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LINE Case Study: How Hada Nature reached new audiences and doubled their CTR

Waqoo Inc is a direct to consumer cosmetics company. Their main brand, Hada Nature, includes skincare, makeup, and haircare products. Waqoo started running LINE marketing campaigns for Hada Nature in September 2018, creating successful video advertisements. We spoke with Torayu Tsunoda from Waqoo’s Business Management Department, and Hiroki Asai, Marketing Division Manager at marketing agency Bleach, about their creative process and video production work.


Goal: 

Reach new customers for Hada Nature products


Measures:

  1. Utilize LINE Ads from September 2018, targeting women ages 30+
  2. Analyze the performance of creatives by comparing still images and video ad formats.

Result:

Successful new customer acquisition. CTR for video ads were 2x higher than that of still images.


Starting with 10,000 new users per month

Waqoo has a wide range of products: from beauty, health, child care, and medical care. Hada Nature, which launched in 2014, is a line of carbonated skincare products, with top sellers like its carbonated cleansing and beauty essence products. It has quickly gained popularity among women in their 30s and 40s.

Hada Nature: products are popular among women in their 30s & 40s.

Their initial goal was to acquire 10,000 new users per month. In order to get there, they needed to find a new means of advertising to get through to an audience they were not able to reach yet. This is why they decided to start advertising on LINE.

“We focused mainly on display and native ads in the past, but we wanted to find an advertising channel that would enable us to reach new people. LINE has more than 90 million monthly active users, who can be reached through LINE ads. I found that quite fascinating”, says Tsunoda.

Torao Tsunoda, Business Management Department, Waqoo Inc.

“LINE’s strength is that it is used not only by younger users, but by people across all age groups and demographics, including our target group of women in their 30s This was a really exciting opportunity for us”, adds Asai.

Asai also notes LINE’s strict rules. “Compared to other platforms, LINE Ads go through a rigorous review process – since they have an ability to reach such a wide audience, including minors. Ad creatives for healthy foods or cosmetics must always comply with LINE’s advertising guidelines, and wording used in the ad copy must be in accordance with Pharmaceutical Affairs Law regulations. We have implemented a thorough internal check system and pay extra attention to these rules when submitting ads for review. But thanks to LINE’s strict guidelines, we are able to provide clear information that users can confidently trust in. It feels really reassuring.”


Video ads doubled landing page visits

Waqoo is currently delivering 2 types of ads: still images and videos. During the creative process, Waqoo and Bleach conduct weekly creative meetings to discuss the ads. 

Having a high CTR (click through rate) that does not turn into conversions is quite meaningless. They make sure to prepare creatives that are easy to understand, and appeal to user’s needs by presenting the product features clearly. .

Bleach, who is in charge of creative production for Hada Nature, has created more than 10,000 ad creatives, including both videos and still images.

“At first, we mainly used still images for our ads. The decision to start experimenting with videos was the fact that depending on the format, LINE offers different ad placements across the LINE network. In the past, video ad distribution was quite limited, but it has changed with recent updates. We can now utilise a variety of video formats, including vertical videos (9:16), square, and horizontal formats. As a result, the number of landing page visits has doubled compared to the still image ad results. It is clear that users prefer the video format and find it more interesting”,Asai continues.

Hiroki Asai, Marketing Division Manager, Bleach Inc.

Video ads are increasingly popular, now making up 40% of all LINE Ads. It is possible to create a video up to 120 seconds long, but Bleach tends to create shorter ones – almost all of their ads are about 10 seconds long (or less).

“In the past, video ads were mostly 30 seconds or longer. However, it is now necessary to create a captivating video that stops the user from scrolling. If the ad can immediately grasp the user’s attention, there is a higher chance of increasing the CTR. This is why it is important to make an impact with the very first shot. 

With Hada Nature, we make sure to create ads that strike the interest of female users. Rather than a highly-edited image of a model, a no-makeup shot is better to instantly showcase the cleansing attributes of the products”, Asai continues. 

It is possible, however, that depending on the product and age group, still images might be more effective than videos. It is important to recognise this and use still images accordingly.

“For cleansing products, videos tend to do better as it is easier to convey skin texture and that refreshing after-use feeling. We run both still image and video ad formats, constantly analysing and comparing the results of both in order to understand which type of creative performs best”, explains Asai.

Successful still image ad example: a woman washing her face with carbonated foam.

Focusing on videos to acquire new customers

Their future plan is to make more use of various video ad placements and functions across the LINE network.

“We are currently focusing on ‘video reward ads’, an option that delivers ads to apps and services affiliated with LINE, and verifying which products and creatives perform best. We hope this will lead to new opportunities and open doors to new customer acquisition”, notes Asai.

Tsunoda adds, “By utilizing videos, we are able to provide more information about our products. We are also striving to build our brand’s community.” 

We asked LINE’s sales representatives, Mayuko Inoue and Mihoko Sugitani, about their take on Waqoo’s future plans.

“LINE Ads can link customer data owned by the company with a user’s LINE account. It is also possible to create a custom lookalike audience based on the collected data, which can help advertisers reach potential new customers”, says Inoue.

“One of the most unique LINE features is its familiarity with users. – We hope it can help to not only acquire new customers, but also to communicate with the audience, foster a community, and build a loyal customer base. This and more can be done through a LINE Official Account. LINE also offers integration to external solutions like CRM systems”, adds Sugitani.


Advertising on LINE

LINE is a great platform for B2C brands looking to reach a wide range of Japanese consumers. To learn more about how to promote your business on LINE, you can refer to our LINE Ads starter guide here.

We at DMFA are the official overseas representatives for LINE and can support you with setting up your  LINE Official Account and managing LINE Ads. Please contact us here to get started.

This is a translation of an article published on the LINE for Business website. The original Japanese article can be found here.

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