The Spacious Tarot: Facebook Ads 5.66 Return On Ad Spend
Discover how we used Facebook & Instagram ads to consistently achieve +5 return on ad spend for this tarot card e-commerce business from the U.S.A.
Based in the U.S.A,
with a U.S.A target market
Here Is What You’re Going To Learn In This Case Study
Why having a long-term, community-first approach is the closest thing to a superpower your business can have.
Why limiting your product stock and doing limited edition product drops can be a huge driver of conversions and allow for premium pricing.
Why having a content generation and distribution system helps you find high converting creatives for your ads.
The Tarot team started this business out of passion, and they built it by creating and nurturing a community of tarot reading enthusiasts. The “community first” approach is a longer term strategy that many business owners don’t have the patience for, but it almost always sets a business up for long-term success in general, and that was exactly the case with The Spacious Tarot.
The organic approach also put the business in a great position to start and get immediate success with paid ads. This is because they developed great products to fill a need of their own, and as it turns out, many other people too. By collaborating with their community, they developed a differentiation in the market through their loyal following, basically removing all competition, and using this social proof to continue to grow a highly engaged community that would sustain and grow the business.
The Tarot team were great at making products people loved, serving their community, and at making interesting content, but they weren’t advertising savvy, so they had zero technical advertising tools set up.
After some discussion, we audited their business, implemented all the technical stuff (installed all the pixels, set up Google Analytics etc) & began creating and executing their first ever paid ads strategy.
Read on to see how it all played out…
During our initial conversations, we asked the Tarot team what problems they wanted us to solve for them. Here’s what they said:
We loved having the opportunity to start from zero (in terms of paid ads), with a brand that already had a loyal following, & a proven product. We agreed to set everything up from scratch, dig deeper into the status quo and the unit economics of the business, then create a paid ads strategy to get The Spacious Tarot to where they wanted to go in terms of their revenue from paid ads.
Rocket would then manage the paid ads system, and help The Spacious Tarot reach their milestones as quickly as possible.
Achieve a %300 increase in sales.
Develop & execute a Facebook & Instagram ads strategy.
Achieve revenue traction from paid ads, then scale the campaigns profitably.
Tarot’s main challenge arose due to their main strength. Doing things organically. This means they had very little data to work with, and didn’t really have any customer journeys set up.
For brands that haven’t yet validated they can profitably sell their product on any of the main ad platforms (we call this product/channel fit), we usually recommend our FB & IG Ads Rocket Launcher Course. We typically advise achieving product/channel fit before outsourcing your advertising, as it can be very expensive, & often leads to frustration on both ends. In Tarot’s case we made an exception because the potential was obvious, and the Tarot team had the perfect business mindset, i.e community first.
Limited Stock: Because the Tarot team didn’t expect such great results from their paid ads, we sold all their inventory within a few months. We could have sold way more, but due to stock limitations, we aimed for consistent sales at the lowest possible CPA instead of aggressive scale. Meanwhile the Tarot team worked to optimize their inventory management.
The takeaway here is…… having an engaged community that you grow through organic methods & nurture with great content is one of the best ways to validate a business, & set your business up for long term success.
But, data acquisition is vital for understanding customer behaviour and is so valuable when running paid ads. If The Spacious Tarot had set up their tracking pixels at the start, they would have acquired so much valuable data, and almost certainly would have seen even more awesome returns from their paid ads.
The other thing is, they didn’t have a great website, or slick email marketing, or use influencers etc. They had a great product, and a desire to engage with their audience, and it got them to an amazing place. It just goes to show that advertising / marketing is not the hero. The real hero is the offer, the advertising is just the sidekick.
Facebook & Instagram Paid Ads Strategy
This is all about setting the fundamentals up, and having a strategic approach towards testing, learning & improving. Campaign structure and an effective testing methodology are the keys to making big improvements fast, particularly for businesses that start from scratch. Thanks to our proven processes for achieving revenue traction from paid ads, we were able to minimize the time required for learning which ads worked best for each audience, and achieve great results, fast!
Facebook’s Artificial Intelligence
Our team is not really into tarot reading, but this project is another great example why you don’t have to be an expert in every industry to be successful. Using timeless advertising principles, knowing the ins and outs of Facebook ads, and using the best strategies & tactics to leverage Facebook’s artificial intelligence are the necessary skills from a paid ads perspective. For this case, we decided to use dynamic creatives for our testing and leverage the Power5 strategy to get truly awesome results.
This is a crucial element to success. The Tarot team helped us execute our conversion optimizations by creating different offers, optimizing the website and working on marketing materials that helped achieve their goals. Because the Tarot team cared so much about making our partnership work, they acted quickly on our recommendations, and together we made the project a huge success.
Best Performing Ads
Below are the best performing ads, measured by ROAS:
If you’d like to learn more about how to analyze ads & make yours convert better, feel free to
send us a message here.
The Spacious Tarot team had a great mindset around serving their community & they collaborated so effectively with us because they really cared. This is crucial to success when outsourcing your advertising to an external team. For us, when we look at the most successful projects we have worked on, this is the common thread, effective collaboration.
If you’re passionate about what you’re selling, you’re in a great position to achieve success. This seems to be because improving your product or service, your understanding of your audience, crafting offers, and creating content comes much more naturally.
Strategies that leverage Facebook’s artificial intelligence are still performing strong, despite massive changes in how consumer data is used in advertising. Follow our blog to stay up to date on Facebook’s tracking and attribution changes.
You Say It Best...
The results are in. Our clients report more conversions, more customer lifetime value, and more bottom-line profit.
It’s a pleasure working with Steve & Lars
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