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CASE STUDY

Mp45.COM

BRAND STORY

There were thousands of different workout programs online. Home-based workout programs, weight loss programs, online personal trainers and even online group yogas flooded the market. MP45 wanted to do something different. Since most exercise programs were home do-it-yourself exercises, MP45 offered you a full body transformation gym workouts.

GOAL

MP45 was experiencing a decline in performance after spending more than $500,000 in ads over 12 months. Since it was a digital product, they had a lot of room for ad spend, but couldn’t replicate previous success. Their previous agency was founded by ex-Facebook developers who couldn’t provide logical explanations  as to why their campaigns were not converting anymore.

There were thousands of different workout programs online. Home-based workout programs, weight loss programs, online personal trainers and even online group yogas flooded the market. MP45 wanted to do something different. Since most exercise programs were home do-it-yourself exercises, MP45 offered you a full body transformation gym workouts.

MP45 was experiencing a decline in performance after spending more than $500,000 in ads over 12 months. Since it was a digital product, they had a lot of room for ad spend, but couldn’t replicate previous success. Their previous agency was founded by ex-Facebook developers who couldn’t provide logical explanations  as to why their campaigns were not converting anymore.

INCREASE REVENUE

2.5X

SALE GROWTH

200%

 CUSTOMER LTV

33%

We knew something could be done. Their initial goal was to get back to an ROI of 1.5X and spend $50,000 per month on ads. If we are able to reach a 2X ROI, they wanted to scale even further.

CHALLENGES

Like any company that sells a digital product, selling is really challenging. There is a lot of psychology that goes into convincing a user to make a purchase. The biggest challenge was to find a way to restrategize and rebrand the offer to dramatically lower the cost per acquisition to a point where they were profitable again. That meant revamping the entire campaign and lowering the cost per acquisition by 50% without lowering the ad spend. Yes, the challenge was real.

Strategy

Because it was a digital product, we knew instantly that the problem might be an over-emphasis on the short sale, which means selling the offer too quickly. We examined the ads and noticed that indeed there was a drop in the result rate. Result rate is a metric provided by ad manager that shows what percentage of people converted from impression on Facebook to the final purchase. We noticed that there was a gradual decrease. We also noticed how aggressive the ad copy was, and how fast the ads went from showing the product to saying that it is your last chance to purchase it. Another thing that we noticed is that 95% of traffic came from the US as well as 90% of sales. The real question is if digital products have no borders, why limit them to a specific country? Another interesting fact that we discovered was that very little was invested in remarketing traffic. So much was invested to bring a user to the checkout stage, but very little money was invested to convert the 98% of people who showed intent, but didn’t yet purchased into buyers

 

We decided to reconstruct the entire funnel and move away from generic ad strategies into something that was based around their product. We decided to divide the visitor to customer journey in the following ways. The first stage was a product introduction only. In this stage, we showed the program as it is. Instead of selling it to the user, we show exactly how it works and the benefits of using it. We a/b tested three different models and created audiences based on the models they most positively responded to. The second stage was to showcase only testimonials of transformation stories. What’s the best way of selling a product or service? Have another user sell it instead of you. We created page posts and plugged them into the ads to make them appear organic. Then, we targeted each user who viewed the first stage with at least two to three different testimonials to ensure they noticed them. We a/b tested the best testimonials to ensure we used most convincing ones. The third stage was to sell them the program. We segmented users based on intent level and targeted them with different ads based on their invent level. The stronger the intent, the more aggressive the ad was. For the users with the lowest intent, our goal was to get them excited about the program again. Those users were targeted with inspirational videos in an effort to build up their excitement levels and their likelihood to purchase. 

 

Our creative team created more than 100 different video variations and we used the split test tool on ads manager to run several different tests to find a better match rate between the audience and creatives. We estimated that this process would take two to three weeks until we noticing positive results, but it took about 10 days for the CPA to start decreasing gradually and the daily ad spend to increase! Then, we started seeing results from other countries. Countries in Europe, the Middle East and Asia performed exceptionally well to everyone’s surprise. Within 30 days, the CPA was cut by 30% and monthly spend increased by 55%! We continued to test more and more creatives and added more testimonials to the funnel. We argued that if someone wants to purchase the product but doesn’t end up doing so, and sees the ads in their feed every day with a different transformation story, they will have more reasons to purchase. The results didn’t take long to come.

 

Within six months of hard work, we achieved better results than we expected. Instead of meeting the goal of 2X ROI that MP45 initially set, we delivered a 2.5X on every dollar spent. Remember, this is a digital product, so any cost after media cost is a profit! Not only were we are able to achieve a 100% better CPA than the previous agency (and as high as 300% on some campaigns), we were also able to scale the budget to generate a 200% increase in revenue growth compared to the previous year. 

 

Sometimes the problem is not your product, it’s the company promoting it.

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