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E-commerce Brazil

A Major Brazilian Furniture Retailer Just Raised ROAS by 154%

Since their founding in 2009, MadeiraMadeira has grown to become one of Brazil’s largest furniture retailers. As an online marketplace focused on products for the home, the company boasts a catalog of over one million products that customers can review and order online.

Ad Spend
Return on Ad Spend

The Challenge

When the COVID-19 pandemic hit, MadeiraMadeira faced a common challenge: how could they maintain the same level of sales they had been making before? Beyond that, as an online retailer, they saw an opportunity to increase their revenue beyond its previous level and achieve an even greater ROI from their campaigns.

In pursuit of these goals they began working with ROI Hunter, who helped to identify what challenges MadeiraMadeira had ahead of them. In order to maximise their revenue and ROI, MadeiraMadeira would need to take a new approach to how they did business. They would need:

  • More insight into their product performance
  • More efficient ways to create and manage their campaigns
  • A refined strategy for using their business data more effectively.

The Solution

First, ROI Hunter connected MadeiraMadeira with Product Insights. The Product Insights feature gathers product-level information from across channels, integrating it all into a single source of truth within ROI Hunter’s platform. With this new wealth of data, MadeiraMadeira was able to filter through their full catalog for specific metrics. Using this strategy, MadeiraMadeira assembled product sets, each optimised for a singular goal:

  • Best-sellers to be promoted
  • Products with potential, based on Google Analytics

There’s a major advantage to using multiple product sets: if you instead have just one product set for your catalog, it can result in 50% of all impressions being used on just 1% of the catalog. In order to avoid this, e-commerce retailers can create multiple product sets, each with their own bid and budget, ensuring that each item in each set receives the desired level of exposure. This can be accomplished even without Product Insights, though having product-level data for filtering the catalog is a huge timesaver, and can lead to more substantial results.

Next, ROI Hunter set MadeiraMadeira up with the Template Editor (TEDI), which made it possible for them to automate their creatives. TEDI is a tool for creating dynamic promotions in minutes, greatly accelerating the speed of creation, and reducing the need for graphic designers. Beyond the faster creatives, TEDI made it possible for MadeiraMadeira to schedule their promotions ahead of time, apply if/then conditions, and even take them through Facebook’s learning phase before the promotions even began. 

Finally, by incorporating business data directly from their product feed alongside the if/then conditions, MadeiraMadeira was able to automate different badges and seals for promotions (50% off; free shipping, free returns, etc.) based on current performance data.

The Results

With the new strategies in place, the ads started getting more attention: the click through rate more than doubled, and the conversion rate went up by 64%. MadeiraMadeira was able to increase revenue while actually reducing their ad spend. While ad spend went down by 35%, revenue was up by 35%. The return on ad spend increased by 154%!

With greater insight into the performance of their products, and conditional templates for scaling promotions, MadeiraMadeira was able to surpass their original goals.

bruna girata
Bruna Girata, Marketing Performance Coordinator

“Having ROI Hunter as a partner was essential to improve our Facebook channel. We make our ads much more attractive and with template conditions rules we could make our creatives much more attractive in a simpler way. We have evolved our production capacity by 5x without losing our quality. The relationship of the product data, the improvement we had in implementing information from active campaigns, and the support of the ROI Hunter team contributed to the construction of exceptional numbers. Data really plays a fundamental role, especially when presented in a simplified way!”

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