Facebook and Google Case Study: $0 to $218,724.34 Supplements Brand Journey
Read until the end to see the updated growth as of November 2020
In this case study we will present the work frame we used to scale a proven supplements brand on Facebook and google in the same time.
Client contacted us in July 2020 after seeing one of our success stories with another supplements brand a little while ago. It was a no brainier we should work together on their lunch as we've got the track record and they had an amazing team, product and market.
Also worth mentioning they were already selling their product successfully on Amazon, but wanted to be more in control of their customer acquisition process and data after recent horror stories going around between amazon sellers
So we started straight away and mid July we took over their Facebook advertising account and also set up Google Ads, Analytics and Merchant Center.
First thing we did was to warm up the Facebook account with a few engagement campaigns mean to get some social proof, try a bunch of angles and creatives and ultimately figure out the perfect customer avatar.
We spent about $1,000 at this initial stage until the first order came in and we wore able to optimize for conversion events. Needless to say the client was peaty anxious at this stage, but he was also convinced those were money well spent towards obtaining relevant data.
At this stage a few audiences and creatives emerged as winners, and we went ahead creating variations of the same and horizontally scaling the account, with a large number of ad sets each with a budget of $1.5 daily. no joke we ended up having about 200 such ads at some point and the ones that got traction produced some insane ROAS from the get go.
This only meant we wee on to the right path but it wasn't no way near sustainable on a larger budget. So we continued duplicating the winning ad sets at higher budgets. This stabilized the ROAS at about 4.8X and gave us a consistent pool of sets to continue scaling separately.
Because we double vetted this ad sets at two different budgets and we've seen consistency across the board, we now felt confident moving them into a separate CBO of their own at $500/day budget.
There a re a few metrics to look at in order to establish if an ad set is scalable at higher budgets or not. One of them being the consumption of it's entire daily budget consistently. This means Facebook doesn't struggle to find buyers and is essentially asking for more.
Having that part figured out, it was easy to explain our client why we want to spend $500 more per day on one campaign and get them to agree comfortably. We never trow and hope. We aim and fire :)
The same CBO was successful from day one and still working well till today with few minor adjustments.
I know the most skeptical of you would say well 2.7 X ROAS might not be profitable by a whole lot. So here is a bit of a background story about this client, meant to address the profitability question at hand.
when they first came to us they wanted to sell their supplements bottle at the same price they were selling it on Amazon. And we suggested they double that price on their brand new eCommerce store and they will still see large sales volumes. They agreed and we started with 400% profit margins from day one.
Also we suggested a volume based discount up sell which ended up having a 48% take rate, increasing their AOV and therefore skyrocketing the profit margins. So 2.8X ROAS means 35% profit margins for them. Not many brands can brag about similar profit margins while aggressively scaling their ads.
Bare in mind we did not get into Look Alike audiences just yet. I have a devilish plan for those at a later stage. Essentially I will be creating an LLA from 400 or 500 buyers of multiple items. This will ''force'' Facebook's algorithm to find similar buyers increasing the upsell take rate even further.
Will keep updating this case study as we go about doing that. But the aim is to decrees the cost per purchase even further while increasing the Average Order Value (AOV) and up sell take rate.
Google shopping ads are coming together really nicely too. Yesterday we were at 4.6X ROAS and decided to scale that channel more aggressively too.
Also in the next few weeks we will be lunching a few Native ads on few supplements friendly networks. This is going to be risky move as we will have to go all in with around $5,000 testing budget just to have a fair chance to successfully explore native for their brand.
This speaks volumes about this group of entrepreneurs who stand behind their brand 100% and fully trust my team and me to take their brand to a large scale with multiple sources of traffic. This is the only healthy way to grow a business that does not solely rely on one acquisition channel.
I will keep updating this case study as we go. feel free to reach out and ask any questions you might have.
And if you are searching for a growth partner not just an agency, please fill up the application form on our contact page, letting us know you've read this case study.
09/12/2020 Update on performance: