This case study is for an organic spices brand in India and how we helped them scale from 1.2x to 9.02x ROAS within 4 months. When we started working with them, they were spending about 2.5 lacs per month and were going in negative ROAS.
As the business owner reached out to us, we gave some tips which he implemented and got a ROAS of 1.5 in the next 7 days. Soon, he realised that Facebook ads are not just about tweaking something on and off and he needs a professional handling the account.
About the Client
The client sells premium spices such as turmeric, ginger, honey, some varieties of tea blends etc. The products are super expensive but the brand wasn’t positioned as such. As a result, they were reaching out to the wrong audiences who couldn’t afford their products.
Diagnosing the Campaigns
As we diagnosed their whole funnel (AKA Customer Journey Lifecycle), we found some critical issues that we needed to address immediately.
This is how we laid the foundation.
As always, in all the campaigns we ensure we only ever have 3 campaigns. That’s it.
Cold Audience - Finding new customers who DON’T know anything about your biz
Testing - Finding winning ads sets and ads
Retargeting - Staying in front of people who HAVE been exposed to your biz
Phase 1: Testing Cold Audiences
The purpose of this testing is to find as many people who could potentially be interested in your brand but they have not heard your name yet.
Depending on the budget, we found out 20 audiences (ad sets) that we can rely on to consistently bring in profitable revenue on a day to day basis. We began with 3 audiences that are based on interest based targeting and 2 audiences that are based on look alike audience targeting. Look alike audience is the audience that FB thinks has similar traits as your primary audience.
Here are the lookalike audiences we tested, one after the other. When we started testing, we started by making 1% of the lookalike audience and as we were scaling and looking to add more people in the funnel, we increased the percentage gradually till 5%.
Types of Lookalike Audiences We used
- All website visitors past 180 days (1% & 1-5% audience size)
- Add to carts past 180 days (1% & 1-5% audience size)
- View content past 180 days (1% & 1-5% audience size)
- All purchases past 180 days (1% & 1-5% audience size)
- All page engagements past 180 days (1% & 1-5% audience size)
- Engaged with any post or ad past 180 days (1% & 1-5% audience size)
- 75% Video Views past 180 days (1% & 1-5% audience size)
- 95% Video Views past 180 days (1% & 1-5% audience size)
- Top 20% Website visitors by time spent on site past 180 days (1% & 1-5% audience size)
- Customer list LLA’s (1% & 1-5% audience size)
Word of caution - Don’t rely solely on look alike or interest based audiences because you never know which one will work and which one won’t. Keep testing and that’s how you’ll know what’s working and what’s not. Double down on things that are working and stop things that aren’t working.
The most critical element of your ecomm store. If your offer isn't irresistible, it's not going to sell. We found many challenges in their offer and positioning which we fixed in the initial few days. We’re dealing with a product that other competitors are selling for Rs. 240 per 250 gms and this brand is selling almost similar products for Rs. 699 for 100 gms.
The offer and positioning has to justify why someone will pay this price for a product. We positioned the product as the best turmeric people can buy in India. Obviously we did not make any false claims or promises, the product was really good. The offer only made it a no-brainer for people to buy.
Has to be fine-tuned with the audience and demographic we're targeting. Ask yourself, what keeps your target audience awake at night. Use that in your messaging.
One of the interest based audiences we used is Sadhguru. The ad copy we used in that spoke about the importance of turmeric in people’s yogic practice. That directly resonated with the audience and it became one of our best performing ads.
The Sales Process and Ad Structure
How's the user experience during the entire sales process. Is it smooth and user-friendly. Whoever you are trying to sell your product to, are they even ready to make a purchase. This is where the ad structure comes into the picture.
Creatives for conversion
We used the product images and videos to create scroll stopping creatives that caught attention. We make those creatives into a high performing asset that generates great revenues.
Ad copies that gets them hooked
Literally the first sentence of the ad copy could make or break your entire campaign. We create the ad copies very strategically keeping in mind the audience and what stage of awareness they are at. The ad copy we wrote is based on the audience we are testing, to make sure they speak to the pain point and benefits of the specific audience.
Using the platform’s algorithm in our favor
Most advertisers say they can’t get the desired results from Facebook ads. It’s because they fail to understand the Facebook algorithm. All Facebook cares about is, they want their users to have a good experience using the FB platform. When you show ads that directly speak to the pain points and benefits of the audience, you have lower CPM, better CTR, higher conversion on landing page and a lower cost per sale. On the other hand, when your ad copy and creatives are failing to grab the attention, you see your KPI’s going bad and it just becomes harder to achieve your goals.
Having studied with the best in the world, we implemented the strategies that gave us improved CTR and lower cost per sale.
Now from our testing, we identify 8-10 identified ad sets that have been working well for us so far.
There are endless ways to scale campaigns but here is one that is relatively simple that we implemented for this brand.
We took the winning ad sets form our initial testing phase, move them into a different campaign, and set each ad set to Rs. 2500 each OR take whatever the daily budget is divide it amongst the ad sets I.e: budget is 25k a day > 10 ad sets = Rs. 2500 per ad set
Now, it’s KEY to have automated rules so if the Cost per sale is going too high, we stop wasting money.
This is the exact formula that helped us achieve 9.02x returns on ad spend and created their best performing campaign ever.
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