Facebook claims that it can advertise to about 4 million affluent Indians. If you are a Facebook marketer, at some point, you have surely tried to target the Affluent Indians, online. Be it through selecting interests like ‘iOS users’ or ‘audience with Affinity for High Value Goods in India’ or ‘Frequent Business Travellers’ or ‘CXOs’ or ‘Investors’ – you’ve surely tried them all.
Because these people face the digital onslaught from all corners, they are highly selective in their purchases. Using Performance Data of Premium Apparel and Accessories Brands, we tried to understand what truly appeals to this audience and tried to come up with a probable explanation for their reasons to purchase.
1. To what extent does mentioning famous brands in the ad creative or ad headline affect the response of the Affluent Indian audience?
Mention of a famous brand, say, Giorgio Armani, in the ad headline saw Click through Rates (CTRs) of 2.2-2.5%, while its absence fetched CTRs of only 1.2-1.4%. The Revenue on Ad spend (RoAS) was 25-30% better with the presence of famous brand names.
Going a step further, highlighting multiple brands in the ad copies worked even better, both in terms of CTRs and Overall RoAS. This Audience segment receives famous brands and brand depth very well.
2. Where should the ads lead this audience segment – Product Pages, Product Category Pages or Brand Pages?
While logic says it is best to land users on the same product page or product category page which are shown in the ads (since they clicked on it), we observed that for the affluent audience, landing users on the respective brand pages work better. Bounce rates for brand landing pages are about 40-45%, for the Category pages it is about 50-55%.
This hints at the fact that this audience doesn’t really look for the best products, they look for their favorite brands.
While the thought process of most of the Facebook audience on seeing an ad is like “This blazer looks nice, the price is fine too. Let me see this on the website. It also happens to be a United Colors of Benetton Blazer”.
Correspondingly, the thought process of the Affluent Indian Audience appears to be on these lines “Versace’s New Range is here! Let me check. Blazer, Jeans, Sweatshirt, hmm. I’ll take the Blazer”
The picture below tries to highlight the browsing behaviors of affluent buyers vs others.
If that is indeed the case, instead of a landing page that contains similar products, we could use a landing page with products of one brand like shown in the image below.
3. What works better? When models were a part of the creatives or when the focus was solely on the product?
Product-focused creatives got a CTR of 2.1-2.4% and RoAS of 3.5 to 4 while creatives with models in them got comparable CTRs but an outstanding RoAS of 7.5 to 8.7. This proves that we should focus more on creatives with models in them. Logically speaking, this makes sense as this audience is meticulous about their appearance and given that creatives with models are more relatable and clarify doubts about size, look and feel of the products, they are very well received.
This also highlights the importance of models in the product pages of websites. Customers would always want to know how this new watch, a pair of earrings or shirt will look on them and would be more confident at the time of making the purchase.
4. Does the starting price point strategy work for us? How does our target audience respond when price points were mentioned in the ad creative or ad copy?
Mentioning price points in the Creatives isn’t a great idea for this audience. Through our study, we saw CTRs of 0.9-1.1% when price points were mentioned as against 2.1-2.4% when they were not. The Return on Ad Spend with price points was 20-24% less than ad copies without Price points.
This proves that our audience isn’t motivated much by starting price points. This could be because this audience segment isn’t as price sensitive as other segments. Plus, for premium products, there is a significant difference in the starting prices when compared with the average prices. So, if anything, the starting price points could be misleading too.
5. Do offers work for us? If yes, to what extent? Are we able to get additional transactions at a better conversion rate?
Yes! Offers are received very well. CPLs reduced by 45-50% when offers were in the ad creatives. Like all audiences, our audience loves offers too.
Note the stark difference between the offers strategy and starting price point strategy. While starting price points confuse more than they help, offers certainly make the decision making easier.
Next time when you plan to launch Facebook campaigns for premium products, try these. Feel free to highlight any other factors which you feel could be vital, we would love to discuss them.
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Authored by: Nishant Singh Didawat | Manager – Business Strategy