[wadiz Targeted Advertising Report #1] Which categories performed best in Q3 2023?

This content is
Episode 1 of the <WADIZ Targeted Advertising Report>

Don't forget to take this with you!

• Over 80%🚩 of makers who successfully raised 50 million won or more for their projects used wadiz Targeted Ads.
• In the third quarter of 2023, advertising performance was particularly strong for projects in wadiz’s Leisure & Outdoor, Tech & Home Appliances, Beauty, Home & Living, and Food categories.
• Wadiz Targeted Ads are becoming increasingly effective and popular!If you’re a maker interested in learning more about Wadiz Targeted Ads, be sure to check out this content.

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"I'm using targeted ads, but
but I’m not sure if my ads are performing well or if they’re cost-effective.”

Wadiz’s advertising products are becoming increasingly popular! Among them, makers using Wadiz Targeted Ads have seen a significant improvement in their results.

For all makers curious about wadiz Targeted Ads, we’re sharing the results from the third quarter of 2023. Check out the average Q3 ad metrics and success stories by category to further boost your ad efficiency! 

*Wait a minute—if you’re still not quite sure what wadiz targeted ads are, please read the article“Advertising Was the Easiest Part #1: Understanding the Different Types of wadiz Ads” first.

With wadiz Targeted Ads in 2023 and
achieved

Wadiz Targeted Ads play a crucial role in “project reach,” helping you promote your project to more supporters. You can advertise your project to new potential supporters as well as wadiz’s core supporters.

• In Q3 2023, 41% of all projects promoted their projectsto promote their projects, and
• and over 80% of high-performing projectsachieved outstanding results through Targeted Ads for a project.

Please review the project stages
Check the performance metrics

Depending on the stage of your project, the advertising performance metrics you should focus on will vary. 

• From the phase of launching soon throughthe entireproject, be sure to monitorthe CTR (click-through rate) metric at all times.
• If you ran ads duringthe period when your product is launching soon, check theCPA (Cost Per Action), which indicates how much you spent to acquire one notification subscriber.
• Duringthe project period, monitorthe conversion rate(the number of conversions per click)andROASas keymetrics.

*If you’re not yet familiar with advertising terminology, check out the <Basic Advertising Terminology Guide>.

wadiz Targeted Ads’
ad performance for Q3 2023

How did wadiz’s overall targeted ads perform in the third quarter?

• The average CPAfor the ads that are launching soon was inthe 3,800 won range.
• The average ROASfor this project’s ads was440%.

In this post, we’ll review wadiz’s advertising performance in 2023 based on key metrics: CTR, CVR, and CPA for ads that are launching soon, and CTR, CVR, and ROAS for live project ads. We’ve also prepared detailed explanations and examples for each metric, so let’s take a closer look together!

Ad Performance by Category

Wadiz Targeted Ads are powered by machine learning. Even when ads run on the same platform, resultscan vary depending on the category, the project’s appeal, the average unit price of Rewards, and the ad creative! Results may also differ depending on the maker.

If you currently have an ad running, compare your ad’s performance to the average performance by category. This will help you see how effectively your ad is performing.

*What is machine learning?It refers to the process of analyzing data using algorithmsand making judgments or predictions based on what the system learns from those analyses. When your ad is published, the system automatically learns the most suitable audience, optimal ad display times, and placement locations to optimize your ad’s performance.

- Performance of Launching Soon Campaigns by Category -

1) User Response to Ads That Will Be Launched Soon (CTR)

CTR indicates how many users clicked on your ad, the ratio of clicks to impressions. The average CTR for ads launching soon over the past three quarters was 2.7%.

• The top-performing CTR categories included Leisure & Outdoor and Fashion & Miscellaneous,
• whilethe Classes categoryshowed a CTR in the high 1% range, which was somewhat below average.

2) Cost Per Acquisition (CPA) for Launches That Are Set to Be Launched Soon

CPA is the cost of making it The cost spent to acquire one notification subscriber for the launching soon campaign. The more notification subscribers you acquire at a lower cost, the better the performance; therefore, the lower the CPA, the better.

CPA is likely to improve as the CTR performance we looked at earlier improves. A high CTR is necessary to lower CPA. 

• In the Classes and Publishing categories, it cost an average of 6,000 to 8,000 wonwas spent,
• inthe Leisure & Outdoor category, which had the highest CTR, it was in the 2,000 won range.

3) Conversion Rate for Launching Soon (CVR)

CVR measures how many users who were directed to your ad that is launching soon how many of them clicked “Launching Soon” and how many conversions occurred relative to the number of users driven to the page . The higher the conversion rate, the more successful you’ve been in persuading users through the makers’ ads.

CVR performance cannot be improved simply by spending more on advertising or using sensational ad creatives. To increase CVR, compelling Story content is essential.

It’s also important to maintain continuity and consistency between your ad creative and the Story’s content.This is because users who visit the Story viaan adfirst decide whether your project is worth waiting for before clicking “Launching Soon.”

• In the Beauty, Food, and Home & Living categories, the average 17%–22%notification sign-up conversion rates
• , whilethe Sports & Mobility categoryshowed a conversion rate in the 10% range.

- Project Ad Performance by Category -

1) User Response to Main Project Ads (CTR)

You’ve now moved past the “Launching Soon” phase and entered the main project phase. You’re likely checking the project’s funding progress every day. On average, the CTR for main project ads is about 30% lower than that of “Launching Soon” ads.This is because these ads lead directly to payment, creating a psychological hurdle for potential supporters.

If you’re running ads during the main project phase, we recommend using ad creatives that not only hook users but also effectively highlight the product’s appeal—content that can drive users to participate in the project (and make a payment).

The average CTR for ads for this project in the past three quarters was 2.1%.

• In the Travel & Lodging, Leisure & Outdoor, and Baby & Kids categories, the CTR was above average, while
• whilethe Classes & Consulting and Publishing categoriesshowed a CTR in the high 1% range, which was lower than average.

2) Main Project Conversion Rate (CVR)

The ad conversion rate measures the percentage of users who were directed to the Story via an ad,select a keyword and proceed to checkout (Pay later). Just as with stories launching soon, if the story isn’t compelling or if the content of the story doesn’t match the ad copy, it may not lead to conversions.

For example, if the ad copy promotes “products in the 10,000 won range,” but when users actually select Rewards, they find that additional options have been added, making it impossible to participate within that price range, the conversion rate will decrease. 

Please pay close attention to ensure that supporters do not abandon the payment process because the ad copy differs from your Story.

This project in the second quarter was 3.8%.

• The categorieswith particularly high CVR for the project’s ads included Beauty, Food, Home & Living, and Pets.
• The Tech & Home Appliances and Leisure & Outdoor categories, which received a positive response, showed conversion rates in the 2% range.

3) Return on Ad Spend (ROAS) for this project

ROAS is a metric calculated as a percentage by dividing ad spend by the project’s conversion revenue. (ROAS = Ad Spend ÷ Project Conversion Revenue (*%))

If you evaluated performance using the CPA (Cost Per Acquisition) metric during the phase before launching soon, please focus on the ROAS (Return on Ad Spend) metric during the main project phase. You can track the conversion value from project participation (payments and Pay later payments) relative to daily ad spend.

• The average ROAS for this project’s ads for this project’s ads.
• In particular, makers in the Character & Merchandise, Leisure & Outdoor, and Tech & Appliances categoriesachieved exceptionally high ROAS results.

*Here’s how ROAS is calculated! Ad spend on October 4, 2023: 100,000 won Amount generated (converted) through ads on October 4, 2023: 500,000 won ∴ The ROAS for the targeted project ad campaign you ran on October 4, 2023, is 500%.

What did you think of the wadiz Targeted Ads overview presented alongside the Q3 2023 wadiz Targeted Ads Report? We hope this has helped answer some of your questions about wadiz Targeted Ads and their effectiveness.

If you’re a maker with more questions about wadiz ads, be sure to check out the content at the link below!

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<WADIZ Targeted Ads Report> Series

• [wadiz Targeted Ads Report #1] Which categories performed best in Q3 2023?
• [Wadiz Targeted Ads Report #2] Top Ad Creatives That Get the Most Clicks from Supporters✨

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