How We Added $50k/m To Crazy Compression
Sep 9, 2024
Context
In the competitive world of e-commerce, achieving consistent growth through paid advertising can be challenging. Here's how we transformed a US sock brand's digital advertising strategy using Google Ads, resulting in an additional $50,000 in monthly revenue.
Results at a Glance
Within 4-5 months, our strategy yielded impressive results: monthly revenue increased by $41,700 with an ad spend of $13,000. Most notably, we achieved this while keeping the Cost Per Acquisition (CPA) increase to just $3 – a remarkable efficiency metric in today's competitive digital landscape.
Strategy Deep Dive
Our primary focus was on the brand's best-selling socks. We set a target Return on Ad Spend (tROAS) of 200%, which proved to be a sweet spot for scaling. A crucial insight here: extremely high ROAS targets (like 10X) often indicate missed growth opportunities rather than success.
We implemented a disciplined approach using only phrase and exact match keywords, deliberately avoiding broad match. This decision led to improved quality scores and higher rankings in search results. By aligning product focus with our shopping campaigns, we created a cohesive advertising presence.
We repositioned Performance Max as a specialized tool for underperforming products. By setting a higher tROAS, we protected profitability while allowing Google's algorithms to identify potential winners among these challenging products.
Our branded strategy combined both Search and Shopping approaches:
Search campaigns utilised Target Impression Share bidding.
Shopping campaigns operated on Manual CPC.
We implemented automated scripts to continuously add non-brand terms as negatives, ensuring budget efficiency.
Perhaps the most valuable outcome was the steady, predictable growth pattern. Unlike Meta advertising's notorious volatility, our Google Ads strategy delivered consistent month-over-month improvements. This stability enabled better inventory management and financial planning for the brand.
With this foundation established, we're now exploring top-of-funnel demand generation strategies to break through current search volume limitations. This next phase aims to expand the brand's market presence while maintaining the efficiency of our existing campaign structure.
