Maintaining ROAS as we scale spend for The Hoxton

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The Hoxton are a market in leader in boutique hotels, in prime city locations across Europe and USA. Over the years, The Hoxton have continued to expand across numerous European destinations, and Found have been there to support with launching the hotels on Meta. With new hotels on the horizon in 2023, The Hoxton looked to scale up spend on Meta whilst maintaining an efficient use of spend across international campaigns.

CHALLENGE

We were tasked with the challenge of developing a robust strategy to scale spend by 94% YoY, all while upholding efficient ROAS, minimising CPB, and maximising revenue across the existing portfolio of hotels.

The success would not only ensure the continued profitability of current properties but create a blueprint to effectively launch campaigns for our new hotels.

OUR APPROACH

On Meta, we target bespoke audience personas for each hotel with highly targeted conversion campaigns which are optimised for purchases.

META APPROACH

To help scale campaigns we decided to run Meta's relatively new Advantage shopping+ campaigns, we tested these alongside a our regular persona prospecting audience to see which audience achieved a higher ROAS, whilst giving us an efficient cost per booking.

DRIVING AWARENESS

Many hotels where remarketing audiences are small or are new to launch, also have upper-funnel campaigns to help drive awareness and website traffic. This helps to drive a lower CPB overall.

META RESULTS

When comparing the results from each campaign, we increased ROAS by 49% using Adanvantage shopping+ Audiences vs using a manual Prospecting Audience (27.12 vs 18.17). Due to this, the cost per purchase decreased 23% (£21.8 vs £28.3) and AOV increased 15% (£592 vs £515) which was excellent to see.

“Our in depth everysearch audience analysis enabled us to scale performance whilst maintaining a strong ROAS – it's been a gamechanger for social activity moving forwards.”

Chantelle Duff, Business Director, FOUND

RESULTS

The numbers speak for themselves:

When it came to analysing the campaign results, we had no doubt that we had smashed our given targets.

49% increase in ROAS, using Adv+ Audiences vs using a manual Prospecting Audience (27.12 vs 18.17)

20% decrease in cost per purchase, to £21.80 from £28.30

15% increase in AOV, from £592 to £515

"Found’s team have delivered growth for our business through our relationship together. The level of transparency and reporting is a clear standout, and a focus on growth opportunities throughout our relationship has been a key factor in the length of our relationship."

Erika Lopez Caner, Head of Digital Marketing, The Hoxton