The $10m Case Study

Our Advanced Facebook & Google Ads Campaigns Get Serious Results.

Brand Story

Our client is a US brand selling mid-century modern design furniture. They’ve been in business since 2018 and they run a relatively small operation in a highly competitive market.

They contacted us when their Facebook Ads and Google Ads efforts started to plateau at around $35k total monthly spend, even though they were generating a satisfactory return on ad spend.

Goal

They wanted to start scaling the account and start spending $75k to $100k on a monthly basis with 3.5 – 4x return on ad spend. Besides, they wanted to get their most popular furniture pieces in the first position on Google while competing with much larger companies, and also increase the revenue month-on-month.

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INCREASE IN REVENUE

AVERAGE ROAS

Long gone are the days when their growth was plateauing. Now we are spending between $90k and $100k per month with a 8-8.5x return on ad spend.

Majority of total ad spend – which is around 85% – goes into Google Ads, and 15% into Facebook Ads.

Very recently we also started running some Pinterest Ads with a stable 5x return on ad spend, and will also include other paid media channels and strategies to ensure we scale the account to over 250k spend within the next 6 months.

Challenges

We encountered three main challenges when we took over both accounts:

  1.  We wanted to improve the website conversion rate since the company was already spending for Google ads: $40k and for Facebook $2.5k in May 2020.
  2. We were competing with much bigger brands and marketplaces (WayFair, Home Depot, Walmart) selling very similar products. Our goal was to outcompete them for all main products. 
  3. Since our client launched her store in 2018, there was a need to create a trustworthy brand and increase social proof through reviews and testimonials as quickly as possible.

 

The Strategy

We had an entire funnel set-up. Top of the funnel, middle of the funnel & the bottom of the funnel. We heavily focussed on Google Ads including Shopping Ads while also taking care of their Google Merchant Center and utilizing the free Google listings.

➡️ Analyzed competitors’ way of presenting their ads and their landing page styles and crafted a product level campaign strategy for Google Ads

✅ Product level campaign = Product level brand presence → each and every product will be shown to the audience and this also helps us understand buyer and purchasing intent.

✅ We constantly worked on negative keywords and bid adjustments to maintain the ad position

✅ Benefit of updating negative keyword list daily = gives us chance to only show matching keywords on a very niche level and also brand terms. Furthermore, it helps avoiding irrelevant clicks and pushing the brand on top of results.

➡️ Optimized Supplemental feed to improve the quality score and reduce the CPC

✅ Coming to Shopping campaigns it comes down to the optimized supplemental feed, using latest and proper product attributes, right kind of ad/products will be shown to respective users with different requirements.

✅ By optimizing the supplemental feed through Google’s Merchant Center, we could tap into free Google listings, which – to this day – bring us plenty of organic traffic, and also help the algorithm understand our products we sell.

Now we also started spending up to $10,000 on Facebook while focussing on warm and hot audiences.

➡️ Utilized Facebook Ads for effective retargeting and increased the conversion rate

✅ Initially we implemented this for retargeting on consolidated product level to generate conversions for potential buyers further down the funnel, that haven’t purchased, yet.

➡️ Used Facebook interest audiences to increase cold sales and maintained a 9x return on ad spend

✅ Once we mastered the retargeting strategy, we also starting running cold/prospecting campaigns top of funnel, and we managed to achieve a very high return on ad spend of up to 14x (prior to iOS 14.5) and between 8-10 (post iOS14.5) relatively quickly since we had a lot of data to work with now.

➡️ It was super important to test many different types and styles of creatives.

These are the kind of creatives that performed very well:

High quality static images
Products in lifestyle shots (3D rendering images)
Utilizing images from satisfied customers (user generated content)
➡️ Created holiday and end of month sales strategies to increase the month-on-month revenue

✅ Utilized each and every month, to create a 10% off sale/promotion (end of month sale)

✅ Black Friday Cyber Monday (BFCM) strategy = 20% OFF site wide promotion

✅ Incentivized discounts for basket value higher than $1,500 → This worked exceptionally well

➡️ Worked on ad copies and ad creatives which were able to deliver the desired results based on holiday / end of month sales strategy

Together with highlighting the core product benefits, we also heavily focused on the following:

  • Free returns (Return rate? Very low, unless it’s damaged during shipping)
  • Reviews
  • Free delivery

All in all, we managed to take this business from $1m annual revenue to over $10m in 16 months!

LET'S GET STARTED

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