A Layer3 Case Study
Understanding the performance of your marketing campaigns is crucial for increasing their effectiveness. In this blog post, we will analyze a Layer3 campaign using ARCx analytics and UTM parameters to can determine exactly how the campaign is performing and the demographics of the users being acquired. If you’re unfamiliar with Layer 3, check them out HERE.
The ‘Campaign’ tab on our dashboard shows all the campaign's you have run, with metrics that enable you to see how well each are performing. Click on a campaign in the list to view campaign specific metrics.
After filtering by 'layer-3-quest', we can evaluate the effectiveness of this campaign. It brought in 7,564 visitors, 6,736 connected wallets, and 4,244 converted wallets, which is an impressive user acquisition strategy given that it ran from November 10th to 22nd. However, it is up to the project/dApp itself to retain these users.
In addition to the metrics at the top, we can check the table to see exactly how many sessions and transactions came from the campaign. As we’ve seen above, a campaign from Layer3 is worth running, but this may not always be the case. If you notice that a campaign does not result in many converted wallets, it is a sign to rethink the campaign or try something different.
Switching to the Demographics tab allows us to discover the characteristics of the traffic coming in from our Layer3 campaign. This is essential to identify if we’re being airdrop farmed. To begin, we filter by our campaign name. Then, check each chart; ideally we want to see a higher net-worth distribution, paired with older wallet ages and higher transaction amounts.
The reason for this is that if we have new wallets with a low number of transactions and a low net-worth, it is highly likely that users have created wallets for airdrop farming.
Looking at the image above, we can see that Layer3 brings in users who have had their wallet for 1-2 years, made 100-1000 transactions, and whose net-worth is mostly $0-$1k.
However, it's worth noting that there were 702 wallets whose net-worth is between $1K-$10K. This is a 5% increase in comparison to the baseline. To find the baseline, remove the campaign filter.
Overall this shows us that Layer3 is effective at acquiring relatively experienced users with a higher net-worth.
Now that we have a good understand of the effectiveness of the Layer 3 campaign and the demographic of the users we’ve acquired, we can check to see the engagement of these users.
In the image above, you can see that we filtered by the campaign and the dates when the campaign was running. Note that we added extra days in the latter part of the campaign to look at the engagement after the campaign ended.
Looking specifically at the Daily Active Users chart, we can see there is a drop-off right after the campaign ended. This is a clear indication that we need improve user retention throughout our dApp.
If you experience this on your dApp, check out our guide for increasing engagement and retention.
Before we conclude, it's essential to use UTM parameters to effectively measure the effectiveness of your campaigns. Ideally, use UTM parameters on all your channels. This allows you to identify the exact sources of your traffic. When combined with the ARCx quant engine, you can also determine the on-chain characteristics of this traffic. This was key for us to assess the quality of users being acquired through the Layer3 campaign in this article.
In conclusion, the Layer3 Quests campaign was very effective at acquiring valuable users. Although no responsibility of Layer 3’s, we identified a drop-off in engagement after the campaign ended, highlighting the need for continued user retention efforts in the dApp itself.
Additionally, using UTM parameters and ARCx analytics is essential for understanding the effectiveness of your marketing campaigns. By analyzing your campaigns like we have today, you can discover exactly how effective they are and then find ways to optimize for increased conversion.