How Top Down Advertising on Social Media Generated $8M+ in Sales for a Lingerie Brand Entering the US Market

Case Study Summary

The Challenge

The Solution

The Results

The Challenge

A European lingerie brand, renowned for its commitment to sustainability, high-quality luxury materials and female empowerment, asked for our help in growing their sales by establishing a significant presence in the U.S. market.

The primary challenges were:

Introducing a New Brand Into the US Market

The U.S. is incredibly diverse, both culturally and in terms of consumer preferences. The brand’s core values of sustainability, luxury, and inclusivity needed to be communicated in a way that resonated with American consumers.

Gaining initial visibility in a market flooded with established brands was a significant hurdle. The brand needed to connect with customers that shared their brand ethos to stand out against well-known names in the lingerie industry.

The objective was to introduce the brand to new audiences, establish familiarity and create recognition that resonated with each audience segment.

Translating Brand Engagement into Sales

Ensuring that the brand’s online presence not only captivated but also effectively guided potential customers through the buying process was particularly tricky.

Oftentimes, potential buyers are skeptical towards a new player in the market, especially one advocating for sustainable and ethical practices while commanding a premium price point.

Balancing the communication of the brands core values of sustainability, luxury, and inclusivity with persuasive sales tactics was critical in turning interested audiences into loyal customers.

Achieving 300%+ ROAS in the First 12 Months

Given the clients average gross profit margin of 53% for online store sales (when accounting for cost of goods sold), our target was to roughly break-even for the first 6 months while building brand awareness to then achieve between a 300% to 400% ROAS on all advertising by month 12.

See our results section to learn more in regards to what we were able to accomplish.

The Solution

We devised and implemented a comprehensive top-down funnel marketing approach.

This framework was designed to address the challenges of not only introducing the brand to a new audience but also establishing a robust market presence and translating brand interest into tangible sales.

Top Of Funnel – Brand Awareness Campaigns


During this phase, the main focus was on discovering audiences who were most receptive to the lingerie brand and its content. We focused our paid efforts on Facebook, Instagram, and YouTube.

The goal was to test and find content that resonated with and engaged each unique audience type the most to then scale those audiences.

This process not only built top-of-funnel brand awareness but also served as the formation of new highly engaged audiences, which would be retargeted further down the funnel.

Audiences: Within each of these primary audience categories, we would further dissect and test sub-audiences to find the audiences with maximum engagement:

1. People following/interested in other lingerie brands

2. People following/interested in luxury-related brands for female wear

3. Lookalike audiences to lingerie brand’s page followers in Europe

4. Proxy audiences for females with high income demographics

5. Proxy audiences for females who share brand values

Content Around Brand Values: In our efforts to build a relationship with potential customers, we crafted messaging and visuals that emphasized sustainability as a fundamental part of their growth strategy, reaffirming their commitment to the planet.

We also highlighted their European craftsmanship, premium materials sourced from a trusted network of suppliers, and exceptional quality standards, all underscoring their superior lingerie products. Additionally, we showcased the brand's unwavering commitment to promoting gender equality and inclusion, featuring the inspiring stories of women thriving within the company, breaking barriers, and contributing significantly to the brand's success. Product Focused Content: In our approach to storytelling around collections, we created narratives for each lingerie collection that connected with customers on an emotional level, emphasizing the unique stories behind each collection. Additionally, we incorporated lifestyle-oriented content by leveraging image and video assets that demonstrated how their lingerie products seamlessly fit into the lives of their target audience.

Middle of Funnel - Engagement Campaigns

The primary focus in this phase was to direct engaged users towards the lingerie brand's e-commerce site while encouraging meaningful interactions with the different lingerie collections. We focused on Facebook, Instagram, YouTube and the Google Display Network.

Audiences:

New Followers This audience comprised of individuals who had chosen to follow the lingerie brand’s official social media pages, including platforms like Facebook, Instagram and YouTube. By choosing to follow the brand's social media profiles, they indicated a desire to stay updated with the brand’s latest offerings, news, and updates. Content Engagers (Likes & Comments) This segment consisted of individuals who had not only consumed the lingerie brand's content but had actively engaged with it through likes, comments, and interactions. Their actions demonstrated a high level of engagement and a desire to connect with the brand. Video Viewers Video viewers who had watched more than 50% of a video had invested time in learning about the brand, making them more receptive to continuing product focused marketing efforts.

Product Ads on Facebook/Instagram & YouTube: We shifted our messaging approach from generic brand messaging to product-focused content, spotlighting specific lingerie items from collections, emphasizing their distinctive features and designs. To further drive engagement and advance users through the conversion funnel, we strategically implemented exclusive offers, discounts, and promotions. Additionally, we conducted experiments with different CTAs to pinpoint the most effective ones for engaging our audience and efficiently driving conversions. We utilized the following ad types:

Carousel Ads to display a range of lingerie, allowing potential customers to explore multiple options within a single ad. Collection Ads to feature specific product lines, seasonal collections and themed assortments. Instagram Shop Ads to promote products from the lingerie brand’s catalog within the Instagram Shop feature. These ads catered to the convenience of users who preferred to shop directly through Instagram and significantly drove conversions among the engaged audience. Image and Video Ads to highlight specific lingerie pieces within a collection to get the user to click and learn more through the website.

Remarketing Ad Placements on Fashion Websites: We strategically placed display remarketing ads on fashion-related sites and blogs that aligned with the target demographic, so that we could reconnect with users who had engaged with previous brand awareness ads at the top of the funnel. These tailored ads acted as a gentle reminder, keeping the lingerie brand top-of-mind while users continued their online journey. Retargeting on fashion-specific sites within the Google Display Network offered a valuable opportunity to rekindle interest, drive repeat visits, and ultimately guide engaged users toward making a purchase decision.

Bottom of Funnel - Conversion Campaigns

The primary focus of the lingerie brand’s bottom-of-funnel remarketing campaigns was to drive users towards the ultimate action: making a purchase.

At this stage, the objective was crystal clear—to convert engaged audiences into loyal customers. The marketing platforms we focused on were Facebook, Instagram, YouTube, Email, Google Display Network, and Google Search.

Audiences:

Website/Shop Product Viewers: Users who spent significant time on specific product pages or viewed multiple items within a collection, indicating a high interest. Cart Abandoners: These users have demonstrated strong purchase intent by adding items to their shopping carts. However, they may have abandoned the process for various reasons. Seeking Contact: These included those who had engaged with support on the website through the support widget. Scroll Depth: Users who scrolled to a certain depth on a page, indicating a higher level of engagement with the content. Time Since Last Visit: Segmented users based on when they last visited the website.

Dynamic Remarketing Showing Specific Products Viewed/Added to Cart: Dynamic remarketing ads were tailored to individual user behavior and displayed ads, showcasing the exact products that users had viewed on the website. Facebook, Instagram, and Google allowed for Dynamic Products Ads (DPA’s) that automatically integrated products from the collections that the user had shown interest in on the site in the advertisement itself. These highly personalized ads served as powerful reminders and encouraged users to return to the site to complete their purchase. Furthermore, we focused on urgency and exclusivity as motivators, driving immediate action among users who had viewed or added items to their carts. We emphasized the scarcity of viewed products, prominently featuring phrases like "Limited Stock Available" or "Exclusive Release with Limited Quantity." Additionally, we displayed discount pricing, presenting the original price alongside a -10% discounted offer for first-time buyers, intensifying the need to buy immediately. Email Marketing for Abandoned Carts: We crafted personalized email messages that addressed users by name and reminded them of the specific items they had left in their carts. This included high-quality images of the lingerie and prices to jog their memory and rekindle their interest. We also suggested related or complementary products based on the abandoned items.

Post Purchase Retargeting (Bottom of Funnel)

With the true value of a customer extending far beyond their initial purchase, transforming one-time buyers into repeat purchasers and potentially enthusiastic advocates was the main goal.

We focused on the platforms Facebook, Instagram, YouTube and Email marketing.

Audiences:

First Time Buyers Targeting customers who had made their first purchase from the brand. The goal was to convert them into repeat buyers. Repeat Customers Engaging customers who had made multiple purchases. The objective was to maintain their loyalty, encourage further purchases, and potentially elevate them to VIP status. High-Value Clients Focusing on customers who had consistently made significant purchases. The goal was to acknowledge their loyalty and offer exclusive benefits to retain them as valuable brand advocates.

Recent Purchase Retargeting: We implemented targeted social media ads for customers based on their recent purchase history. Customers who recently bought from a certain collection, would be shown ads featuring new additions or other items from the collection. We also promoted complementary products or accessories that paired well with their recent purchase, such as suggesting a matching silk gown with a bra purchase.

Re-Engagement Campaigns: We implemented retargeting strategies to re-engage customers who had not made a purchase in a while, showcasing recent collections or limited-time offers. Whether it was the unveiling of a new season's collection or the introduction of limited-time offerings, we leveraged retargeted ads to ensure that customers were aware of the latest releases. We also used retargeted ads to remind customers of the brand's unique selling propositions, rekindling their interest in the brand. We emphasized the brand’s European heritage, sustainability efforts, and its focus on women empowerment to evoke emotions and spark renewed interest.

Email Marketing:

Welcome Series Immediately after every first purchase, new customers received a warm welcome email. This reinforced the brand's values and unique selling propositions. Engagement Campaigns We implemented re-engagement campaigns for customers who had not interacted with emails in a while. These campaigns included tempting incentives or new collection previews to rekindle their interest. Personalized Recommendations Repeat customers received emails featuring personalized product recommendations based on their previous purchases. By showcasing items that aligned with their style and preferences, we increased the chances of additional purchases. Personalized Benefits We offered high-value clients personalized benefits, such as early access to new collections to reinforces their loyalty.

The Results

In the initial stages of our campaign, there was a notable timeline before the branding efforts began translating into sales.

It took approximately three months for the top-of-funnel brand awareness activities to significantly impact the bottom-of-funnel sales conversions. This period was crucial for establishing the brand's presence and engaging with the audience, but it required patience and strategic persistence to see the conversion of interest into actual sales.

During this time, we fine-tuned our messaging and targeting strategies, ensuring that our efforts aligned from brand introduction to customer conversion.

The eventual uptick in sales after this three-month period validated our approach, demonstrating the importance of building a solid brand foundation before expecting significant sales outcomes.

From 221% to 446% Return on Ad Spend (ROAS)

In the first 6 months of advertising, we achieved a 221% net ROAS across our campaigns. Given the brands average gross profit margin of 53% (cost of goods sold accounting for 47% of sale values), this meant that we were able to turn a slight profit when factoring in both advertising costs and cost of goods sold (COGS) — roughly 108% profit.

In factoring all other operating costs such as overhead, the client reported that they were operating at a slight loss for the initial 6 months of their US-market entry.

While this wasn’t ideal, it represented the initial investment needed to establish brand awareness before driving stronger ad ROI to achieve net profits with all costs included.

Over the subsequent 20-month period, we managed to more than double their ROAS, achieving a 446% average ROAS over the 26 months of advertising in the US market — a significant accomplishment for a new brand entering into the US.

Over $8M+ In Online Sales in The First 2 Years

Over the 26-month, we managed to generate $4.46 in revenue for every dollar spent on advertising — totaling to over $8M in US online sales.

We found that the strongest contributors to this increase in ROAS came from the collaboration of our team and the client’s internal teams in optimizing:

1. The precise targeting of campaigns for each stage of the buying journey

2. The buying journey, UX/UI, and upsell improvements in their online store (CRO)

3. The launch of their loyalty program and email marketing for repeat purchases

52k+ Online Orders with 38% Repeat Purchasers

The combination of the above factors helped us net Average Order Values (AOVs) of $153 — with over 52,000 orders coming in over the 26-month period.

These orders included a repeat purchase rate among new customers of 38% within 12 months of their first purchase — leading to an average annual LTV of $413 per new customer acquired.

When factoring in cost of goods sold and $69,000 in average monthly advertising costs for their US market entry, the client kept roughly a 31% profit margin on their advertising operations overall. This has now enabled them to further increase their investment in growing sales in the US market.

Successful Brand Reputation and Advocacy

The emphasis on sustainability and inclusivity positively impacted the brand’s reputation as well, leading to organic advocacy and word-of-mouth referrals.

Customer reviews and testimonials during this period showed high satisfaction and alignment with the brand's values, enhancing its market reputation.