{"id":18749,"date":"2023-03-13T02:40:00","date_gmt":"2023-03-13T02:40:00","guid":{"rendered":"https:\/\/apptopia.com\/en\/insights\/growth-plateau-how-sephora-grew-like-temu-without-the-million-dollar-budget\/"},"modified":"2023-03-13T02:40:00","modified_gmt":"2023-03-13T02:40:00","slug":"growth-plateau-how-sephora-grew-like-temu-without-the-million-dollar-budget","status":"publish","type":"insight","link":"https:\/\/apptopia.com\/en\/insights\/growth-plateau-how-sephora-grew-like-temu-without-the-million-dollar-budget\/","title":{"rendered":"Growth plateau? How Sephora grew like Temu \u2013 without the million dollar budget"},"content":{"rendered":"\n

The optimal Ad Network mix can serve up user acquisition acceleration.<\/em> It’s how Temu doubled its month-over-month (MoM) growth rate in its third month from launch. It’s also how Sephora broke through its growth plateau and grew 61% quarter-over-quarter (QoQ) in Q4 \u2013  its highest QoQ increase in 5 years.<\/p>\n\n\n\n

The ad intelligence on Temu and Sephora in Q4 show us easy-to-follow experimentation. While Mixed Media Modeling is an excellent process for automating advertising optimization, when you need clear answers, you don’t want to over-complicate the equation. <\/p>\n\n\n\n

Here’s what Sephora’s simple experiment looked like in Q4:<\/p>\n\n\n\n

1. Finding out what ad network top-performing competitor Ulta used.<\/p>\n\n\n\n

2. Turning off campaigns and creatives with the one ad network that had run its top-performing ads<\/strong> for years.<\/p>\n\n\n\n

3. Reallocating spend to the new ad network to run a simple creative.  https:\/\/flo.uri.sh\/visualisation\/12082534\/embed<\/p>\n\n\n\n

The 61% jump leapfrogged Ulta’s 40% growth during the busy holiday shopping season. What’s more is that Sephora had sequential monthly active user (MAU) growth at its highest QoQ growth rates when it made the switch: +25% QoQ in Q4 <\/strong>and +35% QoQ in Q1 2023.<\/strong><\/p>\n\n\n\n

This indicates stronger funnel stage conversion<\/em> from the ads.<\/p>\n\n\n\n

Despite its infamously high budget, Temu takes a similar approach. Taking a focused approach, Temu placed only a few ad network bets each month with the same basic creative.<\/p>\n\n\n\n

Curious about where <\/em>it tested, and what success looked like? We got you. Check out our latest ebook, How App Download Leaders are Winning<\/strong><\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":"

The optimal Ad Network mix can serve up user acquisition acceleration. It’s how Temu doubled its month-over-month (MoM) growth rate in its third month from launch. It’s also how Sephora broke through its growth plateau and grew 61% quarter-over-quarter (QoQ) in Q4 \u2013  its highest QoQ increase in 5 years. The ad intelligence on Temu and […]<\/p>\n","protected":false},"author":4,"featured_media":954,"comment_status":"open","ping_status":"open","template":"","insight_category":[],"insight_tag":[],"class_list":["post-18749","insight","type-insight","status-publish","has-post-thumbnail","hentry"],"yoast_head":"\nGrowth plateau? 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