Furniture
CyberEngine™ Advertising
Our client is a relatively young, digitally-native DTC furniture brand offering dozens of one-of-a-kind collections. They want to be an alternative to mass-produced pieces sold by big retailers - offering unique, high-quality products at a good price. Having no showrooms, they designed a fully online shopping experience.
They grew exponentially within a couple of years due to the appealing design and very smooth shipping process. Along with growth came complexity and diminishing returns. They had multiple marketing and business issues that needed to be solved quickly. Purely by accident, one of our past clients recommended our agency to them at the beginning of 2022 - that was a very timely happenstance. They needed help immediately. After an initial strategy call, we decided to partner up and help them improve the situation.
Growing too fast without a clear growth framework can bring multiple problems and challenges along the way. That is exactly what happened. Using Meta and Google platforms to generate sales through advertising, our client hired an in-house media buyer who was responsible for all paid traffic efforts. Unfortunately, to stay lean during the initial phase of the business, they decided to save money and hire a person without sufficient skills and experience.
We completely understand the situation. On a smaller scale, effective advertising does not require exceptional qualifications. However, as you scale your budget and the whole system becomes way more complicated (often using multiple channels), it is a completely different world. We inherited multiple campaigns that lacked proper structure and congruent messaging. The tracking system was flawed, the Google shopping feed was not properly optimized and creatives lacked appealing video content. That just could not work.
Moreover, the return on ad spend significantly decreased to the point where the short-term cash flow became a problem. The situation required a deep and holistic solution. We knew that the time was against us. Without further ado, we got to work.
After working with well over a hundred e-commerce brands at different stages of business growth - our process got gradually more refined. We called it CyberEngine™. The first pillar consists of neurotically detailed research and strategy development. Since our whole team is exceptionally trained in data science, we can effectively gather, compile and analyze thousands of data points. Our team members use both conventional sources (analytics, reports, historical performance) and more refined ways (big data research tools, our internal benchmarks, etc). The furniture e-com industry is quite specific due to the products having higher prices and clients wanting to physically see the pieces before the purchase. It required us to spend some additional time on research.
Setting smart and motivating marketing goals was very important. After discussion with a client, we decided that our main short-term goal was to improve and stabilize ROAS (to be more specific - 30-day LTV) at the current ad budget. After the initial improvement, we would aim at gradually scaling the ad budget and expanding our video campaigns into YouTube. We had a whole list of smaller goals - but, to keep this case study short and sweet, let’s keep moving.
As for the marketing strategy, the first thing we had to improve was brand positioning. After long research, we realized that many people regret buying mass-produced pieces of furniture. Why? Because they want something unique, something that will astonish their neighbors and look good in the photo (yes, you heard it right). How do you feel when you see someone wearing the same shirt as you? Exactly. But people still choose big furniture retailers because of one thing. Free, often same-day shipping. Buying experience is on a different level. If you want to succeed in this market as an aspiring furniture brand, you need to provide an unmatched buying experience.
And that is exactly why our client experienced initial success. Unique, high-quality pieces and free, same-day shipping. People loved it. But somehow it was forgotten and diluted among dozens of other selling points across advertising channels. We had to revive this crucial idea and build a congruent messaging around it. After lots of hard work with our client, we prepared over 60 creative variations (both images and videos).
The leaky tracking system was the next big hurdle. Even though iOS 14.5 has negatively impacted tracking off-Meta data, it is still of utmost importance to use a proper Meta-native set-up. Moreover, using an external tracking tool is certainly advised. Sadly, our predecessor hadn’t installed the pixel on every page. Google tracking was completely missing (…). After fixing both Meta and Google tracking, we have set up an invaluable external tracking system - Triple Whale. Currently, we use it with most of our clients. It provides us with hundreds of important metrics and the ability to share them seamlessly with our clients.
At this point, we could design and launch our campaigns across Meta, Google and YouTube. We used our battle-tested Meta ad account structure - a balanced mix of budget optimizations, bidding strategies, ad set architecture and creatives. After neurotic keyword research and feed optimization, we deployed a mix of Google Shopping and Search campaigns to repair any leaks in the bottom of the funnel and increase the overall ROAS. YouTube is a very interesting advertising channel where you can build brand awareness at scale and educate your target customers. Since our client already had multiple well-produced creatives, we used them as the initial content for ad testing.
It is still too early to announce victory, but we already have some positive outcomes to share with you after a couple of months. In Q2 2022, the overall ROAS across channels amounted to over 2.7x. During the same period last year, it was only 1.3x. It means that we grew the ROAS by over +108% YoY within the same ad budget. That is a promising result, having a dramatically positive impact on the bottom line of our client.
This significant ROAS growth more than doubled the sales in Q2 compared to the same period last year, even though the ad budget was almost the same. Due to the change in brand positioning, we see higher engagement and improved 60-day LTV - which further benefits the long-term profitability and growth potential.
Currently, we still optimize the performance and ROAS - trying to hit 3x before Q4 2022 begins. Then, having a very strong foundation, we will deploy our scaling strategy and significantly increase the ad budget across platforms to capture the wild spike in demand during Q4. Our client is very satisfied, and so are we. Being very grateful for the opportunity to work with such a great, ambitious company.
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