If I give you 0.1964 EUR how much can you bring back?
It is a common question in the world of digital marketing, one that we also receive often.
The answer “it depends” might seem annoying, but it makes sense… up to a point. We are talking about the point where you know the context you are operating in, you use the sales funnel, and you make all the necessary optimizations.
In the case of one of our clients, Noah, an authentic Romanian brand that produces premium wooden watches, the answer is: 1.26 EUR.
Read this case study until the end and you will find out how we managed to do this. 😀
Context
In 2019, over the course of 4 months and a bit (July 22nd – November 30th), we invested 2.023,15 EUR in Facebook and Instagram ads, achieving total revenue of 12.938,32 EUR. Specifically, we obtained an average ROAS (Return on Ad Spend) of 6.39.
The Client: Noah
Niche: E-Commerce, Premium Products (Wood Watches)
Business Evolution Stage: Startup-Growth
Note: See the video with the 5 stages of business evolution here.
The “Infrastructure” used – Shopify as the eCommerce platform, Mailchimp as the autoresponder for emails, product and category pages, banners, videos, and an average monthly advertising budget 505.79 EUR.
What exactly did we do?
First of all, we analyzed the existing campaigns and the statistics from Shopify. This was followed by the detailed definition of customer avatars and the creation of the action strategy.
We focused primarily on conversion and remarketing campaigns (approximately 80% of the budget). But at the same time, we worked with the sales funnel by testing and “warming up” new audiences.
We tested diverse creatives: banner, carousel, video, or instant experience.
Problems Encountered (or Issues Encountered)
The start was difficult. In the last 2 months before the collaboration began, the existing ads brought no sales.
Based on the avatars defined more clearly than before, we created new audiences and diverse ads (reach, traffic, conversion, and catalog sales), across all stages of the sales funnel. However, sales were slow to appear in the first few days. In fact, the first 2 orders only came at the end of the first week.
Also, by monitoring in Google Analytics, the cold traffic coming from Facebook spent less than one minute on the product or category pages.
Another challenge was measuring assisted conversions (sales to which multiple marketing channels contributed, such as Facebook ads, Google Ads, etc.)
Solutions
- We created several ads, with both short and long text, customized for each stage of the customer journey (Suspect, Prospect, First Purchase, Customer, Ambassador).
- We introduced multiple video views campaigns, in which we did both product presentations (unboxing) and showcased the brand’s story and values.
- We adapted the copywriting style used in the ads, shifting from a focus on quick sales to a focus on storytelling, thus creating a real connection with the brand.
- We created promotions and used measurement methods (UTMs in Google Analytics and discount/promotion codes in Shopify).
- After the cold audiences had their first visit to the site, we started remarketing both across the entire site and running cart recovery campaigns.
- To obtain more “social proof” for the conversion ads, we ran extra campaigns with a post engagement objective.
- Massive A/B testing on audiences, ad placement, and ad copy.
- We scaled the winning ad combinations with budgets higher than those initially planned.
- We checked the performance indicators from 3 sources simultaneously to ensure the measurements were correct (Google Analytics, Ads Manager, Shopify Stats).
- We tracked the visitors’ journey on the site using Hotjar.
Results Obtained with Facebook Ads
- Sales increased from month to month, culminating with the Black Friday campaign.
- In total, 59 sales were obtained, with an average transaction value of 219.21 EUR. Total revenue was 12,938.32 EUR, with 2,023.15 EUR invested.
Conclusions
The conversion campaigns (with interest-based and lookalike audiences) plus the remarketing campaigns worked best.
But it wasn’t just milk and honey…
The catalog sales campaigns started with problems; they eventually ran, but they didn’t bring us the results we were expecting.
Also, our colleagues who handled the Facebook ads (Iulia Greab and Radu Dascalul) experienced ups and downs during these 4 months. Facebook had periods where it didn’t run the campaigns as it should have, and some ads that worked one month didn’t perform the same way in the next.
However, continuous A/B testing and working on the sales funnel were the best solutions for the challenges brought on by Facebook or the decrease in ad performance (ad fatigue).
Last but not least, the frequent analyses and discussions, plus the combination of the Facebook ad strategy with other marketing channels (email, Google Ads, and Chatbots) helped us immensely.
About DAR Media Marketing Agency
We are the only marketing agency in Romania whose founding members traveled around the country for 2 and a half years doing “grassroots” digital marketing.
We specialize in content marketing and Social Media Advertising that bring you the desired results.
Do you want to have Facebook ads that bring you results like these, or even better?
Request a free marketing audit. Click here!
