THE CLIENT’S STORY
Home-grown bootstrapped kitchenware brand, both a retailer and manufacturer of products was struggling with stagnation in Facebook ads
Hitting ROAS of below 2 and unable to move past the 3L/month revenue mark
1. THE BACKGROUND (Problem Identification)
The business is into selling Home appliances and household items like cookers, Planters, Barbeque…
This brand was facing significant challenges with its Facebook Ads campaign. Over the past 90 days, they had to shut down the ad account as it was just bleeding money. This meant that their advertising efforts were not yielding the expected results, and they were far from achieving profitability.
For every new account we start off with the problem identification phase in ads
Upon closer examination, several issues were identified as the root causes of their struggles:
- Lack of Creative Diversity – The client’s Facebook ad campaigns suffered from a lack of variety in their creative content for ads. This means the advertisements were repetitive, likely using similar images, text, and video ads. Such a lack of diversity in ad creatives can lead to ad fatigue among the target audience, where users stop engaging with the ads because they become too familiar and uninteresting. Fresh and varied creative content is crucial to capture and retain the audience’s attention, thereby improving engagement rates.
- No Offers Were Tested – The client did not experiment with different types of offers in their ads. Offers, such as discounts, limited-time deals, or exclusive packages, can significantly boost consumer interest and drive higher conversion rates. Testing various offers allows a brand to understand what resonates best with its target audience, which can lead to improved ad performance and higher ROAS (Return On Ad Spend).
- Just Broad Audiences Were Tested – The client’s targeting strategy was limited to broad audiences. This approach can lead to inefficient ad spend because the ads may not be reaching the most relevant and interested users. Targeting broad audiences without segmenting based on specific interests, behaviors, or demographics can reduce the effectiveness of the ad campaign.
- Only 1 Product Being Repeated – The client-focused their advertising on just one product, neglecting the potential of showcasing a diverse range of products. This single-product approach can limit market reach and fail to appeal to different customer segments. By diversifying the product range in the ads, the brand can attract a broader audience with varied interests and needs.
3. THE GOAL
Gain new customers for the business, 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 and achieve a profitable ROAS of above 3. Also, parallelly get sales from their new products and categories and expand the customer base
4. The Positives
Although the brand had been struggling with ads, it had a few strong positives
- Selling over 1cr+ on Amazon
- Strong unit economics with margins up to 85%
- Efficient and fast logistics
This all contributed in shaping a good strategy for ads
5. THE SOLUTION
A Strategic Buyer Journey
Before getting on with the solution, a unit economics breakdown of every brand is a must and we do it in our internal unit economics tool for e-commerce brands
Creation of a dedicated campaign for each product starting with best-sellers, set up for laying the foundations right and testing the creatives for scale and learning
To achieve this goal, a comprehensive plan was developed:
- Creative Diversity – For each product tested various creative formats, including images, carousel ads, and video ads. This strategy aimed to identify which type of ad creative resonated the most with their target audience. The goal was to make the ads visually appealing and relevant to the audience.
- Testing Offers – Since the brand had big margins and strong unit economics, big discounts (yes profitable) were tested, and offers up to 50% off gave a reasonable CAC and room for scaling.
- Website Improvement – Once a product did show strong signals of scale with offers and creative, we created a dedicated and new landing page only with that product and it improved performance – CAC decreased by 45% and the conversion rate increased by 13%
- Targeting – Started of testing demographic-based targeting only metro cities in India and it helped gain initial momentum for ads. Then leveraged Facebook’s advanced targeting options like lookalike audiences (users similar to existing customers) and custom audiences (based on specific criteria).
- Diversifying the Product Range in Ads – Started with catalog ads to showcase multiple products & included a variety of products in the ad campaigns to appeal to different preferences and needs.
- Highlight Unique Features: For each product, focus on what makes it unique or superior, tailoring the message to highlight these aspects.
THE CREATIVES
6. Performance
If you are a business looking for help with Google, Facebook, Instagram or Amazon ads, then let’s connect
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