A Data-Driven Case Study on Optimizing CPA Campaigns

In our roles on the Partnership Solutions team, we are constantly working to facilitate growth and efficiency on behalf of our partners. We often experiment with novel ideas and test our hypotheses against quantifiable results to find where we can push through untested boundaries. In this blog, we share how we recently collaborated with a partner to successfully test a growth theory with one of their CPA campaigns.

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Two key takeaways from our study are that optimization by distribution channel type is essential and that evergreen educational content is highly valuable for financial institutions (FIs) looking to grow their immediate consumer base and build longer-term brand awareness. However, a one-size-fits-all strategy will likely lead to subpar results. Strategies need to leverage existing performance data to identify the best top-of-funnel sources and then secure space on the page ahead of competitors.

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Why is content so powerful, and how can a space be won within that content?

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Content is King

Today’s consumers, especially Gen Z and millennials, are highly educated shoppers who are much less likely to be swayed by flashy advertisements and often turn off email promotions using spam blockers. Recent research by Vogue highlights a distinctive shift in Generation Z: they prioritize inspirational and exploratory content above all else in their purchasing journey. This necessitates a fresher consumer experience that aligns with their values and aspirations.

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Our tests echoed these findings, showing that consumers coming from editorial content (i.e., financial publisher partners) typically have higher intent and are more likely to remain in the funnel. Conversion rates from content can average up to 50% higher, depending on the source, compared to paid media and financial service channels. Additionally, we observed a 40% higher lifetime value (LTV) for consumers coming from content, based on the frequency of users utilizing a credit product during our test.

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Finding the Sweet Spot: Balancing Payouts and Performance

During a comprehensive review of FI partner campaign performance, data showed that the CPA campaigns we tested were initially unprofitable for the brand’s content partners (i.e., publishers) due to an uncompetitive CPA rate. Despite their efforts, top-tier publishers could not justify scaling their descriptions and recommendations of the brand’s product.

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We worked closely with publishers within the MoneyLion Engine network to analyze competitor rates, providing benchmark guidance that led the FI to test a higher payout rate and incentivize content partners to write about the product. This competitive CPA rate allowed the brand to extend the offer to more publishers, resulting in several new pieces of content being written about the brand’s product. As a result, the brand saw an average increase of over 200% in conversions within two months of the testing period.

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However, this doesn’t imply a one-size-fits-all call to raise payouts for all content partners. Using a platform-wide blended payout average penalizes high performers and increases volume from less profitable sources. Before raising the payout, we worked with the FI partner to perform a segmentation analysis, which involved profiling the publisher’s subscriber base, understanding their content coverage themes, and correlating these with the FI’s campaign performance metrics. Ultimately, we were able to find the payout sweet spot that enhances both revenue results and customer loyalty.

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Conclusion

Our recent collaborations with product partners highlight that editorial content placement significantly outperforms other channels, particularly among discerning Gen Z and millennial consumers who prioritize inspirational and exploratory content. This shift demands a new content-driven marketing approach that embraces a continuous cycle of inspiration, exploration, community, and loyalty. Additionally, our experience shows that competitive payouts are crucial for engaging top-tier publishers and expanding content reach. By strategically investing in higher payouts, brands can achieve substantial increases in conversion rates and consumer LTV, demonstrating that strategic partnerships and optimized content are key to success in today's content-driven landscape.

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