Decoding CPA Collaboration: How Mobihunter Maximizes Results with Client Success Stories

At Mobihunter, we pride ourselves on our innovative approach to client collaboration, particularly through Cost Per Action (CPA) models. In this article, we delve into the inner workings of our CPA collaboration model, shedding light on how we harness data-driven insights, creative strategies, and industry expertise to drive meaningful outcomes for our clients.

The Target Cost-per-Action (CPA) model is a strategic pricing approach employed in advertising. Unlike traditional models where advertisers pay for clicks on their ads, CPA allows them to pay only for specific actions taken on their website, such as purchases or sign-ups. This results in a more targeted and cost-effective advertising strategy, where advertisers pay solely for the desired outcomes rather than mere clicks.

Employing a target CPA pricing model in app advertising offers some advantages:

1. Versatility: Advertisers gain the flexibility to designate which actions they wish to compensate for, rather than paying solely for clicks on their ads.
2. Enhanced ROI Tracking: By remunerating for specific actions instead of clicks, advertisers can meticulously track the return on investment (ROI) from the ads. This heightened visibility enables advertisers to make well-informed decisions regarding their marketing strategy and budget allocation.

The formula to calculate your CPA is as follows:

CPA = Total advertising cost in period X / Number of desired actions in period X

CPA vs CPI: Understanding the Metrics for User Acquisition

In the realm of user acquisition, CPI stands out as the metric of choice. With CPI, advertisers pay exclusively for actual app installations triggered by their ads. Yet, it's important to recognize that while CPI focuses solely on the initial install, a significant portion of users may not translate into revenue through subsequent actions like ad engagement or purchases. This is where CPA comes into play, offering a more comprehensive view by delving deeper into user behavior within the app itself.

Determining an Optimal CPA

When evaluating the effectiveness of your CPA, it's crucial to assess whether the action undertaken justifies the associated cost. Take, for instance, the prominence of social media shares as coveted goals in today's content-driven landscape. While users may share your content as a direct result of an ad, it's essential to acknowledge that the share alone may not translate into immediate revenue. Instead, its value lies in its potential to bolster brand awareness or drive further installations. Thus, it's imperative to examine CPA in tandem with monetization Key Performance Indicators (KPIs) to gain a comprehensive understanding of campaign success.

We rightly believe that only highly effective teams can work according to the CPA model. Thanks to our many years of experience, we have been able to gain unique experience with clients from different niches: banking, fintech, utility, and others.

Among the clients with whom we worked using this model were Monobank, ClearVPN, Hotspot Shield, Dfndr, and IQ Option. And the problems of working with them were also very similar - since it was necessary not just to bring users, but to bring those who would perform the target action, which is different in different cases, for example, issuing a card, making an in-app purchase, etc. But, we found an approach to everyone, pinpointing the audience, and we concluded that the desired conversion should be no less than 20% for the campaigns to pay off.

In order to achieve this desired conversion, we tried different approaches:

1. Precision Audience Targeting: We meticulously segment our audience to ensure that our ad campaigns resonate with the right users. By offering valuable content and experiences that align with their interests, we not only increase engagement but also drive down the cost per action as users are more inclined to convert.
2. Creative Innovation: Our creative team focuses on crafting attention-grabbing ad creatives with clear and compelling calls to action (CTAs).
3. Enhancing Ad Quality: We delve deep into optimizing our paid search campaigns to ensure maximum relevance and effectiveness. Through meticulous keyword selection, exclusion of negative keywords, and alignment of ad messaging with the app experience, we elevate ad quality scores and attract high-quality users, thereby driving down CPA.

By implementing these strategies and continually refining our approach, we empower our clients to achieve their CPA goals effectively and efficiently. At Mobihunter, we're committed to driving tangible results and delivering exceptional value through our innovative advertising solutions.