Case Study:
2020 Ecommerce Performance

+156%
Increase in website traffic YOY
+129%
Increase in New Users
+128%
Increase in Users
5.74
ROAS
$11.86
Cost-Per-Purchase

The Challenge

Shoebacca is an ecommerce company, historically focused on discount shoe sales. Arm Candy was tasked with growing their business revenue through diversifying their customer mix and balancing out their affiliate partnerships.

The Strategy

Shoebacca previously focused on Google Shopping, winning business by having the lowest price point. To grow and diversify their revenue, we focused on lower funnel opportunities in order to maximize revenue while also introducing new channels into the media mix.

We focused on optimizing Shoebacca’s current Google Ads and Bing campaigns while adding in Facebook which was  a new channel for Shoebacca at the time. We leaned into both Facebook catalog and Conversion campaigns to produce strong returns.

Once we ramped up after our eight-week test and established learnings, we made the needed optimizations to allow our campaigns to be as effective and efficient as possible as we scaled.

Our Partnership To-Date

Approach

During the initial stages of our partnership, we cleaned up the Google Ads and Bing campaign strategies, allowing those channels to be more effective for Shoebacca. We also ramped up slowly with Facebook, identifying a winning approach that could then be scaled. Once we established a strong foundation, we were able to maximize advantageous buying environments, such as the 2019 holiday season and COVID-19.

Results

Over the course of these past 10 months, Arm Candy has driven a 128%+ increase in revenue with our media strategy, compared to the previous period. We’ve achieved a 5.74 ROAS. Site traffic has increased 156% due to our media efforts.

 

+46%
Increase in website traffic YOY
+55%
Increase in New Users
+48%
Increase in Users

Q2 2020 Performance

Approach

Performance for Shoebacca began to ramp up significantly towards the end of March. This was a result of the effects of COVID-19, including other advertisers pulling back media spend and a consumer behavior shift. We strove to capitalize on this growth by dramatically increasing spend to take advantage of lower rates and the inventory surplus.

Goals

For this flight, we shifted our goal to maximizing revenue by increasing media spend as long as we continued to hit the following ROAS goals: 4.0 for Google Shopping and 6.0 for Facebook.

Results

Shoebacca saw unprecedented revenue growth during Q2, exceeding any monthly revenue seen to-date. Revenue increased by 302% year-over-year and 120% period-over-period. During this time, we held a 6.69 ROAS overall.

 

6.69
ROAS
+302%
Growth in YOY Revenue
+120%
Growth in POP Revenue

Q1 2020 Performance

Approach

During Q1, we kept the media strategy consistent with the strategy used to-date, but increased spend in order to hit our higher ROAS goal and generate more revenue. We began to increase spends towards the end of March as revenue began to increase due to COVID-19.

Goals

For Q1 2020, we increased our overall ROAS goal to 4.09 due to our continued success in 2019.

Results

We achieved a 5.49 ROAS, exceeding our goals and outperforming our previous campaigns. Revenue increased by 77% year-over-year.

 

 

5.49
ROAS
+77%
Growth in YOY Revenue
+4%
Growth in POP Revenue

Nov. – Dec. Holiday Campaign Performance

Approach

During the holiday season, we focused on generating more revenue and achieving a 4.0 ROAS. We continued with the same channels as our 8-week test, but ramped up spend to build upon our initial growth and compete during the competitive holiday season.

Goals

For this flight, based on learnings from our test campaign, our overall conservative ROAS goal was 3.16 and our stretch ROAS goal was 4.0.

Results

We achieved a ROAS of 4.53, exceeding both our conservative and stretch ROAS goals. Revenue increased by 34% year-over-year. Facebook and Google Shopping were the biggest contributors, together driving over 81% of revenue.

 

4.53
ROAS
+34%
Growth in YOY Revenue
+30%
Growth in POP Revenue

Sept. – Oct. 2019 Test Campaign Performance

Approach

This campaign was an eight week flight, where we focused the first few weeks on ramping up Facebook, a new channel for the brand, as well as optimizing their Google Ads and Bing campaigns. From there, we were able to open up targeting and spend. We leaned heavily into the DABA and DPA campaigns in Facebook and saw revenue take off from there.

Goals

For our first flight, we based our initial projections on Shoebacca’s historical performance and updated our projections mid-campaign, leveraging actual campaign numbers. Our overall ROAS goal was 3.70

Results

Arm Candy was able to drive a 44% growth in revenue period-over-period and a 63% growth year-over-year, while maintaining a 3.58 ROAS. The average cost-per-purchase was $20 with an average order value of $75.

 

3.58
ROAS
+63%
Growth in YOY Revenue
+44%
Growth in POP Revenue

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