There have been many recent advancements in targeting capabilities, opening marketers to a new set of creative possibilities. Gone are the days when knowing only the demographics of your target audiences was enough to show them relevant creative ads. Users have become more demanding and ad creatives need granular-level personalization to be successful.
What is Ad Personalization?
Ad personalization is a creative strategy that improves advertising relevance for users. Personalized ads are based on users’ interests (e.g. cooking, sports, travel, etc.) and past behavior (e.g. engagement, purchase level, etc.), which enhance the user experience and drive higher engagement rates.
This strategy works best for retargeting campaigns. To target lapsed users on a more granular level, Aarki uses audience segments (spend level, level reached, level tries, and the user’s app activity) shared by advertisers and, depending on the segment, different messages are applied to ad creatives.
To prove the effectiveness of personalized ads, we analyzed the performance of a casual game app for 2 months.
Personalized ad creatives were leveraged to re-engage the lapsed users of the app. We segmented the users into spenders and non-spenders and targeted the spender segment with the goal to bring them back to the game and encourage them to spend their remaining coins.
Personalized creative ads were developed by intersecting specific attributes of users, such as remaining coins and the level they are stuck in, to target them granularly. They were shown specific boosters where they can spend their remaining coins and help them surpass the level they are stuck in.
- Personalized vs non-personalized creative ads
The campaign started with equal weights for personalized and non-personalized creative ads. Personalized creatives outperformed non-personalized creatives across all metrics by a significant margin. Cost per install (CPI) for personalized creative was 16% lower than non-personalized creatives, while conversion rate (CR) and install rate (IR) were 25% and 28% respectively better for the personalized creative.
Given the significant performance of personalized ad creatives, the campaign was given the allocation of 9:1 and the underperforming non-personalized creatives were removed.
From the non-personalized creatives, only the previous champion (the best performing) creative was retained to compare performance against the personalized creative. Across all segments, the personalized creative delivered significantly better click-through rate (CTR) and return on ad spend (ROAS) numbers. Notably, it delivered almost 3 times the ROAS of the former champion creative and 12.5% higher CTR.
Given the performance of personalized creative, the allocation fully moved to personalized creative ads.
- Localized vs localized creative ads
To further personalize the ad creatives, we leveraged creative localization and tracked the campaign’s performance. The personalized creative ads were translated into 25 languages and were run around the globe (excluding the US).
The localization of personalized creative has significantly improved its overall performance. We saw a significant improvement in the CPI (45% lower compared to non-localized), CR (17% higher after localizing), and IR (13% higher after localizing) numbers.
Encourage a non-spender to start spending, a regular spender to make in-app purchases more frequently, and high spenders to further increase their spend. By leveraging personalized creatives and correctly identifying user segments, you’re able to ensure users always see relevant and up-to-date ads based on the segment to which they belong.