By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.
Deny
Accept
Case study

Leveraging a Two-Day Promo to Drive €170k in Sales, with 10x ROAS

Client:
10
min read
Share this post
Copied

The challenge

  • Capitalize on a two-day promotional event
  • Analyze incremental ROAS to optimize ad spend every couple of hours
  • Build excitement and urgency around the promotion


The result

  • €170k€ of revenue
  • ROAS 10x
  • €120k in Net Profit


What you will learn from this case study…

  • How to effectively utilize lead generation campaigns prior to a sale
  • The best campaign structure for promotions
  • How to analyze incremental ROAS to optimize ad spend and profitability


Introduction

A key focus for this brand was profitability at the highest possible level.

Our research showed us exactly where our focus needed to be in order to increase ad spend with a profitable return. We applied this approach also to optimizing ad spend during the promotion, to make sure to only increase ad spend when it was generating revenue profitably.


Lead Generation and Hype Building

Prior to the promotional event, we implemented a lead generation campaign on Facebook, using the upcoming sale as a hook to gather interested customers’ emails.
We tested several lead campaigns (only-email instant form, email & phone instant form, landing page), and we monitored CPL, revenue per email list, and ROAS for each of them (revenue from the specific email list, divided by the cost to generate the leads). The most profitable was the only-email instant form lead campaign.
In the days before the promotion, the brand sent emails to these leads to build anticipation.


Promotion Launch

The launch was 3 days long, the first day was dedicated to the email list and the following two to scale revenue with Facebook and Google Ads.
In previous promotions the results of the ads were inflated by sales from the email subscribers. So we dedicated a day only to email subscribers with a special offer for them, and turned off ads on that day. This made them feel special and increased urgency.
This also allowed us to see the real ROAS of the campaigns, and being able to better optimize budgets to increase scale and profitability.


Ad Strategies

For the campaigns we used specific promotional creatives:
– images combining the product visuals with the promotional offer
– UGC videos mentioning the promotion
– split screen videos, with a winner video on the right and the product and discount on the left of the creative.

We started the first promotional day with about 2,5k€ daily budget on Facebook Ads and 3k€ on Google Ads.
On Facebook we added two specific campaigns with promo creatives, one for Prospecting and one for Retargeting.

While on Google we used the same campaigns, with a few small changes for the promotion, and just increased budgets on Search, Shopping, and remarketing campaigns.

Then we closely monitored revenue and ad spend every 2 hours, increased budgets when the ROAS was higher than our target, and evaluated the impact of the budget increases.

As a final strategy, we significantly increased the ad spend in the last hours of the promotion, leveraging the ticking countdown timer to increase urgency-led purchases.


Incremental ROAS

To assess the profitability of the ad spend, and budget increases, we analyzed the Incremental ROAS. It essentially showed us the return on every additional dollar spent in a given timeframe, rather than the total return on ad spend.

With promotional events like these many ecommerce brands overspend on their ads, without seeing a profitable increase in revenue.


Here’s an example of how to use Incremental ROAS/ MER:


Before: 25k$ Ad Spend → 100k Revenue; 4 MER

After: 30k$ Ad Spend → 110k Revenue; 3,7 MER
If your target MER is 3, based on the data above you should increase the budget right?
Not exactly.

Even though the MER is above the target, what about the Incremental MER?

Additional Revenue: 10k$

Additional Ad Spend: 5k$
Incremental MER: 2

To analyze these data we monitored revenue and ad spend per hour in shopify and the ad platforms, to have an overview on overall MER and ROAS per hour.
And then we monitored ROAS per each campaign hourly in the ad platforms and in Triple Whale to check the impact of the budget increase.

This analysis proved vital in optimizing our spending during the short promotion period, to maximize profitability.


Conclusion

Maximizing the success of a promotional event is not easy, but with careful planning and execution, even a short promotion can result in massive growth in revenue, ROAS, and net profit.

Share this case study
Copied
Tag one
Tag two
Tag three
Tag four