IKEA NETHERLANDS
IKEA Netherlands increased its return on ad spend by 23% after adding product tags to its usual Advantage+ catalog ads on Instagram.
IKEA is a Swedish-Dutch multinational conglomerate based in the Netherlands that designs and sells ready-to-assemble furniture, kitchen appliances, decoration, home accessories, and various other goods and home services.
increase in return on ad spend, compared to usual Advantage+ catalog campaigns
increase in sales, compared to usual Advantage+ catalog campaigns
increase in add-to-cart events, compared to usual Advantage+ catalog campaigns
IKEA Netherlands wanted to showcase its range of products on Instagram and increase sales and add-to-cart events.
THE SOLUTION
Making inspiration shoppable
IKEA is always looking for ways to improve its customers’ shopping experience. For this campaign, the retailer wanted to test the business impact of adding product tags to its usual Advantage+ catalog ads. Product tags allow advertisers to tag products from a Facebook Page or product catalog in their photos or videos. When people click on these tags, they can explore more information about the product and discover more similar products, which makes it easy for them to find and purchase what they need.
With the help of the agency Greenhouse, IKEA created an A/B test to compare the effect of adding product tags to its usual Advantage+ catalog ads for two weeks. The campaign setup followed Meta’s best practices for ad targeting, creative and placements, and the ads used broad targeting.
Based on the positive results of the campaign, IKEA plans to continue using product tags as a part of its always-on strategy to improve ad results. The campaign, which ran from September 20–October 3, 2022, achieved:
- 23% increase in return on ad spend, compared to usual Advantage+ catalog campaigns
- 10% increase in sales, compared to usual Advantage+ catalog campaigns
- 4% increase in add-to-cart events, compared to usual Advantage+ catalog campaigns