Scaling an AI Design App in Tier 1–2 Markets: 320% Downloads and 3.1x ROI

We launched and scaled an AI-powered web design tool in Tier 1–2 markets using a cross-channel paid media strategy. No baseline data were available, and the competition was very high in the AI segment with low-performing creative in the initial phase.

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/Goals/

Project goals

The goals were to increase brand awareness, install apps, convert users to paid subscribers, and optimize cost-per-lead (CPL) with best return on investment (ROI).

/Results/

Results

Increase in return on investment (ROI) 3.1x
Increase in app downloads in 5 months +320%
Due to targeting and creative optimization, cost per lead (CPL) reduced -42%
Due to onboarding optimization increase in paid conversion rate +60%
Following ad creative refinement click-through rate (CTR) increased +35%
/Work Done/

What Was Done

Google Ads (YouTube, Shorts, Search, Google Display Network):
  • YouTube Ads (In-Stream & Shorts) featured 10–15 sec demo videos showing how the tool works — boosting CTR and keeping users engaged longer
  • Search ads reaching high-intent searches such as "best AI design tool" and "automate website design"
  • Google Display Network retargeting utilized to re-target non-converting users
Facebook Ads Manager:
  • Built Lookalike audiences from initial lead data
  • Exposed creative testing such as carousels, AI demo video tests, and user-generated content (UGC)
  • Targeted campaigns on conversion behaviors like installs, sign-ups, and purchase subscriptions
TikTok Ads:
  • Ran short-form, dynamic UGC-style videos optimized for engagement and authenticity
  • Used Spark Ads (organic promotion of performing posts) and influencer marketing for authenticity boost
Conversion Funnel Optimization:
  • A/B tested over five creative-offer-targeting combinations
  • The top-performing creatives were short videos with clear, action-driven CTAs
  • Launched retargeting ads emphasizing use cases and user reviews
  • Introduced email sequences with free trial and upsell to paid tiers
  • Improved onboarding flows to enhance user activation post-download
Reducing Costs:
  • Removed broad audience targeting and put focus on high-intent design/AI segments
  • Introduced automated bid strategies in Google Ads and Facebook Ads to reduce cost-per-click (CPL)

Developing an AI product in a competitive marketplace? This case shows how smart paid media, creative testing, and funnel optimization can drive real growth — from installs to paying customers.

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/Other cases/

Other success stories

/faq/

Quick Answers
for Curious Minds

What was the starting point?

The app had no baseline data and was entering a highly competitive AI segment. Early creatives underperformed, and the challenge was to find scalable channels and messaging fast.

Which channels were used and why?

Google Ads (YouTube, Search, GDN) for reach and intent capture, Facebook Ads for precise targeting and lookalike audiences, and TikTok Ads for UGC-driven authenticity. Each channel served a distinct role in the funnel.

How did you approach creative testing?

We ran A/B tests across multiple formats: demo videos, carousels, UGC clips, and influencer Spark Ads. Short, action-driven videos with clear CTAs proved most effective.

How was the conversion funnel optimized?

Top-performing creatives were scaled. Retargeting campaigns focused on use cases and reviews. Onboarding flows were redesigned to improve activation and paid conversion. Email nurturing sequences pushed free users into paid tiers.

How did you measure and validate performance?

KPIs included ROI (3.1x), downloads (+320% in five months), CPL (-42%), CTR (+35%), and paid conversion rate (+60%). All tracked through Google Analytics, ad platform dashboards, and CRM.

What targeting methods worked best?

Lookalike audiences based on early leads, high-intent keyword targeting (“best AI design tool”), and segmentation by design/AI interests. Broad targeting was removed to cut waste.

How were costs reduced while scaling?

Automated bidding strategies in Google and Facebook Ads lowered CPC. Segmentation improvements and creative optimization reduced CPL by 42%.

What were the biggest risks?

High competition in AI tools, creative fatigue, and low trial-to-paid conversion. Mitigation included continuous creative refresh, funnel refinement, and onboarding optimization.

Can this framework work for other SaaS or AI apps?

Yes. The combination of multi-channel media, creative testing, and lifecycle optimization applies across SaaS, fintech, edtech, and other subscription-driven models.

What was the decisive success factor?

A tight integration of paid media, creative testing, and funnel optimization. Together, they turned a cold start in a competitive market into measurable growth.

/contact us/