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

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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.

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