PVN Shoes

The Objective

Fashion retailers who target mass audiences enjoy the liberty of maximising their audience reach on advertising campaigns, but may not always have insights into the how they can best balance upper funnel and lower funnel results for overall business growth. Having found success with previous Shopping Ads campaign since they launched their TikTok Shop, PVN Shoes, a local footwear brand in Indonesia, wanted to discover the most effective campaign strategy and bidding combinations.

While the brand wanted to drive greater ROAS and product sales, ensuring that their campaign is optimised for brand awareness was also a priority. To collect more insights about user engagement and conversion performance with auction ads, PVN Shoes wanted to test the Value-Based Optimization (VBO) performance of minimum ROAS bidding strategy to find their ideal campaign setup to drive greater ROAS and product sales.

The Solution

To determine their ideal campaign set-up between different bidding strategies, PVN Shoes ran two groups of analysis: 1) Low vs High minimum ROAS bid and 2) minimum ROAS bid vs Lowest Cost Bidding. Each comparison group will provide them with actionable insights and varied results across lower funnel metrics such as Click-through rate (CTR), Conversion rate (CVR), Return on Ad Spend (ROAS) and number of ‘Complete Payment’ events.

Across a period of 1 month, PVN Shoes ran a total of 15 Video Shopping Ads (VSA) using Value-based Optimisation (VBO), an optimisation that allows advertisers to prioritise the delivery of their ads to users who are likely to make high-value purchases on TikTok Shop. The brand tested different ads with varying minimum ROAS bids, hoping to identify which minimum ROAS bid would give them the best results against their baseline ROAS, considering the competition and fluctuations in the auction ad ecosystem on TikTok.

Besides testing various bidding strategies, PVN Shoes also recognises the impact of other ad elements on ad performance. The brand looks at different ways to iterate and optimise campaign performance by using different creatives, audience targeting and TikTok accounts (e.g. utilising organic brand account, promotional brand account and creator/affiliate accounts). For instance, the brand discovered that featuring multiple products in a single video creative worked better than showcasing products individually. PVN Shoes also offers exclusive deals to entice viewers to browse their TikTok Shop.

The Results

The multi-ad campaign provided great insights into helping PVN Shoes find a balance between delivering business results and community engagement. Through testing a variety of minimum ROAS bid within a month, they recorded an overall 8.8x ROAS with a high CTR of 5.8%. 

After performing the two groups of analysis between Lowest Cost bidding and varying minimum ROAS bid, PVN Shoes was able to conclude these results:*

1. Leveraging VBO with minimum ROAS bids outperformed previous campaigns using Lowest Cost bidding, increasing ROAS by up to 19.4% and CTR by up to 201%.

2. Within the range of minimum ROAS bids from 5x ROAS to 10x ROAS, campaigns launched with minimum 8x ROAS produced the most consistent and balanced results for PVN Shoes’ in the auction ads ecosystem on TikTok. 

The campaign reached 2.2M users, resulting in 24.3K profile visits, 3.6K followers, and 3.4K ‘Complete Payment’ events on TikTok Shop. The investment into various ad groups also resulted in a 46% increase in overall GMV – a proof point that continuously optimising campaign strategies can drive greater results.

This end-to-end optimisation strategy also allows PVN Shoes to look at their Shoppertainment strategy more holistically, and the brand plans to continue testing various bidding and targeting strategies, on top of looking into leveraging livestreaming to boost greater audience engagement and product sales.

*These results are conclusive for PVN Shoes during this campaign period only and are not representative of overall product benchmarks.