How we reduced the cost of auto loan applications using social media
Major Global Bank is the consumer division of a financial services multinational, founded in 1812 as First National Bank of New York. It provides credit cards, mortgages, personal loans, commercial loans, and lines of credit.
Paid Social Advertising
Analytics
Audience Segmentation
Design
Goals
- To maximize applications for auto loans via promotions on the social media platform Facebook, within a specified budget.
- To reduce the cost per lead (CPL) compared to the average for other paid channels.
Approach
Users planning to take out a loan typically have a pre-existing demand. While paid search advertising is an effective tool, the auction in the financial sector can become overheated, and the cost per click may be inflated. To reduce the cost of auto loan applications, the Major Global Bank team, with our assistance, tested targeting by keywords on Facebook.
Advertising Settings
We created a highly targeted audience profile, focusing on men and women aged 25-50 who were potential auto loan applicants. To maximize engagement and conversions, we utilized a Call-to-Action (CTA) Button ad format.
Interest-Based Targeting
We designed our ad campaign to reach users with an interest in auto loans, car purchases, and loans/credit, ensuring our ads reached a relevant and receptive audience.
Keyword-Based Targeting
To capture users actively seeking auto loan information on social media, we implemented keyword-based targeting, continuously monitoring and adjusting the keywords to align with users' search behavior.
Additional Targeting
We applied demographic and geographic filters in addition to interest and keyword targeting to ensure our ads reached the most relevant prospects.
Ad Format
We selected a Call-to-Action Button ad format to encourage users to take the desired action, directing them to Major Global Bank's loan application form on their website. This format was chosen for its effectiveness in driving website traffic and conversions.
Execution
First Month
- After launching the Facebook advertising campaign, the initial CPL was 21% higher than other channels. Recognizing the need for optimization, we swiftly initiated changes.
- To evaluate the effectiveness of our keywords and ad creatives, we introduced a dynamic parameter {keyword} that allowed us to track which keyword triggered the ad.
Second Month
- By closely monitoring performance and fine-tuning the campaign, we managed to reduce the CPL on Facebook by 8% compared to the previous month. We observed that keyword-based targeting generated the most leads at an optimal cost.
- Consequently, we phased out interest-based targeting starting from April, focusing solely on keywords.
- Our team continued to optimize the campaign by excluding ineffective queries, analyzing user feedback, and promptly disabling campaigns that received negative reactions.
Results:
Achieved a CPL 11% lower than other paid channels within 2.5 months.
Reduced CPL by 42% compared to the first month, surpassing KPI strong>by 6%.
Major Global Bank received 5,684 applications for a car loan during the 3 months of the campaign.
Successfully attracted a high-quality audience through social media advertising.
Conclusion:
In conclusion, Major Global Bank’s collaboration with NinjaPromo resulted in a successful Facebook advertising campaign that significantly reduced the cost of auto loan applications. By employing keyword-based targeting, continuous optimization, and an ad format suited for driving conversions, Major Global Bank achieved remarkable results, exceeding their KPIs. This campaign demonstrates the effectiveness of targeted social media advertising in the financial sector and sets a precedent for future marketing endeavors.
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