The Challenge
Acquire high-LTV shoppers at scale
With numerous shopping apps in the market, zeroing in on users who will make purchases, rather than window shop, is key for offsetting acquisition costs and growing revenue. For OTTO, UA success hinges on achieving a high install-to-order rate and average order value, ultimately maximizing ROI.
OTTO is Germany’s largest online shopping platform, with over 17 million products including apparel, furniture, electronics, and more. Users can access exclusive offers and deals from a huge number of top brands, all in one place.
Location
Hamburg, Germany
Company Size
6,000
Founded
1949
The Solution
AppDiscovery accurately targeted users who deliver strong ROAS
OTTO is interested in profitable UA, which comes in different shapes and sizes—particularly because OTTO’s shopping app offers products in many categories, spanning a range of price points. They want high-value users that will purchase expensive products, as well as a high marketplace share-of-voice, which entails acquiring lower-value shoppers at scale.
AppDiscovery helped OTTO achieve their holistic growth goals with a multi-campaign strategy that includes Cost per Install (CPI) and Cost Per Order (CPO) campaigns to acquire shoppers at scale, as well as ROAS campaigns that seek out the biggest spenders. OTTO was able to run these campaigns with minimal upfront learning costs, and because the campaigns are automated, they required very little manual intervention. The success of these campaigns was propelled by a high-impact custom playable ad produced by SparkLabs, AppLovin’s in-house creative agency.
With this approach, OTTO was able to capitalize on their full potential for profitable scale and high ROAS.
The Results
OTTO tapped into a strong source of profitable users
82%
Increase in D7 ROAS1
185%
Increase in install volume7
AppDiscovery efficiently found and converted users who elevated OTTO’s average order value. As AppDiscovery’s AI-based advertising engine continued to learn and adjust, D7 ROAS increased 82% over the course of the year.
Seeing this strong performance, OTTO significantly increased their spend on the platform, resulting in nearly a 3x increase in new customers from their AppDiscovery campaigns. The resulting scale was impactful: the CPO campaign on iOS brought in 2x the number of new customers as the average of OTTO’s UA channels.3
In Summary
Significant source of high LTV users
AppDiscovery consistently delivered users who elevate the average order value, and the CPO campaign delivered twice as many new customers as the average of OTTO’s UA channels.
Hit goals with increasing efficiency
Due to AppDiscovery’s powerful targeting and learning capabilities, OTTO was able to quickly reach their ROAS goals at a growing scale.
1
AppLovin: Jan 1–31 to Oct 1–31, 2023
2AppLovin: Jan 1–31 to Oct 1–31, 2023
3AppLovin: Aug 23–Sept 3 to Sept 11–17, 2023
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