-quality audience that is converted once, that is, when using CPA, you invite to your online store those who like freebies.
Is there any alternative that would enable budget planning and higher security for the customer? The developers suggested a new approach in the mobile advertising market: CPE, a revolutionary model where the emphasis is on attracting loyal users who are really interested in the application.
In other words, the payment is received only by active users who have committed specific target actions within the application. How to determine the degree of user involvement? It depends on the format of the application, but, in general, each developer is free to determine the involvement threshold himself, based on his own considerations. Sometimes an indicator of user involvement can be the passing of a training level, sometimes sending the first message, and sometimes the first payment inside the application.
The positive features of the CPE model:
- Budget control: only returning customers are getting paid;
- An advertising project can be scaled within a very short period of time;
- Qualitative UX: after add clicking the user is redirected to the necessary app;
- Clear functioning: all activities are reflected in the client’s tracker;
- Effective targeting: you can get users offering a higher price compared to the set one.
The market does not stand still, it develops and moves forward every day. The experts assume that within a few years, the CPI model will fade into the background, giving up its place to the CPE. How does this threaten the market? It can change quite a lot – at the moment, working on the CPI system, most networks are effectively excluded from most risks, while work on CPE will put in the first place those platforms and networks that invest in monitoring and optimizing traffic quality in the first place.
Businesses moving their campaigns from traditional CPC and CPM models to newer, and more effective CPE and CPA models.
CryptoAds supports multiple model: among them you will find both the classic approaches as well as newer ones. Of course, you can predict which model will perform better for your business, but it is always better to test it, isn’t it?
We are ready to introduce you a demo account and find a model that fits your business most: just send us a short email to email@example.com if you are an app developer or to firstname.lastname@example.org if you are an advertiser. We will get back to you with the most suitable offer on the market!
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