Case Study: Retailer uses Custom Audiences to drive 35:1 ROI

shutterstock_186588848

One of the most popular ad tools on Facebook right know is Custom Audiences. An online retailer recently tapped Facebook Preferred Marketing Developer SocialWire to reach current customers with targeted ads via Custom Audiences, experiencing an average last-click return on investment of $32 for each $1 spent.

The campaign opened up the client’s inventory of 50,000 products, pushing advertisements for 600 of them. SocialWire found that 89 of these products had an ROI greater than 35:1, with some hitting as high as 45:1.

How did they do it?

SocialWire worked with the retailer to create more than 30 custom audiences, based on users who had made a purchase for a specific product.

SocialWire explained the methodology of the study:

SocialWire’s proprietary technology then dynamically matched products from the retailer’s product catalog to users with an affinity to those brands and categories. The SocialWire platform used product attributes such as price and color to predict the best-performing products, which were then quickly scaled by a highly-tuned bidding and budgeting engine. Ads were run in both the right hand side and News Feed across desktop and tablets.

The results showed an average last-click ROI of 32:1. Spend for the Facebook custom audiences campaign was scaled to 10X the starting amount while maintaining strong ROI. All campaigns drove an average News Feed CTR of 3.78 percent with $0.66 CPC.

Here’s a look at how the retailer divided up their spend across verticals and brands, along with the corresponding ROI:

Screen Shot 2014-04-17 at 8.38.54 AMTop image courtesy of Shutterstock.

Facebook Marketing

Mediabistro Event

Facebook Marketing

Starting January 13, work with the group marketing manager of social media at Microsoft/BingAds to grow your business on Facebook! In this course, you’ll learn how to set up your company page, understand Facebook best practices, and execute a monthly content strategy. Register now!

 

Leave a Reply

Get the latest news in your inbox
interested in advertising with inside facebook?

Social Media Jobs
of the Day

Assistant Editor

8 Inc.
New York, NY

Copywriter & Editor

GlobeOne
Santa Monica, CA

Director of Marketing & Communications

Neumans' Kitchen
New York, NY

Social Community Manager

VISIT FLORIDA
Tallahassee, FL

Editorial Director

Phoenix House
New York, NY

Featured Company

Join leading companies like this one and recruit from the nation's top media job seekers on the Mediabistro Job Board. Every job post comes with our satisfaction guarantee. Learn More
 

Our Sponsors

Mediabistro A division of Prometheus Global Media home | site map | advertising/sponsorships | careers | contact us | help courses | browse jobs | freelancers | content | member benefits | reprints & permissions terms of use | privacy policy Copyright © 2014 Mediabistro Inc. call (212) 389-2000 or email us