...And used to achieve the following

RESULTS

0%

ROAS

100.00%

Cost Per Sale

0%

Profit

Single Video
Ad (Control)

vs.

Facebook
Collection Ad:

The Test

0

separate campaigns

$0

in Ad spend

0.0

months

$0

in sales

Why Collection Ads?

Mobile usage is increasing
0%

of all shopping journeys include a mobile action, but slow load times cause friction in that process.

Video is increasingly important

Collections Ads deliver a faster loading, more seamless mobile browsing experiences.

Facebook collection ad Example for Adidas

Audiences Used

Having managed millions in Facebook ad spend, I can say that without a doubt, audience selection can be the key difference between a losing campaign and a wildly profitable one.

Ash Aryal
CEO Digital Spotlight

Most of the budget were given to our favorite four audiences for e-commerce:

Added to cart retargeting
Visitors who viewed the primary product page AND visitors who added our product to cart (must satisfy both conditions)


Product category retargeting (exc. added to cart)
Visitors who viewed our product and product category page but DID NOT add to cart


Video view retargeting
This is a retargeting list we created in Facebook of anyone who watched more than 3 seconds of a video we promoted on Facebook


Product category buyers Lookalike audience
A 1% Lookalike (LAL) audience of buyers who have bought at least one item from that product category

What Collection Ads Did For Large Brands.

adidas

100% decrease in cost
per conversion and a

0.0x Return on
ad spend

tommy hilfiger

ROI increase of over

0%

0x Return on
ad spend


0% Lower cost
per visit


100%

drop in cost per conversion/ purchase

0x

YOY increase in return on ad spend.

tommy hilfiger

increase in conversion rates

0x

100% lower cost
per conversion


0% increase in
online sales

MeUndies

Increase in
conversion
rates

0%

100% lower cost
per conversion


0% increase in
online sales

What Collection Ads Did For Our Clients.

Average Cost Per Sale:

Advertising with Facebook Collection Ads cost 100.00%

Less to get each sale
Ad TypeCostCost/Sale
$177,843.34
Collection
$104,875.74$32.94
Single Video
$72,967.60$40.43
Ad TypeCostCost/Sale
$177,843.34
Collection
$104,875.74$32.94
Single Video
$72,967.60$40.43

With a range between:

0%

+0%

Facebook’s goal of reducing friction with Collection Ads shows that it’s working

Average Order Value:

Advertising with Facebook Collection Ads product a 100%


(negligible)

change in Average Order Value
Ad TypeCostAOV
$1,122,853
Collection
$715,137.28$224.60
Single Video
$407,716.27$225.88
Ad TypeCostAOV
$1,122,853.55
Collection
$715,137.28$224.60
Single Video
$407,716.27$225.88

With a range between:

0%

+0%

Return on Average Spend:

Overall ROAS%
increased by +0%

by switching to Collection ads
Ad TypeSum
(Amount Spent)
ROAS
$177,843.34
Collection
$104,875.746.82
Single Video
$72,967.605.59
Ad TypeSum
(Amount Spent)
ROAS
$177,843.34
Collection
$104,875.746.82
Single Video
$72,967.605.59

With a range between:

0%

+0%

Results

0%

Results (9 out of 13) of clients increased their ROAS% simply by switching to collection ads.

If collection ads worked for a campaign, it produced a clear winner. One campaign (campaign 8) did 89.74% better than the single video counterpart! (To say our client was happy is a massive understatement)


Overall Profit grew on average:

+0%

What does this all mean?

A Small Change ROAS
=A Huge Change in Profits

Our client who experienced an 89.74% ROAS in his Collection Ad campaign grew profits be close to 180%, compared to the FB video counterpart.


Conclusions

  1. If Facebook Collection Ads work - it will quickly produce a clear winner.... so start testing immediately!)

  2. The probabilities are on your side – 70% of collection ad campaigns clearly beat the single video counterpart.

  3. Look for your average cost per sale decrease to be the main driver to higher returns with Facebook collection ads. Facebook’s goal was to reduce friction. It seems they have achieved it.

  4. Don’t expect Facebook Collections ads to have much, if any impact on your average order value (in fact it may slightly decrease)

  5. A big increaes in ROAS can lead to an even bigger increase in profits. At a 40% profit margin, one of our clients grew profits 180% by growing ROAS close to 90%

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