What is Bonus Cost？
Synonyms:
| Category | Chinese | English |
|---|---|---|
| Common Term |
红利成本 |
Bonus Cost |
| Industry Term | 促销成本 | Promotion Cost |
Definition
Bonus Cost refers to the actual expenditure incurred by a platform through the issuance of bonuses, rebates (cashback), or promotional activities. This metric is used to evaluate the Return on Investment (ROI) of marketing campaigns and helps the platform optimize activity strategies. By analyzing the relationship between bonuses, new turnover (handle), and retention rates, operators can determine if an activity is profitable.
Mechanism
The system statistically tracks the bonuses issued versus the corresponding revenue generated to calculate the cost-to-income ratio.
Common Sources / Related Factors
- First Deposit Bonus: Incentives for a user's initial funding.
- Rebate / Cashback: Returning a percentage of bets or losses to the player.
- No-Deposit Bonus: Credits given without requiring a deposit.
- Holiday Promotions: Special event-based incentives.
- Agent Rewards: Commissions or bonuses paid to affiliates.
Value in the iGaming Industry
It is used to optimize activity investment and maintain strict control over marketing expenditures.
Common Misconceptions
| Misconception | Correct Understanding |
|---|---|
| The more bonuses, the better. | Costs must be controlled to ensure sustainability. |
| Bonus costs are fixed. | They fluctuate based on the specific activity and player behavior. |
| Bonuses are equivalent to losses. | They can drive long-term value and player loyalty. |