Lowering customer acquisition costs with Meta Advantage+ shopping campaigns
Founded in 1996 and based in California, Lulus buys, designs and sells on-trend women’s fashion through its online boutique, which serves customers all over the world. Lulus offers formal wear such as cocktail and day party dresses, as well as dresses for events like homecoming, formals, prom and even wedding gowns. Women can also shop casual wear including separates, denim, swim, shoes, accessories and intimates.
Attracting new customers- Lulus wanted to attract new customers, increase online sales and boost brand metrics.
Lulus was intrigued when it heard about the release of Meta’s automated solution for advertisers called Advantage+ shopping campaigns, which uses machine learning technologies to automate the ad campaign creation and management processes. Rather than having to manually set up many campaigns with a patchwork of targeting, creative, placements and budgets, advertisers can set up a single Advantage+ shopping campaign to test up to 150 different combinations, and then optimize for the best-performing ads.
To assess the performance and value of this solution, Lulus ran an initial A/B test that compared its usual ad campaign setup using dynamic ads for broad audiences against an Advantage+ shopping campaign using Advantage+ catalog ads that automatically pulled items from the brand’s online catalog. Lulus’ agency Ampliva–a Meta Business Partner—was closely involved in planning and executing the test.
After seeing impressive results from that Advantage+ catalog ad campaign, Lulus decided to adopt the combination of Advantage+ shopping campaigns optimized for sales together with Advantage+ catalog ads as part of its new ad account structure.
The team also decided to incorporate several other automated features, including: Advantage+ creative for catalog that automatically selected numerous ad formats, imagery and messaging variations; Advantage+ placements that allowed Meta to automatically deliver ads across all placements based on which were most likely to drive the best campaign results at the lowest cost at any given time; Advantage+ campaign budget that automatically distributed the budget across the best-performing ads in real time, and automatic advanced matching that attributed online sales back to specific customers.
Lulus determined the results of its August 30–September 19, 2022 ad campaign using reporting data from an A/B test in Meta Ads Manager, which revealed:
INCREASE IN ROAS
DECREASE IN COST PER PURCHASE
DECREASE IN COST PER IMPRESSION
Using an Advantage+ shopping campaigns plus Advantage+ catalog ads versus usual campaign setup
“With Meta Advantage+ shopping campaigns, we have been able to reach new customers with items they are looking for across our entire catalog of products, which has helped us to expand sales beyond our core product category of dresses. We will continue to test, explore and invest in the Meta platform and its technologies, given the successful results we’ve seen.”
Director of Integrated Marketing, Lulus