Hi there,
Thanks for reaching out! I'm happy to give you some initial thoughts and guidance on your advertising challenges. Launching a fintech startup is no small feat, especially in a competitive market like London. It sounds like you're on the right track by focusing on PPC, but let's dig a bit deeper into why your current campaigns might not be converting and how to measure success effectively.
We'll need to look at campaign setup...
It sounds like your primary objective is app downloads, but it's really important to remember that a download doesn't equal a customer. You need people actually using your app, and ideally, becoming paying users. Are you tracking metrics beyond just the initial install? Things like registrations, onboarding completion rates, and active users are going to be crucial to understanding the true value you're getting from your ad spend. I remember working with a client where we saw a lot of downloads for their sports app, but it turned out that most people were just signing up to claim a free bet and never using the platform again.
Don't just optimise for the download, optimise for the conversion. This means setting up conversion tracking within your app and feeding that data back into your Google Ads account. This allows you to tell Google, "Hey, I want more people who actually register and use my app," rather than just, "Hey, get me more downloads."
Think about it this way: a download is just the first step in a much longer funnel. You need to be optimising for the *entire* funnel, not just the top of it. I remember one campaign for a software client on Google Ads where we drove over 3,543 users at £0.96 cost per user. This was only possible by tracking who was using the app and triggering key events.
I'd say you need to rethink KPIs...
ROAS (Return on Ad Spend) is definitely a metric you want to keep an eye on, but in the early stages of a startup, it can be a bit misleading. It's difficult to accurately measure the long-term value of a user within just three months. You need to look at metrics that give you a more immediate and actionable picture of your performance. Things like:
- Cost Per Acquisition (CPA): How much does it cost you to acquire a paying user? This is a more direct measure of your marketing efficiency than ROAS, especially in the short term.
- Customer Lifetime Value (CLTV): What is the average revenue you expect to generate from a customer over their entire relationship with your app? This will help you determine a target CPA that makes sense for your business.
- Conversion Rates: What percentage of users who download your app actually register? What percentage of registered users become paying customers? These metrics will help you identify bottlenecks in your funnel.
Focus on lowering your CPA and increasing your customer lifetime value. If you can achieve that, ROAS will naturally follow.
You probably should test the campaign structure...
Are you running a variety of campaign types, or are you solely focused on direct response ads? Direct response ads can be effective, but they might not be enough to build awareness and drive long-term growth. Consider incorporating brand awareness campaigns into your strategy to reach a wider audience and familiarise them with your app. Remember, you're launching a new product into a competitive market, so people need to know you exist before they can even consider downloading your app.
Split testing is also extremely important. Try different ad creatives, different targeting options, and different landing pages to see what resonates best with your audience. You may even find that a change in the creative significantly improves you CPA. Don’t be affraid to cut old ads that aren’t performing well.
Think about the customer journey. Are you guiding users through a clear and compelling path from the ad to the app store to the registration process? Make sure your ads are relevant to your target audience and that your landing page copy is persuasive and highlights the benefits of your app. I remember we helped reduce the cost per booking by 80% for a student recruitment company by simply shortening the funnel and making it more obvious what the value proposition was.
You'll need to check ad platform selection...
Make sure you're choosing the right ad platform. Google Ads is a great starting point, but it might not be the only solution. Consider exploring other platforms like:
- Meta Ads (Facebook & Instagram): Great for reaching a broad audience and targeting specific interests.
- Apple Search Ads: Target users who are actively searching for finance apps in the app store.
- TikTok Ads: Reach a younger demographic and create engaging video content to showcase your app.
Your current Google Ads campaigns might be failing because you're not reaching the right people, or because your ads aren't compelling enough. Experiment with different platforms and see which one delivers the best results for your specific app and target audience. For instance, we've driven over 45k signups at under £2 cost per signup for software, events, sports, and eLearning clients using Meta Ads, TikTok Ads, Apple Ads, and Google Ads, but the right platform depends on the product and the audience.
I've detailed my main recommendations for you below:
| Area | Recommendation | Rationale |
|---|---|---|
| KPIs | Focus on CPA, CLTV, and conversion rates instead of just ROAS. | Provides a more accurate and actionable picture of performance in the early stages. |
| Campaign Structure | Incorporate brand awareness campaigns and split test different ad creatives and targeting options. | Builds awareness, identifies winning strategies, and optimises for conversions. |
| Ad Platform | Explore Meta Ads, Apple Search Ads, and TikTok Ads in addition to Google Ads. | Reaches a wider audience and targets specific interests and demographics. |
| Conversion Optimisation | Track conversion events within your app and optimise campaigns for registrations and active users. | Ensures you're acquiring valuable users, not just downloads. |
Scaling a fintech startup in London is tough. It requires a strategic approach to paid advertising, a deep understanding of your target audience, and a relentless focus on data-driven optimisation. You're in a position now where you need to start getting things right quickly, so with that in mind, you may find it useful to have another set of eyes to look over things. If you'd like to delve deeper into your specific situation, I'm happy to offer a free consultation where we can discuss your campaigns in more detail. Just book in via the link in the bio!
Regards,
Team @ Lukas Holschuh
