Honeylove Increases Pinterest Budget 2X After Geo Scale Test

THE QUESTIONS

  • Does Pinterest only drive upper-funnel awareness or does it effectively drive sales as well?
  • How should we allocate our acquisition media budget across Facebook, Google, and Pinterest to improve efficiency and maximize ROAS?

THE BRAND

Honeylove, “where function meets fashion,” believes that women deserve garments that are as comfortable as they are effective. With a size-inclusive, high-quality line that includes sharewear, intimates, and more, Honeylove empowers women to take up space and have their voices heard.

THE CHALLENGE

The Honeylove team intuitively believed that Pinterest was successfully driving both awareness and purchase, but struggled with how to appropriately value its impact.
Since they were using Pinterest as a largely upper-funnel channel, it was difficult to measure the value of click and view conversions occurring outside of the 7-day click, 1-day view that has become standard on other platforms.

This challenge has only grown with the technical implications of recent privacy rules. While Pinterest, unlike other social platforms like Facebook and Snap, did not reduce its “look back” windows post iOS 14.5, there was healthy debate on the Honeylove team as to how to value these conversions, drumming up several questions:

  • Was it fair to ascribe value to 30-day click or 7-day view conversions that weren’t available on other major social platforms?
  • Does Pinterest truly work as an upper funnel awareness driver and therefore should be considered differently than other mid-funnel acquisition focused social channels?

Without data-driven evidence the team decided to evaluate Pinterest in a similar manner to other major social platforms, on a 7-day click, 1-day view basis. However the team remained determined to both uncover the true value of Pinterest and explore whether conversions occurring outside of this window were truly incremental.

THE SOLUTION

Honeylove chose Measured to help them understand how Pinterest compared to Facebook and Google on an incremental basis, so they could optimize their media spend, invest in new channels with confidence, and increase their return on ad spend (ROAS).

The Measured team began by assessing incremental contribution for Honeylove’s Pinterest campaigns. This exercise models Pinterest’s reported attribution conversions against Measured’s extensive in-market testing database for similar brands, and uncovered a significant discrepancy. Measured determined that the actual value of Pinterest for Honeylove was significantly higher than the 7-day click, 1-day view-based values that the brand had been using. These results encouraged the team to run additional in-market incrementality testing to gain deeper insights.

To identify the incremental sales contribution of Pinterest to Honeylove’s awareness efforts, Measured deployed a 30-day geo scale test. A geo scale test simulates the impact of increased spend in a small set of test markets to see what would change if the brand chose to increase budget across the entire country. In Honeylove’s case, Measured scaled spend by 3x in states that mirrored their target market nationwide: Colorado, Michigan, Oregon, and Virginia.

THE RESULTS

The geo scale test proved both what the Honeylove team suspected and what Measured’s Incrementality predicted: Pinterest is a highly valuable channel for building awareness and driving conversions. In fact, the incremental impact of Pinterest landed at 212% – or roughly 2x more valuable than their default 7-day click, 1-day view reporting window.

The return on ad spend results were illuminating as well. After incrementality was adjusted to reflect the results of the in-market experiment, incremental ROAS(i) came back at $3.65, more than double the in-platform 7-day click, 1-day view ROAS of $1.72 and well above Honeylove’s internal efficiency targets. In fact the results indicated that for Honeylove, 30-day click, 7-day view conversion reporting was more indicative of their incremental performance on Pinterest. These numbers validated both the impact of Pinterest in advancing Honeylove’s marketing objectives as well as how taking a one size fits all approach to platform conversion reporting is bound to overestimate the incremental impact of some channels while underestimating others.

With this insight, Honeylove was able to confidently double their Pinterest spend in the next quarter. This budget reallocation from lower-to-higher ROAS channels effectively increased both their overall revenue and marketing efficiency, a double win that marketers are rarely able to find without in-market testing.

WHAT’S NEXT FOR THE BRAND

HoneyLove plans to continue to invest in Pinterest as one of their most valuable upper-funnel channels. They also intend to continue working with Measured to further understand and optimize their ad spend. Every conversion brings them one step closer to their mission: proving that femininity isn’t a weakness, it’s a superpower.

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“Measured gave us the data and tools to go beyond the limitations of in-platform reporting. It validated our instincts that Pinterest is a powerful channel for our brand, and made a demonstrable impact on some of our most important business metrics.” – Owen Bell, VP of Growth, Honeylove

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“Measured’s incrementality-based attribution approach enabled Honeylove to quantify the true value of Pinterest advertising. It showed that Pinterest has a meaningful impact on sales driven by conversions occurring outside of the 7-day click, 1-day view windows typically associated with other popular social platforms.” – Erin Becker, Head of North America Mid-Market Partner Measurement, Pinterest

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