To increase sales and campaign efficiency, the teen apparel retailer Hollister tested ads with product tags on Instagram, which increased the click-through rate 13% compared to its usual retargeting campaign benchmarks for that month.
Founded in 2000, Hollister is an iconic global teen apparel 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.
increase in click-through rate
lower cost per impression
lower cost per click
Hollister wanted to test ads with product tags to see whether they could help drive higher click-through rates, revenue and cost efficiencies and return on ad spend.
An immersive shopping experience
Hollister was excited to have the opportunity to test ads with product tags to see if these ads could help show more of its shoppable content, drive sales and make its campaigns more cost efficient. Hollister partnered with digital performance marketing agency, iProspect, which helped with the campaign strategy and execution.
Ads with product tags have organic shopping features that make it easier for people to engage with the ad content, discover new products and purchase them at the moment inspiration hits. The team was particularly interested in understanding the impact of product tags, which allow businesses to highlight products from their catalog so people can learn more. Shoppers can tap on the ad to reveal product tags with the product name and price. Clicking on the product tag sends the shopper to a product details page within Instagram, with additional product images and more descriptive information. Shoppers can then proceed to purchase from the brand’s mobile website (or via Checkout on Instagram).
The team built photo ads showing products from Hollister’s summer collection, along with relevant messaging that played on stay-at-home themes. One ad showcased jogging shorts in a variety of colors, with the messaging: “No one has to know you're wearing the same jogger shorts every day.” Another ad featured high-rise denim shorts in a variety of color washes from light to dark, with the messaging: “Different washes to help you answer the question: What day is it?”
Hollister determined the results of its May 11‒18, 2020 campaign using reporting data in Facebook Ads Manager, which revealed the advantages of using ads with product tags compared to May retargeting campaign benchmarks:
13% increase in click-through rate
34% lower cost per impression
42% lower cost per click