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Revolutionizing Beauty: Boosting DSP Revenue by 48% While Slashing Ad Spend by 13%

Reduced ad spend by 13% while boosting DSP revenue by 48%

Substantial enhancement of RoAS.

Significant increase to the Conversion Rate (CVR)

Introduction

The beauty industry stands as a highly competitive and ever-evolving landscape, requiring brands to innovate and adapt constantly. This case study explores the concerted efforts of beauty brands, to enhance market performance through strategic Demand Side Platform (DSP) retargeting and multifaceted digital marketing approaches.

Challenges

The primary challenges faced included:

Goals and Objectives

The overarching goal was to rejuvenate sales and amplify brand awareness within the beauty category. Specifically, strategies aimed to optimize ad spend efficiency, bolster Return on Ad Spend (RoAS), and navigate inventory challenges. The ambition extended to maximizing seasonal sales opportunities and integrating new product launches into the existing marketing framework​​.

Strategies and Execution

  1. Ad Spend and Revenue Optimization: A recalibrated approach reduced ad spend by 13%, yet a significant DSP revenue increase by 48%. This strategic pullback was informed by analytics and past performance, emphasizing quality over quantity in ad exposure.

  2. Inventory and Sales Period Management: Addressing inventory pacing issues, especially during peak sales periods, was crucial. Efforts were concentrated on balancing inventory levels to avoid stockouts and leveraging high-performance periods effectively.

  3. Contextual and Creative Advertising: Adopting contextual targeting and testing new creative formats aimed to enhance audience engagement. Specific campaigns, such as those for Nailbond, were optimized for higher conversion rates and better audience reach.

  4. Seasonal and Event-driven Marketing: Capitalizing on events like Valentine’s Day and St. Patrick’s Day, brands tailored their marketing efforts to exploit these high-traffic periods, enhancing visibility and driving sales.

  5. Product Launches and Performance Tracking: New product introductions were strategically timed and supported by targeted advertising efforts—continuous monitoring allowed for agile responses to market dynamics and performance metrics.

Outcomes & Achievements

Here are the most significant outcomes from our work within the beauty category:

Lessons and Future Directions

Moving forward, the focus will remain on expanding product targeting, exploring new creative avenues, and leveraging data analytics for informed decision-making. Brands are set to continue refining their approaches to DSP and PPC campaigns, aligning with consumer trends and seasonal opportunities​​.

Conclusion

The strategic overhaul in the beauty category demonstrates the potency of targeted digital marketing and the value of data-driven decision-making. By confronting challenges head-on and embracing innovative approaches, brands have set a new standard for success in the competitive beauty market, illustrating the transformative power of adaptability and strategic foresight in the digital age.

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