Challenge

allbeauty is an online leading beauty retailer. As an established ecommerce enterprise, it had already implemented various media strategies encompassing paid search, shopping, YouTube and paid social. These channels had demonstrated their effectiveness in delivering immediate returns, primarily through last-click attribution. However, allbeauty was facing a sales plateau due to the inflation in acquisition costs with third parties which was eroding margins. It wanted to grow direct traffic and was in search of an agency that could facilitate growth by introducing ATL media initiatives aimed at driving incremental sales.

Activity

Our team was entrusted with two key tasks: arranging the strategic planning and acquisition of ATL TV media during a test phase spanning from August to October 2022, and conducting a comprehensive analysis of how the campaign influenced sales, using econometrics techniques.

The choice of TV as the primary medium was driven by its ability to swiftly and cost-effectively extend allbeauty’s reach among its target audience. To measure the direct impact of TV advertising on sales, we implemented on-site Adalyser tracking, enabling the attribution of sales to TV activity within a specific post-exposure timeframe.

We also gathered historical data concerning the performance of individual products within allbeauty’s product catalogue, including metrics such as average sales and revenue. This meticulous data compilation laid the groundwork for our analysis. It enabled us to curate a selection of products deemed most likely to benefit from exposure to a broader mass market audience through TV advertising. These chosen products were strategically featured in the TV campaign.

Upon the launch of the TV campaign, we examined the impact on sales for both the featured products and those not included in the TV campaign, nor promoted via other media channels during that period. All other factors were as controlled as we could make them (flat PPC and Paid Social campaigns etc). This holistic approach allowed us to gain valuable insights into the TV campaign’s effectiveness and its influence on allbeauty’s overall sales performance.

Accelerating Growth

Through smart media planning and in campaign optimisations, we were able to deliver 15% better cost per session (as measured by Adalsyer) than forecast, but it was the analysis on the impact on sales that showed TV’s true value.

By modelling historical data, we created a baseline of how product sales were expected to perform (whilst also accounting for seasonality) and compared performance to this expected trend. Our analysis showed that when products were shown on TV their average sales volumes doubled vs what was expected, and the ROI showed an immediate return.

Our analysis proved that ATL media was a viable route to drive traffic and sales, not just for specific products advertised but with a halo onto the rest of their site. Something that the brand’s previous product specific performance activities had failed to do.

Accelerating Growth