Video ads are exploding into the world of Facebook advertising. Discover the exact methodology we used to profitably scale one video ad to $10,000 daily spend.

The Details

Video ads are exploding into the world of Facebook advertising.

Videos on Facebook and Instagram have arrived in full force. Currently, Facebook users are watching over 100 million hours of video a day. And these views aren’t limited to cute cat videos or the latest viral sensation. Cat videos go viral because users share, like and comment on video more than static content. Savvy e-commerce advertisers are using video to drive views, shares and sales.

Video ads are being shared, commented on, and liked much more than ‘regular’ ads. While likes don’t directly translate into sales, these social indicators increase the ad’s relevance score, resulting in a lower cost per click, higher reach & free impressions. Basically, ads that are shared and liked are viewed more favorably by Facebook’s algorithm.

The Strategy

This was the case for one of our e-commerce clients with thousands of products for sale on their site. After testing video ads for a few different products at the same time, one of them started to gain traction in the form of views and engagement. Rather than create a new ad for each new audience, we consolidated all of the creatives into a single ad. Not only does this improve the ad’s relevance score, but every new audience added will see all the accumulated likes, comments, and shares.

The Results

The campaign gained momentum and spread virally. We were selling a $139 product people didn’t know & hadn’t heard of before viewing the ad on Facebook, so finding an audience of impulse buyers with disposable income was key. We tested 30 different audiences before pinpointing three that produced the lowest cost per click (around $0.25). The site converted at ~0.5%, resulting in a cost per acquisition around $59.

video-ads-case-study

We continued optimization of the campaign – at peak spending $10,000 per day with a reduced cost per acquisition at $30. When we sold out of the product, the retailer was excited to restock and restart the campaigns.

The Conclusion

Cat videos are here to stay as is this winning methodology which has become a best practice for our team, producing similar results across multiple product lines and client campaigns.

The real value for the client, beyond selling out of a single product, was demonstrating customer acquisition at scale for both management, ownership, and investors. With a focus on lifetime customer value, making an initial sale profitably was the cherry on top.

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