How we utilised a hyper-analysis strategy around CTR (click through rate) to break through a challenging brand barrier.
A core issue in most facebook ad-accounts and for the majority of brands in 2022 is that it's harder than ever to generate strong CTR's (click through rates). CPM's (cost per 1,000 impressions are rising) and the algorithm is becoming less hackable through audiences. In this write up we run through an overview of how we integrated our CTR testing strategy to completely turn this ad-account around and make Facebook ads their most profitable channel.
When you think about your Conversion Rate & AOV (average order value) these are somewhat static values based on the performance and structure of your store. Now these can be manipulated through various strategies which we won't cover in this write up.
The BIG lever you have control of from a paid ads perspective, is the amount of people that you can get to click your ad from the CPM (1,000 impressions) you're being charged for, and that's when CTR comes in. Now, we're not talking link click campaigns or traffic campaigns. We're talking about utilising purchase objective campaigns, and then focussing on manipulating your CTR's (% of people clicking per 1,000 impressions) which drops your CPC (cost per click), and drives more (purchase objective) focussed traffic, in-turn, driving more ready to buy traffic through to your store.
We tripled this brands average CTR in account through identifying the specific types of creative that worked for their product, testing and iterating on winners - this dropped their CPP/CPA by 100% and over doubled their in-account ROAS.
Challenge 1: This brand always struggled with incredibly low CTR's hurting the performance of the channel and killing ROAS & CPA/CPP
Challenge 2: Majority of creative did not cut through (competitive niche) and this brand had already tested a variety of content (branded, UGC, statics, video etc) with no success
We completely broke down the box, received lenient approval from the partner brand and started to push the boundaries on what was tested. We tested everything from IG screenshots, reposts, UGC, statics, TikToks, anything that we could get our hands-on. Resulting in well-over 5 phases of ads and approximately 100 creatives.
We used four metrics very closely and solely focused on: CTR (click through rate), CPC (cost per click), CPA/CPP (Cost per purchase), ROAS (return on ad-spend). We then spent time analysing the data closely as it spent, looking for ads that were able to achieve high CTR's and strong ROAS, and optimising anything out that had poor CTR's using our strict benchmark.
We then ended up with a certain portion of creatives that achieved both, and put these ads into a testing framework. Our Creative Strategist takes that framework and iterates on multiple variations of these winning ads creating a pipeline of ads that will have a high chance of success, as we'd identified what cut through.
We doubled-down and scale hard, resulting in 3x in ad-account performance and a PB month for the brand.
- Traffic from spend up 130%
- ROAS up 100%
- CPP/CPA down 100%
The results speaks for themselves. If your brand does not have a testing framework to increase your chance of success, we'd highly recommend putting one in place = less time losing, more time winning.
- Facebook & IG Ads
- Shopify Plus
Click through rate tripled, ROAS doubled