How We Reduced The CPA Of Housing Anywhere by 43%
Housing Anywhere is a property rental marketplace that helps students and working professionals find mid-term accommodation abroad. They provide a safe platform for tenants to rent accommodation abroad. They securely hold the rent, so that it’s only released after the tenant moves in and approves. We loved how they helped protect tenants from the uncertainty of moving abroad, so we set out to help them generate more inquiries and help more tenants.
They came to us as they were already doing well on paid and organic search, but wanted to try Facebook ads. They lacked the expertise to run the account themselves and they didn’t want to hire someone full-time in-house, hence why they chose the agency approach.
When we took over the account, we were able to slash the CPA costs by 43%. We also removed Kaj (our client) from the day to day ad buying. This allowed him to focus his time on higher-level activities like managing his SEO and development team. He didn’t need to be stuck in the weeds in ads manager anymore and could focus on the growth of Housing Anywhere.
By implementing our 3 step scaling strategy, we were able to achieve the following results:
Lifetime CPA: €5.71 (on 28-day click attribution on retargeting only)
Lifetime CPA: €2.55 (on 28-day click attribution and across prospecting and retargeting)
We now generate almost double the number of inquiries on the same ad spend.
We were even featured as Facebook Success Story
Step 1: Analyze
During the initial analysis phase, we saw many opportunities within the account to increase customer acquisition and reduce CAC.
There was room for improvement with their messaging and angles to handle objections. The retargeting was too simplified and used similar messaging for visitors regardless of their stage in the customer journey. In addition to this, the lack of automated rules caused the overspending of ads out of KPI.
Step 2: Strategize
The first step before writing copy or launching ads is customer research.
To help us fully understand Housing Anywhere’s audience and offer. We:
– Consulted with their internal marketing team
– Studying their client questionnaire
– Analyzing their branding guidelines and tone of voice
– Analyzed their Trustpilot reviews to identify the reasons why their customers buy
After the initial brand and customer avatar research, we created our advertising strategy to deliver hyper-relevant ads to sub-segments of Housing Anywhere’s audience.
Here’s are a few examples below:
Visited the Rotterdam Search Page | Did Not Visit the Room Page
At this stage of the customer journey, the visitor has shown intent to move to Rotterdam, yet hasn’t shown interest in any specific properties.
Thus we’re encouraging them to resume their search and book a place that suits them.
Visited the Berlin Room Page | Did Not Click Contact Advertiser
At this stage of the customer journey, the visitor has browsed some of the properties in Berlin, yet hasn’t opt-ed to contact the landlord. This ad is being delivered within 1 day of them browsing.
So we want to strike while the iron is hot and show that others are browsing the same room as them, so they may miss out if they don’t take action today.
Clicked Contact Advertiser in Vienna | Did Not Click Send Message
Here’s another example of hyper-relevant messaging. This ad is being delivered to the sub-segment of visitors who opened up a contact form but didn’t fill it out. At this point, we know the exact listing they’re interested in but know that the visitor didn’t take action. So we use direct scarcity and FOMO to get them to book.
Step 3: Optimize & Scale
One of the ways we optimize and scale Facebook ads is through the use of automated rules. To minimize wasted ad spend and improve efficiency, we use rules to automate some of the basic processes in ad buying. It’s impossible for humans to be on an ad account 24/7 but that doesn’t stop us from cutting down costs for our clients. We usually use around 25-30 different rules per product/offer.
Here are a couple of examples of some of the rules we use
This rule pauses ad sets that have spent 4 times our KPI (€4), yet did not produce any leads in the last 3 days, and has not produced any leads in its lifetime. It runs 24/7 and fires every 15 minutes, so even if we’re sleeping – we can still continue to optimize and scale the ads.
This rule restarts ad sets that are paused, yet now are profitable.
This is usually caused by either:
1. Delayed Attribution.
Making a booking inquiry is a decision that varies in time. Some customers convert on the same day and some convert 7-28 days after. Many visitors will take time to make a booking decision and therefore convert outside of a 3-day time frame.
2. Delayed Reporting
Facebook updates conversions around 15 minutes after they update spend. So our previous rule may have paused ad sets/ads within that 15-minute time frame. Ever checked your ad account and saw an ad was profitable but turned off? Scratching your head wondering if you missed it by mistake? Delayed attribution is the reason why. So ensure you’re using automated rules when you’re optimizing and scaling your Facebook ads to get the best ROAS possible.
Overall, our 3 step process helped Housing Anywhere generate additional inquiries, without them needed to deal with the hassle of hiring full-time staff on payroll who may or may not have hit their target CPA.
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