Babbel drives leads cost efficiently with Smart Bidding and responsive ads

Founded in 2007, Babbel is the app that helps users “Speak the language like you’ve always wanted to”. With more than 1 million active subscribers, the Babbel language learning app for web, iOS and Android makes it easy to learn 14 different languages from 7 display languages. The meticulously designed courses guarantee language skills that can be used right away. The Babbel marketing team was looking to bring more users to their unique services with an eye on improving click-through rate and lead costs.

About Babbel
Online language learning
Made up of a team of more than 500 people from 45 different nationalities in Berlin and New York
Founded: 2007
Bring more users to Babbel
Improve lead costs
Tested Smart Bidding solutions
Implemented Smart display campaigns
Cost per click fell by 30%
Cost per lead dropped by 28%
Cost per acquisition went down by 24%
Click-through rate improved by 0.2% on desktop and 0.3% on mobile

In particular, Babbel wanted to improve their display activity, rectify an uncoordinated account structure and reduce their cost per acquisition. SEM Manager Cristina Padilla and the team decided two test two new approaches, Smart Bidding solutions and Smart display campaigns.

As a first step, they simplified the entire display account setup from 30 campaigns to only five. By then implementing Smart display campaigns, they were able to reduce the total number of banners in the account. Previously, each banner size had its own ad group, but with the new approach Babbel could simply create one ad and one ad group that would responsively fit two to three ad formats. Finally, they implemented two automated bid strategies, Enhanced Cost Per Click (ECPC) and Target Cost Per Acquisition (tCPA), which used machine learning to optimise for conversions or conversion value in each and every auction.

The results speak for themselves: cost per click fell by 30%, cost per lead dropped by 28% and cost per acquisition went down by 24%. The click-through rate of the responsive ads improved by 0.2% on desktop and by 0.3% on mobile. And from an operational point of view, the cleanup improved the overview and monitoring of the account, making optimisation easier and faster for the Babbel team.

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