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In this issue: exploring Applovin performance metrics now that we're a few months into it. 🎬

A storm is coming. We want you to be prepared. 

Many economists think a recession is on the horizon. The stock market is tanking. An unprovoked trade war is on. Is your marketing strategy prepared for this?

Join us on March 17 at 2 pm eastern for a webinar with some of Northbeam's top experts. We'll discuss:

•  How to navigate the tariffs and trade war situation
• How to adapt to a looming TikTok ban
• How to adjust for a potential recession's impact on consumers 

Register here!

Is Applovin as good as they say?

Last week, Applovin spend across all Northbeam clients was higher than YouTube spend and almost surpassed TikTok spend. But why, and how? 

The how is easy - Applovin lowered the minimum spend requirements for the ecommerce pilot to $10 million in annual revenue, meaning more brands can join and spend budget. (Interested in advertising on Applovin? Reply to this email.)

The “why” is a bit more complicated. TikTok isn’t dead yet, YouTube DOES work, and Applovin still has a long way to go. Rather than lean into hot takes designed to drive down Applovin’s stock price, let’s focus on the facts. 

Here’s some Applovin performance metrics across all Northbeam clients since October. All data is on clicks only, infinite lookback windows.  

Budget Split 

Since the ecommerce pilot launch, Applovin flew up the ranks of the “best of the rest.” Advertisers have shifted a comparable amount of budget to Applovin as they previously had to Snapchat, TikTok, and YouTube. While Applovin was popular at the start of the year, Applovin budget share has dropped somewhat and YouTube is currently in the lead. However, we’re still talking small volume here - sometimes barely six figures in spend separates these platforms. Meta and Google still dominate 80% or more of the ad budgets dedicated to digital ad platforms.

Average Daily CPMs

As more advertisers join Applovin and compete for the same impressions, CPMs are increasing. This is to be expected. We’re waiting to see where these CPMs plateau. If you are advertising on Applovin you’re likely feeling this.

Average CAC

Applovin CACs have stayed within the same range since after BFCM 2024. These are still some of the cheapest average CACs across Meta, TikTok, or any other platform, about 25% cheaper on average. To keep CACs at this level while CPMs and overall ad volume increase is a good sign.

Average Conversion Rate and ROAS

On a clicks-only infinite lookback window, it’s expected that the conversion rate and ROAS would increase over time… but only if your ads actually had an impact on your audiences. This chart demonstrates that yes, clicks on Applovin ads definitely drive conversions. The lag on conversions is unique to each client’s consideration cycle length. We’ll see how this evolves over time. We're looking for an upper plateau here as a demonstration of the limitations of ROAS and CvR on infinite windows.

Average Clickthrough Rate

This is actually looking good. It’s a decimal point higher than most of the other smaller spend platforms and our data suggests that at least last week it was better than TikTok and Meta, on average. Will this continue in the long run, as more advertisers join? We’ll see. The good news is that right now, you can be sure that your Applovin ads will drive some volume of clicks. What happens after that click is up to you, of course. 

Final words 

If you evaluate your Applovin ads on an infinite lookback window and measure clicks as a demonstration of intent, then Applovin definitely drives conversions. If these placements did not “work” as marketing efforts, we wouldn’t see ROAS and Conversion Rate increasing over time. 

Competition for ad inventory will increase over time - but so will the propensity for users to click and engage with your ads. Think about it this way: users on Meta have spent ten or more years seeing ads there. Over time, they’ve gained trust in those ad placements and built habits of clicking and buying things immediately off of Instagram and Facebook ads. It will take time for the users in Applovin’s ad inventory to build that same habit, but the early numbers look strong. 

Stay tuned as we continue to cover Applovin performance in the future! Want to get on Applovin? Reply to this email or book a demo with us.

⛳ Going to Shoptalk? Join Northbeam and Applovin for a free happy hour at Topgolf. We're giving away $10k in Applovin ad credits! 

🌱 How home-hydroponic brand Gardyn slashed their Meta spend by 70% while maintaining equal revenue. A masterclass. 

🚨 JOB: Paid Social Growth Manager // Monica Vinader // London/Remote: a hot UK jewelry brand is looking for help. Reply to this email to see the JD. 

🚨 VP Marketing Growth // Stealth Startup // NYC: a high paying B2C role in healthcare tech. 

🚨 Senior Director of Digital Marketing // P.F. Chang's // Remote: includes a prepaid meal card benefit! 

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