CPTx Conversion Definition
The process of defining what constitutes a valuable transaction for cost-per-transaction advertising campaigns
Traditional Background
Traditional CPA campaigns required clear conversion definitions - purchases, sign-ups, downloads, etc. The challenge was tracking these actions across devices and platforms without onchain verifiability.
Web3 Evolution
CPTx requires advertisers to specifically define what on-chain actions constitute valuable conversions through behavioral onchain targeting. This could include deposits to smart contracts, token swaps, NFT purchases, governance votes, or any other measurable on-chain interaction with the advertiser's protocol.
Definition Process
Advertisers work with the advertising platform to identify the specific smart contract interactions that represent business value using onchain verifiability. The key criteria are that these actions must be performed by users who saw the ads and are not existing active users, ensuring true incremental growth and accurate CAC calculation.
Examples
Common CPTx conversion definitions include: first-time deposits to a DeFi protocol, token swaps above a minimum value, NFT mints from new wallets, liquidity provision to specific pools tracked via liquidity provider targeting, or governance token purchases for DAO marketing.
Business Alignment
The conversion definition must align with the advertiser's business model and growth objectives. A lending protocol might focus on deposit transactions tracked through TVL attribution, while a DEX might focus on swap volume from new users via transaction volume attribution.
Quality Control
Proper CPTx implementation filters out existing users to ensure campaigns drive incremental growth rather than paying for organic activity from current users, preventing airdrop farming detection issues and ensuring accurate ROI measurement.