Scaling DTC Growth Against Big Budgets

Overview

As a leading eCommerce mattress and furniture brand with 25M+ customers across 15 countries, the client faced challenges in scaling DTC revenue amid fierce competition and rising ad costs. Despite strong brand equity, suboptimal ROAS, low retention, and unclear conversion reporting hindered growth.

Partnering with Altudo, the brand restructured its performance marketing ecosystem, consolidating campaigns, deploying intent-based keyword strategies, and using lookalike and in-market targeting to drive high-quality traffic. Altudo refined attribution models, unified reporting, and introduced data-backed optimization across Facebook and Instagram.

Creative experimentation with dynamic, carousel, and video ads further boosted engagement and conversion. The results were transformative: a 5X lift in conversions, 4X growth in revenue, and a 249% surge in ROAS, empowering the brand to scale efficiently and sustain long-term DTC growth.

Challenges

• Increase DTC (Direct to Consumer) revenue while competing against giants with massive ad budgets.
• Increase effectiveness and efficiencies in performance marketing initiative to significantly improve the ROAS (Return on Advertising Spend).
• Grow the share of repeat visitors to enhance customer retention and engagement.
• The client needed strategies to keep customers coming back for more while also facing challenges in targeting the right audience segments effectively.
• Facing issues with precise conversion reporting and data discrepancies, leading to unclear attribution of campaign success.

Solutions

We implemented a comprehensive strategy to enhance campaign performance and ad effectiveness. This included restructuring campaigns and optimizing keywords to attract relevant traffic while introducing value-based and behavior-specific audience targeting across platforms like Facebook. By leveraging intent-based and in-market targeting, along with diverse ad formats such as dynamic, catalog, and video ads, we significantly improved relevancy and engagement.

Creative enhancements focused on visually compelling assets and audience resonance, supported by extensive ad testing. Additionally, we addressed reporting discrepancies with detailed weekly and monthly reports, resolved conversion action redundancies, and finalized platform-specific attribution models for accurate performance tracking.

Results

• 249% increase in ROAS

• 5X increase in conversion rate

• 4X increase in revenue through performance marketing initiatives

• Precise reporting and attribution models for better performance tracking and informed decision making.

• Strategic optimizations and experiments for continuous improvement and successful future campaigns.