The Challenge

The client faced a significant challenge as their Paid Social ROAS plummeted by approximately 33% in January following a period of intense promotional activity during November and December. With a goal set to achieve a minimum 1.5x return on ad spend in February, Lancer wanted to reverse the downward trend and regain profitability in their paid social advertising efforts.

The Strategy

To turn things around, it was crucial that we take a deep dive into the account. After a thorough review, we identified opportunities to pause underperforming campaigns and leverage those yielding positive results. This involved expanding our audience targeting using first-party data and adjusting our Advantage Plus Shopping Campaign’s percentages to maximize budgets and enhance efficiency.‍

During this month, we noticed a trend where certain ads with high ROAS received minimal spend due to other ads consuming the majority of the budget. This hindered our ability to scale performance. To address this, we moved these 'high ROAS, low spend' ads into a separate, identical campaign using post IDs, allowing us to retain social proof and capitalize on their performance with increased spend.

Examples

In our ASC, we adjusted our strategy by allocating a higher budget percentage to 'existing customer' audiences while broadening our targeting to include additional email and customer files.We requested an email subscriber (non-purchaser) list and the last three years' customer file from the client to help expand our first-party targeting capabilities.

We increased the 'existing audience' percentage in our Evergreen ASC campaign from 15% to 40%.

In our Sale ASC campaign, we boosted the 'existing audiences' percentage from 15% to 60%, aiming to drive more revenue during promotional periods.

To re-engage with past purchasers, we created a new custom audience ad set within our DPA Retargeting campaign.

Our Wins

What we are most proud of is our ability to implement targeted adjustments across various campaigns, optimizing our advertising strategies for maximum effectiveness. In our ASC, we focused on engaging warm/hot audiences and broadening our targeting to include additional email and customer files, resulting in improved performance. We successfully enhanced audience targeting in our Evergreen ASC and Sale ASC campaigns, to help re-engage more heavily with our MOF-BOF audiences. Our efforts extended to re-engaging past purchasers through a new custom audience ad set within the DPA Retargeting campaign to further expand our outreach. We identified and capitalized on high-ROAS ads with minimal spend establishing a dedicated campaign, optimizing overall performance.