Exceeding ROI by 55% by optimizing for high-value users and in-app conversions

Background

With more than 900 stores across 21 states and the federal district, Casas Bahia is one of the largest retailers in Brazil and a highly valuable consumer brand. In addition to their expansive retail footprint, Casas Bahia, which is part of the Via retail group, also boasts a massive online presence through their eCommerce site and on mobile with their popular app.

Challenge

Casas Bahia had been successfully using TikTok to drive brand awareness and were consistently improving their campaign performance ROI. Despite the good results they were achieving, they were looking to further maximize business impact by creating even more effective and engaging ads that would drive higher in-app conversion rates. 

Solution 

Testing ad performance and finding the audience that would be most likely to perform valuable in-app events was key to optimizing campaign ROI.

To tackle this, Casas Bahia began testing two optimization methods from TikTok:

1. Value Based Optimization (VBO), which targets app users with a higher average spend rate. 
2. In-App Event Optimization (IAEO), which identifies events that drive the most value and serves ads to the users that are most likely to trigger them, such as completing a purchase, regardless of the amount.

The Casas Bahia team tested these methods separately for a period of two months, leveraging the AppsFlyer measurement suite to analyze the performance of both tactics. As a result, it became clear that combining these two strategies would prove to be a winning approach, as simultaneously optimizing campaigns for value and in-app events would result in higher user LTV (lifetime value) and campaign ROI. The brand made the decision to double down on the complementarity between the optimization methods and began dividing their investments equally between the two. 

AppsFlyer enabled Casa Bahia to measure their users’ actions across every touchpoint, from acquisition and installation to in-app behavior and re-engagement. This helped Casa Bahia gain visibility into the entire path to conversion that their users take, to better understand the full journey and optimize campaign performance based on actionable insights.

Results

The new optimization strategy combining VBO and IAEO helped Casas Bahia improve their in-app conversion rate by 44%, compared to the previous two-month period when the brand was testing each method individually. Leveraging the two complementary methods helped Casas Bahia overachieve their ROI target by an impressive 55%, crowning this approach as a success.

At Via, one of our biggest challenges is to drive growth without sacrificing profitability. Together with both the AppsFlyer and TikTok teams, we have managed to find a model that generates high performance and scalability

Bruno Bolanho, Head of Performance, Via

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