How We Got 7x ROI from Tiny Small Business Ad Spend
Published: April 21, 2014
Author: Molly Shotwell
The Tiger Pistol Customer Success team knows that you don’t have to be big to get results –after all, our business is named after the famous Pistol Shrimp. (Curious? Watch this. )
Every day, we help small business operators who don’t have a lot of time, budget, or resources to effectively market their business across social platforms. And both via our Preferred Marketing Developer relationship with Facebook, and our combined customer activity, we are learning new variables that make up a successful Facebook advertising campaign.
So, to help bring these learnings to life, we thought we would share a recent success story.
A family-owned homewares boutique with two physical stores, one in the city and one in the country.
To increase foot traffic to their newest (country) store, where sales were a little slower than expected.
The owner maintained one Facebook profile for the whole brand; however they wanted to create content just for the prospective customers of the new store that prospective customers of the original store wouldn’t easily see.
To overcome this concern, we suggested a targeted advertising campaign utilizing unpublished posts. A session then occurred to build a detailed profile of the prospective customers that would be used for targeting the unpublished posts. The target specification included items such as the zip codes they live in, what they watch on TV, what magazines they read, where they buy coffee, what hobbies they have, and more.
We allocated a budget of $40 to this campaign; at the same time, we spent $160 on page ads and promoted posts to support the call-to-action-heavy unpublished posts.
Campaign set up ($40 campaign)
Two unpublished posts, both using the same image but with two separate calls to action:
-Call to Action 1: Mention this post in store and receive $10 off your next $100 purchase.
-Call to Action 2: Announcing the launch of our new customer loyalty program.
Given the objective of driving foot traffic as opposed to clicks through to a website for example, we selected the bid type to try to reach as many people matching the targeting specification as closely as possible. The bid type selected was oCPM (Optimized Cost Per Impression).
The owner’s main objective was to get more customers walking through the door of his newest store, and that is exactly what happened: at least 20 new people took the $10 off in-store offer. That’s over $1,760 in sales made off the back of $40 ad spend, with some supporting activity occurring to support the brand at the same time.
The key driver of the success of this campaign was the quality of the targeting specification. Of course, this was supported by a compelling enough ‘call to action’, or reason to come in store, as well as the selection to utilize the highly visual and more engaging unpublished posts as the advertising format.
The success of a Facebook advertising campaign will always be influenced by a wide range of variables. However, if you have clear objectives, it is much easier to measure results and see immediate success.