Case Study: How much does IDFA opt-in matter for ad earnings?
Case Study: How much does IDFA opt-in matter for ad earnings?
Background:
Founded in 2014, PixelTrend is proudly headquartered in Linz, Austria. Their dedicated staff produce popular games and entertainment apps that regularly reach the top 10 in German-focused markets.
Their most popular title, MegaLOL, boasts over 5MM users. It remains one of the most popular entertainment apps in German-speaking countries.
“This year we are focusing on increasing app monetization effectiveness. We aim to grow our users so increasing unit-economics is critical for growth.”
Sebastian Hobarth, CTO, PixelTrend
The Problem: How much does IDFA opt-in matter?
As PixelTrend makes a sizeable amount of revenue via advertising– and with a majority of users residing in GDPR-protected countries– they have the obligatory opt-in request for IDFA tracking.
As with most apps, a minority of users haven chosen to opt-into IDFA sharing and while PixelTrend knew this was good for advertisers, they’ve always wondered how much it actually impacted earnings.
The Solution
Using AdLibertas Audience Reporting, Sebastian created 2 custom user segments: users who opted into IDFA tracking, and users who opted out of tracking. Sebastian was then able to compare a variety of metrics, including retention, ARPDAU and LTV over a variety of time periods.
AdLibertas Audience Reporting allows Sebastian to break apart users who’ve opted into the IDFA sharing, measuring their retention and LTV over time as compared with users who’ve opted out of IDFA tracking.
Sebastian had known it was important but was nevertheless surprised to find that IDFA opt-in had a very sizable impact on revenue earnings. Both CPM and retention was higher for the users who opted into IDFA tracking but most important: the overall LTV was a staggeringly 5X higher in just 75 days.
What’s Next:
Finding a method to increase user-revenue 5X in 75d means increasing IDFA opt-ins can be a very effective use of time. Sebastian plans to use this information to help drive his product priorities:
“Learning the importance of opt-ins immediately led us to experiment with optimizing user prompts. In just 30 days we’ve already doubled opt-in rates – this amounts to a 2.5X increase in revenue.
I knew this was important but without Audience Reporting I wouldn’t have known it has the potential to increase a user’s value 5X.”
Interested to see how AdLibertas can help your app?
