Case Study: Korea White Beauty shop (skincare e-commerce)

Find out how SM Target helped Korean skincare products
e-comm shop use Facebook and Instagram performance based advertising to achieve a 220% increase in revenue
and a 7.5x ROAS (Return on Ad Spend)
Purchases generated in just three month
Increase in revenue from paid advertising
The average Facebook\Instagram ROAS

Korea White Beauty is an e-commerce store that provides natural Korean skincare products
to consumers across South-East Asia. They thrive in delivering over 30 exclusive beauty brands
for women and men to bring out skin's natural glow and vitality. All of the beauty products
are dermatologist-tested to certify the purity of the ingredients and to ensure minimal irritation and maximum safety.

The Challenge

In November 2020, the business owner reached out to us and asked if we can conduct an audit of their Facebook and Instagram ad campaigns. KWB's main acquisition of new customers had previously been through Google Search campaigns and online marketplaces. All their attempts to launch advertising campaigns on social media did not lead to the desired results. They already have a loyal, enthusiastic customer base, and our job was to build on this further through improving advertising on social media platforms.

During our initial Facebook\Instagram ad account audit we identified several main challenges:

  • Incorrect Facebook Pixel Tracking;
  • Unspecific targeting or missed opportunities with Facebook audiences;
  • Ad copy that did not speak directly to the customer;
  • No use of retargeting and dynamic ads, losing customers that were close to converting;
  • A relatively low ROAS on Facebook (1.8x - 2.1x).

The Solution

To confront these points, we began by analyzing how we could reach our target audience, and serve ads in front of them without having to pay a high cost per click, typical of this industry.

We set out to implement a full-funnel campaign, focused on the following:

  • Interest-based audiences based on matters and brands that our target audience would be interested in.
  • Lookalike audiences targeting users who are similar to those who had already purchased from the website.
  • Retargeting audiences using Facebook Dynamic Ads to product card viewers and targeting those who had abandoned their carts.
We first started with the interest-based audiences, building on information we already knew about the target demographic. From here, we then added the lookalike purchaser audience, which grew the account significantly!

By having this particular type of audience on our ads, Facebook would pick out users that it thought would be interested in our product based on previous purchasing behavior, and match them to our ads. To generate pixel data, we originally optimized our campaigns for "add to carts". However, more lately we have been able to move away from this and focus solely on purchases which will allow for Facebook to make more relevant traffic to our ads from people who are most likely to purchase.
CPCs for this industry are typically quite high, driven up by huge players within the market. To avoid competing with these market dominators, we alternately targeted things such as Beauty Tips and Makeup Tutorials, engaging audiences that already had a common interest as our customers. By broadening our audiences in this way, we maintained constant results by getting potential customers that competitors had missed.

To guarantee we followed through on the audiences we already invested in, we also launched the retargeting campaign. As a result, we saw store sessions rise by 246%. Retargeting our ads to those who had already revealed an interest in Korea White Beauty products in some way allowed us to attract them back with offers of free shipping and discounts, ultimately increasing the client's revenue by an impressive 220%.
Our Dynamic Product Ads Campaign on Facebook was delivered to anybody who had visited the website in the last 30 days but was yet to purchase. The adverts included a "promo card" which offered a Free Delivery along with a dynamic range of products based on the users' viewing history.

This Dynamic Product Ads Campaign has achieved a 7.5 ROAS over the 3 months ($7.5 in revenue for every $1 spend on ads) which is above the industry average for an eCommerce ROAS, as a ROAS with a 3:1 ratio, so $3 for every $1 spend is considered good.

The Results

Since working with Korea White Beauty, we have achieved:

  • Implemented Facebook\Instagram campaigns with specific audience targeting.
  • Advised on consistent and effective ad creative.
  • Generated over 3000 purchases directly from our ad campaigns.
  • A 39% decrease in the average CPA (Cost Per Action).
  • An average CTR (Click Through Rate) of 4.91%.
  • An impressive 220% increase in revenue from paid ads.
  • An average Facebook ROAS (Return on Ad Spend) of 7.5x over three months.
  • Setup sophisticated audience targeting, including Facebook Interests and Lookalike Audiences, to reach new customers and drive website purchases.
  • Operated alongside the internal team to discuss new ideas.
  • Worked closely and internally with the client throughout our campaigns.
  • Suthisa Rakyad
    Co-founder and CEO
    I came across SM Target when searching for an agency to take over our Facebook and Instagram paid ads.
    What initially attracted me to SM Target was the absolutely free ad account audit and transparent pricing structure. Our Facebook campaign had only been live for three weeks, and our revenue had increased by 200%!
    I am looking forward to continuing to work with Igor and his agency.

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