How LuisaViaRoma Improved Cross-Channel CPA with TikTok
2.2
X
higher TikTok spend
42
%
decrease in blended CPA
LuisaViaRoma, an Italian luxury retailer has set the standard when it comes to translating the premium shopping experience to eCommerce. Already a household name in Italy, LuisaViaRoma’s primary goal for this market was to enhance the efficiency of their channel mix.
After onboarding with Fospha in January 2024, LuisaViaRoma were finally equipped with a full-funnel view of their marketing attribution. Seeing the true value of their Paid Social, LuisaViaRoma scaled their TikTok spend in the Italian market over H1 2024, yielding brilliant efficiency gains.
Here is how they did it:
How Full-Funnel Measurement Transformed LuisaViaRoma's TikTok Strategy
Last Click attribution could only identify0.6% of conversionsgenerated byLuisaViaRoma’s TikTok ads in the Italian market. Before Fospha, the marketing teamwere left with a distorted view of their attribution, with a blind spot of over 99% of their TikTok performance.
Equipped with a full-funnel view of their marketing with Fospha, LuisaViaRoma increased their TikTok spend in the Italian market throughout H1 2024.
Scaling TikTok Improved Channel ROAS by 35%
With scaled spend, LuisaViaRoma's TikTok ROAS improved by 35% year-over-year. Across-channel ROAS comparison reveals that TikTok has emerged as one of LuisaViaRoma’s highest performing channelsin terms of revenue efficiency for 2024.
Blended CPA up by 42%
Within the first quarter after LuisaViaRoma increased spending on TikTok in January, there were notable efficiency gains, not only at a channel level but also at a blended level. Total cost per acquisition (CPA) improved by 16% from Q4 2023 to Q1 2024, and this trend persisted into Q2 2024 with cross-channel CPA seeing a further reduction of 26%.
The key to these efficiency gains wasn't a change in total spending levels, as total spend was stable between Q1 and Q2. Instead, these improvements were driven by adjustments within the channel mix.
Paid Social’s share of spend was 34% higher for H1 2024 than H2 2023, while TikTok's share of spend was up by a whopping 62% compared to the previous six months. This correlation between an increased share of spend going to Paid Social, particularly TikTok, and improved blended efficiency KPIs highlights the crucial role of well-funded upper funnel channels in an efficient channel mix.
"Through strategic optimizations of our ad accounts and a targeted increase in TikTok spending, we achieved substantial additional revenue year-over-year. Our efforts significantly boosted Return on Ad Spend (ROAS) and established TikTok as one of the top social channels in the IT market. Fospha's insights into attributed performance results have been invaluable, informing and further refining our TikTok channel strategy."
Deborah Emechebe
Paid Social Media Lead, LuisaViaRoma
With Fospha's full-funnel view of their attribution, LuisaViaRoma identified a huge opportunity to scale their Paid Social advertising in the Italian market, particularly on TikTok. By utilizing Fospha’s insights to optimize their channel mix, LuisaViaRoma not only maximized ROAS at the channel level but also achieved significant efficiency gains across their blended KPIs. This brand's journey with Fospha is a true testament to the power of a well-funded upper funnel to drive efficient growth in established brands.
Just six months into using Fospha, LuisaViaRoma's trajectory suggests more impressive milestones on the horizon. Watch this space!
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