Mastering Optimization for Campaign Success
Optimization is the art of fine-tuning your campaign strategy. It involves identifying the right cohort (a group of people sharing a characteristic) and assigning them the appropriate bid. This approach ensures that your spending aligns with user performance: higher bids for high-value users and lower bids for those of lesser value.
1. Setting and Measuring the Goals
Imagine you're aiming for a Return on Ad Spend (ROAS) goal on Day 7 from the attributed install. To measure the 'Actual' ROAS, divide the total amount of in-app purchases made by the expenditure on users who have matured to Day 7.
Next, to gauge how close you are to your goal, compare the 'Actual' ROAS with your ROAS goal. For instance, if you've achieved a 4% ROAS on Day 7 against a 5% target, your actual vs. goal ratio stands at 80%.
This indicates a need for campaign optimization to meet your KPI and ideally reach a 100% actual vs. goal ratio, thus maximizing traffic reach while maintaining performance.
2. Delving into Data for Audience Insights
Effective optimization requires a deep dive into your audience data to uncover insights in the form of cohorts with notable differences. For example, suppose you start with a default bid of $1 CPI. Upon analyzing the ROAS across different gender groups, you find that females outperform males with a 120% vs. 50% ratio.
With this knowledge, adjust your bids accordingly: increase the bid for females to $1.2 (120% x $1) and decrease it for males to $0.5 (50% x $1). These adjustments should edge you closer to your KPI goal.
3. The Importance of Patience in Optimization
A crucial aspect of the optimization process is patience. Often, it takes several days to observe the impact of your optimizations. Moreover, setting supportive, early target ages can provide early indicators of whether your strategy is on track even before the data has fully matured to the target age.
Remember, optimization is a continuous process that requires regular assessment and adjustments. By staying attuned to your data and adapting your strategy accordingly, you can significantly enhance the effectiveness of your campaigns.