E‑commerce Brand Achieves 15X ROI with Facebook Video Ads
The Challenge
E‑commerce businesses face some of the toughest acquisition challenges of any industry. With more competition than you can count, standing out from the crowd and attracting the attention of potential customers can be a struggle. Brands need to find a way to promote products quickly and aesthetically so they can increase conversions and sales. While static images have proven to outshine banner ads, video ads are the current darling of the industry. And, on Facebook, video ads have been shown to bring a CTR 4X higher than static ads.
With 72% of adult internet users on Facebook, it is a social media platform that needs to be incorporated into every advertising strategy. Knowing this, a leading French e‑commerce fashion brand, chose to work with TheMotion to test out how video ads could help the company reach their acquisition goals in addition to seeing how different video ads performed for a variety of product categories including men’s and women’s clothing.
The Campaign
The company’s initial video ad campaigns were centered around the brand’s top 75 fashion products. Knowing that most video auto-play without sound, TheMotion used strategically placed text information mixed with eye-catching product images to ensure that viewers could easily understand the product details. Each video was just under 15 seconds, an ideal length to catch a viewer’s attention and sell them on the product.
The video ad campaigns ran for a total of 3 weeks. However, based on the CTRs and viewing behaviors associated with each campaign, TheMotion automatically rendered a video ad for each product and uploaded all of them to Facebook’s advertising platform. With so much data on hand, the brand was able to evaluate the performance of video ads featuring different products.
The Results: High ROI and Low CPA
The company’s Facebook video ad campaigns showed great promise from the very beginning. During the first week, the campaigns resulted in an 11X ROI. As the weeks progressed, the improvements continued. During the second and third weeks, the company saw a 12X ROI and 13X ROI, respectively. The accumulated ROI reached 15X, including the post-click sales, with the CPA progressively cut by an impressive 22%. In addition to these remarkable numbers, the highest performing campaigns were those associated with the fashion label’s best-selling t-shirt category in which the company saw a 14X ROI (16X including post-click sales, with the CPA reduced by nearly 60%).
The Bottom Line
The overall results for the company’s campaigns proved that video ads could simplify not only the acquisition process but also have a major impact on the company’s CPA. What ultimately drove the high ROI and low CPA for the brand can be directly correlated to the daily optimization of each video ad campaign. This e‑commerce company was so pleased with this test campaign that they plan to launch more video ads in the coming weeks for additional products and continue to experiment with new creatives. The upcoming campaigns will be targeted to newly identified audiences for both acquisition and retargeting campaigns to increase sales and repeat customers.
Video ads are dominating the current marketing landscape, and if you are not using them across your acquisition platforms, your business is missing out on a huge opportunity.
If you’re ready to give video ads a try, it’s time you talk to us! Find out how we can help you meet your sales goals with our unique technology that automatically produces hundreds of dynamic videos directly from your product catalog — all in just a matter of minutes. We’ll even upload them directly to Facebook so you can start running your ads right away! Get a live demo today.
