— CASE STUDY -->
70% REDUCTION in CPMs
Digital advertising is a numbers game. Remember when you were in school and you thought you'd never use complex math again? Well if you have a business, you know complex math is a daily challenge.
CPM is a digital advertising statistic that tracks how much money is spent to get your ad 1,000 impressions. The goal is to always drive the costs like CPM down as far as you can. We never imagined we could reduce them as much as we did, but that's what happens when you explore new ad avenues like TikTok early.
THE CHALLENGE.
A consumer packaged goods (CPG) brand was looking to shore up their revenue rollercoaster. They struggled with keeping monthly revenue consistently high and steadily increasing over time. Every brand wants to prevent revenue rollercoasters and we help brands get out of that space.
Couple those issues with the rising costs of Facebook ads. We’ve also lost a substantial amount of targeting options and data retention since the onset of iOS15. Every e-commerce brand is dealing with these issues right now.
OUR ApPROACH
We noticed that their returning customer rate in Shopify was below 40%. This makes it very difficult for their brand to rely on returning revenue. So the challenge presented to us was to find more customers but in a way that was going to make sense from a costs standpoint.
We went full on fixer-upper to their ad funnels. Here’s how we broke down our new efforts:
Goal #1 - Widen TOF traffic. With such a low returning customer rate, we can’t rely on targeting previous customers or even retargeting people who have been to the website. We need to reach a lot more consumers in a hurry.
Goal #2 - Initiate cost-cutting techniques to Facebook and Instagram ads. We did this by simplifying the funnel as a whole.
So what does this look like internally for their ad efforts? A simple, yet efficient sales funnel that relies on them posting creative content to their TikTok account. Let’s break it down further:
Post at least 1X/day on their brand TikTok account. The TikTok content needs to fall under our core content buckets.
1-2X/week we promoted some of the best and most-informative content that their target audience would love. We did this via Spark ads in TOF. This is one of the major ways we are attracting new customers to their brand. TikTok ads are great for TOF / MOF
We then created in-feed ads from some of the same creative that lead to Instant Pages inside TikTok. Instant pages were recently-released and every ad platform loves to give a little extra benefit to those that use their new offerings. This is another way we were saving valuable spend on TOF campaigns
Last but not least, we worked to drive traffic to their Amazon store. Why? Because we have found that many TikTok consumers do not actually purchase on the platform itself.
WHAT WE ACHIEVED
RESULTS
- We lowered the CPMs from $14 down to $1-$4
- CPC REDUCED TO <$1
- WEBSITE TRAFFIC INCREASED 15%
- AMAZON ACOS DROPPED DRAMATICALLY
- AMAZON ROAS INCREASED TO 5.5%
- BRAND ACCOUNT GREW TO OVER 2,200 FOLLOWERS IN 1 MONTH
THIS PROBABLY SHOULD BE A NICE GRAPHIC.
