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How to increase advertising ROI for Fintech?

30 April

In the fintechverse (yes, I said it) where innovation and financial technology go hand in hand, advertising plays a crucial role. However, in this highly competitive digital ecosystem, jumping into the advertising pool without a plan can result in an unconscionable investment with minimal returns. This is where increasing ROI (Return on Investment) becomes the guiding light for companies towards advertising efficiency.

 

Advertising in fintech: the importance of ROI

ROI not only measures the success of our advertising campaigns; it is a direct reflection of how effectively a fintech company is utilizing its resources to not only capture attention but also convert that attention into tangible results. In such a specific and sometimes saturated sector like fintech, maximizing return on investment is not just a goal but a necessity.

Understanding how to increase ROI in fintech advertising is key to avoiding this expenditure from becoming a black hole with unclear returns.

Now, let’s see how we can maximize return on investment with some proven tips and best practices.

 

Tips to increase ROI in the Fintech sector

Maximizing return on investment in advertising within the fintech sector requires a well-thought-out strategy executed with precision.

  • Tip 1: Build a message that converts

    The first step to increase ROI is to take care that the message you are bringing to your audience is of value. To do this you must first understand which elements of your value proposition solve your audience’s main pain points. When you have that clear define what you want to say.

    Finally, build a set of variants that allow you to test different message alternatives in all formats, video, image and audio. Plan from the beginning which variables you will test and develop this testing process in an orderly and planned manner. In this way you will be able to obtain very important learnings about what is relevant to your audience and what is not.

  • Tip 2: Optimize your campaigns for conversion

    It’s not enough to drive traffic to your website or application; you must convert that traffic into concrete actions. Conversion funnel optimization can mean the difference between a campaign that simply generates interest and one that generates tangible results.

    In order to optimize campaigns towards a desired conversion, it is key that you include in your planning the resources of a Data Science team specialized in tracking and attribution. With these resources you will be able to configure the triggering of events along your conversion funnel.

    This set of signals or triggers is what will feed the learning of your campaigns, and guide them to maximize the impact for a given volume of advertising investment.

    We recommend going small, with upper-funnel conversion events at the beginning, and as your “bag” of events grows, move towards low-funnel, directing your campaigns towards the most important goal of all.

  • Tip 3: Analyze and adjust in real time

    The fintech world moves fast, and so should your advertising strategy. Use analytical tools to monitor the performance of your campaigns in real time and don’t be afraid to make adjustments on the fly. The ability to respond quickly to data and optimize your campaigns can be the key to maximizing return on investment.

    For this, you must build a real-time results analysis system. There are various ways to achieve this since the technological stack to be used may vary depending on the nature of your product. Make sure to at least have a good attribution tool such as Google Analytics, or Adobe Analytics in the Web world, or Appsflyer or Singular in the Mobile world.

    Based on the information provided by these platforms, you must cross-reference the different data sources: Investment and event triggering. And with this aggregated information, you can build almost any metric you want to monitor.

    If you want to have an expert team in this, you can contact us to implement the Boomit One Analytics solution in your business, which solves all these points.

  • Tip 4: Explore different channels and formats

    Not all channels will work the same for all fintechs. Experiment with different channels and ad formats to see what works best for your audience. Diversification can help you reach more potential customers and identify the most profitable strategies.

    Adding more channels and diversifying your strategy will allow you to reduce risks and instabilities in your results. Advertising channels are not stable; they have multiple factors that can affect advertising campaigns.

    In the Fintech sector, it is very common to receive automatic penalties from algorithms that detect non-compliance with financial policies. You must be prepared for this, and good diversification can help reduce the impact of these unpredictable events.

    Additionally, as you add new channels, you can avoid the effects of saturation. There are multiple banking and fintech companies bidding for the same advertising space. While you avoid being in highly competitive environments, you can reduce costs and therefore increase your ROI.

 

Good practices

To ensure not only the success of your advertising campaigns but also the maximum return on investment, consider these best practices:

  • Focus on quality over quantity: It is better to have fewer high quality clicks than an avalanche of traffic with no interest in converting. Make sure your campaigns are targeted to people who are genuinely interested in the financial services you offer.
  • Harness the power of analyticsTools such as Google Analytics, Appsflyer, and Adjust offer deep insights into user behavior and campaign effectiveness. Use this data to make informed decisions and adjust your strategies.
  • Create valuable contentContent that educates, informs, or entertains can significantly improve engagement and brand awareness. This, in turn, can increase conversions and ROI.
  • Keep constant track of ROIEstablish systems to track return on investment on an ongoing basis. This not only helps you justify your advertising spend, but also allows you to quickly identify areas for improvement.
  • Constant innovation: The fintech industry is constantly evolving, and your marketing strategies must evolve with it. Stay on top of new trends and technologies to keep your campaigns fresh and effective.

FAQs

Question 1: How much should I spend on advertising to see a positive ROI?

  • There is no exact figure that applies to all fintechs, as it depends on multiple factors such as your target market, competition and the effectiveness of your campaigns. The important thing is to start with a budget based on clear objectives and adjust according to results.

Question 2: How do I know if my ROI is good?

  • A positive ROI means you are getting more in revenue than you spend on advertising. The specific figure varies, but an ROI of 5:1 is considered strong in many industries, including fintech.

Question 3: Is it better to concentrate on a single advertising channel?

  • While some channels may perform better than others, diversification is key to reaching your target audience through different media. Monitor performance and adjust your strategy as needed.

ROI: your ladder to success

Do we agree, then, that a well-executed advertising strategy focused on increasing ROI is one of the most powerful drivers for growth in the fintech sector? Done carefully and effectively, it has the ability to convert interested users into passionate advocates of your brand. The secret lies in finding the perfect balance between innovation, personalization and relevance.

Wondering how to effectively implement all these tips to maximize your ROI? This is where we come in!

This article need not be your only resource. If you are looking to develop a customized strategy that not only resonates with your audience, but also drives your business forward, you can contact us, and together we can figure out how to propel you forward in your work by supporting you with ours.

 

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