How Shoelace Scaled Meta Ad Spend Profitably to Over $1 Million in Revenue for a Kids’ Brand
INDUSTRY: Kids’ Fashion
PLATFORM: Meta Ads (Facebook and Instagram)
NUMBERS
BACKGROUND
In the competitive online landscape of kids' fashion and toys, a direct-to-consumer (DTC) brand faced a common challenge: scaling ad spend efficiently while maintaining profitability. Despite having a compelling product range and a dedicated budget for digital marketing, the brand struggled to scale its ad spend and grow its digital presence without eroding its ad performance. This challenge led them to partner with Shoelace, seeking a solution to grow their digital presence and increase sales through Facebook and Instagram ads without compromising profitability.
OBJECTIVE
The goal was straightforward: significantly increase the brand's sales and digital presence by improving the return on ad spend (ROAS) and lowering the cost per acquisition (CPA), ensuring the brand could scale their advertising budget confidently.
STRATEGY & EXECUTION
Shoelace adopted a multifaceted approach to address this challenge, focusing on audience segmentation, strategic ad budget allocation, and a combination of prospecting and retargeting campaigns, all underpinned by continuous optimization.
Audience Segmentation and Targeting:
Our initial step involved deep-diving into the potential customer base to uncover key demographics, interests, and behaviors. This research led to the creation of tailored ad sets designed to resonate with distinct customer segments.
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.
- 60% on evergreen and proven winners
- 20% on Advantage+ Shopping Campaigns
- 20% on testing new creatives
Execution with Horizontal Scaling:
To achieve scalable growth, we employed a step-by-step guide to horizontal scaling on Meta:
- Identification: We meticulously identified potential audience segments.
- Creation: Developed new ad sets specifically targeted for each of these segments.
- Monitoring and Optimization: Continuously monitored each ad set, optimizing based on performance metrics such as ROAS, CPA and CTR.
- Scaling: Scaled up successful ad sets while pausing the underperformers. This approach ensured we could scale without diminishing performance.
RESULTS
The outcomes within just 30 days were impressive, surpassing the client's goals:
Ad Spend: Increased by 30%, totaling over $378,000
ROAS: Improved by 32%, reaching 3.37x
CPA: Reduced by 24%, lowering costs to $37.34
Revenue: Jumped by over 71%, reaching $1.27 million
KEY INSIGHTS & TAKEAWAYS
This case study underscores the importance of data-driven audience segmentation, smart budget allocation, and the agility to optimize continuously. Our success with this DTC kids' fashion brand illustrates how effective scaling strategies, grounded in Shoelace's expertise, can drive significant growth without compromising profitability.
Recommendations:
- Data-Driven Audience Segmentation: Start with in-depth audience research to ensure your ad content resonates with the target market.
- Smart Budget Allocation: Be strategic about where you allocate your budget. A mix of prospecting and retargeting, with a portion towards proven winners, can lead to significant gains.
- Continuous Optimization: The key to scaling successfully is continuously monitoring ad performance, being ready to adjust your strategy based on what the data tells you.
- Horizontal Scaling Techniques: Don't shy away from increasing your ad spend if you have a solid strategy for scaling. By carefully selecting and optimizing your ad sets, you can grow your budget while maintaining or even improving ad performance.
SCALE YOUR META AD SPEND PROFITABLY
Scaling your Meta ad spend profitably requires a strategic partner like Shoelace, where we blend audience insights, budget savvy, and continuous optimization to elevate ecommerce brands. Ready to experience transformative growth for your brand? Schedule a call with Shoelace today and embark on a journey to scale your digital presence like never before.
Don’t let the complexities of digital ad spend scaling limit your brand’s potential. Schedule a time to chat with us at Shoelace now, and let’s show you how we can kickstart exponential growth for your ecommerce business.
