Advertising is the lifeblood of an e-commerce business. The performance of ads determines the sales of a product, calling the shots for a brand in the Taiwan market. In this era of e-commerce where advertising is ubiquitous, the HH Galaxy digital media team focuses on performance-based advertising to pursue actual purchases. They value CPA (cost-per-action) over CPC(cost-per-click) and buckle down to increase ROI on ads for better sales performance on e-commerce platforms. An expert in performance-based advertising, the HH Galaxy digital marketing team is the certified partner of Google and Meta, and the designated partner of Shopee and PChome for performance-based advertising. Less than five companies in the industry enjoy such unanimous appreciation from these major platforms.
April Chang, Director of Digital Media of HH Galaxy
How to Leverage Historical Data?
It is a well-known fact that data is king in the e-commerce business. “Data matters, but how can we help clients achieve their performance goals?” April Chang, the director of Digital Media of HH Galaxy, explains how the team utilizes data to drive performance. “Unlike other media agencies, our team works with clients on budget planning in a performance-driven manner. First, we would identify the total sales target, and then calculate the ‘advertising-to-sales ratio’ based on historical data. Next, we use the ROAS (return on ad spend) to calculate a client’s actual advertising spend.”
Applying actual figures, say the total sales target is 50 million. According to historical data, the advertising-to-sales ratio is 20%. Based on our assumption, when the ads spend brings 20% of sales (i.e. 10 million), the total sales target is likely to be achieved.
“With the ads-to-sales target of $10 million, we will estimate the ROAS according to historical data. Assuming that the figure is 8, the advertising spends that the client needs to invest is $1.25 million. If we can budget $1.25 million for advertising, it is possible to reach the $50 million sales target.”
The HH Galaxy team has a data-driven mindset and conducts sales forecasting based on historical data. When the team onboards a new client, they would first work on a few small campaigns to accumulate data for key campaigns. “we will let them know if a client allocates too much budget.”
During this year’s Double 11 campaign, HH Galaxy has converted over NTD$ 420 million in sales for clients in a single month and brought over NTD$ 2.7 billion in cumulative sales in 2022. The team recommended their clients start deploying campaigns as early as September and October. Moreover, they suggested clients use Google’s latest performance-based advertising tool “PMAX NCA” for new customer acquisition.
The HH Galaxy’s data indicated that compared to October, the average ROAS of PMAX NCA ads was the highest among all performance-based advertising tools during the Double 11 period, 220% higher than other performance-based ads.
Publish Performance-based Ads on Multiple Platforms With a Single Click
“Nowadays, everyone has a social account. The process of publishing digital ads is not difficult, brands can do it on their own. Yet the real challenge is to identify the effective one that outperforms other ads as quickly as possible. If you acquire this information, you can invest intensely in the most effective ads.”
HH Galaxy developed the “Power AI System,” which allows clients to publish ads on Google, Meta, and Shopee with a single integrated platform. It saves time and effort to deal with different systems on each platform. Once an ad is published, the Power AI system instantly collects and visualizes data, providing clients with real-time conversions and results.
Each client will have their own Dashboard, which integrates search ads data from Google, Facebook, and Shopee, as well as sales data from Momo, PChome, and the brand-selling site. The Dashboard shows indicators such as sales revenues, average order value (AOV), and conversion rates, enabling clients to compare the real-time performance on each platform and grasp the key to growth.
“We value data and want our clients to have real-time access to data. If we can better understand the data, we can help them achieve better results.” Since the launch of the Power AI system in January 2022, it has served more than 500 clients.
Besides, HH Galaxy integrates an AI ad creation tool to streamline the workload. Clients only have to prepare a set of contents and ad materials for a campaign without having to resize everything to satisfy the requirements of each platform.
This year, an international jewelry brand used this tool to design a layout, and adjusted ad materials according to the Double 11 campaign in real-time, speeding up the ad creation process. Compared with the performance of last year’s Double 11 campaign, CPC dropped and the overall traffic increased by 135%.
HH Galaxy will analyze the data performance of each month and send monthly sales trend reports to all Power AI clients. “We put the sales performance first and conduct ROAS analysis on the monthly sales. Then, we will look at historical data, ad performance, and target audience. Lastly, we make recommendations for future operationalizations. ”
New Product Launches on Crowdfunding Platform “Zeczec”
In 2021, HH Galaxy helped its client Roborock win record-breaking results on Zeczec, a crowd-funding platform in Taiwan. Roborock S7+, the latest model of Roborock’s robotic floor cleaning devices, has attracted 10,847 sponsors and raised NTD $210 million in just over a month. This project broke records on Zeczec and was the highest-funded crowd-funding project in Taiwan. Behind the remarkable achievement, it was the HH Galaxy team who helped design and execute the advertising strategy.
“We use sales figures to calculate ad spends. We ask about the ideal sales target and use conversion rates to reverse-engineer how many views are required to achieve that sales target.” Roborock and HH Galaxy conducted a concept testing survey to identify potential customers and offer early-bird discounts. “In the traffic-driving process, our team kept track of the sales performance and continued to discuss with the client to maximize the performance. We are glad to help achieve such an excellent result.” Roborock launched two successful crowd-funding projects on Zeczec, which earned NTD $210 million and $140 million respectively. Both projects were partnered with HH Galaxy.
“Zeczec gradually becomes a new go-to platform for product launches in the technology appliance category.” Later, HH Galaxy suggested a consumer electronic brand launch a new product on Zeczec, and that product brought $18 million in sales, which was the best-seller in the same product category.
In November 2022, HH Galaxy launched the “De’Longhi Automatic Espresso Machine” on Zeczec. From idea creation to actual execution, this crowd-funding project was taken care of by the Biz team and the Digital Marketing team of HH Galaxy. Ultimately, the project raised over NTD $5 million.
These hands-on experiences enabled HH Galaxy to discover new channels to help clients better sell their products. “Pre-orders on the crowd-funding platform helped our clients to determine the demand and lift inventory pressures. Once a project is successfully funded, other e-commerce platforms will be more willing to support.” In addition to advertising, HH Galaxy provides a one-stop solution from content design to product launching on the Zeczec platform.
HH Galaxy embraces a data-driven mindset and strives to provide user-friendly systems and deep insights. In the past two years, they developed the “Power AI System,” and helped clients achieve excellence. The digital media team continues to evolve with the ever-changing industry, bringing their clients quality service and driving better sales results.
