At Casual Connect Tel Aviv, Product Madness UA Director Patrick Witham provided insights on how the Top-15 social casino company tackles user acquisition. “At Product Madness, we think of user acquisition as an investment.” Patrick broke down where the lifetime value (LTV) of a customer goes in this investment, noting that up to 30 percent may go toward platform fees, 15 percent may go toward operating expenses, the actual investment in UA and CPI could make up to 25 percent of a user’s LTV, and the remaining amount – up to 30 percent – is actual profit. Patrick noted that the return on investment does not come until farther down the road – sometimes anywhere from 3 months to 12 months or more. For more UA insights and tips, check out the video below.
