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ROAS Soars an Additional 96% with Icelandair's Creative Ad Testing

Produced by Hanapin Marketing

Icelandair is an international airline offering flights to and from Iceland, as well as an attractive option for cross-Atlantic flights. It is ideally located to serve a continuously growing network of international routes, thanks to its hub located midway between Europe and North America.


As Icelandair looked to expand international routes, we partnered with them to create a digital advertising campaign that would increase sales for transatlantic routes.


The Solution


Our Icelandair team regularly tests various ad types and solutions so that ad spend is maximized for flights sold. Based on previous successes as well as other travel brands, we knew that Facebook and Instagram would be the best platforms for this campaign. We chose Dynamic Creative ads because they were a recent release, and we’d seen initial success with them for other brands we work with.


Dynamic creative is automatically generated from assets that are supplied by the brand. This means that Facebook automatically chooses the best combination of images and ad copy that performs the best. The Facebook ads for this campaign featured scenic images of Iceland, which Icelandair supplied, along with variations of text and headlines, which our team created. We promoted an offer to include an optional stopover in Iceland at no additional cost to the customer.


The campaign ran in 2 separate phases – the first used traditional photo and video ads, while the second used dynamic creative so that we would have a solid comparison between the two.



The ads targeted anyone aged 22-64 who had expressed interest in air travel, tourism, travel, and vacations. We also used Custom Audiences to extend the audience to frequent travelers and previous Icelandair ticket buyers. The Facebook pixel was utilized to optimize the ads and audience for conversion to purchase.

The Results


Taking advantage of Facebook’s new dynamic creative abilities had impressive results. Compared to standard ad creative, the dynamic creative led to a 96% increase in return on ad spend. The dynamic creative ads also saw a 39% increase in reach and a 51% increase in conversion rate.




Overall, the approach showed Icelandair the value of investing in creative testing moving forward. Through testing, key metrics like flights sold, cost per flight sold, and return on ad spend all improved.


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