Challenges

The client is an online home goods store with no clear seasonality in their product. The reason for contacting us was a critical issue: unsatisfactory return on ad spend (ROAS).

Although the store had consistently run ad campaigns, in the past 12 months the owner saw a significant decline in performance.

• A progressively declining ROAS despite increasing the ad budget.
• Rising costs for running social media ads.
• Shrinking profit margins that nearly reached zero.
• A lack of fresh ideas to revive the strategy.

Solutions

The first logical step was to conduct a comprehensive analysis of the ad campaigns and the overall state of the online store.

Key insights revealed campaigns lacked optimization and creativity to engage users effectively. While users visited the site and made purchases, they gravitated toward the cheapest products, leaving higher-margin items unsold.

Steps for a Successful eCommerce Ads Strategy

• Competitor Analysis: Benchmarked the store against competitors to identify strengths and areas for improvement.
• Product Focus: Shifted focus to product categories with higher profit margins. Prioritized high-value products and bundles to boost average order value.
• Customer Profile Optimization: Conducted a detailed analysis of the ideal customer profile to refine targeting efforts.
• Targeted Campaigns: Launched ads targeting high-value customers with relevant products. Executed campaigns designed to attract new customers.
• Loyalty Campaigns: Prepared campaigns aimed at increasing repeat purchases and fostering loyalty among existing customers.
• Creative Overhaul: Introduced engaging and visually appealing ad creatives to capture user attention and drive conversions.

Results

In just 2 months, the changes we implemented began to yield significant results, and after 4 months, we could confidently declare the strategy was both successful and profitable. Key performance metrics included:

• +48% increase in revenue from the online store.
• +4% increase in the number of orders on the website.
• 0% increase in budget
• +23% increase in website traffic.
• +16% increase in engaged sessions by users.
• Completion of 39 successful tasks.