Overstock ran video ads in Instagram Stories to acquire new customers and increase sales, resulting in an 18% higher return on ad spend.

Find exactly what you want, for less

Overstock is a tech-driven online retailer located near Salt Lake City, Utah. Since its launch in 1999, Overstock has evolved from a startup to a billion-dollar online retailer. The company helps lifestyle shoppers discover designer brands and home goods—from furniture to décor, area rugs, tile and wallpaper—all for less.


increase in return on ad spend


decrease in cost per acquisition


decrease in cost per click

Instagram Stories offers a unique playground for stunning visuals and compelling narratives, resulting in more impactful impressions. As a brand, we are looking for innovative ways to connect with the audience and help them along their journey, whether that is now or months from now. Coupled with the right message, Instagram Stories drive higher engagement and efficiency than many other ad formats.
Acquire customers and improve sales

Overstock wanted to acquire new customers, increase website conversions and strengthen sales.

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Repositioning the brand with Stories

Going into 2018, Overstock was aware that—for some shoppers—the brand had developed a reputation for selling surplus older merchandise, rather than modern new items. To counter this narrative, it decided to run a campaign to change this perception, especially among its female demographic.

The company had previously developed Instagram and Facebook ads that ran in feed, which had been very effective at increasing website traffic and delivering incremental conversions to its TV media. But for this new campaign to reposition the brand and gain more awareness, Overstock and its media agency Ocean Media decided to run vertical video ads in the new immersive full-screen Instagram Stories format.

They created eye-catching, fast-cut video ads in Instagram Stories that showed colorful, stylized images of modern chairs, side tables, bedroom furniture, lamps and home décor along with the messaging “Still think we sell overstocked goods? Think again! New Products, Latest Trends, Inspiring Styles, Bright Ideas—All at overstock prices!” Each ad had a Shop Now call-to-action button that clicked through to the Overstock website, where people could learn more and purchase.

Overstock showed the ads to US women aged 25–54, as well as to those with an interest in home-related topics, including décor and furniture. The company also showed ads to a lookalike audience of its current website customers.

This results of the January 1–March 31, 2018 campaign were determined using a Facebook conversion lift study, which revealed:

  • 18% increase in return on ad spend

  • 20% decrease in cost per acquisition

  • 20% decrease in cost per click

Ads in Instagram Stories proved to be an efficient direct response channel that delivered better return on ad spend than other ad formats. The combination of a full-screen video, and audio on, provided a better creative opportunity to make a brand impact. Instagram Stories is a very attractive ad format that Overstock will continue to leverage.