foodpanda
Driving more efficient acquisitions with Video Shopping Ads
The objective
New user acquisition with Catalog Campaigns
foodpanda is an online food and grocery delivery platform under Delivery Hero, with offerings across business units like food, mart, self-pick up and dine-in in multiple countries. Over the years, foodpanda has continuously evolved its technology and services to meet the growing demands of customers and restaurant partners, establishing itself as a prominent player in the competitive food delivery industry.
foodpanda continues to drive efficient costs per acquisition by looking for ways to advertise their app on TikTok, such as finding ways to improve user experience, to solidify its position as a market leader in the food delivery industry in the Philippines.
The solution
Leveraging Video Shopping Ads (Catalog Sales)
Video Shopping Ads stood out as the most suitable solution for foodpanda's acquisition campaign, allowing them to increase the visibility of their products offered and improve the user journey.
foodpanda leveraged the Product Sales Objective, layering with prospecting and retargeting strategies. They ran a mix of creator-led videos and template videos, featuring their wide range of merchants through product cards and templates. This shortened the path to acquisition, as users are directed to the merchant page upon landing.
The results
Improved cost per acquisition and acquisition rate
Through the combination of prospecting, retargeting and creative variation, foodpanda was able to achieve significantly lower cost per acquisition and a higher conversion rate compared to their BAU campaigns. Over the course of the campaign period, ads with Product Sales Objectives saw 23% lower CPA and 82% higher conversion rates than those on non-Product Sales Objectives, according to internal performance data.
Upon seeing the potential of Video Shopping Ads in one market, foodpanda has since expanded across their other markets and business units. They also saw success with content-specific catalogs through Product Sets, featuring fast food vendors with fast food content and mart vendors with recipe content.
By leveraging Video Shopping Ads we were able to scale our campaigns and achieve very competitive cost per acquisition with other campaign types. VSA also allowed us to utilize vendor catalogs showing a large variety of restaurants and vendors to users which we were not able to do in the past. VSA has become one of the best performing campaign types we run on TikTok.