Week of Apr 29th Case study #3

Roadmap to Decreasing CAC in Meta

How I helped a 8-figure DTC brand decrease their Meta CAC by 10.5% in 75 days using this 3-Step framework:

An 8-figure DTC brand encountered challenges with its acquisition strategy, particularly in reducing customer acquisition cost (CAC) and enhancing return on ad spend (ROAS) within the Meta platform.

Despite the brand’s scale and ad spend, the brand still faced tracking issues in the post-iOS era, resulting in a notable decline in ROAS compared to the period before the iOS update.

Critical hurdles included the inability to generate and test diverse ad creatives effectively, leading to suboptimal performance. Additionally, there was a lack of structured processes for analyzing and refining ad creatives.

The biggest issue faced by the brand was its lack to generate and evaluate ad creatives, coupled with insufficient diversity in testing strategies, and a lack in systematic review and optimization processes.

Within a span of 75 days, we developed and executed a comprehensive strategy, resulting in a 10.5% reduction in Meta CAC and a 20.5% increase in ROAS with the new ad creatives.

Here's a breakdown of our approach in 3 key steps:

1. Developing Clear Messaging & Angels:

We started by crafting a robust strategy to pinpoint the most effective messaging that would resonate with the target audience. Recognizing the importance of this initial step, we prioritized aligning ad creative and copy with audience preferences.

Our messaging approach focused on:

1. Showcasing a solution (the brand’s products) to address specific pain points.

2. Highlighting product benefits essential to the target demographic.

3. Incorporating attention-grabbing hooks that showcase the problem.

2. Diverse Ad Creative Testing:

Upon identifying the essential messaging and angles, our strategic focus shifted towards comprehensive testing of diverse ad creatives. This included harnessing the power of user-generated content and high-converting imagery, crucial elements for driving performance within the Meta platform.

We worked with our team to brief, develop, and launch over 15 pieces of assets, focusing on a variety of creative styles, including:

1. Video b-roll

2. Lifestyle images

3. Split-screen visuals

4. Customer reviews

5. Stylized product images

6. Product unboxing

The briefing process incorporated the following components to ensure the effective highlighting of key features and benefits:

1. Creative Inspirations/Examples: Drawing inspiration from successful campaigns and industry trends to inform creative direction.

2. Asset Copy: Crafting compelling copy that resonates with the target audience and aligns with the brand's messaging and objectives.

3. Asset Specifications: Ensuring that all assets meet the requirements for optimal placement within the Meta platform, including feed, stories, and reels.

4. Funnel Details: Mapping out the customer journey and aligning ad creatives with specific stages of the sales funnel to maximize effectiveness.

5. Additional Notes to Consider: Including notes on anything worth considering for the designer, and highlighting the landing page destination to ensure continuity of the customer journey.

3. Analyze, Iterate, & Optimize To Maximize Performance:

After launching the campaign, we used Motion's reporting tools to delve into the performance of each ad creative. By analyzing a range of metrics, we gained valuable insights to optimize future iterations.

Key metrics we focused on included:

1. Thumbstop Rate (Hook): Measures how effectively the ad grabs attention within the first few seconds.

2. Click-Through Rate (CTR): Indicates the percentage of viewers who clicked on the ad.

3. Click-to-Purchase Rate: Shows the conversion rate from ad click to purchase.

4. ROAS: Helps us evaluate the campaign's purchase effectiveness.

Our data-driven approach enabled us to identify winning elements such as messaging, creative angles, and ad formats (static vs. video). We were able to efficiently test numerous variations, ultimately developing over 50 creative assets. This process allowed us to quickly weed out underperformers and double down on the top-performing creatives, ad copy, and landing pages.

Within just 75 days, we formulated clear messaging, developed and tested 40+ ad creatives, and analyzed, optimized, and iterated for peak performance. This data-driven approach allowed us to achieve significant results in a short timeframe.

As a result, the brand saw an increase in ROAS by 20.5% with the new ad creative and reduced CPA by 10.5%. Additionally, the new ad creatives generated an impressive $75,000+ in new revenue for the brand.

TL;DR:

1. Ensure you have clear messaging and angles that resonate with your target audience.

2. Deploy diverse assets, testing different ad creative concepts and copy.

3. Analyze, iterate, and optimize the ad creative to maximize performance.

4. Using this 3-step framework resulted in a 10.5% decrease in CAC for the brand.

Are you also a $1M-$10M DTC brand struggling to increase your ROAS on Meta?

Book a call using the link below for a free analysis of your account and ad creative to see where you can improve 👇

Janky Patel