The American Dream: Social media advertising boosts sales of Danish design globally.

9.7 in ROAS

Record breaking results

147% increase in revenue

Among our clients is a Danish design house that unites timeless modern classics with today’s creative expressions in interior design. With headquarters in Denmark and with a large global workforce of dedicated employees, they share their collection with design enthusiasts and exclusive partners around the world.

Like many other brands in the industry, the design company has experienced declining sales in several markets. This is somewhat due to a weakened economy in several parts of the world, with company bankruptcies and high inflation causing consumers to be more cautious with their spending.


The company turned to IIH Nordic for expertise in social media and Google marketing, with the objective of expanding their business in all markets, particularly the US.

Results

  • 9.7 in ROAS
  • +30% in ad spend
  • 147% increase in revenue
  • Best monthly result in terms of revenue in the company’s history

Luxury on a low budget is a challenge

The big challenge was to kick-start sales in the US on a limited budget. So far, the company hadn’t succeeded in conquering the US market, which meant that choice of channel, correct funnel setup and budget allocation were crucial to appeal to the US consumers in the first place.

In addition, the company is not a high-volume e-commerce store. Their products are priced above average, which naturally leads to fewer sales. As a result, it was clear that collecting enough data to create specific and relevant segments would be a difficult task.

New channels are implemented

The company had previously included Pinterest as part of their social media strategy, but they hadn’t been focusing intensively on the platform. As the company specializes in fashion and luxury home products, which involves a more complex customer journey than for less exclusive items, it was crucial to re-evaluate and optimize their channel strategy.

Upon analyzing previous cases and conducting assessments of each potential channel, it was clear that Pinterest presented a significant opportunity. Pinterest is known to be an important source of inspiration in areas such as fashion and interior design, making the platform highly relevant for a company in this industry. Consequently, it was decided to intensify efforts on Pinterest and adopt a more targeted and strategic approach to using the platform to enhance the company’s brand and more effectively reach their target audience.

Effective campaign structure is not rocket science

Previously, Meta targeting was relatively narrow, divided by region, state and revenue. With the new campaign setup, audiences were broadened and campaigns were consolidated to achieve a larger and more cohesive set of conversion data.

The strategic approach towards the Pinterest efforts involved incorporating the entire funnel execution into the process. Creative content and audiences were tested in the top funnel and broad keywords were prioritized. This provided insights on what works and what doesn’t work. In this phase, focus was not on hard conversion goals, but instead on knowledge and learning.

This learning was the foundation of the structure of low funnel campaigns, making it possible to focus on sales campaigns, retargeting and ensuring the desired ROI.

To ensure good results in campaigns, it is crucial that the analysis work is done properly from the beginning. It’s about using the right keywords and interests and ensuring that the message is consistent with these. If the message doesn’t match, conversion campaigns suddenly become very expensive.

With this in mind, the campaign setup was simple. Both Meta and Pinterest were targeted to broadly defined audiences – both with push advertising and remarketing.

Pinterest campaign structure:
– Broad traffic campaign
– Push conversion campaign
– Broad remarketing

Meta campaign structure:
– Broad prospecting
– Broad remarketing

In the broad audiences, interests and broadly defined keywords were utilized. Geographically, the approach was to target multiple states instead of carefully selecting specific cities. In terms of age distribution, only young people under the age of 21 were excluded as this target group is unlikely to buy products in the company’s price range.

Throughout the process, different creative elements were constantly tested. Good creative elements play a crucial role, so the emphasis was placed on increasing the amount of creative elements and letting the algorithm work freely. The images chosen highlighted the products and were professionally produced to make them look luxurious and aesthetically pleasing.

New revenue record

With the new structure, the ROAS on Meta in the EU has increased from 5.5 to 12.1, and in the US, the ROAS has increased from 1.0 to 6.6. This has happened even though ad spend was increased by 30%. As a result of these improvements, the company’s overall revenue increased by 147%.

Pinterest:

2022→ CTR: 0.42% and ROAS: 0.79 (with help from another agency)

2023→ CTR: 1.08% and ROAS: 6.31 (with help from IIH Nordic)

The new structure has created significant improvements in performance, and the numbers speak for themselves. Since IIH was hired to handle social media advertising, the company has experienced their best month ever in terms of revenue.

Do you want to learn more about IIH Nordic’s approach or are you curious about what results we can create for your business? Then don’t hesitate to reach out to us and book a meeting.

“Successful efforts with web analytics and online marketing”

IIH’s insight and understanding of our web analytics and online marketing has really given us an important push in the right direction.

Astrid Zachariasson

Foss

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