Azeron is a 3D printed gaming keypad manufacturer from Latvia, Ventspils. First market to approach was the USA, however, since then more than 66 000 gamers play with Azeron gaming keypads in more than 120 countries.
We were approached by the Azeron team for a performance marketing solution.
The challenge
Main challenge was to sustain ROAS over 3.0. So for every €1 ad budget investment they were looking to generate €3 in revenue.
As a complex manufacturing product the challenge not only lies within advertising. It takes a team to manufacture each device, which meant that sales volume had to be sustained and grown periodically as the business expanded and new employees joined. The opposite takes part as well - selling volume have to be sustained so manufacturing efforts and teams can progress rather than be left off.
As for every business they needed to find a balance between expanding manufacturing and sustaining profitable sales performance.
Main challenges within advertising was:
- Find product market fit - for such a unique product the challenge was to make it simple enough to understand and see its true value.
- Low conversion rate - because the product is challenging to understand at first not everyone was ready to spend €200+ to “Try” the product.
- High customer acquisition cost - high CAC comes hand in hand with finding product market fit and low conversion rates as well as advertising costs.
- ROAS 3+ - all above challenges lead to low ROAS which had to be improved for business to be sustainable long term.
The solution:
Advertising mediums:
Strategy:
First we developed a 3 step campaign setup strategy.
- TOF, Top of Funnel Campaign. This campaign was specifically designed to advertise to 100% new people, people who have never seen the product. This way we were able to ensure steady new traffic flow to the website.
- MOF, Middle of Funnel Campaign. This campaign was specifically designed to communicate with an audience who has engaged with an ad, watched a video and visited a website, but did not make a purchase. This approach provided us with the opportunity to re-engage users who have shown interest, but for some reason did not make a purchase.
- BOF, Bottom of Funnel Campaign. We call this “Low hanging fruit” campaign. This campaign was specifically designed to communicate with an audience who started the checkout process (Added to cart, visited Checkout), but did not purchase. We knew that people who have come thus far in the marketing funnel are very interested in the product, but they need a little push to make a decision to buy.
For each campaign level we developed tailored creatives and copy so they resonate with an audience based on their actions and knowledge about the product.
By dividing our advertising in such levels we were able to precisely monitor and analyze each audience performance and optimize campaigns, budgets, targeting, placements, creatives and copy accordingly.
This approach also allowed us to better manage ad budgets and add more on high performance ads and lower or pause low performance ads without interfering with overall account performance.
By implementing 3 step campaign strategy Azeron was able to:
- Easily conduct A/B tests for targeting, ad creatives and copies. This allowed us to find and match winning audience targeting with winning ad creatives and copy. Then expand on winning creatives, copy and audiences.
- Winning TOF campaign settings, ad creatives and copy could be easily replicated in other countries without wasting budget on new tests. Once we found a winning combination we could easily take it to a new market.
- We were able to exit “Learning Phases” faster when we knew what ads and audiences were working together. This improved Meta algorithm performance which allowed us to buy higher quality traffic and gain more sales.
- Improved optimization. With a 3 step campaign approach we were able to analyze each level performance separately and find loopholes within advertising efforts, sales funnel and, checkout process. This allowed Azeron to make changes to their landing pages and product pages.
- Closing sales with a breeze. It takes up to 3 months for customers to make a decision. With a 3 step campaign formula, we were able to show more examples and proof to potential customers decreasing the decision making time. This way we were able to show a specific ad to a specific person at the right time.
Testimonials:
Results:
By dividing advertising strategy into multiple campaigns rather than targeting broad, we were able to find a break even point on TOF campaigns and generate profit within MOF and BOF levels.
Our actions resulted in:
- ROAS 1.09 for TOF, Top of funnel campaigns
- ROAS 3.66 for MOF, Middle of funnel campaigns
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ROAS 8.69 for BOF, Bottom of funnel campaigns - yep, low hanging fruit!
To this day this approach delivers an average account performance of ROAS 3.0. Which has delivered over €1,666,294.72 in revenue with €546,676.38 ad spend.
Conclusion:
Azerons success does not rely only on Facebook advertising efforts alone, that would be silly. They have an exceptional product team, manufacturing process, work ethic and employee community. Their customer service is top notch, fast and reliable. They have figured out how to deliver products to customer doorsteps overseas within 24 hours. They have talented teams of designers and photographers.
Their marketing efforts do not stop only at Facebook and Instagram ads, but rather have an OMNI channel approach including email marketing, Google ads, Youtube ads, Influencer marketing, SEO and more.
We are thankful to be entrusted with Meta Ads marketing efforts, and with no joke budget of over €500 000!
For businesses that are developing and manufacturing, employing hundreds of talented people to deliver the best customer experience it takes not only courage, but also a huge challenge business wise as well as marketing wise, we highly respect that.
Even though together we experienced pandemic, war times and economic slowdowns with all of its challenges we are proud to be able to get through these tough times together.
We are very happy to be able to deliver sustainable results throughout these times. We understand the importance of our work that is taking part in fueling a bigger picture, emotions, and the business within.
We are very proud that Azeron has chosen us as their partner.