Programmatic the Key to Accelerating Fintech App Growth?

Programmatic the Key to Accelerating Fintech App Growth?

The Unstoppable Rise of Fintech Advertising: How Programmatic Can Drive Growth

Fintech Advertising

The world of finance has undergone a remarkable transformation in recent years, thanks to the rise of financial technology. Gone are the days of long wait times and tedious processes for international transactions. Today, the fintech industry has become a fiercely competitive battlefield, with countless companies vying for the attention of users. So, how can a fintech app stand out and become the next big thing? The answer might lie in programmatic advertising.

The Astonishing Growth of Fintech Advertising

The expansion of the fintech industry is undeniable, evident even to those not directly involved in it. Let’s take a look at some numbers that highlight its remarkable growth:

  • By 2024, the global fintech market is projected to reach at least $201.9 billion, a staggering 100% increase compared to 2017.
  • A whopping 96% of consumers worldwide are aware of fintech services, with 64% of them using at least one fintech platform.
  • In the US alone, 50 million people regularly use Apple Pay, while 23 million use Google Pay.
  • In 2021, fintech apps were downloaded 6.1 billion times globally. Leading apps like Venmo and Cash App generated $850 million and $12.3 billion respectively.
  • Major banks like JPMorgan Chase and Bank of America have millions of active mobile users.

Overcoming the Challenges of Fintech Advertising

Though the fintech industry continues to flourish, success is far from guaranteed. With an estimated 30,000 fintech startups by the end of 2022, only a fraction of them will truly thrive. Fintech companies face several significant obstacles, including:

Customer Acquisition

Fintech marketers consistently highlight customer acquisition as their biggest challenge. The highly competitive nature of the industry, combined with widespread financial illiteracy among users and trust issues surrounding relatively new brands, makes it difficult to attract high-quality leads and customers.

Budget Constraints

Acquiring customers can be an expensive endeavor. While large banks may spend up to $2000 to acquire a single customer, the cost for fintech app businesses is slightly lower but still substantial, often exceeding $800. The ever-increasing expenses force marketing teams to operate with shrinking budgets, making it vital to find cost-effective advertising strategies that deliver rapid results.

Regulations & Compliance

The advertising landscape can be unwelcoming to fintech companies due to stringent regulations. Major advertising platforms like Google, Facebook, and Twitter impose limitations on crypto-related advertising and ICOs to prevent fraud. Fintech apps offering loans, credit services, or handling sensitive information are also subject to additional compliance requirements, including disclaimers and disclosures.

User Retention

Fintech applications face significant challenges in retaining users. On day one, the user retention rate is around 22.7%, dropping to just 5.8% by day 30. Low user retention directly impacts revenue generation as returning users are the most valuable brand advocates over the long term. Overcoming credibility issues is crucial to retaining users and keeping up with the rapidly evolving industry.

How Programmatic Can Benefit Fintech Apps: Case Studies

Recent studies suggest that programmatic media buying can alleviate the challenges faced by fintech marketers and yield tangible results. Let’s examine some case studies that demonstrate the benefits of programmatic advertising for fintech apps:

Programmatic Cost-Effectiveness

Programmatic advertising offers automated bidding and real-time optimization, allowing advertisers to reach their target audience in a cost-effective manner. Some demand-side platforms (DSPs) even allow for automatic bidding with bidding multipliers, optimizing media spend and minimizing expensive conversions. For example, Fintonic achieved its cost-per-acquisition (CPA) goals using its proprietary DSP, implementing creative A/B testing and audience targeting to improve campaign performance, transparency, and reach.

Programmatic Boosts User Engagement

Paysend, a fintech app geared towards money transfers, sought to acquire new customers and ensure high rates of user engagement. By utilizing the services of Mapendo’s DSP, Paysend saw a 200% increase in app installs during the initial weeks of the campaign. Additionally, the collaboration helped Paysend exceed its growth and registration-to-money transfer goals, resulting in a 10% reduction in effective cost per install (eCPI) in North America and a remarkable 176% increase in registration rates within the first month.

Regulation Compliance

Programmatic platforms offer valuable tools to ensure compliance with regulatory requirements. These tools include custom targeting parameters, ad content filters, and ad placement preferences. Epom’s white-label DSP provided a crypto client struggling with scaling an active user base due to platform limitations with the ability to establish custom end-points using vertical-specific traffic sources. This approach resulted in a 150% increase in app installs while successfully meeting the expected CPA goal.

What Lies Ahead for Fintech Advertising?

While programmatic advertising is a powerful tool, it is not without its challenges. Fraud and unreliable solutions continue to pose risks, and the complexity of programmatic advertising requires a deep understanding of its intricacies. Nevertheless, automated media buying remains one of the best options for fintech advertising in today’s landscape. With third-party data fading and limitations becoming more stringent, fintech app developers will face even greater advertising-related obstacles in the future. However, programmatic technology continues to evolve, introducing opportunities for hyper-targeting through formats like DOOH (Digital Out of Home) and IoT (Internet of Things). Embracing these changes and remaining vigilant will be key to navigating the dynamic world of fintech advertising.

In conclusion, programmatic advertising offers a promising solution for fintech app growth. By overcoming challenges related to customer acquisition, budget constraints, compliance, and user retention, programmatic media buying empowers fintech marketers to drive growth and accelerate the success of their apps in an increasingly competitive landscape.

Featured Image Credit: Photo by alphatradezone; Pexels; Thank you!