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Delivery / DELIVERY / DELIVERY HERO CASE STUDY

Delivery Hero and Remerge run incrementality tests for insights in the no-ID world

About our client

Delivery Hero is the world’s leading local delivery platform, operating its service in around 50 countries across Asia, Europe, Latin America, the Middle East, and North Africa. The company started as a food delivery service in 2011 and today runs its own delivery platform on four continents. Additionally, Delivery Hero is pioneering quick commerce, the next generation of e-commerce, aiming to bring groceries and household goods to customers in under one hour and often in 10-15 minutes. Headquartered in Berlin, Germany, Delivery Hero is listed on the Frankfurt stock exchange since 2017, and became part of the leading index DAX (Deutscher Aktienindex) in 2020.

« The reason why we took this journey together was because of the level of trust and transparency we have built along the way. We heavily trust the product and the capabilities of the team to fuel our growth. »

Vincenzo Serricchio, Delivery Hero

A long-lasting partnership with Remerge

We have worked with Delivery Hero for 7 years, collaborating on numerous mobile marketing projects in multiple regions. The partnership evolved at the beginning of 2021 when we both began preparing for an advertising world without user IDs.

Measuring the performance of marketing activities has become a bigger challenge for app marketers since the launch of iOS 14.5. To protect personal data, Apple no longer provides advertisers with a user's device ID (IDFA) by default, making its attribution model, SKAdNetwork, more limited. If individual users cannot be tracked, it is difficult to connect them to a marketing campaign and the impact it may have had. This is leading app marketers to experiment with different ways of determining the real value of their campaign activities.

We were one of the first companies in the market to invest in and develop an incrementality product for User Acquisition (UA) on no-ID traffic and in February 2021, Delivery Hero became our first client to use it. According to Vincenzo Serricchio, Delivery Hero’s Global Head of Mobile Marketing & Programmatic, “The fact that Remerge came up with a product from the beginning, even before the rollout of ATT and SKAN, to be prepared for the measurement of campaigns was something we hadn’t seen from a lot of other DSPs.”

Incrementality with causal impact analysis

Our Incremental Impact product for no-ID users is based on causal impact analysis, a framework developed by Google and rooted in econometrics. The methodology measures the incremental uplift of an ad campaign, taking into account conversions that happened either organically or from other marketing activities.

This methodology does not require user IDs and can measure conversion events, including everything from installs to the re-engagement effects of IDFA-less campaigns. Much like how television ads are measured, the principle is based on running campaigns on a treatment group, while leaving a control group unexposed to ads.

The control groups are built using data signals that are not connected to IDs. We went with device models, as this approach allowed us to create similar and stable groups which are less likely to change over time.

« I think causal impact overall as a methodology is something that will be more and more adopted in the market. It can only be the future because it can give you good insights and steering capabilities, as you have lost other metrics. »

Vincenzo Serricchio, Delivery Hero

Running tests with Hungerstation

Our experiment kicked off with a project for Hungerstation, one of Delivery Hero’s local brands and the leading delivery app in Saudi Arabia. The objectives were to find the optimal setup for attracting new users and to gather insights for running campaigns on no-ID traffic in a saturated market, where distinguishing between new and existing customers is becoming harder

In the first phase, we carried out multiple UA tests on ID traffic using various creative formats (banner, interstitial, video). These consisted of 8-hour experiments and ran during peak evening hours, when the delivery app typically receives the highest number of installs, orders, and first-time purchases.

Our data science experts analyzed the findings and used them as a basis to run tests on no-ID traffic. From here, our team quickly achieved competitive Cost Per Install (CPI) numbers, identified which campaign elements could be optimized in the future, and provided Hungerstation with data that showed the incremental value of the ads they were running with us.

« We were very excited about the opportunity Remerge offered us — to be part of the alpha test in order to prepare for the no-ID world. »

Vincenzo Serricchio, Delivery Hero

Continued experiments for additional insights

With SKAdNetwork, advertisers are currently struggling to measure and optimize towards post-install events on Apple devices. This poses another set of challenges for those who have previously relied on this information to optimize app campaigns for down the funnel events, such as repeat purchases or free trial signups.

To collect and offer these additional insights, we continuously experiment with our incrementality testing set-up and work alongside clients like Delivery Hero to uncover new learnings. As Vincenzo put it, “Incrementality will be even more relevant than before because you will lose a lot of visibility on lower funnel touchpoints, which will be the order growth, acquisition growth, or first time orders.”