From High CAC to High Impact: A Direct-to-Consumer Healthcare Company's YouTube Pivot
A Direct-to-Consumer women's healthcare provider used data-driven decision-making to realign media allocation towards YouTube and more targeted messaging rather than solely on reach and frequency.
In the highly personal sector of women's healthcare, where reaching specific communities through social media is crucial, a leading direct-to-consumer healthcare company initially invested heavily in Facebook advertising, capitalizing on its then leading reach. However, despite substantial investments, the company faced challenges with high customer acquisition costs (CAC), casting doubts on the return on investment (ROI).
Seeking an always-on solution to optimize channel mix, the company employed AIOS to conduct a thorough analysis of conversion attributions, evaluate the effectiveness of various advertising touchpoints, and identify the channels offering the best ROI and opportunities for reallocating budgets.
The analysis yielded a surprising insight: YouTube emerged as a more cost-effective platform for engaging and acquiring new customers. Motivated by these findings, the company shifted its media spend towards YouTube, taking full advantage of the platform's diverse ad formats and mobile optimization to craft additional video material tailored to their audience.
The strategic shift in media allocation, yielding cost savings and higher conversions, underscored the importance of impact-focused investment decisions over strictly optimizing for reach and frequency:
-15%
reduction in cost per conversion
+20%
uptick in ad conversion rates
This strategic pivot quickly paid dividends: the company experienced a 15% reduction in cost per conversion and a 20% uptick in ad conversion rates. They attracted more qualified leads and had better engagement rates, consequently increasing revenue and customer acquisition.
Moreover, this move significantly boosted brand visibility on YouTube, leading to an increase in organic traffic to their website. This not only amplified their market presence but also lessened their dependency on paid advertising, further diminishing the overall customer acquisition cost and maximizing their existing budgets.
