Predictive Analysis

What is Predictive Analysis?

Predictive analysis (analytics) in mobile marketing means to predict certain events and metrics that will happen in the future; it responds to the question “What will happen?” For instance, how much LTV and ROI a marketing campaign will generate in the next 90 days.

Predictive analytics is a set of data analysis methods that allow marketers to predict future trends. Such analytics is based on historical data. As an example, if we know what revenue a certain campaign or channel has generated previously, or is generating during the last seven days, we can prognose the revenue that this campaign or channel will generate in the next few weeks.

To deal with large data volumes and to interpret them into predictive metrics, advertisers utilize machine learning tools. Machine learning increases the speed of data analytics and helps to build up predictive models.

Why is Predictive Analysis used?

Let’s imagine the daily routine of a user acquisition manager or a UA team. They use marketing budgets to run user acquisition campaigns on different advertising channels. The main goal is to attract valuable users, and to make UA campaigns profitable.

To analyze the effectiveness of marketing campaigns, they look at different metrics such as ROI, ROAS, LTV, Ad and In-App revenue. And obviously, some campaigns and channels may appear ineffective and unprofitable. So UA managers constantly try to optimize campaigns in order to maximize profit and minimize losses. But what if they could predict the performance of a campaign? It would allow them to increase revenue and stop wasting money on unprofitable campaigns. That is when predictive analytics can be used. Historical data is used to predict the performance of campaigns or channels which helps with using the advertising budget more efficiently. The more historical data you have, the better, as it increases the accuracy of predictions made by machine learning models.

As an example, in mobile marketing predictive analytics can be used to predict ad or IAP revenue, LTV, ARPU.

Can I do Predictive Analysis with Tenjin?

At Tenjin, we partnered with Growth FullStack to provide LTV Prediction for our customers. If you’re interested in exploring or learning more about our LTV prediction models (basic to advanced), reach out to us at info@growthfullstack.com.