ROAS from 989% to 1,927%, in a single month

Introduction

The online fashion segment has several particular problems: high drop-off during the purchase process, a high return rate after delivery, and steadily intensifying international competition.

When the partnership began the metrics were not in good shape: the conversion rate was around 1%, the cost of customer acquisition had risen, and the return on ad spend had fallen. Although offline sales performed well, the online side was not meeting expectations, they reached a decision point: wind down or revive the online operation.

Challenge

The advertising budget was very tight. With a persistently low return, the budget could not be scaled until the online business became profitable, meaning the improvement had to be achieved from the existing, small budget.

Solution

After a thorough analysis we identified two main problems. One: the potential in promotional offers was going untapped, these do lower the average order value, but they noticeably increase the number of conversions and buyers. The other: the campaign set-up was too simplified, using only Performance Max ads without proper optimisation.

Taking our advice, the partner created a few special promotions and deals that made the offers more attractive. Bearing the tight budget in mind, our team reconfigured the existing campaign, optimised the product database, and set up new campaigns, paying particular attention to the new promotional offers.

Channels and tools

Summary

A result like this cannot be achieved in a single month in every case. But when campaign management is not optimal, or key campaign types are missing, a significant breakthrough in the key metrics can be expected even within a short time, which is exactly what happened here.