Driving DTC Conversions with Meta Product Tags

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Bailey Hopp
September 1, 2022
5 mins
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It’s time for many children (and parents) to get back in a learning mindset as school starts up again. Highlights' goal is to inspire children to "be their best selves" using creativity and imagination to grow reading, thinking and reasoning skills. Known for their long-running magazines, Highlights also offers creative clubs, activity books, craft kits and a NEW line of shirts and back to school items with their signature style.

Key Results from Meta Product Tags:

38%
Lift in purchase volume
65%
Lift in conversion rate

Challenge

We are always looking for new ways to drive new customer and purchase growth for Highlights via paid channels. When we heard about a new shopping tool from Meta built for ecommerce businesses: Product Tags -- we were eager to test their impact on conversion growth for Highlights. 

Our Hypothesis: Shoppable Product Tags would increase conversion rates by lessening the friction through the purchase journey and ultimately increase purchase conversions. We ran this test in partnership with the Meta marketing science team to ensure a statistically significant result.

What are Product Tags?: Product Tags allow shoppers to seamlessly shop Highlights’ products right on their Facebook feed, moving easily from discovery to final purchase without having to leave the platform. Some of the key benefits of ads with Meta product tags are driving traffic, post engagement, and maximizing the reach of a brand’s shoppable products right on the platform. Shopping ads with product tags can also help you grow your pool of shopping Custom Audiences who you can re-engage through retargeting ads later on.

Approach

Our team simultaneously ran product tag and non-product tag split tests through the Meta A/B testing tool to compare insights. This allowed us to better understand performance and next steps if we were to run this test again. 

Results

The product tag ad set drove 38% more purchase conversions and performed with a CVR that was 65% more efficient than the non-product tag ad set. The product tag ad set did see CPMs that were 19% higher. Although both tests had the same CTR of 0.51%, the non-product tag ad set drove a higher number of link clicks and landing page views. 

From our results, we concluded that there’s a 81% chance that we’d get the same results if we ran this test again. As next steps, our team launched a product tag only ad set for Prospecting to drive more purchases in another group. We also ran product-featured static creatives and linked product tags.

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