Non-gaming, Performance Marketing
The Way to UA: Customer Acquisition Cost, Simplified
Doug Borghese
Dec 19, 2023
Dec 19, 2023
Non-gaming, Performance Marketing
In order to ensure acceleration of growth through mobile user acquisition, innovation is crucial. AppDiscovery has been helping developers hit their UA goals for years, but its recent AI advancements have allowed our partners to achieve their goals with greater accuracy and speed on an exponentially larger scale while saving them valuable time.
We’ll be highlighting the different opportunities businesses saw to level up their performance campaigns and how they harnessed AppDiscovery to help them accomplish their goals. Let’s get started.
In the fintech industry, achieving optimal Customer Acquisition Cost (CAC) efficiency is an important goal. This is because CAC directly impacts profitability and guides the appropriate allocation of marketing resources — especially when the ROI is strong — ensuring sustainable growth in a competitive market.
A fintech company working with AppLovin faced a significant challenge with their app: Their purchase event data required at least three days to mature, resulting in performance latency. This delay in data maturation hindered their ability to optimize CAC effectively.
The company’s strategic response was to partner with AppLovin’s suite of solutions to achieve their goal of achieving high ROI and optimizing their customer acquisition cost:
Realistic Goal Setting: The company leveraged AppDiscovery’s AI algorithms to calibrate their campaigns until it found a balance between scale and CAC efficiency, and the CAC goal was set dynamically around that balance. After having found a checkout event that’s more upper funnel and enjoys no latency, AppDiscovery used that as a proxy event to optimize and target users who are more likely to complete the CAC event.
Multi-campaign strategy: The company employed Cost Per Purchase (CPP), Cost Per Engagement (CPE) and Return on Ad Spend (ROAS) campaign types to balance immediate engagement metrics with long-term ROI considerations.
Creative enhancement: AppLovin’s in-house creative team extended the company’s existing video ads to 30 seconds. This not only improved viewer engagement, but also boosted Install Rates (IR), making the ads more memorable and ROI positive.
The integration of AppDiscovery led to significant improvements:
Stabilized CAC: This approach afforded the company a more stable CAC, aligning closely with their set bids and reducing fluctuations.
30% Improvement in CAC Efficiency: The strategic use of AI for targeting and bid optimization led to a 30% increase in CAC efficiency, allowing the company to acquire customers more cost-effectively.
3x increase Install Rate: The longer, more engaging video ads tripled the install rate, demonstrating the effectiveness of well-crafted, data-driven ads.
The company’s success story is a testament to partnering with AppLovin to leverage massive reach and cutting-edge technology to overcome data challenges and enhance marketing efficiency. For FinTech companies, along with any other vertical and non-gaming UA needs, AppLovin’s AppDiscovery platform offers a robust and innovative solution.
