A customer in the auto restoration space who sold a lot of products on Amazon and wanted to break into other channels, namely Facebook and Google.
Now usually, when it comes to advertising ecommerce products on Facebook, we look to the best selling, highest-profit products to launch. And that’s exactly what we did for this client. We chose their best sellers and launched ads for them on Facebook following our proprietary CaAMP system.
And for this client, it worked for a while. . . until it didn’t.
We spent $266,000 and generated 281 new customers for them on Facebook, which was good, but not great. We knew we could keep scaling, but we seemed to hit a wall on Facebook.
So we dug into the numbers and the customer buying behavior in-depth.
This client has many products which are slightly different from each other, and answer specific needs of the potential customer. We noticed that due to the price range and the unique nature of the products we had featured, it took multiple touchpoints to make a purchase. So what ended up happening was that the potential customer would see the targeted ad for $500 to $1000, but then went to Google to further research the product, review the product page, and so forth before making a purchase.
We also noticed that the second bucket of products we had featured had a lower price point - around $100-$120 each–yet were designed for professionals and so buyers exhibited the same behavior and we faced the same scaling issue.
Every time we tried to push these products, frequency went up, cost of new customer acquisition went up, and we hit a wall.
We realized that these products just weren’t right for Facebook, and that there was a limited amount of scale we could do on Facebook. It just wasn’t for the average joe.
And because their main goal was new customer acquisition, we posed the question:
What products would sell well on Facebook that would allow them to acquire customers at a profit?
After looking at the numbers with the client, we found one with a specifically lower price point, and based on the use case, was usable by a broader range of customers. So everything clicked there. The COGS were also significantly lower for this product as well, so it was a great fit for scaling on Facebook.
SpendNew customersCACJan - March (before)$266,0372,081$127.84Apr - June$191,8432,674$71.74Apr - July$235,6103,369$69.93
“The optimal product for Meta might not be the best for Google,” says VP of Performance Kobi Topaz. “On Meta, impulse buys with broad use-cases perform better, while on Google, products that people research extensively shine.”
That is to say, the platform itself changes how you move customers through, so the product and platform must align. Where you should be is based on data, not on what you think.
What Works Best on GoogleWhat Works Best on Meta (Facebook)Buying Intent: Solution-focusedUsers have identified a need and are actively seeking answers or solutions.Buying Intent: Discovery-focusedUsers are introduced to new products or services they might not have actively been searching for at the exact time they were browsing the News Feed.
Google:
Facebook:
At Tier 11, our mission is simple:
We help purpose-driven companies unlock their online business potential through multi-platform, full-funnel digital advertising.
This client’s big why is to provide quality automotive products to individuals and professionals so they can build a car they’re proud of.
Which means, our efforts didn’t just improve ROAS and generate more leads, customers, and revenue. Each and every new customer acquisition contributed to yet another person feeling pride about a job well done.
At Tier 11, we’re doing more than running ads; we’re enabling great businesses to achieve their purpose, and for this client, it means being able to continue producing great auto products.
Ready to explore how we can help your team achieve your brand’s purpose through a brand building, full-funnel marketing approach? Apply to speak with us today.