Early AppLovin Results Are In

December 10, 2024

There's so much debate if AppLovin can be a sustainable and profitable ad channel that can scale like Meta. I still think there’s a lot to test but numbers don’t lie and our test shows the channel drives true incremental revenue for us. This test gave us the confidence to increase our spend by 50% and we're excited to launch another spend lift test to see if we achieve similar results.
Isaac Mertens
Co-Founder, Flux Footwear
Isaac Mertens
Co-Founder, Flux Footwear

The Challenge

AppLovin is all the rage right now — and many marketers are wondering if this channel is as impactful as the platform claims. AppLovin’s latest updates enable marketers to geo-target by state, which means the advertising darling is now officially a channel brands can incrementality test and measure with Haus. 

While many Haus AppLovin tests are actively underway, we wanted to highlight four early tests that brands have completed. Let’s dive into the tests that Twillory, Flux Footwear, Jones Road Beauty, and Fresh Clean Threads have run to measure the incrementality of AppLovin.

The Solution

Each brand ran a 2-cell test with a holdout to measure AppLovin incrementality. Specific test set up for each brand is detailed below:

The Result

In all four cases, AppLovin drove incremental lift to these businesses. Efficiency of the media, on the other hand, varied considerably between brands.

Twillory saw a significant lift at an extremely efficient iROAS. The incrementality factor was 1.69X what the platform reported. Keep in mind: Twillory was spending the least of all four brands for this test. They are considering a spend-up test to see if this performance can scale efficiently. 

Flux Footwear saw a medium lift to total sales. Their iROAS was better than their goal and the iROAS increased significantly during the post treatment window, indicating some latency with this channel. AppLovin’s iROAS for Flux was slightly better than their target goal. 

Jones Road Beauty had the highest spend level of these tests at approximately $60K a week. While they saw a small lift to new order sales, the CPIA of this test was much higher than their target goal and was not deemed “successful.” However, an interesting caveat is that while AppLovin drove only a small lift to new orders, it was extremely efficient at driving returning customers to order. Jones Road Beauty saw a strong lift on returning customer orders and total order CPIA was 24% lower than goal. AppLovin doesn’t currently allow brands to exclude customers, making it difficult to optimize towards new customer acquisition. If they implement this feature, it could make a significant difference for brands like Jones Road Beauty. 

Fresh Clean Threads saw a high lift to new revenue — at a medium spend level, this result was very strong considering this test was run right before Black Friday and the assumption was that some customers might be waiting to purchase until the sale was live. The iROAS on AppLovin was 10% lower than their target but for a new channel, right before the biggest sale weekend of the year, the team considered this a success. This performance gave Fresh Clean Threads the confidence to continue testing into this channel eventually turning it into an evergreen one. 

So: What’s the bottom line? Initial incrementality results are encouraging – but as always, we recommend testing for your own brand as results vary greatly between businesses. Until then, we’ll be keeping an eye on experiment data to see if AppLovin can sustain its early momentum.

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About the Customers

Twillory is a men’s apparel brand known for its comfortable, versatile, and performance-driven clothing, including non-iron dress shirts, performance pants, and activewear designed for modern, on-the-go lifestyles. With a focus on quality, functionality, and affordability, Twillory delivers stylish options that transition seamlessly between work, travel, and leisure.

Flux Footwear specializes in minimalist shoes designed to promote natural movement and foot health. Their products feature zero-drop soles, wide toe boxes, and flexible designs, catering to activities like running, training, and everyday wear. 

Jones Road Beauty, founded by makeup artist Bobbi Brown, is a cosmetics brand offering versatile and inclusive beauty products. Their high-quality, multi-purpose cosmetics simplify makeup routines and highlight natural beauty. With clean ingredients, their foundations, eyeshadows, and more cater to various skin types and tones.

Fresh Clean Threads is a lifestyle brand committed to simplicity, comfort, and effortless style. Born out of a desire to provide men with high-quality, versatile essentials, Fresh Clean Threads offers a curated collection of premium tees crafted from the finest materials and designed with meticulous attention to detail.

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