Conversion Ads might be tempting to most, but HERE'S THE CATCH!

Conversion ads, unlike other ads, optimizes your ads for completing an action in a website or an app. Some common conversion ads contain optimization for actions like Purchase, Add to cart, Subscribe, Complete Registration and many more.

Conversion ads might be tempting for you as you can see the desired conversions happening right in your Dashboard.

These ad objectives work like a charm for new acquisition and also turning churned / lost users into active users.

But what if your purpose is to retain the existing customers? Do they work the same way or is it not effective enough?

Lets take a dive into a case study before jumping on to a conclusion.

So some weeks back I was running conversion campaign targeting the active audience list that I have, in order to keep them purchasing from my client's website. The result was satisfactory as I was getting the expected number of purchases.

However, suddenly something hit me while I was doing the cost analysis.

As much as I was getting ample purchases, the cost to reach each individual audience was almost sky rocketing.

So I tried to take an alternative approach to this. My idea was, if I know my target audience, I doesn't matter if I optimize the ad for Conversion or for Traffic. If my content is right, the offers are to the point and I reach as many audience as I did with Conversion campaign, my sale should not decrease. And it worked.

For my A/B test purpose, I did the test in 2 different timeline. t1 shows the timeline where I optimized for purchase and t2 is the timeline I optimized for traffic. The results are below:

Major Takeouts:

• The optimization for purchase took 9tk to reach each person; whereas traffic optimization took only 1tk to reach each individual. As a result, The spending to reach the audience decreased by 81%.
• With 81% lesser spending I was able to reach almost 2k more people in traffic optimization than conversion optimization.
• As we could reach the same audience and more, the income from them did not fall, rather it increased by 32%.
• This test was purely based on the active users. Feel free to test out both the new users and the churned users as well. Let me know your finding!

N.B. The results might have been also influenced by factors such as ad relevancy, creative assets, offers and many more.

A big shoutout to @Sharif Pantho for your heartiest cooperation. Couldn't have done it without you brother.

Case Study Assets:

Purchase Campaign:

Traffic Campaign:

Till then, See ya!