How Lotum used Kohort's platform to profitably scale User Acquisition and launch into new markets

Lotum, makers of 4 Pics 1 Word, faced challenges in forecasting long-tail retention and monetization. Kohort helped them scale UA spend by 55% and increase revenue by 15%.

55% increase in UA spend · 15% increased revenue · 10% increased profits

Lotum, a German mobile gaming company, was facing challenges in accurately forecasting long-tail user retention and monetization, hindering their ability to scale marketing spend with confidence for their popular game 4 Pics 1 Word. They were also looking to expand into new international markets but lacked the necessary data insights to support the launches.

Key Contributions

Accurately forecasting active users, retention, and monetization for newly launched products and segments

Kohort's segmented modeling provided the ability to infer long-term retention and monetization trends for Lotum's new segments, allowing for more accurate forecasts even with limited available data. Using a customized user dashboard, Kohort quickly provided deeper insights than initially anticipated, enabling Lotum to make informed decisions on UA spend for 4 Pics 1 Word.

Applying forecasted LTVs on a per-segment basis to guide UA spend

By learning from every segment's historic behavior, Kohort's models generated new player Lifetime Value (LTV) curves as soon as Lotum's data went live on the platform. This allowed Lotum's UA team to strategically allocate spend based on current LTV vs. CPI, with clear visibility into key ROAS payback periods. Kohort's automated spend suggestion report, refreshed daily, played a crucial role in ensuring that Lotum could maximize profitability by balancing UA spend across various networks and geographic segments.

Understanding the impact of transitioning between campaign types

Kohort provided critical insights that helped Lotum assess the effect of shifting to a new type of user acquisition campaign for 4 Pics 1 Word. Kohort demonstrated that these new campaigns were bringing in higher-value users, resulting in increases in both monetization and retention. While the cost per acquisition was higher, the increase in ARPDAU (Average Revenue Per Daily Active User) across segments made the shift worthwhile.

Proactive AI-powered insights

Kohort introduced an AI Insights feature that enabled Lotum to identify trends and patterns in their data that may have otherwise been missed. The proactive notifications and summaries of key metric changes allowed Lotum to stay ahead of potential issues, improving their ability to make timely decisions and optimize performance.

Key Results

• 55% increase in UA spend over 3 months with confidence
• 15% increase in revenue from 4 Pics 1 Word
• 10% increase in profits driven by higher-quality user acquisition
• Helped drive positive ROAS growth by targeting high-performing users
• Enhanced LTV insights through segment-level models and bespoke dashboards
• Rapidly identified segments with high scaling potential across countries, platforms, and networks

Profitably Scaled Into New Markets

Kohort helped Lotum scale User Acquisition and launch successfully into new markets, which led to an increase in UA spend, revenue and profit. Kohort's deep expertise in game data analytics and user acquisition strategies helped guide Lotum through scaling efforts, both in terms of entering new markets and refining their UA strategies.