Find users who generate the most revenue
Cost Per Revenue is a unique model that optimizes for ROAS. Unlike CPA which optimizes for a single event, Cost Per Revenue (CPR) is event-agnostic and optimizes for total revenue (takes into account full variance of frequency and purchase amounts). CPR works best for apps with a high variance in purchase amounts and frequency.
Cost Per Revenue vs CPA
Let’s say you have two users. User 1 takes three actions, making three separate $1 purchases. User 2 takes one action, a single $10 purchase.
- From a CPA perspective, both users are equally valuable since both user made a purchase
- From a number of actions perspective, user 1 is more valuable because they made more repeat purchases
- From a Cost Per Revenue perspective, user 2 is more valuable because they generated more revenue
