LEADING SKINCARE BRAND
Meta Optimization Cuts CPO and Improves ROAS for Skincare Brand
83%
Increase in ROAS
46%
Reduction in CPO
32%
Reduction in New Customer CPO
Services
83%
Increase in ROAS
46%
Reduction in CPO
32%
Reduction in New Customer CPO
Services
The Challenge
When a leading acne and skincare brand with over $1 billion in annual sales partnered with ADM in late 2023, it tasked our social team to aggressively bring down its cost per order (CPO). To reach the company’s initial target on Meta Ads, we needed to cut this number by more than 40% and find new efficiency in a highly-competitive social marketing environment.
Our Solution
Like most of our client relationships, our work with the client began after an extensive marketing audit. In auditing the account, we uncovered two key areas of opportunity: Reducing segmentation and implementing well-automated budgets and bidding.
ADM favors consolidated account structures to reduce cannibalization and drive down costs while improving overall efficiency. To achieve that, we combined a number of segmented prospecting audiences into one ad set, then did the same for remarketing audiences. We also extended the lookback window on remarketing audiences to increase the size and scale of our investment in this warmer, higher-return segment.
To make budgeting more efficient, we implemented Advantage Campaign Budget, a tool that allows Meta’s machine learning to fluidly reallocate budget toward the top-performing audience segments in real time. By making other areas of the account more efficient, we could then focus on developing new ads and scaling spend in the highest-performing initiatives—which, in this case, was a Dynamic Product Ads (DPAs) campaign that ADM recommended during our pre-partnership audit of the account.
The Results
ADM’s optimizations changed the trajectory of the client’s Meta Ads account. From Q4 2023 to Q1 2024:
- Overall CPO was reduced by 46%, 10% better than the client’s goal
- New customer CPO was reduced by 32%
- Return on Ad Spend (ROAS) increased by 83%
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