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The CPA decline curve for iGaming programmatic

Month-one CPA is not the number to plan around. This is how programmatic cost per FTD compresses as the pixel matures and the retargeting pool builds.

CPA decline curve

Programmatic
MonthShare of baseline CPAPhase
Month 1100%baseline
Month 280-90%early compression
Month 365-75%pixel maturing
Month 4-650-60%retargeting on
Month 7-1240-50%healthy pool
Illustrative programmatic curve with a healthy retargeting pool. Modelled per account, not a guarantee.

Why the curve, not the target

Judging programmatic against a month-one target CPA kills good channels early. Cost per FTD starts at a baseline, then compresses to roughly 40 to 50 percent of it by months 7 to 12 as retargeting activates. Plan against the curve, not the end-state number.

The single most common media-buying mistake in iGaming is setting a target CPA in month one and judging the channel against it two weeks later, before the pixel has matured or the pool has built. Early CPA runs 1.5 to 2 times the eventual target; that is pool-building cost, not a failing channel.

What moves the curve

The levers that compress CPA are better creative, a better landing page, tighter GEO and time-of-day targeting, frequency caps, retargeting concentration, fraud filtering and source consolidation. A healthy retargeting pool is the biggest single factor in the months 7 to 12 floor.

Questions operators ask

Does casino CPA rise or fall over time?

It falls. On a typical programmatic curve, month one is the baseline, months 2 to 3 run at 65 to 90 percent of it, and months 7 to 12 settle at 40 to 50 percent as retargeting matures.

Why is month-one casino CPA so high?

Month one is pool building, not steady state. Early CPA runs 1.5 to 2 times the eventual target while the pixel matures and creative is tested. That cost is expected and temporary.

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