"With Matchnode we have consistently exceeded ROI goals. We do customer acquisition on a cost basis, and they have been able to help us hit our goals within budget. They're excellent at paid social for e-commerce...we've had other agencies that did not perform as well on the same types of ad programs."
Look Human
E-commerce Facebook & Instagram Ads Measured by Return on Ad Spend
The Problem:
In order to be profitable, Look Human needed direct revenue from paid social to be at least 3x ad spend. With over 70,000 SKUs, and a history of repeat purchase customers, the challenge was two-fold: find new people outside of past Look Human buyers, and surface new products on Facebook and Instagram from their deep library of funny and creative designs. Look Human had tried to work within this cost-based approach with other agencies and had failed in the past.
We agreed on a 90-day sprint to determine CPA and ROAS to see if we could drive sales within the profitable ranges at a meaningful volume.
The Solution:
Matchnode rolled out ads on Instagram and Facebook with a moderate daily budget, around 10x the target CPA so we could test multiple concepts at once.
- We started by diving into Google Analytics for historical sales data on top-performance products and designs, and started a mix of carousel ads and image ads across all placements (Facebook mobile, desktop, Instagram, etc). Tested multiple audiences, especially 1% lookalikes of past buyers mixed with those who had seen certain pages (ie, LGBT products vs USA-themed products vs coffee mugs) and excluding recent buyers.
- Once we started to get early traction (driving daily ROAS of 5x+), we collaborated with the Look Human creative team to roll out video ads, creative for limited time discounts, and promoting posts that we doing well organically. In addition, we leveraged abandoned cart campaigns and catalog ads for retargeting more broadly.
- While continually testing new audiences, new promotions, and timely hot products, we worked to scale by promoting the 70K SKU product catalog to a broad audience, letting the Facebook algorithm do its work.
The Result
Paid Social Ads Delivered a 5.83 ROAS Over a Year
- Look Human is scaling paid social via product catalog ads expanding into a very broad US audience
- Can scale ad spend up to 10x on seasonal high points in advance of Halloween, 4th of July, Black Friday and Cyber Monday
- Paid social’s impact has tripled as a channel, growing from 3% of sales to more than 9% of company revenue
