Reducing CPI and Scaling iOS App Installs Through Facebook Ads

1. Problem Definition

Context

Nufa is an AI-powered body photo editor app that allows users to transform their body images with advanced editing tools. The app is available on the iOS platform and aims to expand its user base in the United States.

Problem

• High Cost Per Install (CPI) via Facebook Ads on iOS:some text
  • The average CPI was $4.00, significantly higher than the target of $2.50.
  • High competition in the "Photo & Video" category increases advertising costs.
• Low Campaign Effectiveness:some text
  • Click-Through Rate (CTR) of the ads was only 0.8%, below the industry average of 1.5% for apps in this category.
  • Click-to-install conversion rate was at 20%, leading to a low number of installs relative to the ad spend.

Our Mission

Artik Marketing Agency was tasked with turning the tide for Nufa by:

• Reducing the CPI from $4.00 to $2.50.
• Boosting the ad CTR to at least 1.5%.
• Increasing the click-to-install conversion rate to 30%.
• Growing the number of installs by 50% within six months, all without increasing the existing budget.

We were excited to dive into this challenge and leverage our expertise to deliver exceptional results.

2. Analysis and Growth Opportunities

Current Situation Analysis

Our team conducted a thorough analysis to pinpoint the root causes of the campaign's underperformance. Here's what we discovered:

• Lackluster Ad Creatives: The visuals and copy used in the ads weren't striking a chord with the target audience. They lacked the engaging elements necessary to stand out in a crowded feed.
• Overly Broad Targeting: The ads were being shown to a wide audience, many of whom were unlikely to be interested in a body photo editor app. This was diluting the campaign's effectiveness and inflating costs.
• One-Size-Fits-All Bidding Strategy: Relying on a single bidding approach was limiting the campaign's potential. There was room to explore more sophisticated strategies to optimize for better results.

Growth Opportunities

Identifying these issues also revealed exciting opportunities:

• Creative Reinvention: By crafting compelling visuals and messages that highlight Nufa's unique features, we could capture the audience's attention and interest.
• Precision Targeting: Utilizing advanced audience segmentation and Lookalike Audiences, we could reach users more likely to be interested in Nufa, enhancing engagement and conversions.
• Bidding Strategy Optimization: Experimenting with different bidding strategies could unlock greater efficiency and effectiveness in the ad spend.
• Navigating Privacy Changes with Innovation: By leveraging first-party data, we could adapt to privacy policy changes without compromising the campaign's performance.

Armed with these insights, we were ready to implement a game plan that would transform Nufa's Facebook Ads campaign.

3. Strategy and Implementation Steps

Step 1: Breathing New Life into Ad Creatives

What We Did:

We knew that to make an impact, the ad creatives had to be nothing short of captivating.

• Showcased Transformations: We developed stunning visuals featuring dramatic "before and after" transformations made possible by Nufa. These images told a powerful story at a glance.
• Engaging Video Content: Recognizing the power of video, we produced short, snappy clips (6–15 seconds) that walked viewers through the transformation process. This not only demonstrated the app's capabilities but also its ease of use.
• Compelling Calls-to-Action: We incorporated strong, action-oriented CTAs like "Transform Yourself Now!" to inspire immediate engagement.

The Impact:

The revamped creatives struck a chord. Users were drawn in by the striking visuals and intrigued by the seamless editing process showcased in the videos. This fresh approach led to a CTR increase from 0.8% to an impressive 1.6%, exceeding industry averages and our own targets.

The new video creatives were a game changer, showcasing not just the "before and after" results, but the actual transformation process with Nufa. Even in static form, as shown below, these visuals clearly convey the power and simplicity of the app, instantly grabbing attention. This approach helped double the CTR from 0.8% to 1.6%, exceeding our targets.

• Results:some text
  • CTR increased from 0.8% to 1.6%, surpassing the target.

Step 2: Sharpening Our Targeting Strategy

What We Did:

To ensure our ads reached the right eyes, we refined our targeting:

• Audience Analysis: We delved into Nufa's existing user base to identify key demographics and behaviors of the most engaged users.
• Custom Audiences: Leveraging this data, we created Custom Audiences based on website visitors and users who had interacted with Nufa's content.
• Lookalike Audiences: We expanded our reach by creating 1% Lookalike Audiences, finding new users who shared similarities with Nufa's best customers.
• Exclusion Lists: To optimize spend, we excluded users who had already installed the app, preventing unnecessary ad impressions.

The Impact:

These targeting enhancements led to a significant uptick in performance:

• Click-to-Install Conversion Rate soared from 20% to 32%.
• CPI dropped from $4.00 to $2.60, bringing us closer to our goal.

By connecting with a more receptive audience, we improved efficiency across the board.

Step 3: Experimenting with Bidding Strategies

What We Did:

Understanding that bidding strategies can make or break a campaign's efficiency, we explored new avenues:

• Optimization Goal Testing: We tested different campaign objectives, such as optimizing for app installs versus in-app events like registrations and subscription purchases.
• Automated Bidding Adoption: We transitioned from manual bidding to Facebook's automated bidding with App Event Optimization, allowing the algorithm to optimize for the highest value actions.

The Impact:

These adjustments paid off:

• CPI further decreased to $2.40, achieving our target.
• ROAS increased by 35%, indicating a healthier return on our advertising investment.

Our willingness to innovate and adapt the bidding strategy directly contributed to these gains.

Step 4: Adapting to Privacy Policy Changes

What We Did:

With evolving privacy regulations, particularly Apple's ATT framework, we needed to ensure continued effectiveness:

• Aggregated Event Measurement: We implemented Facebook's solution to track and measure events while respecting user privacy choices.
• First-Party Data Utilization: By using data collected directly from Nufa's app and website, we enhanced our targeting without relying on third-party cookies.

The Impact:

• Stabilized Conversion Tracking: We maintained accurate measurement of key conversions, essential for ongoing optimization.
• Consistent CPI Maintenance: Kept CPI within the $2.40–$2.50 range despite industry-wide challenges due to privacy changes.

Our proactive approach ensured that privacy policy shifts didn't derail our progress.

Step 5: Continuous Optimization and Scaling

What We Did:

Success in digital marketing is rarely set-and-forget. We committed to ongoing refinement:

• Regular Reporting: We established weekly reports to monitor performance metrics closely.
• Agile Adjustments: Underperforming ads were promptly paused, and successful ones were scaled up to maximize impact.
• A/B Testing: We continuously tested new creatives, audiences, and messaging to keep the campaign fresh and effective.

The Impact:

• Install Growth: We achieved a 55% increase in installs over six months, surpassing our initial goal.
• Budget Efficiency: All these gains were made without increasing the ad spend, showcasing our ability to do more with the same resources.

Our dedication to meticulous optimization was key to sustaining and amplifying the campaign's success.

4. Results and Metrics

Key Performance Indicators Before and After the Campaign

Financial Metrics

• Revenue from Subscriptions and In-App Purchases:some text
  • Before Campaign: $90,000 per month.
  • After Campaign: $122,062 per month.
  • Increase of 35.6%.
• Marketing Expenses:some text
  • Before Campaign: $60,000 per month.
  • After Campaign: $58,125 per month.
  • Savings of $1,875 per month.

6. Conclusions and Next Steps

Successes

• Achieved Target CPI of $2.50, reducing it by 37.5%.
• Doubled CTR, leading to a higher number of quality clicks.
• Increased Click-to-install Conversion Rate by 60%, improving the efficiency of the sales funnel.
• Boosted Installs by 55% without increasing the budget.
• Enhanced ROAS by 40%, indicating more efficient use of ad spend.

Recommendations

1. Continue Creative Optimization:some text
   • Regularly update and test new visuals and messaging to maintain audience interest.
2. Expand Use of Lookalike Audiences:some text
   • Create audiences with 2–5% similarity to reach a broader yet still relevant audience.
3. Invest in Additional Advertising Channels:some text
   • Consider launching campaigns on Instagram Ads and other Meta platforms.
4. Deepen User Behavior Analytics:some text
   • Use analytics tools to track in-app behavior and further optimize monetization strategies.
5. Adapt to Privacy Policy Changes:some text
   • Continue leveraging first-party data and explore new ways to effectively target users while complying with privacy regulations.

7. Conclusion

Our collaboration with Nufa is a testament to the power of strategic thinking, creative innovation, and relentless optimization. By addressing the initial challenges head-on, we transformed their Facebook Ads campaign into a high-performing growth engine.

• Exceeded Performance Goals: Not only did we meet all the set objectives, but we also surpassed many of them, delivering exceptional value.
• Demonstrated Expertise: Our ability to adapt to market conditions, innovate creatively, and optimize relentlessly showcased the depth of our expertise.
• Fostered Growth: Beyond the metrics, we contributed to Nufa's overall growth, enhancing their market position and financial performance.

Through a strategic approach, we surpassed the set goals:

• Reduced CPI to the target level of $2.50.
• Increased CTR to 1.6%, exceeding the industry average.
• Enhanced the conversion rate from click to install to 32%.
• Increased installs by 55% without additional budget.
• Improved ROAS by 40%, ensuring revenue growth and campaign efficiency.

At Artik Marketing Agency, we’re passionate about helping our clients succeed. This case study reflects our commitment to excellence and our belief in the transformative power of smart, data-driven marketing.