CPA rises in post-pandemic period
BOTB, the provider of online spot-the-ball prize competitions, has given some interesting information into the costs of acquiring players during the COVID-19 pandemic.
In reporting its interim results, the company stated that “it is now also becoming apparent that the business benefitted more than originally assumed from a tailwind during the Covid period, whilst much of the country remained in lockdown with restricted movement, travel, entertainment and other retail opportunities.”
BOTB has also explained that the cost of acquiring customers in 2021 has “increased significantly above pre-pandemic levels”.
It puts the increasing costs down to a few factors:
• Businesses across all sectors increasing their online marketing budgets as the lockdowns end
• The increased speed of transition away from traditional retail to e-commerce
• As a result, social media companies have been able to “materially increase” the cost of advertising impressions (CPM) on their platforms.
BOTB’s average quarterly CPA has more than doubled when comparing Q4 21 to Q1 2019, after dropping during the lockdowns of 2020.
Furthermore, BOTB revealed that the changes introduced by Apple’s iOS14 operating system have “undoubtedly reduced the accuracy of our targeting and thereby the efficiency of our marketing, albeit it is hard to precisely quantify the effects at this stage”.