Targeted advertising is a powerful source of attracting customers. Targeted advertising is aimed at displaying ads to potentially target audiences selected according to certain parameters.
Which involves fine-tuning advertising campaigns:
- correctly selected customer audiences (interests, demographics, geo position of users, etc.);
- creating proposals in accordance with the preferences of each audience segment;
- creating creatives that attract the attention of social network users.
After all, targeted advertising has a short sales funnel and long interaction with the audience.
Our Client decided to test this advertising channel. To complete the task, he contacted ITForce in July 2022; before that time he had not used SMM promotion services at all.
Our common case turned out to be effective. We'll share with you the results of setting up a target for an IKEA furniture store because the customer of the service is a reseller of goods from the Swedish brand.
1. Information about the Client - reseller of IKEA furniture
Our client is a reseller of IKEA of Sweden furniture. He has a head office and a small warehouse in Ukraine.
Client benefits:
- the entire range of IKEA products is available to order;
- several thousand products are in stock;
- collection of pre-orders from customers closes weekly;
- delivery time of goods to a warehouse in Ukraine is 6-7 working days;
- delivery of goods to customers is carried out throughout the entire territory of Ukraine, except for the occupied regions;
- delivery times - according to the carriers' deadlines.
The Сlient had contextual advertising working properly, and he decided to test a new traffic channel - targeted advertising.
Client's niche
Our Client offers stylish and modern products for those who like to create home comfort, furnish a house or apartment, but cannot afford to buy expensive furniture and accessories.
The store carries goods from Poland, so the entire assortment is not always available - and this is the main difficulty of the work. After all, the Client cannot sell any goods that buyers want to purchase - the main part, especially large-sized goods, must wait a couple of weeks.
2. Setting up targeted advertising for the IKEA furniture store
Let us remind you that brand resellers (namely, our Сlient) do not require a license to sell goods.
Before setting up targeted advertising, you need to identify the target audience - users interested in the Client’s products.
Who is the target customer of the IKEA furniture store?
The customer of IKEA store products is men and women (mostly women) who were previously interested in products from IKEA and similar stores. The age of the selected audience is 25-45 years old.
We also divided the audience into segments based on main categories:
- different types of furniture;
- decorative goods;
- products for children;
- lighting, etc.
Audiences with relevant interests were collected for these categories of buyers. We started with a budget of $400 per month, followed by a gradual increase.
Setting up targeted advertising
Please note that we didn't work on the SMM service with the Client’s account. That is, the customer maintained his social network profile on his own.
Our main task is targeted advertising. Setup, launch, and subsequent optimization. We also had to create a Facebook page for the store.
First months of work
To set up a target we:
- identified the audiences to which advertising was launched;
- together with the designer, we developed creatives for photos of goods in the interior and a catalog (to run advertising for a product catalog, a configured Merchant Center feed is required).
Let us recall the requirements for creating a feed from Google Merchant Center:
- recommendations for Facebook placement;
- information on required fields for products.
We tested сonversion campaigns with dynamic creatives from the first month of work. That is, each user saw different images in the advertisements.
Fig. 1 – Examples of dynamic creatives
The campaigns worked well - they immediately made it possible to receive purchases at prices up to $1. This result satisfied both of us and the Client, so we focused on it.
Fig. 2 – Advertising campaigns for the first month of work
Along with the number of people who bought the product, there were also many of those who added the product to the cart but didn't purchase it. We showed these users an ad reminding them about their unfinished orders. Example ad:
Fig. 3 – Creative for an unfinished orders
Such campaigns also allowed for additional sales. All advertisements were shown around the clock.
We also tested different advertising placements - Facebook and Instagram.
Fig. 4 – Results of running ads on Facebook and Instagram
We see that there are fewer purchases on Instagram, but also a lower price per purchase. Facebook manages to get more purchases but at a higher price. Based on the test results, we decided to work on both placements.
Next, we looked at the effectiveness of advertising in the context of cities where orders were placed. Top performing regions in Google Analytics:
Fig. 5 – Most converting regions (Google Analytics data)
We see that Kyiv and Lviv bring the overwhelming number of sales (in total they amount to 62.73%). Therefore, we decided to test a separate campaign for the most converting geo according to statistics - they were Kyiv and Lviv. Test results:
Fig. 6 – Testing campaigns by geo (Kyiv, Lviv)
Even though both regions brought more sales to the client, they, unfortunately, did not show the expected result by reducing the average price per purchase. So in the future, we will continue to work with all of Ukraine.
Black Friday and Christmas
The 5th and 6th months of work included such major newsbreaks as Black Friday and Christmas. We have prepared separate audience campaigns for them.
Black Friday
For this, we set up an advertising campaign for purchasing for 3 audiences:
- website visitors in the last 30 days;
- similar to website visitors;
- those who were interested in goods from IKEA and similar stores.
Top converting campaign ads:
Fig. 7 – Examples of ads for Black Friday and Christmas.
Campaign results:
Fig. 8 – Black Friday and Christmas Campaigns
We see that Black Friday was more successful, it brought 13 times more sales with a fairly reasonable price for the result.
Audience burnout. Finding new target users
When setting up targeted advertising, we quickly found the desired target audience which was likely to make purchases. After a certain period of work, this audience began to burn out - the frequency of ad displays and the average price per purchase increased. One person could see an ad up to 10 times.
We tested different methods to reduce the frequency,:
- created new audiences;
- updated advertising banners;
- and even reduced the budget in some campaigns.
However, no method has been found to reduce the frequency of impressions and get the optimal price per order. But despite this, even those users who saw the advertisement about 5 times still bought the goods. Therefore, in our case, the high frequency of ad impressions did not turn out to be too critical.
З
Of the audiences we tested, the following user audiences produced strong results:
- who was on the site but did not buy anything;
- who added an item to the cart but did not buy it;
- users similar to those who added the product to the cart;
- users similar to those who bought the product.
Our advertising campaign was set up for retargeting with the goal of Traffic to the website to expand the number of site visitors and warm audiences. Let's look at the results of the campaign:
Fig. 9 – Company with the goal of Traffic to the website
The customized campaign allowed us to get views of the website’s landing page for $0.01, which was very satisfying.
Return of the old audience
We have started periodically updating the ads so that the old audience sees a different visual. These actions allowed us to reduce the cost and frequency of display. It should be noted that in this niche, an impression frequency of up to 5 was still considered normal. After all, some users are not ready to place an order from the first contact, but after they see the ad again, they are more inclined to perform a conversion action - add an item to the cart or even place an order.
Also, when analyzing the results, we assessed the average price per purchase and the value of conversion, because the lowest price per purchase isn’t always the most profitable. And they noticed that in some cases, the value per purchase also increased as the price increased.
We set up the bulk of the campaigns for the product catalog. In addition, on our part, the customer was invited to test certain categories of products. The client did not identify priority categories for him, so we chose them at our discretion, based on 2 main factors:
- relevance of the product;
- high-priced goods.
The campaign with a category of products that had a high average purchase price worked better than others. Separate audiences of users were collected and products were selected in the ad for each group. Examples of ads:
Fig. 10 – Ads for specific product categories
The campaign showed fairly high sales results and conversion values (high-value products were sold). Average price for purchasing furniture and ROAS (return on ad spend):
Fig. 11 – Average price for the purchase of furniture and ROAS of individual product groups
The category Office furniture has the best result:
- 1334 purchases, accounting for 48% of total sales;
- $0.74 price per purchase, which is the lowest of the selected product categories;
- 121% ROAS.
Competitors
We conduct regular competitor analysis. We look at what offers they launch, what the banners look like, what the competitors’ advertising goals are, etc. We make adjustments to advertising campaigns to be more competitive based on this.
Regarding the results from Facebook analytics, our main guidelines for changes in advertising are:
- average price per purchase;
- frequency of impressions;
- conversion value.
It is important that the Client enters all our recommendations and takes the initiative and voices his wishes. Let's look at the results that we managed to achieve together with the Client.
3. Results of targeted advertising for IKEA furniture reseller
The Client contacted us intending to test a new traffic channel and set the cost of an order for this channel at the Google Ads level. At the beginning of working with targeted advertising, we received an even lower order cost than it was in contextual advertising at that time. However as the number of purchases increased during the period of cooperation, the average price per purchase also increased.
Let us note that we started working with the Client with a budget of $400 and gradually increased it because we saw the potential of targeted advertising and wanted to get the most out of this channel. Today we work with a large budget.
Fig. 12 – Results of cooperation for 5 months
The results we achieved over 5 months of working with targeted advertising:
- purchases 6,312;
- average price per purchase – $0.78;
- total additions to cart – 111302;
- average price per add to cart – $0.04;
- ROAS for purchases – 113.56%.
Targeted advertising over 5 months of work brought tangible results to the Сlient - 6,312 sales with an acceptable cost per lead of $0.78. That is, the new traffic and sales channel worked. The Client plans to further develop it, in which we will help our Client.
Plans for the next periods
In subsequent periods, we will continue to work with existing advertising campaigns and look for ways to optimize them.
Planned work for further maintenance of the service:
- working with current campaigns and optimization;
- collecting and testing new audiences;
- updating headlines in advertisements;
- working with similar audiences;
- working with campaigns by product category, testing creatives;
- working with a retargeting campaign;
- setting up, launching and testing dynamic remarketing.
We continue to work within the established budget.
