A/B testing

Find new growth opportunities with Nero’s A/B testing feature

Nero is the first mobile DSP that makes it easy for marketers to determine which bidding strategy will have the greatest impact on their campaigns. Using the Nero platform, advertisers can set up, test, and preview performance for an infinite number of bidding strategies to find new growth opportunities and more efficiently spend their media budgets.

We’ve gathered below three examples to highlight how some of our partners have used the Nero A/B testing feature to quickly pivot their bidding strategy to deliver against their performance goals.

Drive scale

Knowing when and how to scale a campaign takes time and money and one of the best times to reach more potential customers is when a campaign is performing over target.

LifeStreet was driving 120% ROAS for a client but the client’s goal was to increase long-term revenue. Instead of continuing to optimize towards short-term profits, LifeStreet decided to test a new bidding strategy that would use the positive growth to scale for higher, long-term gains.

An A/B test was set up that weighed the new bidding strategy against the original strategy 50/50.

Results

LifeStreet succeeded in scaling the client’s campaign and saw a:

  • 4.75x increase in spend
  • 49% increase in total ROAS
  • 700% increase in total revenue
Increase ROAS

A testing environment where advertisers can experiment with and evaluate their bid strategy is crucial for finding incremental revenue opportunities.

LifeStreet’s client wanted to increase ROAS for a campaign without negatively impacting its current ROAS-positive performance. With Nero’s A/B testing feature, LifeStreet was able to test every model and creative change against smaller percentages of traffic.

Bidding strategies that did not improve performance were immediately paused. Conversely, only when performance improved, were new bidding strategies applied to 100% of inventory.

Results

Each and every A/B test helped LifeStreet quickly determine the quantity and quality of traffic a particular bidding strategy would deliver. This led to a:

  • 28% increase in ROAS
  • 47% increase in spend
Minimize Risk

It is standard practice to exclude apps and app categories that yield negative ROAS. But since a model’s predictive power can increase or decrease due to changes in the digital environment, it should not be assumed that particular pockets of inventory will always perform poorly.

When a new model was built for a client that yielded better performance results, LifeStreet considered the possibility that the new bidding strategy had the potential to find the right users across the previously blocked inventory. LifeStreet reevaluated its current targeting parameters by removing all of the original campaign’s optimizations and tested the new model on 10% of traffic.

Results

LifeStreet was able to test its hypothesis without wasting ad spend. The test revealed that some of the previously excluded apps and categories generated higher ROAS, while others continued to perform poorly. The initial results triggered a second test that included only those apps and categories with positive ROAS.

The result of the second test saw ROAS improve and LifeStreet was able to scale the campaign across new inventory sources.

Looking for a partner to help you meet your growth goals?

LifeStreet’s team of programmatic UA experts understand the needs of performance marketers. Schedule a meeting with us to better understand the value of user acquisition with Nero’s A/B testing feature.

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