YUEDPAO
The Thai apparel brand tested targeting strategies on Instagram and discovered that showing ads to a lookalike audience based on customers earned from its Messenger campaigns resulted in 60% more conversations than reaching out to a broad audience.
Thai fashion label Yuedpao offers trendy clothing for both women and men, including T-shirts, hoodies, crop tops and dresses. To encourage sales, the brand often runs ads that click to Messenger, and has seen success with a conversational commerce strategy.
higher incremental reach on Instagram for combined campaign targeted to a lookalike audience
higher incremental reach amongst audience aged 18–24 for combined campaign targeted to a lookalike audience
more conversations from ads that click to Instagram Direct targeted to a lookalike audience
lower cost per message for ads that click to Instagram Direct targeted to a lookalike audience
Yuedpao has a large following on Instagram, and wanted to learn whether it could engage its Instagram community and encourage them to make purchases via conversational commerce, similar to how it does on Facebook and Messenger.
THE SOLUTION
Testing targeting
To gain insights into how best to reach shoppers on Instagram, Yuedpao set out to measure the performance of different targeting strategies using a two-cell A/B test.
The first cell combined both ads that click to Messenger and ads that click to Instagram Direct, and showed the ads to the brand’s usual broad audience of people in Thailand between the ages of 20–65. The second cell contained the same campaign mix, but the ads were targeted to a lookalike audience based on previous customers who had purchased Yuedpao apparel after chatting with the brand on Messenger.
Marked as Sponsored, the ads featured a selection of models wearing Yuedpao apparel. When clicked on, the ads led to an Instagram Direct chat where people could order the clothes they wanted to purchase and then complete the transaction within the chat.
Between August 17–28, 2022, Yuedpao learned that the campaign shown to the lookalike audience outperformed the campaign shown to broad audiences:
- 59% higher incremental reach on Instagram for combined campaign targeted to a lookalike audience, compared to combined campaign targeted to a broad audience
- 1.4X higher incremental reach amongst audience aged 18–24 for combined campaign targeted to a lookalike audience, compared to combined campaign targeted to a broad audience
- 60% more conversations from ads that click to Instagram Direct targeted to a lookalike audience, compared to ads that click to Instagram Direct targeted to a broad audience
- 14% lower cost per message for ads that click to Instagram Direct targeted to a lookalike audience, compared to ads that click to Instagram Direct targeted to a broad audience