How we decreased CPA 18% and increased ad profit 239% In Q4 For Baloo Living

“Otter and the team brought a new level of professionalism, organization and collaboration that has been refreshing for me as a business owner. They not only manage our ad spend but also dived deep into the competitive marketplace to understand our products key differentiators and the audiences’ perceptions. This makes them more than just paid media managers, but partners who understand our business and brand and help us tailor messages and identify opportunities as strong value add collaborators.
– Elizabeth Grojean
CEO and Founder of Baloo Living

Baloo Living is a DTC brand that sells luxury weighted blankets. They aim to serve your body’s natural healing and balance and their blanket’s deep pressure touch helps soothe the nervous system and promote deep, healthy sleep.

When we first started working with Baloo Living they aimed to rapidly scale up their ads to meet q4 demand. To meet this aggressive goal we audited their Facebook Account to look for the highest leverage testing opportunities we could implement for maximum return.

The audit (and weeks that followed) revealed three key opportunities. Restructuring the retargeting campaigns and implementing proper sequential message and value ladder discounts. Fixing a messaging mismatch on prospecting and leveraging influencer content to expand our prospecting audiences to include a new persona.

Proper Segmentation On Retargeting & Value Ladder Strategies

The first change we made for Baloo Living’s campaigns was on retargeting. Prior to our involvement, their campaigns were not properly segmented by both funnel stage and recency.

For e-commerce, ROI and purchase intent increases the further get you down the funnel, and the more recent that action was taken. That is why we redid the segments by event and recency, so we could bid, budget, and message appropriately.

After confirming our new audience segments were working, we implemented a new value ladder strategy as well.

Value or discount ladders for e-commerce are when you offer a series of coupons that get progressively better. The prospecting campaigns and most recent retargeting audiences get no coupon, as they can likely buy without an incentive. And then more time elapses, users go from seeing a 10%, to a 15% and then finally at the end of our retargeting sequence they get the best 20% discount.

In this way we avoid subsidy cost – otherwise the DTC advertiser ends up giving away extra margin dollars to users who would have bought anyway.

A combination of these strategies results in a staggering 22% improvement in retargeting ROAS and a 254% increase in retargeting ad profit to date!

Matching Video Assets With Prospects Stage Of Awareness

A common problem many Facebook advertisers have with making prospecting work is this:

Their ad messaging focuses exclusively on product features, instead of focusing on the problem the product solves and the value proposition of the product in question.

To paraphrase Eugene Schwartz revolutionary copywriting book “Breakthrough Advertising”, in cases where your prospect has a problem and they don’t yet know of your product, first you need to name their problem, then you empathize with their problem, then you present your product as the solution.

Baloo, like many others, have feature-focused ads on prospecting and little video to speak of. So after we implemented new retargeting segments we also did an exhaustive round of competitive creative research using Facebook’s Ads library.

After seeing where the market was at creatively, we drafted new ad copy and a creative brief detailing 3 new videos to be made.

These videos, which focused on the pain of lack of sleep, and the copy which extolled the myriad benefits of a full 8 hours, results in a 37% improvement in prospecting ROAS vs image-based creative in q4!

Leveraging Influencer Content to Open Up New Personas

The third key test that we did was around influencer content.

When we took on their FB program, most of their ads, audiences, and messages were all focused around one persona:

The millennial woman, who is focused on living a healthy lifestyle, and most likely lives in a coastal city.

To meet our aggressive goals for scale and ROI in q4, we needed to expand our market by opening up a new persona to sell to.

Enter Dave Asprey. Baloo had an exclusive podcast on Dave’s show, bulletproof radio. Once the show was done, we decided it would be a good idea to cut some clips up from the episode, and make cinemagraph style videos. These audiograms, paired with audience highlighting the value prop gave us a whole new set of prospects to sell to:

Namely men, who were interested in biohacking.

This new prospecting campaign results in a 168% improvement in ROAS compared to their previous prospecting efforts and even outperformed our new evergreen control (described above).

Want to grow revenue & ROAS at the same time as Baloo Living?

If you’re frustrated with your Facebook campaigns right now… If you’re stuck at a plateau right now in either ROAS or scale, then drop us a line below.

New clients who sell great products that change lives are always welcome. And for q1 only, we are offering ads management on Facebook & Pinterest for one flat fee.

See how >> Email today for a free Facebook audit & test roadmap,

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