Client

The client’s company makes home deliveries of healthy meals in the United Kingdom. The food is of the highest quality, cooked as in a restaurant.

A variety of menus is offered: vegan and gluten-free, menus for people who exercise or want to lose weight.

The market is highly competitive, but the customer’s offer has everything necessary to succeed in the market competition: high quality products, competitive price, reliable delivery and high-end service.

Challenge

The niche of delivering proper nutrition on Facebook Ads is very competitive, there are many similar offers on the market. For Facebook Ads, this means a high CPM, which had to be optimized as much as possible.

The client came to us with the following advertising indicators:
Cost per lead is £100 – £160, at an expense of almost £6000
CPC is £6 – £10
High CPM equals an average of £20 per 1,000 impressions

The objectives were stated as follows:

  • Increase the number of sales via Meta Ads
  • Reduce the cost per result (in our case, per purchase)
  • Increase the number of repurchases

At the time of the launch, the price per lead was high, which had a big impact on marketing costs, and there were almost no repurchases.

A significant amount of money was spent on targeting ads to attract new customers, but it did not lead to the expected increase in sales.

It was essential to review the marketing strategy and find a different approach to attract new customers via Meta Ads and increase the loyalty of regular customers through remarketing tools.

One of the important things was to find an effective audience – creative connection, to find long-term clients.

Healthy meal delivery is suitable for professional athletes, for those who want to lose weight effectively and for people who are just too busy to cook on their own. These are different customer profiles, and we had to work through each of them.

Service

Meta Ads / Meta Ads for business

Approach

In the initial strategy for launching a Facebook Ads campaign, we identified several potential audiences:

  1. Athletes or fitness enthusiasts who watch their diet and want to eat healthy foods that meet their training needs.
  2. Those who want to lose weight or lower their cholesterol levels.
  3. Office workers who don’t have the ability to prepare their own meals and are looking for convenient and healthy meal delivery options.
  4. People who want to save time on cooking, and are willing to pay for high-quality and healthy ready-to-eat meals with delivery.
  5. Those interested in healthy lifestyles and healthy nutrition who are looking for information about healthy nutrition and are willing to experiment with new foods.
  6. People who frequently use food delivery.
  7. Look-alike audience: users who are similar in their interests, behavior and other characteristics to those who have already performed any targeted action on the site.
  8. Retargeting. In this campaign we repeatedly show ads to individuals whose visits to the site, for unknown reasons, did not result in an order. We additionally motivated them with discounts and promotions.

Testing of these audiences revealed profiles that yielded the best results:

  • People who do sports or fitness – 24 purchases at £24.02
    This audience was recently relaunched with new banners and gender separation to show the most relevant creatives for each audience. The results are good, so we’ll work on scaling and optimization next.
  • Look-alike audience – 25 purchases at £18.67
    The client has provided a database of users who have made purchases on the site. The Meta algorithm analyzes the base and looks for “similar” users.
  • People who use food delivery frequently – 560 purchases at £23.65. The most obvious query “food delivery” brings one of the best results.

Therefore, we identified the basis of an effective strategy.
In the meantime, we continued to test other audiences and creatives.
It is very important to test creatives, because an effective banner on Meta Ads is the key to success in half of the cases.

We should not forget to build a communication/connection between the ad and the user who is browsing through the Instagram feed.

We tested creatives by dividing them into categories:

  • dish format: dishes in plates and dishes in boxes
  • color scheme: bright, dark, light
  • offer: 30% off, free shipping, no offer
  • button: no button, with a bright visible button
  • format of creatives: photos, videos, gallery

As a result, we identified effective banner formats for this project:

  • dish format in boxes. People obviously prefer to see in advance what something they will pay for looks like.
  • light background
  • “30% off” and “free shipping” both showed roughly the same results
  • a bright “get offer” button is necessary
  • videos and photos show give or take the same good result

Subsequently, we developed data based on these results. But continued to test new formats approximately twice a month in order to expand the possibilities to create new variants.

Results

We achieved the following indicators in 10 months:

  • Reduced the cost per conversion by 6 times
  • Identified the format of creatives that brings a high conversion rate
  • Increased site conversion rate by 65% by making changes to the site
  • Increased the number of repurchases by 4 times
(at the time of the client's approach)
(performance results)

Cost per lead is £18 – £24,
CPC is 2£ – 4£
CPM is on average £5 – £8 per 1,000 impressions

Conclusions

1. The effectiveness of targeted advertising depends on proper targeting, thorough testing and analysis of the results.

2. The use of UGC-content in targeting ads helps to increase trust and loyalty of potential customers and increase the effectiveness of the campaign.

UGC (User-Generated Content) content is content created by users, not companies. In targeted advertising, the use of UGC content can have several advantages:

  • Trust of the audience: users often trust content created by other users. UGC reflects their actual experience.
  • Economic efficiency. It is cheaper than ordering banners from a designer.
  • Writability, especially when using just mobile devices. It allows you to quickly respond to trends and changes in user behavior.
  • Increased engagement: users feel more connected to the brand and more actively engage in dialogue with the company and other users.

3. Making creatives for targeting ads requires analyzing user behavior at the time of viewing as well as testing different options to determine the most effective.

4. There are several factors to consider while designing creatives for targeting ads:

  • Target audience: what topics they care about and what problems they solve with the product or service.
  • Promotion channels: must be appropriate for the channels on which the ads will be placed. Visually striking and attractive content may be suitable for Instagram, and more professional and informative content may be appropriate for LinkedIn.
  • Uniqueness: creatives should be unique and attractive to the target audience. Advertising material should stand out among other ads and attract the attention of potential customers.
  • Short and informative: creatives should be short, laconic, and contain basic information about the product or service. It is important not to overload the ad with an excessive amount of text and images.
  • Testing: it is necessary to test the creatives to determine which one is most effective for a particular target audience and promotion channel.
  • Conversion: creatives should focus on specific goals and maximum conversion rates. For example, if the goal of the campaign is to increase sales, then the creative should contain a call to action aimed at a purchase.

5. Targeted advertising is primarily about testing: audiences, creatives and other parameters. Constant monitoring and analysis of the results allows you to optimize the campaign and increase its effectiveness.

6. Direct audiences don’t always work more effectively than indirect audiences. The reason is that a target audience can be more complex and varied than anticipated at the start. Sometimes people who are not in the direct audience can be potential customers or even better consumers of a product or service.

Moreover, direct audiences may be too narrowly focused and may not provide enough customers to justify the cost of marketing.

Indirect audiences may show interest in a product or service despite not originally being part of the direct audience.

For example, if a company offers a healthy meal delivery service, an indirect audience might include people who are interested in sports or business.

Using indirect audiences can help broaden your audience and attract new customers who were not previously seen as potential customers.
Indirect audiences can also help raise brand awareness and improve a brand’s reputation in the eyes of potential customers.

In addition, the CPM in this audience is likely to be lower in cost, since the competition is definitely less than in targeting a direct audience.

 

Do you want to get more out of targeting advertising?
Then order it from us.
We’ll help your potential customers find your company.


We also offer a free audit.
Contact us and a Regis Team specialist will review your advertising campaign and point out potential growth areas.