What's the Reason for Low RR and Bad ROAS for App Install Campaigns in FB? (4)
What's the Reason for Low RR and Bad ROAS for App Install Campaigns in FB?
Hi Fam,
As a FB ads newbie, I work as a User Acquisition manager for a game developer. I'm now running campaigns on Facebook ads for an Android Slots game in the US. However, the campaigns are always ROAS negative.
This game is still new in the market. We tried to acquire users a few times but it has never been ROAS positive. We tried various targetings: Interest, LAL and high value audience suggested by FB. Also, I used to run App install, AEO and Value optimization, but none of them seems to work. Our Day 30 ROAS is about 20%~30%. The Day 1 Retention rate 33% and Day 7 RR 8%. I guess the low RR could be a shortcoming for this game. We could see IAP in the first few days when new users come in but after that the IAP never increase.
Now my boss asked me to make a new User Acquisition plan because of low ROAS. I'm really puzzle and frustrated. I'm not sure what's the cause for this. Is it because our game is not good enough or is it because my User Acquisition strategy is wrong. Can someone tell me how can I find out the reason for low ROAS and RR?
Thanks.
Hi fuyulianmeng,
did you compare FB KPIs to Organic traffic?
Is organic traffic much better or it's the same?
IMO D1 33% is OK, but D7 RR 8% is quite bad and in most cases it has nothing to do with the user acquisition. D7 RR tells you how users actually like the game.
The best way to determine quality of the paid UA campaign is to compare KPIs to organic traffic.
Regarding the RR it's about testing hypothesis, gathering data and testing different approaches to increase the RR. For example ... your current RR is 8% then you implement push notifications and add some social interaction and then compare different user cohorts and see the output.
BTW - which in-app analytics software are you using?
Cheers,
wakeboarder
Originally Posted by wakeboarder
Thanks for comment.
I did compare the performance from both Paid installs and Organic installs. If we look at the RR, Day 1 RR from Paid installs are 4% better than Organic installs. Day 7 RR is quite close but still Paid installs have better Day 7 RR than Organic.
The weird thing is, if we check the Day 7, Day 14 and Day 30 Arpu, Organic installs have much better Arpu(Day7,14&30) than paid installs. I think once cause for this is that installs from FB campaign with "APP install" optimization goal has really low Payment rate.
Regarding your suggestions for increasing the RR, I think it's a good approach. I'll talk with R&D team about it.
We're now using both FB Analytics and AppsFlyer.
Thank you.
Hey fuyulianmeng,
Wakeboarder gave a good approach. Also, you can probably go back to your data and make sure they are significant without any bias.
Maybe you can also use qualitative analytics in addition to quantitative tools you are using now to study the user behavior from each traffic source. Based on that, you can optimize targeting/bidding strategy/creative to improve your KPIs.
Hope it helps.
FaceOnAsia
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