AMERICAN FURNITURE WAREHOUSE
American Furniture Warehouse ran dynamic ads for broad audiences in an Instagram and Facebook campaign to acquire new customers and increase online purchases, and saw a 22% increase in sales.
Founded in 1975, American Furniture Warehouse offers a wide selection of furniture and home décor―including in traditional, contemporary and modern designs. People can shop online or at its 10 locations in Colorado, two in Arizona and two in Texas.
incremental return on ad spend with prospecting audience
increase in sales among prospecting audience
American Furniture Warehouse wanted to attract new customers and increase online sales.
American Furniture Warehouse wanted to run a far-reaching and cost-efficient digital ad campaign, so it decided to test using dynamic ads for broad audiences, as well as Facebook’s optimization features.
Dynamic ads for broad audiences enable retailers to cast a wider net, reach new people and capture their attention with tailored ads based on their expressed online interest in its products―or similar products—without having to wait for shoppers to visit its website.
American Furniture Warehouse simply uploaded its online product catalog, which enabled the dynamic ads to automatically show people relevant furniture and décor products pulled from the catalog. The photo ads appeared in the collection format―a prominent top product image, along with four smaller product images underneath―to display more products at once. The messaging advised viewers to: “Shop our everyday low prices online and pickup today in store!” Each ad had a “Learn More” button that linked to the company website.
The team showed the ads to US adults aged 18 and over, excluding all recent purchasers, and used the automatic placements feature to allow Facebook to automatically deliver the ads across Facebook apps and services, including the full-screen Instagram Stories, based on which placements were most likely to drive campaign results at the lowest cost at any given time. It also used the campaign budget optimization feature to automatically shift budgets to the best-performing ad sets in real time.
American Furniture Warehouse determined the results of the June 18–July 8, 2020 campaign using a Facebook conversion lift study, which revealed:
13.4X incremental return on ad spend with prospecting audience
22% increase in sales among prospecting audience