pLTV Helps Pixio Find and Retain High-Value Users

Use Case

Campaign Optimization with Machine Learning

Pixio acquired more high-value players by optimizing Facebook ad campaigns with Pecan’s pLTV predictions.

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Pixio logo

Industry: Mobile games

Company Size: 20M+ installs, including top-ranked games for Android/iOS

Solution: Acquire and retain high-value users

Platform Use Case: Campaign optimization with machine learning

31% higher

higher revenue per purchase with app event optimization for predicted lifetime value custom events, compared to usual campaign

18% higher

higher incremental return on ad spend with app event optimization for predicted lifetime value custom events, compared to usual campaign

4% lower

lower cost per install with app event optimization for predicted lifetime value custom events, compared to usual campaign

What Pixio Says About Pecan

We are very happy to have the opportunity to test and also add pLTV testing to our campaigns. The pLTV modeling allowed us to explore and test campaigns with machine learning targeting options. Our next step is to reproduce and use this approach on a larger scale, hopefully across all our campaigns.
Ricky Leung
CEO

Challenge

Pixio, a mobile gaming studio based in Hong Kong, focuses on developing casual and single-player mobile games that have gained popularity among gamers worldwide. Their hit titles include Tap Tap Trillionaire, Tap Tap Evil Mastermind, Game of Earth, and Summoner’s Greed.

After Summoner’s Greed, Pixio’s flagship title, had been available for three years, the company wanted to broaden its audience and bring in new, high-value players. 

Solution

Pixio used the Pecan platform to build a highly accurate predicted lifetime value (pLTV) model that could predict new players’ lifetime value at Day 30 based on their activity by Day 2. The team then created a Facebook app event optimization campaign using custom predictive events. The campaign specifically sought to connect with players predicted to be in the top 1% of pLTV values.

Results

To validate the incremental value of this approach, Pixio conducted lift tests in partnership with Facebook. They compared the campaign optimized with Pecan’s pLTV predictions to a business-as-usual campaign optimized with purchase events. 

Testing revealed that the campaign using Pecan’s pLTV-based predictive event optimization was more successful in attracting and retaining the high-value players who fuel long-term success. The pLTV-informed campaign saw 31% higher revenue per purchase, 18% higher incremental return on ad spend, and 4% lower cost per install.

Overall, adopting a predictive approach allowed Pixio to foresee new players’ long-term value. Predicting LTV helped Pixio advertise more efficiently to identify and retain more of the most valuable players, generating greater revenue over time.

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