How This E-Commerce Brand Achieved a £4.14 ROAS with Facebook Ads
Updated: Nov 2nd, 2024
1. Introduction
(A) - Campaign Overview
NCF Living, a prominent furniture brand in the UK with over 18 stores nationwide and an expanding presence in the GCC region, including the UAE, launched a targeted Facebook/Meta advertising campaign. The primary aim of this campaign was to increase sales across NCF Living stores in the UK and UAE by leveraging digital marketing strategies. The campaign focused on both online and offline sales channels, seeking to enhance overall revenue and boost brand visibility within the competitive furniture market.
(B) - Company Background
NCF Living operates within the furniture retail industry, serving a diverse customer base across the UK and the UAE. With a strong network of over 18 physical stores in the UK and a growing footprint in the GCC region, NCF Living has established itself as a trusted brand offering a wide range of high-quality furniture products. The company’s online platform generates approximately £1.5 million in annual revenue, while offline sales through conventional retail channels contribute three times that amount. Prior to this campaign, NCF Living utilized a mix of traditional marketing strategies, including in-store promotions, print advertising, and basic digital marketing efforts. The goal was to significantly enhance digital advertising performance through a focused Facebook/Meta ads initiative.
(C) - Objectives
The campaign was designed with two primary objectives:
- Brand Awareness: Increase brand recall and awareness across the UK market, focusing on enhancing the visibility of NCF Living among potential customers.
- Sales Increase: Drive both in-store and online sales to boost overall revenue, converting increased brand awareness into tangible sales results.
Table of Contents
2. Campaign Planning and Strategy
(A) - Market Research
Extensive market research was conducted to understand the target audience’s demographics, interests, and behaviors. Analysis of market trends highlighted a growing preference for online furniture shopping, coupled with sustained demand for high-quality in-store experiences. Competitive analysis identified key players in the furniture market, revealing opportunities for NCF Living to differentiate itself through targeted advertising and unique value propositions.
(B) - Target Audience
The target audience was segmented based on:
- UK Demographics: Adults aged 25-54, primarily homeowners or individuals furnishing their homes.
- Young Professionals in GCC: Aged 25-45, focusing on modern and minimalist furniture styles.
- Interests: Users interested in home decor, interior design, furniture, and related lifestyle categories.
- Behaviors: Online shoppers, frequent purchasers of home goods, and individuals showing interest in competitor brands.
- Custom Audiences: Retargeting previous website visitors and customers to encourage repeat purchases and store visits.
- Returning Customers: Custom audiences based on past purchase behavior and website interactions.
(C) - Creative Strategy
The creative strategy involved developing compelling ad copy and high-quality visuals to resonate with the target audience. Key elements included:
- Ad Copy: Clear, persuasive messaging highlighting NCF Living’s unique offerings, promotions, and quality craftsmanship.
- Visuals: High-resolution images of furniture products, lifestyle imagery showcasing products in real home settings, and engaging videos demonstrating product features.
- A/B Testing: Conducted to determine the most effective combinations of headlines, images, and calls-to-action to optimize engagement and conversion rates.
(D) - Ad Placement Strategy
Ad placements were strategically selected across Meta platforms to maximize reach and engagement:
- Platforms: Facebook, Instagram, Messenger, and Audience Network.
- Placement Types: News Feed, Stories, Marketplace, and in-stream videos.
- Optimization: Ensured ads were optimized for both mobile and desktop viewing, aligning with the usage patterns of the target audience.
3. Campaign Execution
(A) - Ad Types Used
- Carousel Ads: Showcasing multiple products within a single ad unit to highlight the range of offerings.
- Video Ads: Providing dynamic content that captures attention and demonstrates product features.
- Story Ads: Leveraging the popularity of Instagram and Facebook Stories for immersive, full-screen experiences.
- Collection Ads: Combining video, images, and product listings to facilitate seamless browsing and purchasing.
(B) - Budget Allocation
The total campaign budget was £14,574.41, distributed across seven ad sets. Budget allocation was carefully managed to balance brand awareness and direct sales objectives, with bidding strategies tailored to maximize return on ad spend (ROAS).
(C) - Timeline
The campaign was executed over a specified period, commencing on [Start Date] and concluding on [End Date]. Key milestones included:
- Phase 1: Initial brand awareness push with broad targeting.
- Phase 2: Optimization based on early performance data, reallocating budget to high-performing ad sets.
- Phase 3: Final push focusing on conversions and sales, leveraging re-targeting strategies.
(D) - Targeting & Segmentation
Targeting parameters were meticulously set to reach the most relevant audiences:
- Broad Audiences: Targeting a wide demographic to maximize reach and brand exposure.
- Lookalike Audiences: Creating lookalike segments based on existing customers to identify new potential buyers.
- Retargeting Audiences: Focusing on users who had previously interacted with NCF Living’s website or social media profiles.
4. Performance Metrics and Analysis
(A) - Meta Seasonal Promotions Campaign
Key Performance Indicators (KPIs) – [Campaign Round 01]
The campaign’s success was measured using several KPIs, including:
- CTR (Click-Through Rate): 1.55%
- Conversion Rate: Website purchases and in-store sales
- ROAS (Return on Ad Spend): 5.43
- CPC (Cost Per Click): £0.49
- Impressions: 1,996,979
- Reach: 702,541
- Frequency: Averaging around 2 times per user
Results Overview – [Campaign Round 01]
The campaign achieved substantial success, surpassing key performance metrics:
- Total Spend: £15,034.64 across five ad sets.
- Impressions: Nearly 2 million impressions, ensuring extensive brand exposure.
- CTR: An overall CTR of 1.55% indicated moderate engagement levels.
- ROAS: A strong ROAS of 5.43 demonstrated effective budget utilization, generating over £5 in revenue for every £1 spent.
- Sold: Over 80 high end furniture items
- Campaign Duration: 3 Months (Nov, Dec, Jan)
(B) - Meta Regular Sales Campaign
Key Performance Indicators (KPIs) – [Campaign Round 02]
The campaign’s success was measured using several KPIs, including:
- CTR (Click-Through Rate): 1.47%
- Conversion Rate: Website purchases and in-store sales
- ROAS (Return on Ad Spend): 4.14
- CPC (Cost Per Click): £0.53
- Impressions: 1,888,932
- Reach: 659,904
- Frequency: Averaging around 2 times per user
Results Overview – [Campaign Round 02]
The campaign achieved substantial success, surpassing key performance metrics:
- Total Spend: £14,574.41 across five ad sets.
- Impressions: Nearly 1.9 million impressions, ensuring extensive brand exposure.
- CTR: An overall CTR of 1.47% indicated moderate engagement levels.
- ROAS: A strong ROAS of 4.14 demonstrated effective budget utilization, generating over £4 in revenue for every £1 spent.
- Sold: Over 60 high end furniture items
- Campaign Duration: 3 Months (Feb, Mar, Apr)
5. Challenges and Adjustments
(A) - Optimization Strategies
In response to these challenges, several optimization strategies were implemented:
- Budget Reallocation: Increased budget allocation to high-performing ad sets like NCF Mattresses and NCF Sales to maximize returns.
- Creative Adjustments: Updated ad creatives for underperforming ad sets to enhance appeal and relevance.
- Targeting Refinement: Adjusted targeting parameters to better align with audience segments showing higher engagement and conversion rates.
(B) - Real-Time Monitoring
Real-time data monitoring played a crucial role in the campaign’s success:
- Performance Tracking: Continuously tracked key metrics to identify underperforming ad sets early.
- Dynamic Adjustments: Made on-the-fly adjustments to budget distribution, creative elements, and targeting strategies based on real-time performance data.
- Iterative Testing: Implemented ongoing A/B testing to refine ad elements and improve overall campaign effectiveness.
6. Outcome and Impact
(A) - Final Results
Two (2) campaigns concluded with impressive results:
- Total Spend: £15,034.64 / £14,574.41
- Impressions: 1,996,979 / 1,888,932
- CTR: 1.55% / 1.47%
- ROAS: 5.43 / 4.14
- Overall Purchases: Significant increase in both online and in-store sales, driven by targeted advertising efforts.
- Top-Performing Ad Sets:
- NCF Mattresses | Broad: ROAS of 5.44, with 22 purchases at a low cost per purchase of £176.63.
- NCF Sales | Broad Aud: ROAS of 24.80, indicating an extremely successful return on a limited spend (£417.74) and a cost per result of £41.77.
(B) - Business Impact
The campaign had a substantial impact on NCF Living’s business:
- Revenue Growth: Boosted online revenue beyond the previous £1.5 million per annum and significantly enhanced offline sales.
- Customer Acquisition: Acquired new customers through effective targeting and retargeting strategies.
- Brand Visibility: Enhanced brand awareness across the UK market, laying the foundation for continued growth in the GCC region.
7. Conclusion
(A) - Future Outlook
The Facebook/Meta ads campaign for NCF Living successfully met and exceeded its objectives of increasing brand awareness and driving sales across the UK and UAE markets. With a strong ROAS of 4.14 and substantial improvements in both online and offline sales, the campaign demonstrated the effectiveness of targeted digital advertising in achieving business goals.
The insights gained from this campaign will inform future marketing strategies, enabling NCF Living to continue leveraging Facebook/Meta platforms for sustained growth. By applying the lessons learned and following best practices, NCF Living is well-positioned to enhance its digital marketing efforts, further increase revenue, and strengthen its brand presence in existing and new markets.
With over a 10+ years of experience in the digital marketing arena, I have honed my skills in multi-channel marketing campaigns, leveraging the power of data, past lessons and AI to drive extraordinary results. My expertise lies in bridging the gap between branding, growth, performance, marketing tech, and analytics. I am passionate about constructing and executing innovative strategies that amplify brand awareness and drive conversions.