How to Increase Conversions and ROAS
The home furnishing company HEMA was looking to increase their conversions and Return on Advertising Spend (ROAS). HEMA’s online marketing agency Oogst partnered with Smartly.io to bring automation into play in Facebook advertising.
The shift from offline to online has been a challenge for HEMA. The brand was fully committed to growing their e-commerce through various conversion-oriented campaigns. They could already see additional online revenue through their efforts – however, there was still room for improvement with their ROAS.
Dynamic Ads and Dynamic Image Templates
Smartly.io used Dynamic Ads (also called DPA, Dynamic Product Ads) to automatically retarget and promote products previously viewed by website visitors.
The first step was to create an efficient product feed with Channable - a product feed management tool. For each feed, product data was adjusted on the product level. This way, Smartly.io could deliver tailor-made ads per platform.
The second step was the creation of the Dynamic Ads campaign on the Smartly.io platform with a variety of automation and optimization features, including:
Creative Solution: Dynamic Image Templates
- Product images were automatically adjusted.
- Copy was pulled directly from the product feed (price, discount percentage, product title, etc.).
- Creative was personalized with campaign design elements.
- More than 1,000 products were turned into dynamic ads.
- Each ad was unique and corresponded the Facebook users’ shopping behavior.
Performance Solution: AI and Automated Optimization
- Predictive Budget Allocation
- Bid Optimization
The ‘Sinterklaas’ Campaign
The Dynamic Ads feature was used to create Hema's Sinterklass 'miniature Santa' holiday campaign. The campaign was created entirely in the Sint style, overlaying little Santas and Christmas characters, in the ads. The ads displayed different characters based on the price and had unique backgrounds for each product. Smartly.io’s Dynamic Image Templates also made it possible to adjust the background to the weather, for example - the ads would be cheerful and rich with colors on sunny days, whereas ads shown on rainy days would have a darker color palette.
Increased Relevance and Increased ROAS
The campaign increased HEMA’s relevance, in turn, increasing their conversions. The Dynamic Ads campaigns drove excellent results and improved the ROAS (last click):
- 5x higher CTR than in Hema’s other conversion-oriented campaigns.
- The ads had an average relevance score of 9/10 during the highly competitive holiday season.
- The DPA campaigns drove a high percentage of monthly purchases on Facebook.