- The Cost-Per-Engagement (CPE) model ensures advertisers pay for meaningful user interactions within apps, while offerwalls incentivize users with in-app rewards for completing tasks, creating a highly engaged user base.
- Integrating CPE campaigns with offerwalls balances scale and quality, driving high-volume installs and ensuring users engage deeply, resulting in higher Lifetime Value (LTV) and optimizing ad spend.
Finding the balance between quality and scale is a crucial challenge in mobile app advertising. Enter cost per engagement (CPE) campaigns and offerwalls—two powerful tools that, when combined, can significantly enhance user acquisition efforts. This article explores the nuances of the CPE model, the benefits of offerwalls, and how integrating these elements can lead to highly effective advertising strategies.
Understanding the Cost-Per-Engagement (CPE) Model
Cost per engagement (CPE) is an advertising pricing model where advertisers pay only when users complete a specific engagement or event within an app. These engagements could include actions like completing a tutorial, making an in-app purchase, or reaching a certain level in a game.
Comparison with CPI
Unlike the Cost per Install (CPI) model, which charges advertisers for each app install regardless of user engagement, CPE ensures payment only for users who actively interact with the app. This focus on deeper engagement typically results in higher-quality users with a potentially greater Lifetime Value (LTV).
What Are Offerwalls
Offerwalls are interactive ad units that incentivize users with in-app rewards for completing certain actions, such as installing another app, completing surveys, or achieving milestones within the current app.
Benefits
Offerwalls can drive a high volume of installs at a lower cost, making them a cost-effective user acquisition tool. When combined with CPE campaigns, offerwalls balance quality and scale by ensuring that users not only install the app but also engage with it meaningfully.
Combining CPE with Offerwalls
Integrating offerwalls with CPE campaigns creates a powerful synergy that enhances both the scale and quality of user acquisition. Offerwalls present a wide array of tasks and rewards to users within an app, encouraging high engagement levels. When these tasks align with CPE models, advertisers only pay for users who complete specified in-app actions, ensuring that marketing budgets are spent on genuinely interested users who demonstrate a deeper commitment to the app. This synergy stems from the complementary nature of offerwalls and CPE campaigns. Offerwalls can drive a high volume of user interactions by offering appealing rewards for actions, such as installing another app or reaching a milestone within the current app. By tying these rewards to CPE criteria, advertisers ensure that users are not only installing apps but also engaging with them meaningfully. This deep engagement translates to a higher Lifetime Value (LTV) for each user, which is a critical metric for app success.
Optimization
Optimizing CPE campaigns within offerwalls requires a strategic approach to setting engagement events. The key is to position these events just before the “tipping point”—the moment when users are most likely to continue engaging deeply without incurring excessive costs. By carefully selecting these critical engagement points, advertisers can maximize user engagement while maintaining control over their expenses. For instance, in a game app, the tipping point might be the completion of the tutorial or the achievement of a certain level. In a financial app, it could be the linking of a bank account or the completion of the first transaction. Identifying these points involves analyzing user behavior and understanding where users derive the most value from the app. Here are some strategies for optimizing CPE events within offerwalls:
- Data Analysis: Use data analytics to identify the points in the user journey where engagement peaks. These points are ideal candidates for CPE events.
- A/B Testing: Conduct A/B tests to determine which events drive the most engagement and conversion. This testing helps refine the selection of CPE events.
- User Feedback: Gather feedback from users to understand their motivations and challenges. This information can help tailor CPE events to better meet user expectations and enhance engagement.
- Iterative Optimization: Continuously monitor the performance of CPE events and make iterative adjustments based on real-time data. This approach ensures that the campaign remains aligned with user behavior and market trends. By strategically setting and optimizing CPE events within offerwalls, advertisers can achieve a balance between acquiring a large number of users and ensuring that these users are genuinely engaged and valuable to the app. This balance is crucial for maximizing the return on investment (ROI) and sustaining long-term growth in the competitive mobile app market.
Setting the Right CPE Event
Choosing the right CPE event is critical to the success of a campaign. This selection process involves understanding the app's goals, analyzing user behavior, and identifying key moments that drive engagement and retention. Here’s an in-depth look at how to effectively set and manage CPE events.
Choosing Events
The appropriate CPE event varies depending on the app’s monetization strategy and user interaction patterns. Here's how different types of apps might approach this:
In-App Purchase (IAP) Games
For games that rely on in-app purchases, the primary goal is to encourage users to spend money. Therefore, a logical CPE event might be tied to the user's first purchase. This event signifies a high level of commitment and indicates that the user is likely to continue making purchases in the future. To optimize this event, consider:
- Onboarding Process: Simplifying the onboarding process and guiding users toward making their first purchase.
- Incentives: Offering initial discounts or exclusive items to encourage the first purchase.
- User Journey Analysis: Understanding the typical user journey to identify the best moment to introduce purchase opportunities.
Ad-Monetized Games
Games that rely on ad revenue might prioritize retention and engagement metrics. For these apps, it’s crucial to encourage users to return regularly and spend more time within the app. Suitable CPE events could include:
- Daily Logins: Rewarding users for logging in daily to build a habit.
- Level Completions: Offering incentives for completing certain levels or achieving milestones.
- Ad Views: Encouraging users to watch ads by integrating them seamlessly into the gameplay experience.
Core vs. Meta Events
Core Events
Core events are integral to the app’s primary user experience and often represent significant milestones within the main gameplay loop. Examples include:
- Level Up: Reaching a new level in a game, which indicates progress and engagement.
- Completing a Mission: Finishing a mission or challenge, reflecting deep involvement with the app.
- First Win: Achieving the first victory in a competitive game, boosting user satisfaction and the likelihood of continued play. These events are crucial because they directly impact the user’s perception of progress and achievement within the app. By setting core events as CPE targets, advertisers ensure they are paying for high-value actions that reflect true engagement.
Meta Events
Meta events encompass broader, often community-oriented activities that go beyond the core gameplay. These can drive engagement by creating a sense of belonging and competition. Examples include:
- Participating in Special Events: Engaging in limited-time events or challenges that offer unique rewards.
- Joining a Guild or Team: Becoming part of a social group within the game, that can enhance retention through community interaction.
- Creating and Sharing Content: Encouraging users to create and share in-game content or achievements on social media, boosting organic reach and engagement. Testing both core and meta events is essential to understand which types of engagements drive better long-term user retention and monetization. While core events might show immediate progress, meta events can foster a deeper, community-driven connection to the app.
Multi-Reward CPE Campaigns
Multi-reward CPE campaigns are designed to enhance user engagement by providing rewards at multiple stages of interaction. This structure keeps users motivated to continue engaging with the app by offering ongoing incentives. Unlike traditional single-reward systems, multi-reward campaigns can capture user interest at various touchpoints, increasing the likelihood of sustained engagement and loyalty.
Implementation
Implementing multi-reward CPE campaigns requires meticulous setup to track various events and reward users appropriately. This approach can involve both linear (sequential) events and non-linear (independent) events, allowing flexibility in engagement strategies.
Linear (Sequential) Events
Linear or sequential events follow a step-by-step progression where each reward is contingent on the completion of the previous event. This type of structure is particularly effective for guiding users through a specific journey or onboarding process. For example, in a mobile game, a linear multi-reward campaign might include the following sequence:
- Complete Tutorial: Reward users for finishing the tutorial to ensure they understand the game mechanics.
- Reach Level 5: Incentivize users to engage further by offering a reward upon reaching Level 5.
- Make First In-App Purchase: Encourage monetization by rewarding the first in-app purchase.
- Achieve Daily Login Streak: Promote retention by offering rewards for consecutive daily logins. Each step builds upon the previous one, creating a guided pathway that encourages deeper engagement and retention. This method helps to create a habit loop, reinforcing user behavior through consistent rewards.
Non-Linear (Independent) Events
Non-linear or independent events, on the other hand, allow users to complete actions in any order, with each event offering its own reward. This approach provides greater flexibility and caters to different user preferences and behaviors. For example, in a fitness app, a non-linear multi-reward campaign might include
- Log First Workout: Reward users for logging their first workout session.
- Join a Fitness Challenge: Offer an incentive for participating in a community fitness challenge.
- Share a Workout on Social Media: Encourage social engagement by rewarding users for sharing their progress.
- Complete 10,000 Steps in a Day: Provide a reward for hitting a daily step goal.
Users can engage with any of these events based on their interests and routines, making the app experience more personalized and user-centric. This flexibility can lead to higher overall engagement as users feel empowered to choose their path and are rewarded for their unique interactions with the app.
By implementing both linear and non-linear events in multi-reward CPE campaigns, advertisers can cater to a broader range of user behaviors and preferences, ensuring that engagement is sustained and diversified. This dual approach helps in capturing the interest of different user segments and maximizing the overall impact of the campaign.
Bid Management
Effective bid management is crucial for optimizing the performance of CPE campaigns. It involves setting and adjusting bids for various engagement events to ensure that campaigns remain competitive and cost-effective.
Setting Up
Configuring bids involves using dashboards or CSV uploads to manage bids for different events. Advertisers can set default bids for general engagement events and customize per-app bids based on specific performance data. This granular control allows for more precise budget allocation and optimization.
Optimization Tips
Configuring bids involves using dashboards or CSV uploads to manage bids for different events. Advertisers can set default bids for general engagement events and customize per-app bids based on specific performance data. This granular control allows for more precise budget allocation and optimization.
Raise Bids for High-Value Events
Increasing bids for critical engagement events can improve ad ranking and visibility, attracting more high-quality users.
Lower Bids for Lower-Value Events
Adjusting bids downwards for less critical events can help improve Return on Ad Spend (ROAS) by reducing costs without significantly impacting engagement quality.
Monitor Competitor Activity
Keeping an eye on competitor bids can provide insights into market trends and help adjust bids to stay competitive.
Utilize Automated Tools
Leveraging automated bid management tools can streamline the process and ensure that bids are adjusted in real-time based on performance metrics.
By effectively managing bids, advertisers can optimize their CPE campaigns to balance cost and performance, ensuring that marketing budgets are used efficiently to acquire high-value users.
Campaign Objectives and Fail-Safes
CPA Objectives
Combining CPE with deeper Cost per Action (CPA) targets ensures that even if some users drop off after the initial engagement, the overall campaign remains profitable. CPA objectives involve setting specific actions that indicate high user value, such as making a purchase or subscribing to a service.
ROAS and Retention Goals
Setting additional targets based on expected revenue and user retention helps balance the quality of acquired users. By focusing on metrics like ROAS and retention, advertisers can ensure that their campaigns not only attract users but also convert them into long-term, valuable customers.
Examples of Effective CPE Campaigns
Top Funnel CPE
Top funnel CPE campaigns aim to engage users early in their interaction with the app. Examples include:
- Streaming a First Podcast: Reward users for listening to their first podcast episode.
- Completing a Tutorial: Encourage new users to complete the tutorial to understand the app's features.
Mid Funnel CPE
Mid-funnel CPE campaigns focus on engaging users within the first 24-72 hours.
Examples include:
- Creating an Account: Incentivize users to create an account, providing a foundation for further engagement.
- Linking a Bank Account: Encourage users to link their bank account to a financial app for increased functionality.
Deep Funnel CPE
Deep funnel CPE campaigns target users who have spent significant time in the app. Examples include:
- Pitching Subscriptions: Reward users for subscribing to premium features after a trial period.
- Reaching High Game Levels: Offer incentives for achieving high levels in a game, promoting long-term engagement.
By understanding and implementing these strategies, advertisers can effectively balance quality and scale in their user acquisition campaigns, leveraging both CPE and offerwalls to achieve optimal results.
Conclusion
By understanding and implementing the strategies around CPE campaigns and offerwalls, advertisers can effectively balance quality and scale in their user acquisition efforts. The integration of these models ensures that marketing budgets are spent on engaging, high-value users, ultimately leading to more successful and profitable mobile app advertising campaigns.
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