Ampush Finds CPA Bidding for Mobile Apps Lowers Costs by As Much As 66%

Ampush Finds CPA Bidding for Mobile Apps Lowers Costs by As Much As 66%

December 5, 2013

Our clients often operate within crowded, hypercompetitive markets where finding new audiences at scale can be difficult. Advertisers within these markets are always challenged to keep customer acquisition costs at a minimum through the right combination of offer, creative, ad type, and targeting. Through the AMP 2.0 Marketing Platform, we are able to test all available bid types, compare hundreds of creative iterations and copy, and target thousands of permutations of audience groups through one of the premier digital advertising channels: Facebook.

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Mobile app install ads (MAIAs) on Facebook allow advertisers to drive new installs and users to their apps effectively. Mobile app install ads are uniquely suited to acquiring new users because they target and engage tech-savvy, mobile users with a proclivity towards using new apps. Facebook recently began rolling out Cost Per Acquisition (CPA) bidding for MAIA. Ampush’s initial results for CPA bidding on MAIA within the travel, retail, and dating verticals showed remarkable improvements in Cost Per Install (CPI) and conversion rates when compared to optimized Cost Per Impression (oCPM) and Cost Per Click (CPC) bidding. In initial testing, CPA bidding lowered CPI by as much as 66%.

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Overview

We compared CPI for mobile apps while using CPA, oCPM, and CPC bidding. For all groups, the objective in AMP 2.0 was set to driving new users at the best possible acquisition cost, while targeting audience groups most likely to make in-app purchases and have a high lifetime value. CPA bidding and, in some instances, day-parting (running ads during hours when people are most likely to download or use the app) strategies were successfully combined to further drive down CPI costs. CPA bidding showed lower CPC, higher CTR, and thus lower Cost Per Install, the key metric for this comparison.

Results

  • 65% lower CPC across retail, travel, and dating verticals with CPA bidding compared to CPC and oCPM bidding
  • 19% higher CTRs with CPA bidding over CPC and oCPM bidding
  • 51% lower CPIs with CPA bidding than with CPC and oCPM bidding

When a client’s goal is the best acquisition costs, CPA bidding appears to be the most effective bidding type. CPA bidding is expected to be rolled out broadly across all campaigns utilizing MAIA, and we look forward to utilizing this bidding type in order to drive a higher ROAS for our clients! CPA bidding is yet another example of Facebook’s commitment to innovation and making its platform the best channel to reach your audience, anytime and anywhere. Ampush will continue to test new Facebook ad products and features to drive the most value from its platform, in support of our clients’ business goals.

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