Serialized audio entertainment comes with unique challenges in user acquisition. Many potential users drop off when they realize PocketFM offers audio content rather than video.
To address this, the product team at PocketFM introduced 15-minute audio ads, a creative solution that engages the users in the content itself. This approach shifts the focus from format to storytelling, creating stronger user intent and significantly enhancing conversions.
The product manager and the team are featured as one of Upraised's top 50 Game Changers in 2024.
The Problem: Balancing CAC and LTV in User Acquisition
User acquisition for serialized audio platforms like PocketFM involves unique hurdles:
- Content Misalignment: Traditional marketing campaigns often attract users expecting video content, leading to drop-offs when they discover it’s audio-based.
- High CAC and Low Retention: Attracting users through generic ads results in high customer acquisition costs (CAC) and low lifetime value (LTV).
- Engagement Challenges: Without an immediate hook to the content, users often lack the intent to explore further.
The product team at PocketFM needed a solution that could lower CAC while simultaneously increasing LTV by driving genuine interest in its storytelling.
The Solution: 15-Minute Long-Form Audio Ads
The product team at PocketFM changed the user acquisition playbook by introducing 15-minute long-form audio ads that allow users to sample a story before making a commitment.
Key Features of the 15-Minute Audio Ads
- Content-Centric Approach: Ads engage the users in a 15-minute sample of serialized audio content, focusing on the strength of the story rather than the format.
- Strategic Cliffhangers: Each ad ends with a compelling cliffhanger, building strong user intent to continue the story.
- Seamless Transition to App: Users can easily continue the story on the PocketFM app, creating a frictionless onboarding experience.
- Data-Driven Story Selection: Stories chosen for ads are optimized for high engagement, to make sure the content resonates with users.
Impact: Transforming Acquisition Metrics
The 15-minute audio ads have delivered remarkable results, driving both user acquisition and retention:
- Increase in Conversions: Engaging users in the story ensures higher conversion rates, as they’re already engaged before downloading the app. This increases conversion by 2X.
- Boost in Net LTV: By attracting users genuinely interested in the content, the feature has significantly improved lifetime value. Net LTV increased by 2.5X.
- Enhanced User Engagement: Users acquired through this approach spend more time on the platform, exploring additional content.
The Team Behind the Innovation
Utsav Poddar: Director-Growth-US, PocketFM
Utsav saw the CAC increasing for PocketFM for users acquired from traditional marketing channels as they weren’t filtered for intent to consume audio content.
He then launched 15-minute-long ads featuring blockbuster series that end on cliffhangers. This format captured users’ interest and converted high-intent users with higher LTV on the platform.
As a part of Upraised’s Game Changers, we're on a mission to celebrate high-impact problem solving & celebrate the individuals who brought these innovations to life.
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