Why your CPI is spiking
1.) You are going beyond 2% lookalike on Facebook
Lookalike audiences on Facebook stack rank the most relevant audience. When you target at 2%, it brings the best 2% of the entire addressable market to the top. As you scale beyond that mark, audiences become less relevant by definition and your CPI begins to rise. The best way to address this is running lookalikes in parallel with an affinity-based interest audience.
2.) Your seed audience is too narrow
Lookalikes and Device IDs both rely on a sufficient seed audience to target against. The fundamental challenge here is that if you rely on your existing install base, that represents a cross section of whom you have already had success acquiring. That leaves huge segments of potential high affinity users untapped if they don't match up with specific qualities of your existing install base.
The solution to this challenge is bringing in a larger data set that considers your complete audience. Appnique considers the entire app ecosystem to uncover correlations in affinity so you don't miss out on key segments.
3.) You are competing for a limited, highly competitive segment
Most marketers begin with the obvious and work their way out from there. That makes it very likely your targeting overlaps considerably with your competitors creating a bidding war that can hurt ROAS.
The key here is reaching new audience segments that are equally as likely to download, or the same segments through less competitive targeting parameters to accelerate growth while decreasing CPI.
Keep CPI Low, Increase Reach
Although you might be frustrated, don't throw the baby out with the bath water, so to speak. Odds are there are elements of your targeting that are working. The easiest first step is to find out what is working and build on that.
The Appnique Diagnostic tool makes it easy to measure the performance of every interest audience, discover relevant interests, and add them to a new or existing audience. Optimization is quick, easy and agile.
Complement Targeting With Affinity-Based Interest Audiences
Coupling a lookalike audience with interest audiences is a fantastic way to add scale to your campaign and raise the floor on performance. The most effective strategy for building an interest audience is an affinity-based one. In fact, you can expect to decrease CPI 25% with the right audience segment.
You can build your own affinity-based audience segments for free with a trial from Appnique. Learn more about our UA toolkit and sign up to get started right away.