Case study

How We Attracted A New Audience & Increased LTV By 16%

22.07.2023

Clients

One company specializes in selling bicycles with prices starting at $300, while the other focuses on providing outdoor recreation products with prices starting at $200.
The startup’s GEO is Belarus.
Vertical — E-commerce.

Objectives

Both clients wanted to increase sales and reach, increase CTR, reduce the cost per target action, and customize the work according to the set KPI (CPA<=$4).

TikTok is perfect for promoting products such as bicycles and recreational products because the bulk of the social network’s audience is 18-24-year-olds. Many of them like sports and active lifestyles.

Strategy and implementation

AdSkill’s collaborative efforts on both projects involved assigning distinct responsibilities to the pre-moderation department, account managers, designers, and SV platforms. To assess the efficacy of the advertising campaigns, key metrics such as the cost per completed application (CPA)conversion rate, and click-through rate (CTR) were meticulously analyzed.

Having collected the necessary number of creatives and prepared a successful strategy, we started its realization. Both the official representatives of the site and our clients participated in the promotion process. The work proceeded in stages.

Phase I. Alignment and review of creatives by our moderation team

In close collaboration with the client’s design department, we concurrently crafted a comprehensive promotional strategy for TikTok while curating a diverse pool of creatives for each product. Ensuring compliance with the TikTok Policy, a crucial aspect of our work involved the pre-moderation of all promotional materials. From the client’s top five best-selling products, we meticulously selected three captivating creatives for each item, optimizing their impact and appeal.

Phase II. Developing an advertising campaign launch strategy & tests

The AdSkill team reviewed and refined the ads and banners, conducting a test run to identify the most impactful creatives. A comprehensive testing phase commenced, exploring various approaches and promotional methods. This two-week period entailed a budget allocation of $200, allowing for thorough experimentation and optimization.

Based on the analysis and test results, the confirmed approaches were launched, and changes were made to the strategy itself. But we didn’t want to stop looking for new audiences and ways to implement the case study, so we decided not to abandon the accompanying tests in the process of launching the campaign.

We scheduled testing of creatives on certain days to collect analytics as quickly as possible and to identify the most effective routes. Next, our team executed the campaign launch with separate groups, different bids for each product, utilizing, among other things:

  1. Collecting audiences for retargeting
  2. Working with comments
  3. Direct click-throughs to the site & site lead form

Phase III. Adjustment and solution of related problems

One of the primary challenges encountered during the implementation of these cases was the limited geographical scope, specifically focusing on Belarus. To overcome this obstacle and prevent advertising fatigue among the audience, we employed a dynamic approach by frequently refreshing the creatives. This proactive measure ensured the sustained interest of the target audience, as the introduction of fresh and diverse advertising materials effectively attracted and retained their attention. We’ve prepared:

  • Video tutorials & product application guides
  • Product usage tips and tricks
  • Collaborations with other companies with purchase offers, combined bundles (product+product, product+service)

Since the clients had already worked with TikTok before and didn’t have a clear strategy, we faced the task of reducing the negativity of users who were tired of the same-type offers of companies to buy bicycles and recreational products.

Our successful approach in handling negative comments yielded positive outcomes. By leveraging entertaining videos and providing prompt responses to inquiries in the comments section, we were able to enhance the companies’ reputation and foster audience loyalty. Through our collaborative efforts, customers gained valuable insights into the areas of concern and pain points in their production processes, leading to informed decision-making and improvements.

Results for 3 months of work

  • CPA (cost per order) = $3.6 for both clients: this is 10% below target
  • Increased LTV: 12% increase in customer return rate due to retargeting campaigns and flexible work on customer loyalty
  • Sales growth: +16% for the leisure products client (March – 155, June – 265 applications), +17% for the bicycles client, month on month
  • Best days: it was possible to identify the optimal days with the highest purchasing power (Monday through Thursday)
  • Gender analysis: a well-designed strategy allowed to identify the most active buyers (77.82% men, 21.70% women

What are the conclusions?

Comparing two launches of advertising campaigns in TikTok with high-value products, we can conclude about their effectiveness. For example, in the first launch, the CPA was $3.6 (bid price below target by 10%). Due to campaigns with retargeting and productive work on loyalty, customer returns increased by 12% in a short time. A notable increase in sales was seen with the leisure products client, averaging 16% month-on-month.

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