Case Study
IQBAR, a CPG brand, was looking to lower their cost per purchase and achieve an aggressive NCAC (New Customer Cost per Acquisition) goal. Wanting to leverage their channel diversification on TikTok, we knew launching TikTok Shop alongside their currently running campaigns could deliver NCAC goal they were looking while scaling the business.
Case Study
IQBAR, a CPG brand, was looking to lower their cost per purchase and achieve an aggressive NCAC (New Customer Cost per Acquisition) goal. Wanting to leverage their channel diversification on TikTok, we knew launching TikTok Shop alongside their currently running campaigns could deliver NCAC goal they were looking while scaling the business.
Revenue Growth
Increase in TikTok Revenue QoQ
NCR
New Customer Revenue
NCO
New Customer Orders
Revenue Growth
Increase in TikTok Revenue QoQ
NCR
New Customer Revenue
NCO
New Customer Orders
ROAS
ROAS from the website campaign QoQ
CPP
Decrease in CPP QoQ
ROAS
ROAS from the TikTok Shop campaign
DTC Advertising
TikTok Shop
Paid Search
Paid Social
The objective of launching TikTok Shop for the brand was to complement the current campaign, aiming to lower the cost per purchase and achieve the NCAC KPI. Since TikTok Shop is a relatively new opportunity with limited historical insights, to ensure success, we needed to align on our approach and metrics from a holistic perspective, given the uncertainty of initial results for IQBAR on this isolated platform.
Faced with the challenge of achieving a blended $30 NCAC through our DTC advertising initiatives on paid search and social platforms (including Meta, TikTok, Google, and Bing), we identified TikTok Shop as a valuable opportunity to reduce costs while maintaining TikTok within our media mix.
The objective of launching TikTok Shop for the brand was to complement the current campaign, aiming to lower the cost per purchase and achieve the NCAC KPI. Since TikTok Shop is a relatively new opportunity with limited historical insights, to ensure success, we needed to align on our approach and metrics from a holistic perspective, given the uncertainty of initial results for IQBAR on this isolated platform.
Faced with the challenge of achieving a blended $30 NCAC through our DTC advertising initiatives on paid search and social platforms (including Meta, TikTok, Google, and Bing), we identified TikTok Shop as a valuable opportunity to reduce costs while maintaining TikTok within our media mix.
TikTok Shop is leading the way for "Shoptainment", where content and commerce converge to deliver results for sellers. This platform-optimized checkout experience creates an integrated and seamless discovery-to-purchase journey, further expanding brand accessibility and supporting new customer acquisition strategies to maintain NCAC.
TikTok Shop began as a small-scale test with a limited budget. Despite initial concerns about scalability and user motivation driven by discounts, its strong performance has made it a crucial part of our brand strategy for IQBAR.
Blue Wheel utilized a diverse mix of UGC-style and product content for this campaign, while product-focused videos resulted in the highest overall performance. When analyzing collection performance, IQMIX achieved the highest revenue with the lowest CPP, demonstrating significant scalability. IQBAR followed closely, delivering a slightly higher ROAS.
Although IQJOE struggled to scale and generated the lowest revenue, it achieved the lowest CPP and highest ROAS and had the longest watch time among the three. Identifying the right creative that resonates with a new customer audience results in lower purchase costs, thereby enhancing the efficiency of the NCAC.
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Content is key to success, and TikTok Shop campaigns have specific creative requirements. Ads must run as Sparked content from the brand's organic profile and link exclusively to the TikTok Shop's destination. This setup simplifies the checkout process by keeping users within the TikTok app, reducing the need for website navigation. However, it also limits users' ability to explore and learn more about the brand before purchasing.
To succeed, we needed content that met these requirements, looked native to the platform, and included sufficient brand and product information. We worked closely with the client to select the best videos showcasing these elements, ensuring users felt confident buying without the additional information typically found on a website. Integrating TikTok Shop into our comprehensive media strategy has enabled us to leverage TikTok as a social platform while achieving our client's NCAC goal of $30.
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