Digital advertising is a competitive space. We can say that every bit of space in the digital world is equivalent to digital real estate. Spending your budget in the right place and toward a suitable audience becomes very crucial to the success of a campaign.
How then do you make a decision about your advertising online? You reach out to the experts.
Let’s start with learning about the client’s profile.
About the client
The client owns and runs Chennai’s most successful racing team. They specialise in car tuning, performance upgrades, and aftermarket performance parts.
To mention the services offered in detail –
- Car tuning
- In-house full system exhaust
- Performance aftermarket parts
- Performance improving car customizations
Return on Investment (ROI)
We’ve termed the goals outlined by the client as return on investment considering they’ve invested their time and money with Profitcast.
- Penetrate a market saturated with competitors.
- Establish brand awareness.
- Improve follower count on Instagram.
- Increase customer acquisition via social mediums.
- Create a self-sustainable ad campaign to help generate constant revenue.
Return on Ad Spend (ROAS) explained
ROAS is the resultant effect of the campaign divided by the invested amount.
ROAS = Gross revenue from campaign / Cost of campaign
It helps us understand the performance of the ad campaign and improve the upcoming campaign based on the success of the ad campaign.
In this case, the cost of the ad campaign is 32,028₹ with revenue of 2,86,000₹ generated over a period of 3 months.
The client saw 5 key conversions with varying quantities resulting in the above ROAS.
The Process – Our areas of focus
One major advantage that we can leverage on is Facebook’s targeting features. The platform allows you to get fairly detailed with the specific target audience with the different aspects involved i.e. demographics, location, interests, consumer behaviour, etc. If you can make optimal use of the targeting features offered by Meta, you have won half the game already.
You can also target by hobbies, life events, and connections. The list is fairly exhaustive in nature.
Use the core audiences feature to build these audiences on Meta based on data collected during research.
In inbound marketing terminology, these are the customers who are in the consideration stage. They have engaged with your brand previously. The idea is to nurture this relationship and transition it into the conversion stage where they complete an action that you want them to, i.e. purchase your offering as a business.
Now there are a few different ways a prospective customer engages with your brand. They can be visitors on your website, on your app, to your physical store front (if you have one), subscribers to your email list, or anybody who has engaged with your content across social media platforms. These are just a few examples but you understand how it works now.
This one’s a keeper and let us tell you why.
A lookalike audience replicates the characteristics of one of your existing audiences. So you’ve done your research, built audiences and understood which ones work for your digital marketing strategy. And you build a lookalike audience around this that is similar to the audience. It starts from 1% where it’s closest to the existing audience.
You are telling Meta what your audience is and asking the platform to advertise your campaign to more such people. It’s simple and brilliant all in one type of audience creation.
Now this might seem like it’s the same as targeting repeat customers. But that’s not the case.
Retargeting allows you to display the ad campaign to users who have shown interest in the ad but did not go through with the complete process of conversion.
You are reminding users that they might have missed the opportunity to sign up/purchase the offering earlier and so they can do it now. It’s not too late yet, right?
Retargeting is a very useful method of targeting as it’s focused toward an interested audience and it can recapture their attention, possibly leading to a conversion.
Overcoming ad fatigue
If you remember the law of diminishing marginal utility from your economics lessons, you’ll know what ad fatigue is.
Ad fatigue is the number of times a prospective customer is shown an ad so much so that it leads them to become less responsive towards the ad. You’re essentially driving the prospect further away from becoming a customer.
Check out the ad frequency metric to understand how many times the ad is being displayed to the same user and tweak your targeting to keep that metric below 2-2.5.
What we did to overcome ad fatigue
- Changing ad creative and copy – The same ad concept but with tweaked creatives and copies can make a world of a difference. It’s as good as a fresh ad to people who come across it because they might not remember the creative as well as you do. This kills ad fatigue from the get go and increases your chances of conversion.
- Ad set targeting – Changing targeting at the ad set level allows you to target different ad sets to different users under the same campaign. This avoids an overlap of users and reduces ad fatigue.
What you need going forward
You need a partner with expertise in social media advertising who will help you
- Create hyper focused advertising strategies
- With transparent workflows and
- Streamlined campaign management
Reach out to us and give us the opportunity to create compelling social media advertising strategies for your business. After this, you sit back and watch the increased ROAS unfold. Find out more, here.