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Dynamic Creative Increases ROI of Facebook Exchange by 5X [Case Study]

Nanigans’ Facebook Exchange (FBX) remarketing solution provides advertisers the ability to dynamically display creative at an individual, product SKU level. This empowers advertisers with a simple, hands-off method to remarket to people on Facebook with products they recently explored and engaged with. With intent already shown, the promise of dynamic creative lies in it providing heightened relevancy for end consumers.

We recently compiled a case study to better understand how dynamic creative impacts the performance of FBX remarketing campaigns on cost, engagement and ultimately return on ad spend (ROI) fronts.

The case study below highlights remarketing efforts of a large online retailer selling a wide variety of products from fabric to food, and encompasses over 75 million impressions delivered through FBX.

Goal

The retailer’s business goals were centered on acquiring first-time buyers through remarketing on Facebook. The retailer aimed to understand how performance through FBX compared when delivering evergreen creative (such as the company’s logo or generic product creative) as opposed to personalized dynamic creative (specific products an individual viewed on the retailer’s website).

Ultimately, the retailer’s goal was to keep the cost of acquiring new customers who purchased in the same day they were served ads at $12 — a lofty goal.

Strategy

Targeting.  The vast number and variety of products sold by this retailer provided many options and pages for shoppers to browse, which in turn contributed to a large pool of potential customers to retarget on Facebook. These retargeting efforts were restricted to the United States.

Creative.  The retailer’s depth and variety of products also made dynamic creative a particularly compelling strategy. The retailer opted to dynamically deliver both creative and destination URL of the last product the potential buyer viewed (as opposed to items initially viewed or added to their cart). Given the length of the descriptions of their products and to avoid concerns of long descriptions being truncated, the retailer opted for static titles and bodies. These were based on the product category the item fell into, be it accessories or artwork. The retailer concurrently delivered more evergreen creative through FBX for performance comparison.

Optimization.  Nanigans’ bidding algorithms automatically optimized to reach users who purchased in the same day they were shown an ad through FBX.

Results

With dynamic creative, Nanigans was able to meet the retailer’s goal of acquiring people who purchased on the same day they were delivered ads under a $12 CPA. Nanigans’ bidding algorithms, which automatically optimize and place spend behind high performing strategies and drop spend from low performing strategies, allocated 23.8X more ad spend to dynamic creative.

Ultimately, dynamic creative through FBX resulted in 5.1X higher ROI (return in sales revenue on the cost of the ad spend) than more evergreen creative through FBX:

  • ROI without dynamic creative: 165.69%
  • ROI with dynamic creative: 845.86%

Compared to more evergreen creative delivered through FBX, dynamic creative resulted in:

  • 43% lower CPCs
  • 66% lower CPA for new customers who purchased on the same day they viewed ads
  • 7X higher CTRs
  • 68% higher day-1 purchase rates

Takeaways

This case study highlights how dynamic creative can enhance relevancy and thereby ROI of FBX remarketing campaigns. Two important learnings surfaced in this campaign in addition to the power of dynamic creative:

Frequency – Lower is not necessarily better.  Frequency refers to the number of ads displayed to an individual or audience in a specific timeframe. At the onset of the FBX campaign, frequency capping was set conservatively at 5 ads per day. However, over the course of the campaign the retailer increased this frequency. In fact, the retailer was able triple this frequency to 15 ads per day and maintain the same performance.

Product Feed – SKUs must be as accurate as possible.  Retailers vary in terms of the turnover of their products and how frequently they introduce new products to their customers. This particular retailer had very high turnover and introduced many new products every day. Initially intervals between updating the feed were lengthy, but performance dipped quickly. It became critical to then update the feed as close to real-time as possible.

Contact us today to leverage dynamic creative in your remarketing efforts on Facebook!

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