The case study below examines how a targeted creative testing strategy, combined with a focus on user-generated content (UGC), led to significant improvements in cost per acquisition (CPA), return on ad spend (ROAS), and overall sales.
The Challenge
A leading pet care company was facing difficulties in reducing the cost per acquisition (CPA) for its product. The company's CPA stood at a high of $80, which was not only unsustainable but also hampered growth prospects. Moreover, there was a lack of user-generated content (UGC) in their marketing efforts, limiting the company's ability to effectively reach and engage with its target audience.
The Solution
To address the challenge, the company implemented a two-pronged approach that focused on creative testing and leveraging UGC:
Creative Testing:
- A variety of ad angles were tested to identify the most effective messaging approach. These included the "5 reasons why" format, TikTok comment replies, and static images highlighting the product's benefits. The most successful creative focused on the relief dogs could experience from using the product, specifically the alleviation of itching symptoms.
UGC and TikTok-style Ads:
- The company created numerous UGC ads with a TikTok-style format, aiming to improve engagement and capitalize on the platform's popularity. Additionally, they worked on whitelisting creator accounts on Facebook, enabling them to reach a broader audience while leveraging the trust and influence of these creators.
Results
The new creative testing and UGC-focused approach yielded impressive results for the pet care company:
53% drop in platform CPA in Q4:
- The new strategy led to a significant reduction in the cost per acquisition, bringing it down from $80 to $37.
61% increase in ROAS:
- By optimizing ad creatives and focusing on UGC, the return on ad spend increased substantially, ensuring a higher return on investment for the company's marketing efforts.
29.9% increase in orders:
- The combined effect of the improved CPA and increased ROAS contributed to a nearly 30% increase in product orders, highlighting the effectiveness of the new strategy in driving sales growth.
This case study demonstrates the power of creative testing and user-generated content in driving significant improvements in CPA, ROAS, and overall sales. By identifying the most effective ad messaging and leveraging the popularity of platforms like TikTok, the pet care company was able to achieve remarkable results in a relatively short time frame.
53%
61%
29.9%
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