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How LuisaViaRoma Improved Cross-Channel CPA with Scaled TikTok Spend​

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:

LuisaViaRoma

Image Credit: LuisaViaRoma

How Full-Funnel Attribution Transformed LuisaViaRoma's TikTok Strategy

For H2 2023, Google Analytics was only able to identify just 0.6% of conversions generated by LuisaViaRoma’s TikTok ads in the Italian market. Without Fospha capturing the true impact of impressions-based channels like TikTok, LuisaViaRoma would have been left with a distorted view of their attribution, with a blind spot of over 99% of their TikTok performance.

Harnessing this data, LuisaViaRoma increased their TikTok spend in the Italian market throughout H1 2024. In May, their monthly channel spend was 25% higher than in January. Year-on-year the increase is even more marked, with 2.2X higher spend for January to May 2024 compared to the same period in 2023.  
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Luisaviaroma TikTok spend
LuisaViaRoma ROAS

Scaled TikTok Spend Improved Channel Revenue Efficiency by 35%

Scaling TikTok resulted in a remarkable 200% increase in YoY channel revenue for January to May 2024. Perhaps more striking, however, is the efficiency of this channel. With scaled spend, YoY ROAS improved by 35%. A cross-channel ROAS comparison reveals that TikTok has emerged as one of LuisaViaRoma’s highest performing channels in terms of revenue efficiency for 2024.

How LuisaViaRoma's Data-Driven Channel Mix Improved CPA 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%, while total conversions increased by 32% quarter on quarter.

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. 

LuisaViaRoma CPA

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.  

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"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
LuisaViaRoma

Image Credit: 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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