Costa Coffee

The objective

Driving conversions, cost-effectively

Costa Coffee is one of the largest coffeehouse chains in the world, offering customized coffees, coffee beans and other treats. Costa Coffee Club is a loyalty program that enables patrons to collect points for their purchases, that can then be redeemed for free coffee.

Costa Coffee wanted to drive app installs in Q4 2023 heading into the holiday season. The team sought to capitalize on the success of past campaigns, and target Costa Coffee Club members to drive adoption of the app by existing customers. The goal of the campaign was to drive conversions, with cost per acquisition (CPA) the key performance metric.

The solution

Testing out Custom Audiences

Costa Coffee worked with TikTok to build a performance campaign strategy. TikTok offers a number of Custom Audience options so advertisers can create tailored targeting solutions per their needs. Costa Coffee created audiences based on user engagement with past ad groups, and partner audiences using their Costa Coffee Club member base. They also created a lookalike audience to expand their reach and set the campaign objective as App Installs.

To test the performance of the campaign, Costa Coffee created two ad groups, one with broad targeting and the other with a combination of Custom Audiences. Since multiple Custom Audiences were used together, the campaign was able to reach the entirety of applied audiences.

The results

Double the conversions, significantly lower CPA

The test ad group leveraging Custom Audiences outperformed the control ad group with broad targeting. The test ad group saw a jump in conversions, and much lower CPA.

• 40% lower CPA than broad targeting

• 2x conversions

• 34% lower CPM than broad targeting

The results clearly illustrated the power of custom audiences for driving App Installs.