Why are we only losing money on sponsored posts?

Why doesn't this practice work?

Client:Sun Spree Holidays Ltd.

Services:Facebook Ads

Date:16 August, 2024

Websitesunspreeacademy.bg

In a dynamic environment like that of digital marketing, approaches that once seemed promising often turn out to be ineffective. Such was the case with our client, Sun Spree Academy – a revolutionary platform offering courses and education in fields like management, hospitality, and tourism. Attracting clients to this type of education is challenging in itself, due to the specific nature of the services offered and the limited target audience.

The agency they were working with at the time primarily relied on methods such as sponsoring Facebook posts and including a wide range of unrelated interests in their advertising campaigns. These approaches, instead of driving growth, actually became an obstacle to their success.

In this context, our team applied a completely different strategy, based on a thorough analysis of the audience and the market. We started by building a precise profile of the target customers and focused our efforts on ads targeted through Ads Manager, ensuring they reached only users with a genuine interest in the offered courses. We also optimized the ad messages and visuals to be more relevant and appealing to potential customers. And the results didn’t take long to follow!

102%
Growth in revenue
60%
Growth in orders
59%
Decrease in cost per acquisition

The challenge

Before the start of our work together, Sun Spree Academy faced several key problems:

  • Despite the investments in advertising, the academy was unable to generate orders through social media advertising.
  • They used the option to sponsor posts without a clear strategy, which led to poor results.
  • Including too many unrelated interests in advertising campaigns was depleting the budget without bringing any return.

What did we do?

After a careful analysis of the current state of the academy and the results from the previous months, we took the following steps:

  • We discontinued the practice of sponsoring posts and instead developed targeted advertising campaigns to meet the needs of potential clients.
  • We segmented customer interests into separate, logically connected advertising campaigns, which allowed for more precise ad targeting
    and higher efficiency.
  • Based on a detailed analysis of the campaigns, we began making regular adjustments, which led to the optimization of advertising costs and an increase
    in conversions.
  • We created visually appealing and engaging advertising materials designed to capture users’ attention.

Results

Shortly after the beginning of our work together, Sun Spree Academy saw a significant increase in enrollments. By using software that directly tracks user behavior, we were able to identify and resolve issues with order completion and payment, which had previously led to a large number of failed enrollments before our intervention.

Below, you will find a comparison of key metrics after our first month of working together. In just one month, we managed to increase sales by an impressive 60% and revenue by 102%.

After discontinuing post sponsorships and introducing optimized advertising campaigns, we managed to reduce the average order cost by 59.7% and improve the CTR by 53.9% in January 2024 compared to the previous month.

The new campaigns, targeted at properly selected audiences, resulted in a 25.4% decrease in CPM (the cost an advertiser pays for 1,000 impressions) and a 53% increase in order value during the same period.

Sponsored posts on Facebook often seem like an easy way to quickly reach an audience, but in practice, they lead to budget spending without significant results. The lack of precise targeting makes these campaigns ineffective, limiting the return on investment.

Conclusion

The experience of Sun Spree Academy demonstrates how implementing the right strategy and moving away from ineffective marketing approaches can lead to significant improvements in results. To avoid unnecessary spending of advertising budgets and achieve optimal outcomes, brands should rely on professionals to manage their digital channels. Working with an experienced digital agency ensures not only the effectiveness of the invested funds but also long-term growth and stability in a competitive environment.

RESULTS

What did we achieve?

GROWTH IN ORDER VALUE – FIRST MONTH VS. LAST MONTH: +53%
First month +102%
Last month +53%
Kristina Doynova
Marketing Lead
Working with Sun Spree Academy was truly rewarding because we were able to transform their marketing approach and achieve significant results. We believe that with the right strategy and an experienced team, any brand can achieve sustainable success and make the most effective use of its advertising budget.

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