Case Study: Optimizing consent prompts doubles app revenue
After finding a dramatic LTV difference for users who’ve opted into sharing advertising identifiers, Sebastian Hobarth, CTO of Pixel Trend, has started optimizing prompts to encourage users to allow tracking. It helped. A lot.
Longtime AdLibertas customer PixelTrend was the first Audience Reporting customer to ask the question: “How much do IDFA opt-ins matter to user earnings?”
Spoiler alert: opt-ins matter a lot. Since then Sebastian has been hard-at-work implementing the ability to optimize the prompt to push more users to opt-into sharing their advertising IDs in GDPR-protected countries.
Prior to any changes, the app showed a 60% opt-out rate, but since those users earned dramatically less, Sebastian needed to take action.
“GDPR allows us to pre-prompt sharing advertising IDs and while I thought opt-ins were important, I didn’t know how important until after using AdLibertas Audience Reporting.
After seeing the dramatic LTV difference I knew I had to prioritize getting people to opt-in.”
“I’ve asked users on every login to please opt-in. If they decline, I try again reminding them ads will be less intrusive and help keep the app free.
We’ve been able to get an additional 20% of users to opt-in.”
Excitingly the opt-ins had an immediate effect on CPM but even more powerful was the dramatic increase in user retention & LTV.
CPMs saw an immediate and dramatic increase the day the new version started rolling out.
Users who installed post-prompt (red-line) show a dramatically increased retention rate on day 10 vs. pre-optimization (blue)
“It makes sense. The ads are higher quality and it inspires users to stick around the app longer.”
But best of all is the change to user LTV. Because of high impact per user a modest change in opt-in rates have led to the doubling of daily app revenue!
30 day LTV is 2X on the latest cohort of users (red) who installed during the optimized prompt vs. users who saw the legacy prompt (blue).
Getting better performance measurement for your users:
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