Watsons is the largest healthcare and beauty retail chain in Asia, as well as one of the largest in the world, with more than 6,800 retail stores and 1,500 pharmacies.
Watsons’ online retail wing has always focused on providing their customers with a value-for-money experience, and during Singles Day – a national holiday celebrated annually on 11th November – Watsons has its hands full with millions of customers.
Optimizing Customer Acquisition Costs (CAC) in Advertising Channels to improve Return on Ad Spend (ROAS)
The beauty and healthcare industry faces stiff competition, with hundreds of brands jostling to be the number-one player in the market. And one of the key areas of competition is Facebook Ads.
Since healthcare and beauty products are very personal products, social media is an integral player in capturing new customers and prospects via its ad channels. And out of these channels, Facebook Audience Network is one of the largest sources of leads for Watsons, especially on eCommerce peaks like Singles Day. Therefore, Watsons started its hunt for a marketing platform that would help them optimize experiences and customer acquisition costs to improve Return On Ad Spend (ROAS) in this bustling season. That’s when Watsons decided to tap into Insider’s Predictive Ad Audiences to improve their ROAS on Facebook.
Increase in ROAS
Using Predictive Ad Audiences to Avoid Mistargeting on Facebook
Using Insider’s Predictive Ad Audiences, the marketing team at Watsons was able to create predictive user segments and target audiences who were more likely to make a purchase via Facebook Ads. These audiences were identified by Insider’s in-house AI-powered Likelihood to Purchase algorithm to help Watsons avoid mistargeting in ad channels.
50% improvement in Return on Ad Spend
Watsons’ target segment comprised women between the ages of 15 and 65, in western Europe, who had a high likelihood of making a purchase. They started with a small pilot budget, which increased as the results came in.
Watsons saw an initial three-figure dollar spend converted into five-figures in revenue. It improved their Return on Ad Spend by 50%.
“Facebook Ads has always been one of the key channels to acquire new customers and with ad competition getting stiffer and stiffer as we speak, it’s becoming harder to keep differentiating ourselves in the beauty and healthcare industry. With Insider’s Predictive Ad Audiences feature for Facebook Ads, we got results that completely changed our approach in ad channels. The uplift of 50% in conversions with a mere three-figure pilot program was mind-blowing, to say the least. Insider has a phenomenal suite of tools for brands like us, which helps you achieve what you’ve set out to do.”
Sr. Digital Performance Specialist