Challenge & hypothesis
The main hypothesis was that "jazzing up" product imagery in product feeds would make DPA ads (which are among the highest performing for us) more thumb-stopping in the feed and result in higher CTRs. We know creative optimization can help increase CTR of ads, which has significant impact on the downstream conversion metrics.
Up to 1.5x higher CTR observed, leading to decreased a CPA that works in favor of the Performance Marketing teams optimization goal of increasing ROAS.
Pencil was used by Sephora's paid media team to:
Impact on CTR was highest for ads that were curated for theme, product set featured and targeting. However, ad fatigue for this may occur and lead to a decline in CTR after an extended period.
For other ads with backgrounds applied, most markets observed increased CTR but select few markets like HK/PH were not as successful in the tests. Constant testing is required!
In addition to replacing backgrounds of product images for DPA ads, AI-generated captions on DPA ads were also tested. Both techniques showed positive results across multiple markets and campaigns.
“We’ve used Pencil’s creative AI to generate over 200,000 images for use in Dynamic Product Ads that led to CTR improvement of 50% and more, thereby boosting the ROAS of our campaigns.”
Joan Tan, Assistant Manager, Mobile Marketing, Sephora Digital SEA
Explore www.trypencil.com to see examples, data and to find out why the world’s best marketers and agencies are using Creative AI.