Magazine Luiza

The objective

How many of those offline conversions are incremental?

The dream of uniting physical and digital is already a reality for Magalu on TikTok. The retailer has successfully implemented our Offline Conversions API and, since the second quarter of 2024, has been able to attribute physical store sales to campaigns on the platform – and even optimize the delivery of new ads.

But even though attributing the results helps to have a nice view of TikTok's effect on the offline side of the business, Magazine Luiza wanted to understand those offline conversions a bit more deeply. After all, were the ads on TikTok really influencing people to go to their stores? How much of this impact is incremental and only happens because of Magalu's campaigns on our platform?

The solution

A study beyond the online

A study that we always recommend to companies that want to measure incremental conversions is the Conversion Lift Study. In such an analysis, the campaign's audience is split into two similar groups, and only one of them sees the brand's ads on TikTok. For the other, it's as if nothing is happening. In the end, the volume of conversions made by both groups are compared, and the difference between them is attributed to the ads on the platform, the only relevant variable between the two groups.

For Magalu, the recommendation wasn't very different, but it came with an invitation. Until then, a normal Conversion Lift Study wouldn't solve the retailer's incremental doubt because it didn't cover offline conversions – only online ones. So, the brand was called to be the first to test a "Conversion Lift 2.0" in the world, a new version of the solution that is indeed capable of measuring offline conversion events.

Other than this little difference, there wasn't much more mystery. Magalu had already been running campaigns focused on generating more offline conversions, so it knew exactly what to do.

On the media side, conducted together with the agency Monks, Magazine Luiza implemented a strategy to reach consumers in cities with Magalu's physical stores throughout the month of July. It was an auction campaign with a reach objective, to reach as many people as possible. But nothing about just broad segmentation: Magalu took advantage of the learnings from previous months and also bet on showing ads to people who had already bought offline and to people similar to these customers.

On the creative side, the brand once again worked with a partner it met through TikTok Creative Exchange, Allfluence, which connected it with talents specialized in TikTok creation. The partner supported the brand on scaling up creativity, quickly developing a series of video creatives highlighting Magalu's new "Liquida de Milhões," which offered discounts of up to 70%. It was the recipe for success.

The results

Success in the online and also in the offline world

The Offline Conversion Lift Study showed that Magalu's strategy was on point and that TikTok really works as a channel to generate incremental sales in physical stores.

Through the analysis, Magazine Luiza discovered that our platform helped bring a 7.88% more incremental conversions that wouldn't have happened if it weren't for the ads here. In other words, the users who saw the brand's campaign on TikTok were really influenced to visit and buy at a physical store of the brand.