Natalie Mollaghan
April 27, 2018
GvR Hostels Facebook User Acquisition Analysis
GvR Hostels is an online booking agency for hostels. Their app is built for their customers to search for hostels. Once a customer finds a hostel they like, they are prompted to 'Start a booking process' which redirects the customer to the GvR website to finish their booking. Currently, GvR does not earn any money in the app but each “Start a booking process” event is worth $3.
Since the launch of the app, GvH has been running paid user acquisition on Facebook to increase the number of users of their app. Here are some insights into how the user acquisition and app are preforming.
Total installs
-Switzerland: 3296 -Belgium:6524 -The Netherlands: 12925 -Germany: 13731 -Italy: 15428 -Spain: 17193 -The UK: 22442
This bar chart to represent the Cost Per Install Per Country. We can see that Switzerland had the highest Cost Per Install, while Italy had the lowest.
Of the total $350,082 spent on Paid User Acquistion, $122,675.90 (or about 35%) of the Facebook User Acquisition Spend resulted in App Installs.
Here is a look at how the total spend breaks down by Country and Month.
On the user level, the Cost Per Install in Germany, Spain, Italy, The Netherlands, and The UK remains consistant over the course of the 10 months.
The Revenue for Start a Booking Process is only 53% of the amount spent on Facebook Paid User Acquisition.
Spain makes up 23.58% of Revenue of Start A Booking Process Event.
Switzerland makes up 2.24% of the Revenue of Start A Booking Process Event.
The percentage of Installs by The UK is 24.51%.
The percentage of Installs by Switzerland is 3.60%.
We can see that there is a high drop off for every cohort after the first month of install.
We don't have any Age information about the largest group of engaged users for the App, but we can see that 20-29 Age Group makes up a large percentage of the Users of the App.
For Gender, we don't have information about the largest group of engaged users for the App, but we can see that Males are starting more booking processes than females.
# A tibble: 10 x 2
Age Users
<chr> <dbl>
1 XX-XX 19398
2 20-29 13640
3 18-34 9228
4 30-39 5288
5 35-65 3548
6 35-54 3088
7 40-49 3032
8 50+ 2559
9 55-65 2103
10 18-65 247
# A tibble: 3 x 2
Sex Users
<chr> <dbl>
1 X 37612
2 M 13026
3 F 11493
From the data, there are a few recommendations we can can make to increase the return on User Acquisition for GvR's app.
Do market research to find out why Belgium and Switzerland aren't installing the app.
Spain and Germany have the highest ROI for Booking Events. Consider Adding more spend to those markets.
Consider looking into markets where their might be a higher population of 20-29 year olds likely to travel and stay in hostels.
Re-engage users after they have installed the app.