Case Background
Viking is a personalized gift studio dedicated to bringing surprises to users' lives. After nearly two years of effort, by collaborating with designers and artists, they have infused interesting elements into their products and expanded multiple product lines such as blankets and throw pillows. At this stage, Viking's goal is to achieve more website conversions at a lower paid conversion cost.
Solution
VBO stands for Value-Based Optimization, which helps advertisers find users who are more likely to make high-value conversions under the target.
During the campaign, Viking first conducted a performance comparison test in the North American market between two strategies: VBO-Highest Value and non-VBO ad groups (Lowest cost bid ad groups). The practical results showed that using the Highest Value strategy helped Viking achieve more website conversions at a lower paid conversion cost.
In terms of campaign budget, the historical conversion cost in the Viking account was $40-$80. Tuke for Business recommends allocating at least 5 times the CPA budget for a single ad group to ensure the ad group has sufficient budget for learning when the campaign starts.
Finally, using already validated high-quality creatives is the optimal campaign strategy. It is important to note that each ad group should have at least 3 different high-quality creatives running, combined with the VBO strategy to reach target audiences with higher conversion value.
Marketing Results
The VBO-Highest Value strategy helped Viking achieve better conversion results, with ROAS showing a significant increase of 58%, website conversions increasing by 33%, CVR increasing by 49%, and CPP decreasing by 25%.
