Today, I want to talk about scaling an e-commerce store, with hundreds and hundreds of different products…
And being able to maintain, or even INCREASE the ROAS.
Here’s the thing:
When most people try to scale their ad account, their ROAS suffers significantly.
If you’ve had a winning campaign and attempted to increase the budget… you know exactly what I mean.
The cost per purchase or lead will increase dramatically… and a winning campaign you had on Facebook will start losing money at the drop of a hat.
So – let’s talk about how we did it today for a client who sells jewellery and fashionable products in the health and wellness space.
They have hundreds and hundreds of different products.
So how do you choose which ones to scale?
How do you know when to throw new products into the mix?
And what’s the best way to scale the account to get predictable and profitable results?
So – here’s what happened:
To start with – our initial goal was to spend €60,000 per month at a 1.8 ROAS.
Now, this client had 2 different stores.
One was French and one was Spanish.
We looked at both ad accounts, and had a decision to make.
Would we run them both? Was one a better opportunity than the other?
Turns out the Spanish shop was struggling, and after testing a few different campaign structures, we made the decision to only focus on the French shop.
Here’s why this was important.
The Spanish ad account was unprofitable.
By spending time and money getting it to work, it was eating into the profit we were making in the French account.
That was stopping us from testing more products and increasing the ad spend.
Now, just running the French account, we were able to scale the profitable products… and test new products from the store until we found winners to scale.
Here’s how we did it:
Once we had a winner, we’d do 2 things:
If this caused the CPA to rise, we would bring the budget back down, and simply duplicate the campaign.
That way, we’d be spending twice as much on the same product… but at the same daily ad spend on each campaign, so the CPA was unaffected.
If the new campaign performed better than the original, it was simple:
We would pause the original campaign, and increase the budget on the new campaign.
We would rinse and repeat this constantly to increase the budget without raising the CPA.
If anything, we would see a reduction in CPA if one of the new duplicated campaigns performed better.
2. Start testing a new product to find more winners
Here’s what we did:
We would create a top of funnel campaign, for the new product we were testing.
We would add our best performing audiences into a single ad set each.
And we would re-make the winning ad creatives with the new product we were testing.
If the ROAS from the new campaign hit our target KPI’s…
We’d create separate middle of funnel and bottom of funnel retargeting campaigns for the product to increase the profitability.
We continued this process over and over again, finding winners and scaling them… whilst simultaneously cutting any products that weren’t profitable.
By repeating this process, of new campaign, with best performing audiences and creatives…
We were not only able to scale at the same ROAS…
But within one month we were spending €100,000 and a 2.4x ROAS.
When we started working with a client they were at €15k per week in sales.
We scaled them up to €25,000 per week in sales a month later.
If you’re serious about your growth and want to work with our team to scale your brand book a call below:
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