Increase in sales from the final 3 months of 2020 compared to the previous period
Drove a 51% increase in reach on Facebook, improving visibility
Attained an impressive 3.81 ROAS while scaling the account by 15%
The Challenge
Retro Kids are a toy company like no other. With a focus on retro-style toys and room decor, they appeal to children and adults alike, carrying a fun and contemporary feel.
The client approached us with the desire to improve their ROAS and reduce their CPA, but were ultimately looking to implement more efficient ads to improve the quality of the traffic and clicks they received.
One of the initial challenges we faced was spreading the budget across such a wide range of products. In some cases, Retro Kids may have spent thousands advertising each product, perhaps according to popularity, which may have ultimately resulted in overspending and underselling.
- Budget to be spread across a wide range of products.
- The niche brand concept makes the target audience more ambiguous.
- High CPA in the previous period.
- Lack of visibility online.
Solution
Initially, we considered who the target audience for Retro Kids really was. As a niche concept selling products for children that were also designed to appeal to adults, we found that targeting lookalike audiences on Facebook was the most effective in drawing conversions from impressions. Previously, the average CPA that Retro Kids were achieving was rather high.
After making some changes to the Facebook audiences their ads were targeted to, this time including lookalike audiences so that users who were similar to the current customer base saw the ads, we were able to achieve a 51% increase in reach compared to the previous 3 months.
By showing our ads to more potential customers and ensuring that those who are seeing it are the most likely to buy, the chances of the user converting to a purchasing customer are significantly increased. For the final 3 months of the year, Retro Kids saw a 203% increase in sales.
For the Google campaigns, we opted for the use of Google Shopping campaigns instead of using search ads. A Google shopping campaign would allow us to showcase each product in the best possible light while making the most of the budget. Utilising Google Shopping ads in this way means that we were able to include a wide range of products under one campaign, keeping spend controlled and refined. Following the implementation of these Facebook and Google ads, we saw a huge reduction in the average CPA for the client, bringing it down by 31% and saving valuable spend. Not only does this show how important it is to choose the right audiences for your ads, but it also reflects on the quality pulled through and the motivation of the buyer.
The Christmas Period is a crucial time for many businesses, but more so for those selling products for children as parents rush to buy gifts for their little ones. The client recognised the importance of this period and ramped up their ad spend by 15% on our recommendation, which gave them greater visibility online.
Despite this increase in spending, we still managed to improve their ROAS, bringing it to an impressive 4.27 for the final months of 2020 and ensured their CPA stayed low at £6.74 from November to Christmas.
The Results
Over the course of working together, this is what we achieved with Retro Kids:
- 203% increase in sales from November to Christmas.
- Maintained impressive ROAS while increasing ad spend by 15%.
- Reduced CPA by 31% over a 3 month period.
- Archived a 51% increase in reach on Facebook.
- Utilised Google Shopping Ads to run a successful, efficient campaign.
- Leveraged lookalike audiences, targeted highly engaging interest audiences.
