Optimize Your Campaign Budgets with CLV

Optimize your acquisition campaign budgets in real time with Retina early customer lifetime value.

Campaign Budget Optimization

Strategic marketers are always looking for ways to optimize their ad spend. Oftentimes, they will even go so far as to calculate their own target CPAs for each campaign. The issue is that most marketers have to wait 30, 60, or even 90 days before they can measure previous campaign performance and adjust future budgets accordingly. Retina Early CLV empowers marketers to make smart choices about where to focus their ad spend in real time, by reserving their highest CPAs for high-value customers and prospects.

Case Study

Problem: The client was not able to reliably adjust budgets or bid caps any faster than 60 days.

Retina solution: Score all customers with eCLV to create appropriate target CPAs for each campaign.

Baseline experiment design: To demonstrate the accuracy of the eCLV developed targets, run a campaign using your current method for computing target CPAs and compare to the Retina eCLV targets. Compare target CPAs from current method and target CPAs using eCLV to actual CPAs.

Results: New CPAs from eCLV should start to line up with targets much faster than they did before, ultimately resulting in improved ROAS.

ROI Tracking

Cost Savings

Optimizing CPAs can help you waste less money and time on low-value campaigns.

Increased Revenue

Quickly optimizing target CPAs of higher value campaigns yields higher ROAS and higher conversion rates.

Opportunity Cost

Inaccurate target CPAs could cause you to spend too much on campaigns targeting low-value customers and not enough on campaigns targeting high-value customers.

How to Implement

  1. Score all customers using eCLV and pick a campaign to test.
  2. Set up A test: Aggregate LTV up to the campaign level and use 1-year CLV to set target CPA. (Note: Do not make changes > 15% to avoid drastic changes to the auction.)
  3. Set up B test: Use the current methodology to set target CPA.
  4. Run campaign.
  5. Determine whether A or B had target CPAs closer to the actual CPA and calculate ROAS.
  6. If A test performs better / produces better ROAS, apply to all campaigns