The tool gives Apsalar customers the ability to compare the lifetime value of users broken down by source, allowing developers to determine the actual return on investment (ROI) generated by their user acquisition and advertising efforts.
The issue of balancing the eventual financial return from a user acquisition campaign against its initial cost is one we’ve seen emerge as a pain point for developers as costs have increased. According to the most recent report from Fiksu, the cost to acquire a loyal user has risen by 43 percent year-over-year, hitting $1.43 per user in April.
With most developers using dozens of marketing and user acquisition channels, it’s become too easy to waste money acquiring users that will actually hurt a company’s bottom line in the long run, explains Apsalar’s CEO Michael Oiknine. “Up until now they were acquiring users from many different sources but they had no idea whether they were acquiring the right users.”
While it’s similar to Flurry’s Ad Analytics service, which tracks actions and installs from multiple advertising networks and Mopapp’s new all-in-one app value dashboard that measures the impact of everything from ad revenues to reviews, Apsalar’s tool is specifically focused on determining financial return, explains Oiknine. “Lifetime revenue is the only true measure of ROI,” he says.
Apsalar’s Campaign Source Insights tool can track new users coming to an app from any user acquisition campaign, including mobile ads and installs generated by email and web campaigns. It breaks down the users into cohorts segmented by campaign and network. By determining the conversion rate and initial spend of new users in real-time, then comparing to the app’s retention rate, the tool is able to provide developers with a lifetime revenue prediction for users by specific source.
For example, explains Oiknine, if a developer users two user acquisition sources, one with a $0.50 cost per install rate (CPI) and another with a $1 CPI, on the surface it seems better to use the service that with the $0.50 CPI, as it provides the company with twice the users for the same budget. However, if the users with the $0.50 CPI only return an average lifetime revenue of $0.05, and the $1 CPI go on to spend $1.40, the company would actually lose money in the long term by making what seemed like an obvious choice.
Apsalar’s new Campaign Source Insights tools is free for Apsalar customers and is available as of today. The company is backed by $5.8 million in funding from Thomvest Ventures, Battery Ventures, DN Capital, 500 Startups, Morado Venture Partners and Seraph Group.