4. Retargeting campaigns return only segments with the highest potential
In regular retargeting campaigns, customer ROI and unit economics are blurred. The income from such a campaign will be less, since some of the users return, and only some of them order.
With predictive analytics, the income is higher, because you can immediately find out how much money the user will bring, whether he will bring it at all and whether it makes sense to return him — maybe he will return himself. This allows you to optimize costs and increase the profitability of campaigns.
5. It is possible to accurately evaluate new user acquisition channels
When you launch ads on a new acquisition channel, you don’t have to spend months testing it to understand its CRR — the ratio of advertising spend to that ad revenue. With predictive analytics, in a couple of days it is clear what the profitability of users in this channel is. If the results are not satisfactory, you can turn off the campaigns and not spend money on this source.
This principle can be applied to new user cohorts, new creatives, new campaigns. Predictive analysis helps to quickly evaluate their effectiveness and make optimization decisions.
Where predictive analytics will work effectively
Predictive marketing is suitable for almost all companies because the technology is universal. It is most suitable for businesses with frequent in-app purchases — there is a sufficient amount of audience on which the model can learn.
Predictive analysis might not be the best for:
- Small businesses, because there is not enough data for the system to learn.
- Businesses that don’t have in-app purchases or those who monetize throughads. For example, a free game that earns money by showing ads. The user does not have an opportunity to perform actions that will bring revenue to the app, therefore there will be nothing to predict.
- Subscription based businesses. There are few purchases that can be predicted. Most likely, the user will subscribe on the first day, and it will automatically renew.
- Businesses with a short payback cycle. With a short payback cycle, the advertiserspends money to attract a user, and already at the first order, the user brings this amount back. In this case, it makes no sense to use predictive analysis — it is already known when the user will pay off.
Maybe such launches will suit your business. You can leave a request at Go Mobile and we will tell you about the results that predictive campaigns can achieve in your particular case.
