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🔥 How to make ROAS 13+ with $180,000+ ad spend

Our team 6.5X-ed the profitability of this project. We made over 10 500 sales totally amounting to $2 400 000

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The results

$180 487

Ad Spent

$2 401 062

Purchase Conversion Value

10 893

Total sales

13,30

ROAS

Where we started

This client is a haircare products online store. Their markets were US, CA, UK, AU, NZ. Their in-house marketing team managed ads themselves at first, but the average ROAS was 2.1. Such result was unprofitable and became a business growth bottleneck. So after several unsuccessful FB ad campaigns launches they decided to try to work with us

Project Details

Business type:

Ecommerce

Segment:

Hair care

Ad Platform:

Facebook
Instagram

Additional tool:

Google Analytics
Hotjar
k6.io

Creating tool:

Shooting video

Adobe Premiere Pro
Adobe After Effects

Photography/Ads

Photoshop
Affinity Designer
Affinity Photo

Project KPIs

ROAS

Our major goal was to get to ROAS 3 or higher and keep at this level while scaling

Traffic

Build a funnel correctly

Online store

Change the key elements on product pages to increase conversion rate

Content

Significantly improve the quality of ad content and ad campaigns

Analysis

Before starting to work on any project, we always make an audit of advertising campaigns and study the entire project funnel. We analyze the main mistakes and problems that may affect the worsening of the project’s results and also think about the strategy. This project had a serious problem with abandoned carts, tracking events, selecting creatives, testing LALs, lack of retargeting. We helped eliminate problems on the site (there was a problem of moving from cart to checkout), set up the correct display of events, developed a new concept for creatives and ad copies, wrote a strategy for the entire advertising campaign. Think about all your steps before you launch an ad campaign.

Implementation

Funnel Structure

We used a funnel that consists of 4 key stages for this project:

TOF (Top of Funnel)/ Acquisition/ Cold Traffic)
MOF (Middle of Funnel)
BOF (Bottom of Funnel)
Previous customers

On the first stage we work only with the cold audience that has never visited the website and has never made any purchases. On the MOF stage, most often we work with people who saw our ads before, but didn’t visit the website. On the BOF stage, we retarget people who visited product pages or added them to cart. And on the last stage we work with the previous purchasers

Quality creatives = sales

Many people think that in order to get cool results in FB Ads, you can prepare 5-10 ad options and that’s enough. NO!!! I support the opinion that for projects in the US, UK, CA markets, you need to prepare in advance many video, images, texts options. For this project, we have tested over 200 ad options in 3 months. The client had cool products video reviews that he had used little in advertising. Creatives are essential for the effectiveness of the entire advertising campaign.

Selecting targets and LAL’s testing

When we started working with the project, the client already had custom audiences, as well as audiences of past customers from the site, but we decided not only to create lookalikes but also to test the created saved audiences. We used detailed targeting with narrowing to reach a more targeted audience. We created 7 saved audiences (sized from 500k to 3 million users) and tested them during the first month. We also constantly tested and continued to run divided LALs from 1% to 10% for all major events (PageView, ViewContent, Add to Cart, Initiate Checkout, Add Payment Info, Purchase), also LALs were tested on Top 5%, 10%, 25% Spent Time and LALs for an audience of those who bought for more than $ 150, also who bought 2 or more units of goods. If the budget allows you to test a large number of audiences, then do it!

Retargeting and DPA

This project had big problems with users returning back to the site and abandoned carts. It arose due to the fact that retargeting almost did not work in the past advertising campaigns of the client, and the custom audiences that were available were not used. The first thing we started with was the creation of all major events (PageView, ViewContent, Add to Cart, Initiate Checkout, Add Payment Info, Purchase) for the last 7-14-21-28 days, then creatives and offers were created specifically for the retargeting campaign. We launched retargeting for 7-14-21-28 days with the substitution of creatives for each time period. We used the same approach in DPA campaigns. We managed to make ROAS higher than 20, and in some campaigns higher than 30. We spend about 30% – 40% of the total advertising budget on retargeting. Remember that retargeting is very important, there is a warm audience there that you need to communicate with, they are almost ready to buy!

Do not be afraid of retargeting. The main thing is to change the creatives and texts in time, so that people do not have time to get tired of them. Write the right call, choose an image they have not seen yet and you will see that it works!

Scaling

In this project, we used a system of increasing the budget on the adsets in 100% – 200% at once every few days, and then we monitored these adsets, if the results did not worsen or worsened, but still remained within the normal range, then we did not change the budget or tried to increase it again, if the results on the adset deteriorated very much, then we returned the old budget to it. In January, we started testing CBO campaigns and this greatly simplified the scaling of the entire campaign.

Results and conclusions

The results we’ve managed to generate prove that the chosen strategy is successful. We’ve exceeded the plan, 6.5X-ed ROAS and helped the client to create a million-dollar business. Amid positive profitability metrics dynamics, we 10X-ed ad spend.

We achieved such results thanks to the deep analysis, detailed elaboration of creatives and audiences, and correctly built retargeting campaigns structure.

10 893

Total sales

$180 487

Ad Spent

$2 401 062

Purchase Conversion Value

13,30

ROAS

Let’s Connect

If you want to become a client, ask a question, or just say hi, don’t hesitate to contact us - we’re here for you!

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