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Better Not Bigger: Scaling up with the Right ROAS

eCommerce

The Challenge

This retailer sells bath products, from lotions to candles. Traditionally, their social advertising focus was around specific holidays or new product launches, measured by high ROAS goals. Now, however, as the advertiser’s spend scales, the strategy is aimed to achieve the most efficient ROAS goal, while driving sales. The audience target included women 18 and over, who demonstrated interest in home and bath products.

The Strategy

This campaign utilized four different targeting strategies, scaling spend as ROAS kept increasing. Up to 15 campaigns launched each day throughout the campaign, as creatives and targeted audience segments were constantly shifted according to the latest data. Facebook’s ability to target different user segments was well-suited to this initiative, as the Facebook algorithm determines which lists perform best with each creative. We optimized a number of the platform’s capabilities for effective targets:

First, a lift test determined ROAS goals, exploring new ways to scale spend to its maximum efficiency.

  • We then leveraged Customer Relationship Management (CRM) lists to create custom campaigns based on specific promotions, matching customers to ads featuring products corresponding with their purchases. For example, the candle sale promotion was specifically targeted to candle shoppers, as part of a greater remarketing strategy.
  • We also used the in-store and online CRM data to create lookalikes and capture new customers. By uploading custom audiences to target and match CRM lists, there was a high match rate on Facebook to the CRM list. From there, the campaign management team built a Prospecting Pool, serving both the customers and lookalikes a variety of different promotion messages.
  • The Website Custom Audiences (WCA) tool retargeted these users with an ad, but excluded more recent purchasers to avoid redundancy.
  • The Dynamic Product Ads (DPA) mimicked the retargeting strategies of WCA, but focused specifically on the exact product viewed or added to cart, then showed the customer that same product. DPA then served Carousel Ads, pulling from up to five images from the product feed, directing potential buyers to the advertiser’s website with a call-to-action button.

The Roundup

$30

CRM Targets Drove Highest ROAS

$20

DPA Surpassed WCA By Double



Results

This campaign performed especially well, because customers were already interested in the products they were shown. CRM targets were our best-performing segments, driving the highest ROAS at a high of $30. DPA surpassed WCA by double, at $20.

Since launching DPA, 1.5x more budget has gone to DPA than WCA, extending scale for higher ROAS.

  • 2x ROAS with DPA vs. WCA
  • 1.5x budget with DPA vs. WCA

The advertiser continues to collaborate with Kinetic Social on strategic initiatives and implementation with a high level of ongoing communication to continue to improve sales and campaign performance.