MAGAZINE LUIZA

As an omnichannel retailer with a significant ecommerce presence, Magalu is focused on consistently achieving greater website sales at a lower cost. The brand partnered with Meta to test whether it could achieve this goal by using ads with product tags to reach shoppers on Facebook and Instagram.

Ads with product tags allow businesses to create clickable ads for products in their catalog. When shoppers click on a tagged product, they arrive at a product details page with more information and the option of completing a purchase on the brand’s website or in-app.

Magalu set up a conversion lift test, where one cell had ads with product tags and the other cell had ads without product tags. The retailer used Advantage+ catalog ads for broad audiences to reach people who had not yet purchased or visited its website but may have shown interest in its products. It ran Advantage+ catalog ads for re-engagement to reach shoppers who had visited its website already. The campaign targeted ads to Brazilian adults aged 18–65 and over and consisted of simple photos that showcased various products.

Magalu used Advantage+ placements to allow Meta to deliver ads across its technologies according to which were most likely to drive the best results at the lowest cost. It also used Advantage campaign budget to automatically shift budgets to the best performing ad sets in real time.

At the conclusion of its April 19–May 3, 2022 test period, Magazine Luiza determined the results of the campaign using a conversion lift study, which revealed: