How to Maximize Your Advertising ROI and Scale with Flexbid
August 13, 2019
3
min read
Flexbid allows you to control how and where you bid for each request. You can now ensure your bids are aligned with your apps? Life Time Value (LTV) to maximize the advertising ROI on every acquired user.Through Flexbid you can define multipliers for different LTV dimension (and combinations of bid dimensions) that will raise or lower your final campaign?s bid to match the expected value of that user.
What are LTV dimensions?
Dimensions are ways in which you can segment your apps? LTV performance.You are likely already using dimensions when you break down your apps? LTV models. You have probably noticed that different geos have different LTV performance.
(For developers, who don?t have fully developed LTV models, you can use the average revenue per user (ARPU) in the first 7 days as a proxy. ARPU values are usually provided in your MMP dashboard.)You might also be looking at your LTV models by publisher app. Not all publishers deliver the same performance.
So now to the good part...
How can I use Flexbid to maximize my success?
Instead of creating hundreds of campaigns for each geo or blacklisting and whitelisting hundreds of publisher sources, you can use Flexbid to maximize the success of your efforts, all in one campaign!1. Know what your base CPI should beStart by understanding what your LTV ROI goal is. That is, what return on investment do you want to see from your UA efforts. This is usually a number between greater than 100%.In the examples above, your average LTV is $10, so if your LTV ROI goal is 200%, then your campaign CPI (also referred to as base CPI) should be $5. By using the formula:
Campaign CPI = LTV / LTV ROI goal
2. Pick a dimension (or combination of dimensions) for your Flexbid campaignWe recommend starting with publisher app or publisher app + geo to get familiarized with Flexbid.Once you are comfortable with the tool, we highly encourage that you include OS and device dimensions to take your Flexbid campaign to the next level.3. Calculate the right bid multipliersIn the example above, with an LTV ROI goal of 200%, we can calculate the Ideal CPI for each publisher app by dividing LTV on 2 (200% ROI goal)?:
Since your base CPI bid will be $5, we can calculate the multipliers by diving the Ideal CPI by the base CPI:
How will my Flexbid campaign work in real life?
Let?s imagine you are running Flexbid with the following multipliers:
A request comes from a good LTV app (Pub A) on an average LTV device (iPhone 6):
Final CPI = Base CPI x Publisher app multiplier x Device model multiplier
Final CPI = $5 x 1.5 x 1 = $7.5
In this example, Flexbid recognizes the high value of the users from this publisher app and raises the bid. This new bid ensures you meet your advertising ROI goal while driving the maximum scale from this source.A request comes from a good LTV app (Pub A) on a low LTV device (iPod touch 1st Gen):
Final CPI = Base CPI x Publisher app multiplier x Device model multiplier
Final CPI = $5 x 1.5 x 0.5 = $3.75
In this example, even though the app?s users are high value, Flexbid recognizes it comes from a low-value device and reduces the final bid.
3 key steps for a successful setup of a Flexbid campaign
Depending on the data you have available and your LTV models you can choose to go as simple or as sophisticated with Flexbid as you like. There are three key steps to-do to ensure that your Flexbid campaigns are successful and that are:?1. Collect and analyze your data - the more you track and analyze your data, the better you?ll understand who your high-value versus low-value users are for each bid dimension.2. Decide on bid dimensions to use and calculate multipliers - Use the data you have available and set the appropriate multiplier values as we suggest in this blog post. The more bid dimensions you use the more competitive you become in bidding on our network.3. Make daily optimizations. An important step that cannot be neglected. A high-performing Flexbid campaign cannot be left alone after setup but should be optimized, preferably daily, or else weekly according to the performance you see. It is like any other advertising campaign you start on our network.?If you wish to automate the optimizations on a set schedule, we recommend integrating our proprietary Flexbid API. Feel free to contact us for more info!For more info about Flexbid:?
