CBD Brand Case Study: How We Built Revenue of Over $200,000 USD with a 2.45x ROAS from scratch Using Facebook Ads | CBD SUTRA - CBD Marketing Agency.
Jasmeet Singh
Founder CBD SUTRA LLC | Ecommerce Entrepreneur | Cannabis Business Marketing Agency ?? CBD/Hemp ? Psychedelics ? Adaptogens | $20+ Million in Revenue w/ Ads ?? For Case Studies & Results?? | (We're Hiring!)
Please read the full article if you would like to understand how we scaled this CBD brand. We are sharing a month by month breakdown of the last 6 months we have worked with them in the most honest and transparent way.
The revenue that we are showing is directly attributed to Facebook ads manager and not the overall store revenue which will be of course way higher, cause of the other marketing activities involved. Thank you.
OVERVIEW
Industry: CBD/Hemp (Cannabis)
Products: CBD Gummies, Mushroom Gummies, Delta-8 & Delta-9 THC
Country: USA
Marketing Channel: Meta Ads - Facebook and Instagram Ads
Website: WooCommerce
Average Order Value (AOV): $60
Return on Ad Spend (ROAS): 2.45x
Amount Spent: $92,734
Revenue: $227,060
Time Period: 6 Months (July 2023 - December 2023)
CLIENT’S BACKGROUND:
Our client offered a diverse range of product categories on their website, including the CBD collection, Mushroom Gummies, and the Delta collection, as well as vapes and cartridges. Our focus was primarily on selling CBD and related products.
Previously, the brand relied on SEO, affiliate and influencer marketing, partnerships, and collaborations for sales—never having engaged in paid advertising before. The challenge was to initiate a reliable, profitable daily sales flow channel, independent of these mediums.
Their main aim was to scale advertising spend while maintaining a minimum of 2x ROAS each month, ultimately aiming for at least $50,000 per month in net revenue. (Which we achieved!)
STRATEGY & IMPLEMENTATION
In July 2023, we began on this journey with an initial budget of $4,000. This required us to efficiently test our best practices, creative strategies, and campaign structures to quickly figuring out what strategies worked best and making necessary adjustments for better results.
We developed our first set landing pages designed to turn visitors from our ads into customers, since we couldn't send them directly to the website.
Path: Ads > Landing Page > Website
Our initial effort involved crafting five different advertising concepts for our main product, CBD Gummies, each with several versions to test and collect data.
We initiated a testing campaign to assess these new creative concepts across broad audience segments. Concurrently, we explored other high-potential products from all available categories.
Following these tests, we built and refined additional campaigns, identifying and expanding upon the most effective audience segments with best performing ads.
Upon determining our winning concepts, we scaled these campaigns and ad sets both vertically and horizontally, and also created new iterations of high-performing creatives to further amplify successful concepts.
From the third week onward, we integrated remarketing campaigns, leveraging offers and bundles to ?to increase the likelihood of them making a purchase.
We maintained a rigorous testing schedule for new creative concepts, aiming to test at least two new creative concepts per week while scaling the ad account overall.
Our analytical approach remained strict and data-driven, aimed at minimizing wasteful adspend. Decisions were based on a variety of time frames we looked at different time windows past 3 days, this week, last week, last 7 days, last 14 days.
We also take a look at upper funnel metrics for all the ads we run in terms of CPMs, CTRs and CPCs in order to take more accurate judgements but the final decision is taken only on the basis of lower funnel metrics of Amount Spend, CPA and ROAS.
We documented all creative testing in a testing sheet where we recorded all our experiments and results to avoid any sort of repetition and take clear and statistically significant learnings so that we can build new campaigns accordingly.
Our scaling campaigns comprised of the highest-performing ads and audience segments, managed through manual bidding and Lifetime budgets to ensure optimal ROI.
This dedicated approach led to impressive results for our client, detailed in the month-by-month performance breakdown.
MONTH-BY-MONTH PERFORMANCE (FACEBOOK ADS)
Timeline: JULY 2023 - DECEMBER 2023
Month 1: JULY 2023
Month 2: AUGUST 2023
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Month 3: SEPTEMBER 2023
Month 4: OCTOBER 2023
Month 5: NOVEMBER 2023
Month 6: DECEMBER 2023
RESULTS OVERVIEW
Over the six-month period, our campaigns have demonstrated significant growth and efficiency in reaching the target market. Here's what we've observed:
OBSERVATION
The most responsive age group was 35-44, showing the highest engagement and conversion rates, followed by the 25-34 age bracket. This insight allows us to refine our targeting strategies for future campaigns.
Both males and females engaged with our ads, but the data indicates a balanced performance across genders, ensuring our message resonates with a broad audience.
Our campaigns performed exceptionally well in specific states. Texas led the way in terms of engagement, followed by Florida and California. This regional data helps us in allocating budgets more effectively to maximize reach in high-performing areas.
If you are a CBD BRAND owner wanting to scale profitably with paid ads, let's connect and have a conversation about growing and scaling your company. ??
Website: https://cbdsutra.co/
Email: [email protected]
Contact: +1 (989)898-0982
Youtube Detailed Case Studies:
In last 18 months, CBD SUTRA has created over $20 Million USD in REVENUE for more than 25+ CBD brands with the help of paid advertising primarily running Facebook Ads (META) profitably giving them around 200% to 300% returns on their ad budget [ROAS OF 2x-3x]
We have created ads for top CBD BRANDS you may have come across.
We know what setup needs to be put in place in order to scale effectively.
From offers to ad optimisation to landing pages and creative strategy. We make sure that we grow with you like you in-house team at a fraction of the cost.
Looking forward to hearing from you and potentially working together to achieve some remarkable results!
Take care and talk soon!
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