Case study: Domain Sponsored Stories and Custom Audiences drive daily deal sales for LivingSocial

Daily deals site LivingSocial worked with Facebook ads company Ampush to run Domain Sponsored Stories with Custom Audience targeting to achieve 58 percent return on investment.

Ampush says its campaign resulted in 60 percent lower costs per action than other LivingSocial campaigns that were run by other Facebook Preferred Marketing Developers at the same time. Ampush says the combination of Domain Sponsored Stories with Custom Audience targeting and News Feed placement were key in efficiently driving daily deals sales and new user acquisition for LivingSocial.

With Domain Sponsored Stories, companies can pay to promote a user’s post to their friends if it includes a link to their domain. These posts end up being seen by a greater number of a users friends and can be shown in News Feed multiple times. Because the ads are no different from a friend’s post — except for the “sponsored” label — they often perform very well. Ampush says these ads had 20 times better clickthrough rates than Marketplace ads in the right-hand rail.

Custom Audience targeting is a way for advertisers to reach customers or leads on Facebook based on information they already have in their database, such as email address or phone number. This type of targeting can be used for any Facebook ad type. Ampush applied Custom Audiences to Domain Sponsored Stories, allowing LivingSocial to efficiently reach current subscribers and users that had made purchases in specific deal categories in the past. Ampush also used Custom Audiences to exclude current subscribers from ads with creative focused on new user acquisition.

Ampush says it is continuing to work with LivingSocial and is expanding the daily deal site’s Facebook campaigns to include Open Graph Sponsored Stories. This allows companies to turn a user’s Open Graph activity into ads, similar to how link shares can be promoted with Domain Sponsored Stories.