Instagram Ads Setup for a Jewelry Store +53% Target Audience -30% Follower Acquisition Cost +116% Reach for New Users

Client: Magnat Fine Jewelry
Industry: High End Diamond Jewellery Manufacturer
Project start date: December 2022
Duration: 3 months

Quick Summary

In this case study, we’re going to talk about how we managed to reach quite impressive results with a social media paid advertising campaign for a company that specializes in high-end jewelry manufacturing and sales.

Background

Magnat Diamonds is a company that offers the highest quality diamonds, gemstones, and jewelry for its clients.

However, what makes the company really unique is that they not only sell their products but also explain the benefits of investing in diamonds to their clients since the cost of such jewelry only increases over the years.

We are glad to have helped Magnat Diamonds to expand their audience, increase brand awareness, and acquire new leads.

Social Media PPC Campaign Results

• +116% reach for new followers
• +53.4% new followers
• -32% follower acquisition cost
• reduced follower acquisition cost by $1.07
• +189% increase in CTR on Instagram
• 2.29% CTR on Instagram
• +89.4% engagement rate
• 226% reels interactions

The Challenge

The client originally tasked us with setting up ads on Instagram and Facebook in order to get new leads from these platforms.

Given the specific nature of the client’s business, we first had to study the market, product features, and company positioning. In the jewelry and diamonds investment markets where people tend to spend significant sums of money, it is essential to capture the right value and benefits for the target audience.

Magnat Diamonds offers both finished products and custom-made jewelry. Each piece has its own certificate of authenticity.

During our work on the project, we tested 11 audiences. The reach for active subscribers we targeted grew up by +116%, which is an excellent metric for such a specific market niche, while the cost of acquisition per follower decreased by almost 2 times (from $2.1 to $1.07).

How did we manage to achieve these impressive results? Read on to find out!

Strategy

• Coming up with ideas for ad creatives
• Testing audiences
• Ad campaign setup

Our Solution

Account audit

Initially, we analyzed the audience of the company’s existing Instagram account, looked at the results of the previously launched campaigns, and analyzed the creatives that were used in them. We also made research on the company’s competitors in this market and how they approached their ad campaigns. This helped us to formulate our strategy and come up with the right ideas for our campaigns.
 

Setting up ad campaigns

1. Setting the advertising goals. In our case (promoting an investment jewelry company), it will be Reach and Traffic
    
2. Formulating the key benefits of the brand and the company’s products. These are the statements that have to resonate with the target audience and will serve as the basis for our ad creatives.
    
3. Setting up audiences. The market niche occupied by our client is rather narrow and expensive. It was important for us to find people who would be interested in jewelry and diamonds as investment tools. When searching for the optimal audience, we considered different countries, tested narrow and broad interests, different age groups, as well as look-a-like audiences.
    
4. Coming up with unique creatives. During our work on the project, we tried different formats and constantly changed photo and video content to keep it always fresh and exciting for the audience. At the same time, we started to see a gradual increase in the audience’s interest in our client's products. We saw solid performance coming from stories and reels that featured several types of products in them, as well as an ad campaign that featured the company’s product catalog.
    
5. Testing ad campaign launch tools. Here, we used the Facebook Business Manager and the Promote button on Instagram. We noticed that the button in the app delivered stronger results, but also required a bigger budget. At the same time, the Business Manager tool allows you to combine similar creatives into one campaign and optimize the budget using Instagram AI.
    
6. Testing different ad formats. After we did some testing, we realized that creatives that displayed a variety of product choices worked better. This also holds true for ads with short videos in Stories, where all the features of a diamond were clearly visible (color, clarity, cut, weight). Professionally filmed videos in Reels were also getting good reach numbers. Plus, organic views of Reels contribute greatly to the overall growth of the audience.
   
   Also, an ad campaign we launched that featured a product catalog showed excellent results. It gave us hot leads that resulted in purchases, with a cost per click of only $0.3, compared to $0.8 CPC in other ad campaigns.

When we work on a project like this, we are constantly experimenting with audience segments and ads, which allows us to improve the performance of advertising. We develop ideas, test them, and then optimize them – this approach allowed us to achieve success on every project we have worked with.

If you want to apply that winning strategy to your project, we will be happy to help you with identifying the right target audience and coming up with ad creatives that really work. Our experienced paid advertising experts will gladly take on projects of any complexity – we love challenges!

Results

We have effectively identified audiences for a specific set of products designed for clients with a high level of income. As a result of our work, we received +53.4% increase in new followers and a +89.4% engagement rate. Constant communication with the client and regular tracking of campaign metrics gave excellent results:

We expanded the audience of a diamond investment and jewelry company by 50%, reduced the follower acquisition cost by 30% and achieved a CTR of 2.29% on Instagram. All this was possible due to the constant optimization of ads and tracking of preliminary results.
 

If you need help with optimizing an existing ad campaign to improve the ROI or launching a new advertising campaign on social or Google Ads to generatre more leads, feel free to learn more about our digital marketing services for online stores and reach out to us to book a strategy call.