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skincare case study

A portrait of Kris Sugatan

Written by Kris Sugatan 
CEO & Founder
July 13, 2022

 

Hey Bud Skincare initially came to Sugatan in January this year with their monthly revenues down by -50% from Black Friday highs along with one of their viral ads starting to die.

The founders had a high conviction that increasing the volume of performing creatives were the keys to getting their revenues to sustainably scale and approached Sugatan because of our proven expertise in performance creatives and our experiential knowledge in scaling two other skincare brands to $18MM+ annual revenues at ROI-Positive. 

In 4 months, after producing hundreds of creatives for Hey Bud, our efforts contributed to increasing their monthly revenue by +284%; not only stabilizing their monthly revenues to where they needed to be, but scaling revenue further while protecting their EBIT margins.

scaling skincare brand

Here’s how we did it: 

  • Added Sugatan’s unique creative mix of Video Ads, Graphics Ads, and Advertorials to improve FB Ad’s Link CTR % and push Ad Spend
  • Added TikTok as a viable scalable acquisition channel
  • Implemented Sugatan’s advanced Ad Buying methodology that pinpoints a high-quality, engaged traffic at a CPM that’s cost-optimized for ROI-Positive scale

 

Added Sugatan’s unique creative mix of Video Ads, Graphics Ads & Advertorials to improve FB Ad’s Link CTR % and push Ad Spend


Sugatan’s Video Ad Innovations for Hey Bud

  • Performing IG Reels, 
  • Original Production of Raw Content based on Impulse principles, 
  • Original Copywriting, 
  • Pacing, Editing, & Custom Music Selection Overlay 

Key Results:

  • Link CTR% Facebook – 0.36% —> 1.18% (+0.82%);
  • Link CTR% TikTok – 0.70% Average

Additional value:
Decreased cost of traffic to website while increasing the quality of traffic. 

Honestly, the best way to exemplify this is by watching the breakdown of this video ad visually where we break down the entire video ad step-by-step: watch video

Sugatan’s Advertorial Innovation for Hey Bud

  • Controversial-Topic Messaging Arc, 
  • Original Copywriting, & 
  • Proven Landing Page Sequence/Format

advertorial example

Watch the video that breaks down why this is a top-performing Advertorial.

Key results:

  • Spent: $48,512.37
  • Link CTR: 3.03%
  • Revenue: $106,727.21 ROAS: 2.20

Additional value:
Added a viable, scalable acquisition method.

Sugatan’s GFX Ad Innovations for Hey Bud

  • Leveraging Bundles for Higher AOV & attract higher-quality traffic, 
  • Original Copywriting, 
  • Implementing short-form video/gfx mix content, 
  • Data-driven implementation of frameworks that are proven

The best way to exemplify this is by watching this video from the GFX team.

Key results:

  • Link CTR% Facebook – 0.36% —> 1.18% (+0.82%);
  • Link CTR% TikTok – 0.70% Average

Additional value:
Graphics Ads’ purpose is to drive enough performing ads that de-risks high dependency on performing video ads. They’re relatively fast to produce while generating a volume of performing ads that support the account’s monthly average revenue threshold as we scale to new monthly revenue averages.

viral facebook ads


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Added TikTok as a viable scalable acquisition channel

One of our first priorities early on was to add TikTok as an acquisition channel because we quickly understood that Hey Bud’s product had high demonstrability appeal for the platform. It had the potential to easily catch the viewer’s attention as long as we executed on content that followed direct-response principles.

One of the key drivers of TOF revenue was actually a simple decision: create video ads for both TikTok & IG Reels, killing two birds with one stone.

If you watched our Video Ad YouTube breakdown, then you’ll see that what worked best in Facebook Ads Manager also worked best inside TikTok. 

Top-Performing TikTok Video Ad 

Key results:

  • +37% Revenue

Additional value:
New scalable acquisition channel. Reduced risk by diversifying acquisition channels. 

tiktok ads

Implemented Sugatan’s advanced & unique Ad Buying Methodology

Our goal is to find the perfect balance between high-quality traffic and the right CPM cost optimized for ROI-positive scale, which requires multiple elaborate & comprehensive tests of campaign structures, targeting objectives, & creative testing. For Hey Bud, their ad account was structured by an amateur Ad Buyer who was ad buying based on a basic structure without any independent thinking or analysis customized for Hey Bud. We find this to be a common theme amongst many ad accounts we audit so this was mostly expected. In addition, Hey Bud’s founders were at the cusp of completing their setup of European and U.S. fulfillment centers which gave us the opportunity to target additional geographical markets. But first things first… we needed to improve their campaign structures. 

Improving Campaign Structures

Hey Bud’s Facebook Ad Account was structured using amateur best practices, which we find common amongst many of the Ads Manager accounts that we audit. We find it typical for Ad Buyers to mostly rely on the Creative Team to produce a performing ad and not do the arduous work of managing Ads Manager correctly, especially when performing creatives start to die. We believe that to achieve ROI-Positive scale, you have to have a perfect marriage and synergy between Media Buying & Performance Creatives. 

In Sugatan, we perceive the Ad Buyer as the equivalent of a “Business Controller” for the eCommerce brand, especially if the brand’s acquisition is heavily dependent on media buying on Facebook. In a traditional business, a “Business Controller” is  someone who’s geared towards protection of assets and managing risks, and this is what we in Sugatan perceive an Ad Buyer is ultimately responsible for. Not simply ad buying.

To further define assets & risks inside Ads Manager, I perceive “assets” as two types: 

  • Ad Sets that have tapped in to high-quality traffic at a viable CPM cost that brings new acquisitions predictably & scalably 
  • Performing Creatives that achieve impulse-purchases within 1-3 days of seeing the ad

*Both are needed in order to achieve ROI-Positive scale and therefore, the ad buying & creative team must share this responsibility & accountability

Additionally, inside Ads Manager, I perceive “managing risks” as the Ad Buyer making two key decisions:

  • Where can I best place this dollar at the lowest cost to get the highest return with the highest quality traffic.
  • Direct the creative strategists to the messaging arcs that need to be produced based on Ads Manager’s data feedback on creative performance.

If you want to see exactly how we audit an Ad Account where we pinpoint Amateur Ad Buying, watch the video we posted that breaks it down in detail.

Sugatan Hey Bud Skincare x Sugatan | Case Study

What’s next? 

In Sugatan, we’re currently documenting everything we’re learning in this newer landscape with the aim of developing a predictable framework for ROI-Positive eCommerce scale. All of our learnings will be documented in our Journal of Scaling Explorations that we’re developing as a monthly report for the eCommerce community. Our approach has always prioritized experiential learning versus theory and the Journal will aim to synthesize our learnings in a way that’s easily digestible, broken down into the most important categories: Ad Buying, Creative Performance, and speedy execution inside an Agile framework. 

In the meantime, we’re accepting new accounts to create performing creatives through our True Performance Creative Bundle. 

If you’d like for us to consider your business, fill out this form and we will contact you within 24 hours. 

Apply here 👇

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