The global teen retailer Hollister compared showing ads with product tags to Shopping lookalike audiences versus its usual prospecting audiences, and saw a 32% higher click-through rate when using Shopping lookalike audiences.
Founded in 2000, Hollister is a global teen retailer owned by Abercrombie & Fitch Co. Inspired by California’s laidback attitude, Hollister’s clothes are designed to celebrate the liberating spirit of an endless summer. Its apparel is available in-store and online.
higher click-through rate
lower cost per click
increase in link clicks
Hollister wanted to understand whether using Shopping lookalike audiences could help drive more traffic at a lower cost for its campaigns using ads with product tags.
Testing a new audience strategy
Hollister had already run a successful campaign that tested using ads with product tags to show more of its shoppable content, drive sales and make its ad strategy more cost efficient. Now, with this phase two campaign, the brand tested whether showing ads with product tags to newly available prospecting audiences of interested shoppers would be effective.
Specifically, Hollister wanted to understand whether using the new Shopping lookalike audiences would increase website traffic at a lower cost when compared to using its typical “business as usual” prospecting audiences. Hollister partnered with digital performance marketing agency iProspect, which helped with the campaign strategy and execution.
These business-as-usual audiences consisted of US males and females aged 13 and over, including a lookalike audience of people with characteristics similar to the top customers in Hollister’s customer relationship management (CRM) database, and a value-based lookalike audience made up of people with characteristics similar to its most lucrative online customers.
The Shopping lookalike audiences, by contrast, were comprised of people with characteristics similar to those who had engaged and interacted with Hollister’s organic shoppable content and their ads with product tags – for example, by tapping and viewing a product tag, or adding an item to the cart.
The team showed all audiences a variety of photo ads featuring shorts from Hollister’s catalog, along with messaging that played on relevant stay-at-home themes, such as: “No one has to know you're wearing the same jogger shorts every day” and: “Different washes to help you answer the question: What day is it?” Hollister used the campaign budget optimization feature, which let Facebook’s algorithm automatically distribute the budget in real time across the best-performing ad sets.
Hollister determined the results of its June 16–23, 2020 audience comparison campaign using reporting data in Facebook Ads Manager, which revealed that, compared to its usual prospecting audiences, ads with product tags shown to Shopping lookalike audiences led to:
32% higher click-through rate
47% lower cost per click
More than 90% increase in link clicks