Otto Insurance

The Objective

Reaching new audiences with a lead generation campaign

Otto Insurance, an online auto insurance marketplace, came to TikTok aiming to generate quality leads for its business while decreasing cost per lead. TikTok represented a unique opportunity for the brand to reach and connect with new audiences through engaging short-form videos. The performance marketing campaign would also give Otto Insurance a chance to use TikTok's Events API and optimization tools within TikTok Ads Manager to drive better results.

The Solution

Driving direct response by following creative and auction best practices

Otto Insurance and performance marketing agency Union Square Media worked together to launch a lead generation campaign using TikTok's In-Feed Ads solution.

On the creative side, Otto Insurance's in-house team shot multiple TikTok-first ads designed to look and feel native to the For You feed. The ads followed TikTok's creative best practices, such as breaking the fourth wall to address the audience directly, highlighting customer benefits immediately, and encouraging direct response with a compelling Display Card call to action. Otto Insurance also looked at the Top Ads examples on the TikTok Creative Center for additional inspiration.

Otto Insurance then ran the videos as In-Feed Ads through TikTok Ads Manager, frequently cycling through its creative to give users new looks and keep them engaged. The brand targeted broad audiences and set up multiple events across the funnel via TikTok's Events API, a secure server-to-serve interface that allows advertisers to share customer actions taken on their website with TikTok. Integrating TikTok's Events API allowed our system to optimize delivery and improve conversion signals, helping refine targeting throughout the campaign.

With the Events API, Otto Insurance was also able to pass back revenue and implement Value-Based Optimization, a tool in TikTok Ads Manager that aims to maximize return on ad spend by showing your ads to those most likely to spend more money with your brand. This was key for Otto Insurance, as the brand wanted to not only increase lead quantity but also lead quality.

Finally, Otto Insurance bid with Lowest Cost, a bid strategy in TikTok Ads Manager that aims to spend the set lifetime campaign budget with the lowest possible cost per result.

The Results

Maximizing ROAS while decreasing costs

By making platform-native ads and refreshing them often, integrating TikTok's Events API, and using optimization tools in TikTok Ads Manager, Otto Insurance saw stellar campaign success. This included 862% more leads generated, which ultimately drove a 272% uptick in margins. Lead conversions increased by 10%, while cost per lead decreased by 35%.

Otto Insurance also saw a rise in lead quality, with more homeowners and fewer uninsured leads getting quotes on the brand's website. Given the success of this campaign on TikTok, Otto Insurance has continued to run performance plays on the platform, focusing on using Value-Based Optimization to lift margins even more.