Challenge
The client, a skincare and cosmetics e-commerce brand in Pakistan, was running Meta Ads with a monthly budget of 150,000 but struggling with low return on ad spend (ROAS) and high cost per acquisition (CPA). The existing strategy focused solely on retargeting campaigns, targeting website visitors from the past 90 days, which limited reach to new audiences and capped growth potential. The goal was to achieve a ROAS of 10+ (translating to 2-2.5 million in sales) while optimizing ad performance.
Strategy
To address the client’s challenges, a comprehensive Meta Ads strategy was implemented, focusing on deep account analysis, funnel restructuring, and optimized budget allocation to drive both new customer acquisition and conversions.
Initial Analysis
- Conducted a deep ad account analysis to identify:
- Winning audiences (demographics and interests driving conversions).
- High-performing creatives (ads resonating with the target audience).
- Underperforming campaigns and wasted ad spend.
- Found that the existing strategy relied entirely on retargeting website visitors (90-day window), neglecting top-of-funnel (TOF) audience acquisition.
Funnel Restructuring
- Developed a proper funnel structure to guide customers from awareness to conversion:
- Top of Funnel (TOF): Focused on acquiring new audiences to expand reach.
- Middle of Funnel (MOF): Engaged warm audiences (e.g., website visitors, social engagers).
- Bottom of Funnel (BOF): Retargeted high-intent audiences for conversions.
- Budget Allocation:
- 60% of the budget allocated to TOF campaigns to attract new customers.
- 40% allocated to retargeting campaigns, including:
- Web Audience: Users who interacted with the website (e.g., add-to-cart, viewed product).
Social Audience: Users who engaged with the brand’s Facebook and Instagram pages.
Ad Formats and Creative Strategy
- Leveraged the brand’s extensive product line by implementing Advantage+ Catalog Ads, which dynamically showcased relevant products to users based on their interests and behavior.
- Tested various ad formats to optimize performance:
- Dynamic Ads: Highlighted skincare, beauty, and makeup products tailored to user preferences.
- Video Ads: Showcased product benefits, tutorials, and customer testimonials.
- Carousel Ads: Displayed multiple products to encourage exploration.
Key Finding: Advantage+ Catalog Ads delivered the maximum results, capitalizing on the large product catalog and Meta’s algorithm to serve personalized ads.
Pixel Optimization
- Trained the Meta Pixel to optimize for low CPA by prioritizing high-value actions (e.g., purchases, add-to-cart).
- Used pixel data to refine audience targeting and identify high-intent customers.
Targeting Strategy
- Top of Funnel: Broad and interest-based targeting to attract new audiences interested in skincare, beauty, and cosmetics.
- Retargeting: Focused on:
- Website visitors who performed key events (e.g., viewed products, added to cart).
- Social media engagers (e.g., users who liked, commented, or shared posts on Facebook/Instagram).
- Ensured the right products were shown to the right audiences, aligning creatives with audience interests.
Results
The campaign delivered exceptional results, transforming the client’s ad performance:
- Sales Achieved: $2.2 million in revenue from a $150,000 monthly ad budget.
- ROAS Achieved: 14.67 (calculated as $2,200,000 / $150,000), surpassing the target of 10+ ROAS.
- CPA Reduction: Optimized pixel training and audience targeting significantly lowered the cost per acquisition.
- Key Driver: Advantage+ Catalog Ads contributed the majority of conversions, leveraging the brand’s extensive product line for personalized ad delivery.
Budget Efficiency: Ad spend was maintained at approximately 6.8% of sales, exceeding the target of 2-2.5% while driving substantial revenue growth.
Key Takeaways
- Funnel Structure is Critical: Implementing a clear TOF, MOF, and BOF strategy expanded reach and improved conversions.
- Advantage+ Catalog Ads Excelled: The dynamic ad format was highly effective for a brand with a large product catalog, delivering personalized ads that drove sales.
- Balanced Budget Allocation: Allocating 60% to TOF and 40% to retargeting ensured both new customer acquisition and conversion of engaged audiences.
- Deep Analysis Drives Success: Comprehensive ad account analysis identified winning audiences and creatives, enabling data-driven optimization.
Pixel Optimization: Training the Meta Pixel for low-CPA actions enhanced campaign efficiency and profitability.
Conclusion
This case study highlights the impact of strategic media buying in scaling an e-commerce skincare and cosmetics brand in Pakistan. By restructuring the ad funnel, leveraging Advantage+ Catalog Ads, and optimizing budget allocation, the campaign achieved $2.2 million in sales with a ROAS of 14.67, far exceeding the target of 10+. For brands seeking similar growth, partnering with a certified Meta Media Buyer like Omar Faruk can deliver transformative results.
