From Losing Money on Ads to 4.19x More Purchases—and 5x Lower CosMediumts
Executive Summary
This small, family-run eCommerce business came to us in a critical state—they were spending more on ads than they were making in revenue. Within just one month of working together, we 2.5x’d their purchases, doubled their revenue, more than doubled ROAS, and did it all while cutting their ad budget by 17%. Fast forward five months, and the performance was even more dramatic: nearly 4x the ROAS, over 4x more purchases, and a 5x drop in cost per purchase
The Problem
This was a team that cared deeply about their business—a small family-run business with thousands of products and a mission behind every sale. But they were struggling to stay afloat.
They came to us after running ads through a previous agency that had been managing their campaigns with a broad, one-size-fits-all approach. Every product, regardless of its price point, gross margin, or demand, was being advertised equally.
This led to a deeply inefficient marketing—spending heavily on products that weren’t profitable and optimizing campaigns for traffic instead of sales. The result? The business was running ads at a loss. Revenue was consistently lower than ad spend, and scaling seemed impossible.
The Solution
We took a performance-first approach grounded in profitability and precision.
Step one was to analyze every product category by calculating both gross margin and cost per purchase. We assessed which products not only had strong margins but could also be acquired at a sustainable ad cost based on real data.
With those insights, we identified high-performing, high-profit products and began allocating budget accordingly. Low-margin and underperforming items were deprioritized or removed entirely from active campaings.
Next, we rebuilt the ad structure to optimize for conversions—not traffic. Our focus was simple: drive profitable sales and eliminate wasted spend.
The result? Scalable campaigns, optimized ad efficiency, and a leaner, more profitable media plan.
The Results
In the first month alone, performance shifted dramatically:
And by month five, the numbers were even stronger:
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