Leveraging full-funnel advertising solutions on TikTok to inspire home decor community and drive website conversions
Offering a range of stylish yet affordable furniture with a Lowest Price Guarantee and same-day delivery to customers in Sydney, Luxo Living has been in business for over 20 years. Partnering up with digital marketing agency, Connected Culture, Luxo Living set out to engage digital audiences on TikTok, recognising common behaviours of users on the platform, such as searching for inspiration and engaging with meaningful content. They wanted to drive purchase decisions through engaging content on TikTok, and explored solutions to amplify their brand awareness and website sales.
Designing a full-funnel strategy, Connected Culture launched a campaign with multiple objectives in November 2023, from video views to traffic, conversions and catalogue sales. This creates a multi-touch funnel that improves brand awareness amongst users who are new to the brand, nurturing them with retargeted ads designers to educate users more about their products and eventually entice them to make a purchase on their website.
To maximise Luxo Living’s Return on Ad Spend (ROAS), they leveraged value-based optimisation to reach users who are more likely to make higher value purchases, by either buying multiple products in one go or buying products with higher price points.
In addition to broad targeting, they also tested out Interest Targeting – reaching audiences with indications of long-term interests and interaction with content related to furniture, home decor, interior design and more. By optimising their ads to reach relevant users, they would be able to focus their spend on users who are more likely to be interested in their products, and thus increase the rate of conversion.
The fortnight-long full-funnel campaign proved to be effective, recording an impressive 17.2x ROAS and 26.7% Conversion Rate (CVR) on ‘Add to Cart’ events. Their video ads reached over 328K users and drove at least 1.3K profile visits, driving both brand awareness and sales at the same time.
By adding TikTok ads to their marketing mix across search and social channels, Luxo Living has expanded their available channels to interact with their customers while achieving a consistent yet high ROAS. The brand’s success story is also living proof of how TikTok Ads can drive ROI from top-of-funnel to bottom-of-funnel objectives, as Connected Culture continues to recommend and integrate TikTok Ads into media strategies across their portfolio of brand clients.
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