From $67K to $832K Monthly Revenue Through Strategic Digital Expansion
Overview
When a direct-to-consumer brand, industry leading in production capacity & capabilities but lacking growth approached us to enhance their online presence and increase sales, they were facing substantial challenges. Their primary goal was clear: to scale revenue with tightly managed contribution margin. The scale needed to be aggressive to reduce the impact of OpEx on overall profitability, due to the nature of the production process. The brand was facing a net loss with total sales of ~$361k against an ad spend of $332k, resulting in a net margin of -5% and a blended ROAS of only 1.10 (MER of 91%). Why? Well… the previous agency was incentivized on ad spend of course.
Execution
After a detailed operational & acquisition breakdown, we adopted a comprehensive approach to overhaul the client's marketing efforts. We began by optimizing their creative strategy across various channels, bringing in partners & ressources to increase quality & scalability of assets. We revamped their paid search strategy, which was severely lacking in performance as a result of improper media buying optimized for volume of spend, not contribution margin. We implemented advanced analytics, across attribution, server side tracking, GA4 and more to monitor performance and enable real-time adjustments. This strategic pivot was crucial in navigating the complexities of digital marketing landscapes and ensuring that every dollar spent contributed to measurable growth.
Results
After revamping the entirety of the acquisition strategy, the client's total sales skyrocketed, adding 140% to the Q4-results, increasing YoY-revenue by over $1,000,000 revenue in just 7 months. Larsen Digital has since scaled the company across multiple channels (such as TikTok and Snapchat Ads), and put them on a rocketing +200% YoY revenue growth.