Overstock: Instagram Ads Case Study | Instagram Business

Overstock: Instagram Ads Case Study | Instagram Business


Repositioning the brand with Stories

Going into 2018, Overstock was aware that—for some shoppers—the brand had developed a reputation for selling surplus older merchandise, rather than modern new items. To counter this narrative, it decided to run a campaign to change this perception, especially among its female demographic.

The company had previously developed Instagram and Facebook ads that ran in feed, which had been very effective at increasing website traffic and delivering incremental conversions to its TV media. But for this new campaign to reposition the brand and gain more awareness, Overstock and its media agency Ocean Media decided to run vertical video ads in the new immersive full-screen Instagram Stories format.

They created eye-catching, fast-cut video ads in Instagram Stories that showed colorful, stylized images of modern chairs, side tables, bedroom furniture, lamps and home décor along with the messaging “Still think we sell overstocked goods? Think again! New Products, Latest Trends, Inspiring Styles, Bright Ideas—All at overstock prices!” Each ad had a Shop Now call-to-action button that clicked through to the Overstock website, where people could learn more and purchase.

Overstock showed the ads to US women aged 25–54, as well as to those with an interest in home-related topics, including décor and furniture. The company also showed ads to a lookalike audience of its current website customers.

This results of the January 1–March 31, 2018 campaign were determined using a Facebook conversion lift study, which revealed:

  • 18% increase in return on ad spend

  • 20% decrease in cost per acquisition

  • 20% decrease in cost per click


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