Leveraging seasonal moments to promote a handmade jewelry brand while lowering CPA
Tenengroup is a data driven, end-to-end e-commerce house, with six brands around the world. For Father's Day 2021, Tenengroup was looking to promote one of its leading brands, MYKA, maker of handmade personalised jewellery pieces, while lowering cost per action. For jewellery brands, holidays and seasonal moments are strategic touch points for driving sales, but as the competition is tough and the media is flooded, reaching targets is not always an easy task.
Understanding the power of TikTok to influence consumer behavior, Tenengroup decided to build a dedicated plan for TikTok to test out the impact of the new platform. As a first step, the company launched a prospecting campaign that showcased the jewellery pieces and leveraged TikTok's unique For You feed to maximize reach with relevant consumers and help them discover the new products.
For the prospecting campaign, Tenengroup utilised TikTok Ads Manager's lookalike audience and targeting recommendation functions to improve audience relevancy. In addition, to improve budget efficiency, the company excluded users who had completed payment in the last 14 days (to avoid targeting users who had already made their Father's Day purchases). The campaign went live a month before Father's Day, allowing users to enjoy free shipping, which Tenengroup came to learn has a major impact on conversions.
Knowing that the consumer purchase journey often requires more than one touch point, as a second phase, Tenengroup decided create an additional set of creatives and run a remarketing campaign targeting users who had already taken an action on its website or users who had previously watched the brand's ads for at least six seconds.
Tenengroup saw incredible results during this dedicated Father's Day activity. CPA decreased by 53% while the conversion rate increased by 52%vcompared to the brand's off-season activity. Cost per mille also decreased by 27%.
Adding the remarketing activity allowed the advertiser to increase the impact of the campaign by reaching users who had already shown an interest in its products, but did not actually complete the payment. This media strategy proved to be effective since by creating an additional touch point and 'meeting' the relevant users with a different creative, they were able to convert them to complete the purchase.
We found TikTok to be an amazing platform to reach new audiences to engage with our brand. we managed to reach these audiences with a 40% lower cost than on other platforms. The combination of this CPM level and the increase in CVR (more than 50%) reduced our cost per purchase by an amazing 50% for our 2021 Father's Day event. We're excited to continue exploring this platform and find more ways to test and grow.