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This report delves into the strategic interventions implemented by Airfluence
This report delves into the strategic interventions implemented by Airfluence Media to optimize the advertising efforts of a UK-based D2C skincare brand. It covers the challenges faced, solutions provided, and the measurable results achieved.
The methodology involved a detailed analysis of product profitability, margin-led bidding, and the segmentation of Performance Max campaigns. Additionally, value-based bidding aligned with average order value (AOV) and margins was introduced, along with a negative keyword strategy.
The UK-based D2C skincare brand faced challenges in expanding its market presence due to high customer acquisition costs (CAC) and low-quality conversions. The brand primarily relied on Google Search and Performance Max channels.
Despite driving volume through Performance Max, the brand struggled with low-quality conversions, which hindered profitability. Additionally, there was limited visibility on which products were contributing to profits.
Airfluence Media was engaged to address these challenges by conducting a product-wise profitability analysis and implementing margin-led bidding strategies to optimize advertising spend.
The goal was to reduce CAC, improve conversion rates, and achieve profitable scaling without increasing the cost per lead, thereby enhancing the brand’s market position in the UK.
Addressing high CAC and low-quality conversions in the UK market.
High customer acquisition cost in the UK market, impacting profitability.
Low-quality conversions from Performance Max campaigns, reducing overall efficiency.
Limited visibility on product profitability, hindering strategic decision-making.
Conducted a detailed product-wise profitability analysis to align bidding strategies with product margins, ensuring efficient resource allocation.
Split Performance Max campaigns into hero products and long-tail SKUs to focus on high-performing items and optimize ad spend.
Implemented value-based bidding strategies aligned with average order value and margins to enhance conversion rates and reduce CAC.
Introduced a negative keyword strategy to minimize wastage and improve landing page relevance for top-performing keywords.
Working with Airfluence Media has transformed our advertising strategy. Their expertise in aligning bidding with product margins has significantly reduced our CAC and improved our conversion rates.
The measurable success our solution delivered
By implementing a strategic approach, Airfluence Media significantly improved the efficiency of the D2C beauty brand’s advertising efforts. This led to a more targeted reach and better allocation of resources.
The conversion rate saw a substantial increase from 34% to 52%, while the customer acquisition cost (CAC) was reduced by 34%, showcasing the effectiveness of the tailored strategies.
The brand achieved profitable scaling without increasing the cost per lead (CPL), ensuring sustainable growth and a stronger market presence in the UK.
Interested in learning how Airfluence Media can optimize your digital marketing strategy? Book a meeting with us today to explore tailored solutions for your brand.