+67% turnover for an online shop for fast-moving consumer goods

Challenges

In the fast-moving consumer goods sector, volume and a good return on investment are of key importance. Our client’s business was facing an alarming trend – turnover was falling steadily month on month, and the return on advertising spend had dropped to 1.8 ROAS on a monthly basis. Despite the strong product margins, this was a critical juncture that threatened the very survival of the entire company.

The reason for the collapse lay in a lack of focus. The client had tested dozens of audiences and ad formats in search of a solution, but the result was disastrous: a fragmented budget, micro-campaigns without enough ‘breathing space’ for optimisation, and an algorithm that simply lacked the necessary resources to realise the account’s full potential.

Solutions

Our first task was to carry out a detailed analysis of the tracking. We discovered a low Event Quality score in Meta, which meant that the algorithm was operating ‘blindly’. Once we’d corrected the tracking and submitted accurate data to Meta, we took a bold step – we paused over 50% of the account in one go (everything that wasn’t working and was wasting the budget).

We began to build the new structure step by step, following these rules:

• Focus on broad audiences: With our tracking system already up and running, we’ve enabled the algorithm to identify the most suitable buyers on its own.
• The ‘Maximum 1 test per day’ rule: We allowed testing of only one new element per day (audience, category or product), but with a larger budget, in order to gather quick and relevant data.
• Controlled scaling: We analysed high-performing practices and began to replicate them. We increased budgets once or twice a day until the return on investment reached its natural ceiling, without falling below the critical minimum.

Results from advertising an online shop selling fast-moving consumer goods

The results of the new strategy were evident just two months after we began working together. We stopped the budget from being overspent, halted the decline and stabilised the account. All the best practices were applied to other campaigns as well, and the budget began to be invested much more precisely, rather than being squandered aimlessly.

What’s next: Now that we’ve stabilised our main source of sales, the next logical step is to gradually expand our advertising channels. We are testing new platforms and strategies gradually and in a controlled manner to identify the most successful and sustainable approach for each new channel.

• +67% growth in turnover
• A 25 per cent increase in orders
• A 47 per cent increase in sales of bestsellers
• +1,400 per cent growth in revenue from a best-selling product
• A 250 per cent increase in revenue from Google advertising