Rocky Mountain Decals' Net Profit Up 567% in Two Months with Profit Optimization

Overview

Rocky Mountain Decals, a company specializing in home decor products, experienced a steady decline in site traffic and revenue starting in June 2021. The primary goals were to achieve greater profitability, improve traffic and sales, and enhance the US-based market footprint ​​.

Challenges

Decline in Traffic and Sales: Total Shopify sales and site traffic saw significant declines due to reduced marketing efforts​​.

Low US Market Engagement: The US market, although larger, had lower engagement and conversion rates, making it difficult to scale profitably​​.

Profitability Optimization: Previous efforts were focused on ROAS rather than actual net profit, necessitating a shift in optimization strategy​​.

Platforms Leveraged

Google Ads

Meta Ads

Strategy

Increased Marketing Investments

Expanded Campaigns: Rocky Mountain Decals increased its budget for Google Ads, focusing on search, display, and video campaigns. This comprehensive approach ensured that ads appeared across various Google platforms, reaching potential customers at multiple touchpoints.

Quality Traffic Focus: By investing more in Google Ads, the company aimed to attract high-quality traffic. This was measured by engaged sessions—visits that lasted longer than 10 seconds, involved a conversion event, or included multiple page views. The focus was on not just increasing traffic but ensuring that the traffic was more likely to convert​​.

Geographical Targeting: Efforts were made to optimize ad spend in both the Canadian and US markets, taking into account the higher cost per click (CPC) in the US and the need for a higher budget to maintain profitability in this larger market​​.

Meta Targeted Demographic and Interest-Based Ads

Specific Audiences: Ads were tailored to specific demographics such as new movers, homeowners, renters, and DIY home decor enthusiasts. This precise targeting helped in reaching individuals who were most likely to be interested in Rocky Mountain Decals' products​​.

Interest-Based Campaigns: By targeting interests related to motherhood, children, and family, the ads connected with users who were more likely to engage with home decor content.

Lookalike Audiences Leveraging Existing Data: Using customer data, Facebook's lookalike audience feature helped in identifying and targeting new users similar to the existing customer base, thereby expanding reach efficiently​​.

Remarketing Non-Converters: Ads were shown to users who had visited the site but did not make a purchase within the last 30 days. This strategy aimed to re-engage potential customers who had shown interest but hadn't converted yet, leveraging insights on the average time lag from ad click to conversion​​.

Profit-Focused Optimization

Net Profit over ROAS: The company shifted its focus from return on ad spend (ROAS) to actual net profit. This strategic shift involved understanding the profit margins of their products and optimizing ad spend to maximize net profit, even if it meant accepting a lower ROAS​​.

Cost Management: In response to increased supply costs, the company analyzed how these costs affected profit margins. They found that optimizing for a lower ROAS could allow for broader investment in advertising, ultimately leading to higher net profit despite increased costs​​.

Dynamic Search Ads - User Intent and Relevance

Automated Ad Creation: Dynamic search ads automatically generated and displayed relevant ads based on the content of the website. This ensured that users searching for related terms were directed to the most relevant pages on the site​​.

Keyword Insight: By analyzing the performance of these ads, the company gained valuable insights into the keywords and search terms that were driving traffic. This helped in refining their keyword strategy and improving overall ad relevance.

Audience and Campaign Testing

A/B Testing: Facebook ads were rigorously tested to determine which demographics, ad types, and messaging resonated best with the audience. This involved running multiple versions of ads simultaneously and analyzing their performance to identify the most effective strategies​​.

Campaign Iteration: Continuous testing and iteration allowed the company to refine their campaigns, ensuring that they were consistently improving engagement and conversion rates. This adaptive approach helped in optimizing ad performance over time​​.

Cross-Platform Synergy: By running ads on both Google and Facebook, the company maintained a strong brand presence across multiple platforms, increasing the likelihood of conversions as consumers encountered the brand in different contexts​​.

Results

21% Increase in Engaged Sessions

567% Increase in Total Profit

23% Increase in Total Orders

16% Increase Total Revenue

This comprehensive approach led to a significant turnaround in Rocky Mountain Decals' online performance, demonstrating the effectiveness of targeted digital marketing strategies and data-driven optimization.