Full funnel optimization is an approach that not only utilizes the upper and lower funnel, but also mid funnel events which can include registrations, sign-ups and add to carts. Using these events in an optimization model can be done in many different ways, starting with a conversion funnel analysis. This blog post is 1 of a 2 part series aiming to provide a strategic approach using a full funnel optimization methodology. In the second part of this series we will look into some specific best practices and results from our leading FinTech clients.
Mid funnel events are easy milestones that indicate app user maturity and can help predict LTV. Using this information takes your analytics and optimization to the next level. Understanding the xday CPA of events in the funnel is a key metric to understand what kind of relationship you are building with an audience driven by a certain ad.
Put simply, in order to see full funnel success, app advertisers should travel through the following four stages:
- Action – based on multiple funnel signals
- Conversion spec – launch campaigns optimizing towards top, mid and bottom funnel events.
- Re-asses – and stick to what works best
It is essential to measure the full funnel journey of the user. Analyse the events that can provide insights to success. For example – if you have 2 mid funnel events that have a very similar conversion rate – there’s no point in measuring both; they would surely provide the same level of insight. Try to focus analysis on conversion rates and CPAs of these different milestones and use the numbers to understand the progression and maturity curve of your users.
-2- Take action
Once CPA targets for different user cohorts are in place, app advertisers can start taking actions based on them. For example – iOS users in the US acquired by a value based campaign may have the following CPAs (based on their conversion funnel): Install=11; register=19; Trial start=35; Purchase=115. Users acquired by an install campaign may have a different curve. Android users, or other geos may have completely different curves. Knowing your full funnel KPIs will enable you to find pockets of users that have a better chance of hitting or over achieving your LTV goal.
-3- Conversion Spec
Once all information is accessed and understood – a diversified campaign strategy can be launched – using AEO / tCPI advanced towards multiple different events. Each channel’s optimization model works differently and optimizing towards a variety of different events will help find the best model, and will excel finding the best approach while in a high demand period (such as early-mid December).
In many cases you will find that optimizing towards a mid funnel event will end up acquiring cheaper users because there’s less competition in the specific auction, but ROAS will still be strong and stable.
The circle of life – this strategy requires monitoring as a constant. The auction environment can prove both volatile and seasonal. Different strategies drive different results throughout the year. Some of the most successful best practices are rooted in keeping the diversity alongside the main stream. As a rule of thumb, we advise keeping 10% budget on continuous testing for a variety of tactics that haven’t necessarily proven themselves successful in the past.
In our next installment, we will be taking full funnel strategy lessons from our leading FinTech clients: