Success Stories

How a Food & Delivery app tested a Localized Growth Strategy and proved impact

The Objective

PedidosYa is one of the biggest Food & Delivery apps in LATAM. Being part of Food Delivery giant, Delivery Hero, it counted with the support of a global centralized performance team, which have helped expand the app’s user acquisition in 15 countries in the region.

However, to continue growing and taking its UA to the next level, PedidosYa wanted to try a localized growth strategy run by its performance team in LATAM. This would allow them to make faster decisions, testing and optimizing multiple performance campaigns and increase its efficiency in each territory.

+20% Increase in User Acquisition
-14% Reduction in CPA
+20% Savings in Media Budget

The Solution

A localized agile team, backed by global experts
To test and implement a localized Growth Strategy in Latam, PedidosYa worked together with Winclap Growth Experts. An agile team was formed, working on a staggered plan, testing multiple growth initiatives, from User Acquisition to Retargeting.
Delivery Hero global team extended complete support and freedom to test, learn and scale the best growth initiatives. To prove each strategy successful, the local team needed to deliver results fast, showing a clear lift in performance. The goal was to achieve small, quick wins under the spirit of:

If it works, we scale it. If it doesn’t, we pause it. But we don’t stop”

A Bullish Creative Strategy:
Since PedidosYa and Delivery Hero were used to centralizing everything in-house, it was key to prove that working with a local team together with a third party growth partner like Winclap was worth it.
The team compromised to reach clear success metrics. They agreed to measure its campaign results against a defined benchmark for a three months trial period.

To establish this success benchmark, Winclap Growth Experts and Measurement Team built predictions as counterfactual scenarios. The idea was to project a scenario showing how campaigns would have performed if they had continued running as they have been before, and contrast this scenario against  the actual campaigns’ run by the local team.

A/Z Testing

The objective was to test… everything. To find a winning growth strategy, running multiple tests with initial low budgets for each one. The team knew that probably the majority of these tests would fail, but with a low impact in cost. The goal was to find the optimal combination of campaign settings with the maximum efficiency possible.

Some of these initiatives included:

 

  • Getting the best from each social Channel: From Facebook, to Twitter and TikTok, the team ran multiple campaigns in each social media, with a specific strategy for each one. Some networks proved more successful in UA, and others served better for retargeting. This allowed the team to relocate campaign budgets to serve each objective more efficiently.
  • Specific Creatives at scalemultiple creative ads formats were tested. From traditional image and video assets to unexplored new formats like HTML5 and UGC Videos in TikTok and Instagram.
  • Cross-platform campaigns from Web to App: the team tested UA campaigns on mobile web and app on the app and extrapolated best practices between them.
  • Broad vs localized Geos: country vs city-wide paid media campaigns were compared to see which worked better. The team optimized the budget by running more campaigns in cities with higher potential of getting first purchases.
  • Measuring and proving lift: to make the most out of each dollar spent, the team measured incrementality for each campaign and made sure to control for any cannibalization between medias.
  • Promos and deals: delivery & food apps are very reliable on promotional campaigns. To find the most effective promotional strategy, the team tested multiple campaigns using discounts and deals and measured each one’s effectiveness.
  • Unlocking TikTok: the team developed and executed a creative strategy to run performance campaigns in TikTok, a channel where PedidosYa wasn’t advertising yet. The key was to leverage on trends and creator-based ads to produce creatives with high conversion

Accelerating with AI

Once the team found the winning elements of its growth strategy, it proved the impact on results, and proposed to scale these initiatives by increasing the budget of best performing campaigns.

To further optimize their media investment, PedidosYa and Winclap used the Budget Allocation tool. With this solution, they could analyze campaign historical performance using machine learning models. This allowed them to predict each campaigns’ saturation levels and determine the optimal level of investment in each media channel.

This strategy avoided wasting money in channels that were not proving to have incremental effects.Winclap Growth and Tech teams showed that as campaign CPA reduced, it was possible to spend less money and achieve the same results with a lower budget. This was a huge efficiency win.

The Results

Both Winclap and PedidosYa local team hold themselves accountable to results from the start.

In only 3 months, the team delivered these results:

  • +20 Increase in User Acquisition
  • -14% Reduction in CPA
  • +20% Savings in Media Budget

From Germany to Argentina, PedidosYa, Winclap and Delivery Hero proved that you can combine the best of Global and Local teams collaborating closely to achieve results. In-house teams and third party partners can work very well when there is strategy alignment, accountability and transparency.

Through small, fast wins you can generate large impact. You can transform your growth strategy to prove impact and increase efficiency in your campaigns.

This is what a true Growth Transformation is about.

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