By using TikTok Video Shopping Ads, Refurbed lifted ROAS by 5.8% across five countries.
Table of contents
TL;DR
- The company: Refurbed.
- The goal: Increase ROAS consistently over an extended period.
- The tactic: Utilize TikTok Video Shopping Ads.
- The result: 5.8% ROAS lift across five countries.
What’s the marketing tactic?
Refurbed wanted to situate their refurbished electronics business at the top of the tree, building brand awareness, establishing values, and driving a better return on their advertising investment.
The challenge was building that reputation, and reaching the people for whom it would be meaningful
It was felt that creating that lasting, emotional, meaningful connection, was possible with video ads. This was when they decided to press ahead with a tactic utilizing TikTok’s Video Shopping Ads.
These VSAs are shoppable, meaning users who view them can go directly from the video to an online store. Refurbed leveraged this function along with intriguing and engaging videos that appealed to TikTok users. Unboxing videos and ASMR were just some of the ways that they dovetailed exhibiting their product and drawing the viewer into the ad.
The content itself would also lean heavily into the sustainability of Refurbed’s practice and mission. The recycled electronics that they offer are positioned as a far more environmentally friendly alternative to buying new – and along with the brand’s guarantee of functionality, it offers consumers a perfect marriage of social values and quality standards.
To measure the success of their tactic and optimize spending, they worked with the TikTok Business Centre. Then when they started uploading videos, they would be able to collate data about impressions and conversions.
Through the ads, all of the value points that Refurbed wanted to reinforce were made abundantly clear, and the marketing team kept a close eye on all the data about how this was landing through the Business Centre.
What was the result?
This tactic was used in Germany, Austria, Sweden, Ireland and Italy. Each of these countries returned a lift in the effectiveness of ad spend of 5.8% on average. The cost per action decreased by an average of 3.7%. The rise in click-through rate was the starkest uptick, however, with a rise of 14.6%.
Why does it work?
These ads have the potential to reach a wide audience as the videos will feature on the ‘For You’ page of people’s TikTok.
Electronics are naturally popular already, but combine that with trends like unboxing, and ASMR-type videos, which are very easy to combine with displaying the products themselves, and it’s a match made in heaven.
The trust is in the TikTok algorithms and the viewing habits of people to send these ads to an audience that may not have been reached by ads in more traditional ways.
Brand values are also high on many consumers’ list of important considerations when dealing with a company nowadays – it’s possible too, that a lot of the demographic for whom that is true, are on TikTok.
With Refurbed, their video ads are a great opportunity to demonstrate that they don’t just back green initiatives and environmental campaigns, but shopping with them is an inherently green act, due to the recycling element of their business.
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