Homesick ran Shops ads together with Advantage+ shopping campaigns on Instagram and Facebook and saw an 18% decrease in cost per purchase when selecting “website and Shop” compared to selecting “website” only.
Homesick is a candle, home fragrance and lifestyle brand that has the goal of helping people celebrate the places and moments that matter most. Its stated aim is to be the go-to brand for fun, personal and giftable products that bring joy to its customers lives. Homesick is owned by WIN Brands Group (WIN), an omnichannel retail platform that buys and builds brands.
lower cost per purchase when selecting “website and Shop” in the Advantage+ shopping campaigns versus “website” only
higher return on ad spend when selecting “website and Shop” in the Advantage+ shopping campaigns versus “website” only
Homesick wanted to increase online sales on its website and on its Shop on Instagram and Facebook.
Testing a new strategy
Homesick was excited about adding Advantage+ shopping campaigns to its ad strategy on Instagram and Facebook. Advantage+ shopping campaigns use AI and machine learning to automate, simplify and streamline the campaign creation, ad setup and account 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 highest performing ads. The team at Meta suggested that Homesick also pair its Advantage+ shopping campaigns with Shops ads to see if this combination could drive more even efficient performance than either solution could on their own.
Advertisers can add Shops ads to their Advantage+ shopping campaigns with just one simple click. By using them both together, paid traffic would be automatically diverted to either the advertiser’s website—or to its Shop on Instagram and Facebook. That’s because Meta’s algorithm uses machine learning to know who is more inclined to purchase via the Shop and who is more likely to purchase via the website, based on people’s past behaviors.
The team ran an A/B test that consisted of:
- Cell A: Advantage+ shopping campaigns that directed people to Homesick’s website only
- Cell B: Advantage+ shopping campaigns with Shops Ads toggled on, automatically directing people to Homesick’s website or to its Shop
All other elements—such as ad formats, placements, audiences and budget—were the same between the cells. The results revealed that Advantage+ shopping campaigns plus Shops ads performed better together. Having the second conversion location enabled Homesick to reach more incremental buyers than it could have without including Shops ads, and it also enabled a more seamless shopping experience for all buyers.
Homesick determined the results of the April 27–May 11, 2023 ad campaigns using reporting data from an A/B test in Meta Ads Manager, which revealed:
- 18% lower cost per purchase when selecting “website and Shop” in the Advantage+ shopping campaigns versus “website” only
- 27% higher return on ad spend when selecting “website and Shop” in the Advantage+ shopping campaigns versus “website” only