Find out how ClickThrough’s paid social experts secured a 560% rise in ROI for a leading, luxury cookware brand.
At a time when customers are cutting back on non-essential spending, luxury brands are facing particular challenges in encouraging their target market to invest in treats. When our long-term client in the luxury cookware sector needed to reduce paid social advertising costs, we reassessed our audiences and budgets to secure 53% more purchases.
From the end of 2021, up to mid-2022, our team were facing challenges in growing performance for the cookware brand. This was primarily down to external factors, including the cost-of-living crisis and conflict in Ukraine, which caused a knock-on effect on consumer confidence. As our client produces luxury items within the sector, they felt the impact as many potential customers cut back on treats and only bought essentials, or lower-range items.
With a reduced budget for paid social activity, we set out to;
- Minimise any resulting drop in purchases,
- Expand our reach,
- Reduce cost per purchase.
Unprecedented times called for a new strategy. From the middle of 2022 onwards, we amended our account structure and introduced some new audiences into our mix, supported by Scope4C. These audiences included;
- 4C Smart Audience | Conversion – This encompasses an audience built from 4C with targeting towards interests related to the industry.
- 4C Affinity Audience | Awareness – An audience built from interests related to their Facebook page. So, similar to the smart audience, but not quite as expanded.
We also took on a different strategy of focusing our efforts on sales and newly released products instead of ‘always on’ content. This kept the content fresh for our audiences and the sales incentivised the users to go onto the site and get a luxury item for a lower cost. We also changed our own spending habits to be more conversion-focused, whereas we’d previously seen success from spreading our budget evenly across the funnel.
Securing better Black Friday performance
One example of this is how we approached Black Friday in 2021 and 2022. In 2021 we had multiple different ads live, including Black Friday, BAU, new products, and other individual campaigns, which was not efficient for our budget. By focusing our spend only on Black Friday ads for 2022 we;
- Spent 53% less on ads overall,
- Achieved a 102% rise in ROI,
- Reduced CPP by 48%.
Applying Black Friday learnings to the Q5 peak
Following on from this, we applied the same strategy to our December & January efforts. Looking at YoY across December & January we saw;
- A +163% increase in revenue,
- +96% increase in purchases,
- 11.80 ROI (an increase of 269%).
This came from our focus on the 4C smart audience, which drove 498 of our purchases and produced 73% of our total revenue generated. All of this was achieved from a smaller spend YoY of -29%.
Our new audiences turned out to be the best-performing audiences within our new funnel during peak periods, ultimately achieving most of our overall campaign revenue;
Awareness 4C Affinity Audience
Conversion 4C Smart Audience
CPM of £0.46
656 total purchases
68% of overall revenue
ROI of 10.58
Overall, we’ve seen significant improvement on performance YoY, in a sector where many consumers are continuing to cut back. Compared to 2022, we have achieved;
- 53% more purchases
- 101% more revenue
- 560% higher ROI
All this despite a 70% reduction in spend!
Find out how well prepared your digital activity is for the cost-of-living crisis.
Photo by roam in color on Unsplash
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