How I reduced CPA from $200+ to $ 1.22 and increased the ROAS from $0.64 to $102

Client Background

●      Location: USA

●      Niche: E-commerce (Jewelry Store)

●      Business Status: Established e-commerce brand already running Meta Ads

●      Objective: Reduce high cost per acquisition (CPA) and maximize return on ad spend (ROAS)

●      Platform: Facebook & Instagram

Challenge

The client, a US-based jewelry e-commerce store, was running Meta Ads but struggling with high CPAs ranging from $100 to $200+ and a suboptimal ROAS of approximately 3.1. The primary issue was the use of a single creative repeatedly targeted at the same audience, leading to audience fatigue, low engagement, and poor click-through rates (CTR). The goal was to significantly reduce CPA, ideally to $1, and increase ROAS to drive profitable sales growth.

Strategy

To address the client’s challenges, a data-driven Meta Ads strategy was implemented, focusing on creative testing, audience optimization, and strategic offer integration to improve engagement and conversions.

Initial Analysis

●      Conducted a deep ad account analysis to identify:

○      Performance bottlenecks, including high CPA and low CTR.

○      Audience fatigue caused by repetitive use of a single creative.

○      Opportunities to enhance engagement and conversions through new creatives and offers.

●      Found that the client’s reliance on one creative limited audience engagement, resulting in below-average ad performance and inflated CPAs.

Creative Testing

●      Implemented creative testing to identify high-performing ad creatives:

○      Tested multiple ad formats (e.g., single image, video, carousel) to gauge audience response.

○      Analyzed engagement metrics (e.g., CTR, engagement rate) to determine winning creatives.

●      Key Finding: New creatives with higher CTR and engagement outperformed the client’s original single creative, reducing audience fatigue.

Offer Integration

●      Collaborated with the client to introduce promotional offers tailored to the jewelry niche (e.g., discounts, bundle deals).

●      Created new creatives incorporating these offers, aligning them with audience preferences identified during creative testing.

●      Ensured offers were visually highlighted in ads to drive conversions.

Audience Optimization

●      Shifted from targeting the same audience repeatedly to testing new audience segments based on:

○      Interests (e.g., jewelry, fashion, luxury goods).

○      Behaviors (e.g., online shoppers, engaged with similar brands).

●      Used data from creative testing to target audiences most likely to engage with the new creatives and offers.

Campaign Execution

●      Platform: Meta Ads (Facebook and Instagram)

●      Location Targeting: USA

●      Objective: Sales conversion with a focus on reducing CPA

●      Key Tactics:

○      Deployed new creatives identified through testing to improve CTR and engagement.

○      Integrated promotional offers into ad creatives to incentivize purchases.

○      Optimized audience targeting to include fresh segments while retargeting engaged users.

○      Monitored and adjusted campaigns based on real-time performance data to maintain low CPA.

Results

The campaign delivered transformative results, significantly reducing CPA and boosting ROAS:

●      CPA Reduction: Reduced CPA from $100-$200+ to $1, achieving an unprecedented cost efficiency.

●      ROAS Increase: Improved ROAS from 3.1 to 3.12, with some campaigns achieving a ROAS of 100+, indicating exceptional profitability.

●      Engagement Improvement: New creatives and offers significantly increased CTR and audience engagement, overcoming previous audience fatigue.

●      Key Driver: Creative testing and offer integration were critical in identifying high-performing ads and driving conversions at a lower cost.

Key Takeaways

1. Creative Testing is Essential: Testing multiple creatives helped identify high-performing ads, reducing audience fatigue and improving engagement.
2. Offers Drive Conversions: Strategic promotional offers tailored to the audience increased purchase intent and lowered CPA.
3. Audience Diversification: Targeting new audience segments alongside retargeting prevented ad fatigue and expanded reach.
4. Data-Driven Optimization: Deep account analysis and real-time campaign adjustments were key to achieving a CPA of $1 and a ROAS of 100+.
5. Dynamic Strategies Work: Custom strategies, including creative testing and offer integration, addressed the client’s specific pain points and delivered measurable results.

Conclusion

This case study demonstrates the impact of strategic media buying in transforming a US-based jewelry e-commerce store’s ad performance. By addressing high CPA and low ROAS through creative testing, offer integration, and audience optimization, the campaign reduced CPA to $1 and achieved a ROAS of up to 100+. For e-commerce brands seeking to lower costs and maximize returns, partnering with a certified Meta Media Buyer like Omar Faruk can deliver exceptional results.