47
3.16
1666
Growing your small business to an eCommerce superstar is no easy feat! Throw in the complexities of logistics, stock, shipping and it’s no surprise that advertising can be the last thing to lift off. However, the key ingredient for any successful eCommerce business is a strong marketing campaign so that the luxury of fulfilling logistics, stock and shipping is, well, a reality!
The problem
For one small artisanal food and gifting business, their transition to the world of eCommerce with a new website was a leap and a jump away from the Farmer’s Market trade where they started. Understandably, their Facebook Ad strategy began as a bare-boned structure, providing enough of a presence to get some traffic flow, but lacking the motivation to generate purchases and thus, a return on ad spend. More buck, less bang.
The solution
When our team stepped in, we hit the deck running with an audience testing strategy. What we see all too often is a Facebook Ad account set-up that begins (and ends with poor performance) with the same one or two audiences. However, the real key to success is through testing and trialling a variety of audiences. It may feel counterintuitive to test audiences a little left of field, but it’s through diversity that we find our key markets.
After identifying key target groups, our main priority was to bring down the Average Cost Per Purchase (CPP) down from $70.65 for the client’s cold campaigns. The previously existing ad sets were consistently beneath breaking even, no longer financially viable for the client.
Previous cold campaign performance
ACTIVE FOR 6 MONTHS
- High cost per purchase
- Low purchase conversion value for the time frame
- ~ $400 below breaking even on ad spend
The result
We implemented a Cold Audience build based on the audience data we collected in the initial testing period. With three new highly targeted cold audiences and focusing on higher value products, we were able to bring the CPP down to an average of just $36.99 in three weeks.
Bright Red Marketing cold campaign performance
ACTIVE FOR 3 WEEKS
- CPP lowered to $36.99
- Positive ROAS of 3.16
- Comparable conversion value in 3 weeks (new audiences)
to 6 months’ worth of advertising (old audiences)
This table shows a comparative 3-week period of the new Cold, Warm and Hot campaigns implemented by Bright Red Marketing versus a 3-week snapshot of the client’s previous strategy.
Interested in learning more about maximising your audience targeting? Get in touch with us today!
