THE CLIENT’S SUCCESS STORY
A perfume brand with an AOV of 600, fragrances are inspired from the legacy brands like Gucci, Chanel, Dior but at an affordable rate for the Indian public
Hitting ROAS of below 2.2 and unable to move past 3L+ revenue mark
1. THE BACKGROUND (Problem Identification)
The business is into selling Fragrances
Over the past 6 months, The Brand had been struggling to achieve a Return on Ad Spend (ROAS) of above 2.2.
Problem Identification (Background):
Low ROAS: Over the past 6 months, the perfume brand had been struggling to achieve a Return on Ad Spend (ROAS) of above 2.2. This meant that their advertising efforts were not delivering the desired results in terms of revenue generation.
Revenue Plateau: Despite offering fragrances inspired by well-known legacy brands at affordable rates for the Indian market, The Brand had hit a revenue plateau at 3L+. This indicated that they were unable to tap into their full market potential.
1. THE BACKGROUND (Problem Identification)
Specific Problems:
Over-Reliance on Catalog Ads – The Brand heavily depended on catalog ads. These ads might have become repetitive, potentially leading to ad fatigue among the audience. Over time, this can result in diminishing returns.
Limited Creative Variety – The creative content used in advertising was predominantly in the form of carousel ads. This lack of creative diversity might have hindered the brand’s ability to capture the audience’s attention and communicate the value of their products effectively.
Absence of Offers – The absence of special offers or promotions can limit the brand’s ability to incentivize potential customers to make a purchase. Rarely were these offers used in ads to capture new interest groups
Limited Audience Testing – Audience targeting plays a critical role in the success of Facebook Ads. Limited audience testing may have led to suboptimal targeting and, in turn, lower ROAS.
3. THE GOAL
Gain new customers for the business, and generate sales from the website and get to 3+ ROAS
The primary goal of this campaign was to turn around the underperforming Facebook Ads campaign achieve a profitable ROAS of above 3. This meant not only increasing revenue but also to maximize profitability.
4. THE SOLUTION
A strategic buyer journey
Reduced Reliance on Catalog Ads – To combat ad fatigue and diversify their ad content, the company reduced its reliance on catalog ads to less than 10% of their ad portfolio. This allowed for more dynamic and engaging ad formats.
Testing New Offers – Recognizing the importance of incentives, the brand experimented with different offers. The “buy 1 get 1” offer was found to be effective, providing a compelling reason for customers to make a purchase.
Expansion of Audience – To reach a wider and potentially more receptive audience, the company invested in testing new interests and launched an “Advantage+” campaign. This expanded the brand’s reach and increased its chances of connecting with prospective customers.
Incorporating Influencers – To enhance the credibility and appeal of the ads, The Brand decided to collaborate with influencers. By featuring influencers in their ad creatives, they aimed to build trust with their target audience. Influencers can connect with customers on a personal level and provide authentic recommendations
Website Improvement – The performance of the Facebook Ads campaign is closely tied to the website’s functionality and user experience.
6. Performance
With 21 Lakh in spends and 51 Lakh in revenue
