Measuring the success of your ads is an important part of improving your paid search campaigns. However, not all metrics are created equal. If you want to get the most out of your ad spend, you need to focus on tracking the right metrics that help you understand how your ad dollars are being put to best use. That’s where return on ad spend, or ROAS, comes into play.
Return on ad spend is one of the most useful, yet underrated paid search metrics. It helps you connect what you are spending on a campaign to how much new revenue the ad generates. In the end, this powerful metric can help you determine which elements of your ads deserve more of your budget and which ones you still need to work on.
In this case study, we’ll explore how Lacoste tested the carousel format for ads in Instagram Stories to measure its performance against another digital ad format, resulting in a 61% higher click-through rate.
Founded in France in 1933 by tennis player René Lacoste, who was nicknamed “the crocodile,” the company’s products can be recognized by the famous green crocodile logo. The high-quality Lacoste product line includes fragrances, sunglasses, watches, bedding and clothing.
Lacoste wanted to beta-test the new carousel ad format in Instagram Stories and ultimately increase online sales.
“We wanted to test the additional space offered by the 3-card carousel ads in Instagram Stories. The ad format’s interactivity encouraged people to tap through each card to view our modern bath and bedding collections, swipe back and forth between the cards, or even pause for longer viewing. We’re thrilled with this ad format—it adds depth to product storytelling.” As explained by Susan Wojewoda, Senior Vice President of Licensing and Brands at Lacoste.
Lacoste is famous for its iconic Classic Fit Polo shirt and other casual-wear clothing, but perhaps less well-known for its other high-quality lifestyle items, such as its bath and bedding products. To turn that around, the brand decided to run a bold new digital ad campaign to get those items in the spotlight.
The results of the April 20–May 4, 2018 campaign were based on reporting data from Facebook Ads Manager, and were determined using a Facebook split test, which revealed:
2X higher online return on ad spend (versus other digital ad formats)
61% lift in click-through rate (versus other digital ad formats)
32% lower cost per link click (versus other digital fad formats)