ad lab

How Ad Lab helped MaxModi reallocate their budgets

About the company

E-commerce business with multiple webshops

Focused on lifestyle products

10 employees

In-house marketing using multiple advertising accounts

Problem

MaxModi Ltd actively experiments with different videos, budgets, targets, creatives etc. to see what works best.

Because they use multiple ad accounts, getting bottom-line results presents a huge problem. They often have to rely on their assumption about which ads bring in money and which ones are generating a loss.

This is a risky business, to say the least.

“We love testing ads because it’s the only way to know what works best for your audience. However, we’ve experienced problems with result tracking. Because we make so many ads per day, it is practically impossible to gather and combine the numbers. We ended up making decisions based on the results from selected accounts only, which of course blurs the bigger picture - but we really didn’t know what else we could do.”

Mario Kombo, CEO of MaxModi Ltd

Solution

When ROAS monster entered the game, the team was most excited about trying out the Ad lab feature.

First, they examined the results of their most-used targets and learned that some perform great, while others should have been turned off weeks ago. For instance, the lookalike audience they were testing has at one point brought in 200 orders a day (in money language that’s around 5000 €!). Suddenly, the orders dropped to 10 per day. Nevertheless, ROAS was still 20% above their target.

What happened?

After the team checked the product’s total Facebook spend for this particular target, they immediately saw that it declined. The number of active ads with the lookalike audience was very low, hence the low order number. In short: by not making new ads with that target, the team was missing out on approximately 180 orders per day.

By examining their most-used ad types, the team was able to step away from the ones that were not bringing in money and focused on the ones that did.

“We saw that some of our creatives were not working and decided to transfer the budget to scale the ads with high ROAS, which in turn boosted our profits. It’s a fact: we were losing money and didn’t even know it! The worst part is that this could happen to anyone.”

Mario Kombo, CEO of MaxModi Ltd

Results

The team has an ongoing joke about ROAS monster being like the Powerpuff girls – it saves the day. Here are some exciting figures that came with using the tool:

30% boost in ROAS

28% boost in roas

+100 discovered 100 ads that were making losses

1000$ budget relocated to profitable ads

CPO lower cost per order

Overall conclusion?



“Our whole team had a big revelation. It came in the form of ROAS monster. We can now confidently test different creatives, copies, targets, etc. and stay on top of every test we make. By having bottom-line results available all the time, we are able to really see what works and focus on that. So far, we were able to reallocate a large chunk of our budget that would otherwise be lost.”

Mario Kombo, CEO of MaxModi Ltd

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