The Challenge
In the competitive online world of kids' fashion, a direct-to-consumer (DTC) brand faced a common challenge: scaling ad spend efficiently while maintaining profitability and successful ad performance. That's where Shoelace stepped in, ready to tackle the challenge head-on.
The Objective
Our mission was clear: increase the brand's sales and online presence by improving the ROAS and lowering the CPA, ensuring they could scale their advertising budget confidently.
3-Step Strategy Begins
Step 1: Audience Segmentation and Targeting
Starting with a deep dive into the audience, we created tailored ad sets based on unique customer demographics, interests, and behaviours. These were designed to resonate with distinct customer segments.
Step 2: Budget Allocation
We allocated 85% of the budget to prospecting campaigns to capture new customers and 15% to retargeting campaigns aimed at re-engaging past visitors. The prospecting budget was further divided among evergreen content, Advantage+ Shopping Campaigns, and testing new creatives.
Step 3: Execution & Scaling
Our precise, step-by-step approach to horizontal scaling involved identifying potential audience segments, creating targeted ad sets, monitoring & optimizing for successful ad sets, and then scaling those ad sets while pausing the underperformers.
The outcomes in just 30 days were impressive:
- ROAS: Improved by 32%, reaching 3.37x
- CPA: Reduced by 24%, lowering costs to $37.34
- Ad Spend: Increased by 30%, totaling over $378,000
- Revenue: Jumped by over 71%, reaching $1.27 million
Key Takeaways
- Lessons from Scaling to $1M+ Revenue
- Data-driven segmentation is crucial
- Strategic budget allocation wins
- Continuous optimization is key
- Effective scaling strategies don’t compromise profit
Scale Your Brand With Shoelace
Are you ready to experience explosive growth? Don’t let the complexities of digital ad spend scaling limit your brand’s potential. Book a time to chat now, and let’s show you how we can kickstart exponential growth for your ecommerce business.
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