November 10, 2017
U.S. fashion brand Michael Kors worked with Facebook to seek out older high-spending consumers through CRM and audience targeting to achieve an 18-point lift in ad recall.
Michael Kors looked to entice users aged 35 to 54 with a high household income for its Italian-made Bancroft handbag. The ad campaign saw the highest lift with 45 to 50 year olds.
"Marketers want to be efficient with their ad spend and being able to home in on known customers and relevant potential customers is a very effective way to target campaigns to the most likely buyers," said Anne Karp, Facebook Client Partner.
The Facebook ad campaign saw a 20-point lift in ad recall for 45 to 50 year olds. The fashion brand leveraged Facebook’s CRM and Web site Custom Audience.
Michael Kors looked for high-spending luxury consumers and those likely to be luxury consumers. The brand explained it leveraged a “thumb-stopping” strategy hoping to gain the attention of its audience, with moving pictures that made the bags seem to come to life.
The campaign was able to promote offline and online sales. The brand looked at the audience of specific pages of its Web site to help determine its ideal audience for the campaign.
This, combined and overlaid with behavioral data and interest targeting on Facebook, created a finely tuned audience in which the ads would be displayed on both Facebook’s platforms and Instagram.
The highly targeted campaign allows for little waste, so that brands can be sure their messaging is being shared with consumers most likely to be customers.
Michael Kors’ ads appear as pictures, but are actually videos in which subtle changes to the bags, background and color happen, in order to catch the eye of the user scrolling by.
Italian automaker Maserati similarly wielded Facebook's advertising capability to drive direct sales for its Levante SUV, leveraging custom audiences and data-driven pushes.
Maserati saw 127 vehicles sold directly from its recent two-phase Facebook campaign that built a targeted audience for those most likely to engage with the ads. The brand worked with outside data to discover Facebook users that were luxury SUV shoppers (see more).
This Michael Kors Facebook campaigns is all a part of its latest strategy. The fashion label has raised its full-year outlook after exceeding expectations in the second quarter of fiscal 2018.
For the quarter ended Sept. 30, Michael Kors’ total revenue increased 5.4 percent to $1.15 billion from $1.09 billion in the second quarter of fiscal 2017. After financial challenges, Michael Kors reports that its Runway 2020 strategic plans of product innovation, brand engagement and customer experience has assisted it in total revenue and retail sales increases (see more).
"With nearly 1.4 billion daily Facebook users and 500 million daily Instagram users, marketers have the ability to create highly targeted campaigns at scale," Ms. Karp said.