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How FARM Rio scaled revenue by increasing ROAS

FARM Rio began in 1997 as a small booth in an independent market. The fashion brand now includes over 100 stores across Brazil, as well as international locations in the United States and Europe. FARM’s innovative and colorful clothing design pulls inspiration from the natural flora and fauna of Brazil. 


PMax Return on Ad Spend

The challenge

FARM Rio first began working with ROI Hunter in October 2022 to increase the return on ad spend (ROAS) of their Performance Max (PMax) campaigns. To accomplish this, ROI Hunter helped FARM Rio to identify their Bestsellers (products in the top 20% in terms of revenue), and focus their PMax budget there using ROI Hunter’s Product Insights tool for creating product segments. 

bestsellersEXAMPLE ONLY: Actual products and statistics are not shown here

After an initial analysis of their performance, FARM Rio discover that this Bestseller segment was showing 9% higher ROAS when compared to all products, prompting them to begin focusing half of their PMax budget there.

By the time November 2023 rolled around, FARM Rio was allocating 70-80% of their total PMax budget toward the Bestseller segment. 

But with so much of their budget already committed to the Bestseller strategy, increasing the ROAS even more was going to be difficult. They needed a new strategy that would help them optimize further

The solution

ROI Hunter had just introduced the new version of Product Insights, which made it possible to customize product segments based on a wide variety of metrics. 

Using this upgraded tool, FARM Rio and ROI Hunter analysed their inventory, not just by which products produced the most revenue (like they did for Bestsellers), but also by which products produced the best ROAS for specific channels. 


When they compared the segment of overall Bestsellers with this newly defined segment of PMax-specific Bestsellers, they found that the new segment produced nearly 3x the ROAS!

Seeing the success of this refined version of the Bestseller strategy, FARM Rio began to shift their budget to focus on the PMax-specific Bestsellers in November of 2023.

The result

FARM Rio’s high season strategy of improved (PMax) Bestsellers began in November of 2023, and this new focus showed immediate results: using the same Cost, year-over-year (YoY) revenue was 92% higher.

Seeing how well the new strategy worked during high season, FARM Rio didn't lower Cost once the season was over as much as they had the previous year (March 2024 Cost was 69% higher, YoY). And due to how they were now focusing that Cost, their revenue increased by 198%

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José Eduardo Carqueija da Silva - Senior Media Analyst at FARM Rio

"After teaming up with ROI Hunter, FARM has seen a significant transformation. Our campaigns not only became more profitable and efficient but also benefited from additional optimizations suggested by ROIH's committed team. 


Their incredible support helped us to achieve our goals, leading to improved company performance and significant results"

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