Q4 sales up 95% YoY thanks to budget growth strategy
185% YoY advertising budget growth in Q4, while maintaining an MER of 4.16%.
Sabrina Ménard, propriétaireTémoignage client
Objectives.
- Increase online sales.
- Maintain current ROI on advertising investment.
Challenges
- Consumer reluctance to buy furniture online without first seeing it.
- High shipping costs. As furniture is bulky and heavy, this leads to high delivery costs, which can reduce the online conversion rate.
- Strong competition from giant international retailers such as Wayfair and Amazon, which offer a wide selection of furniture and home decor with cheaper delivery options and more competitive prices.
Our Strategies.
How did we reach the goal?
Eye-catching, performance-oriented visuals during promotional periods.
We've designed and integrated videos with music into our ad campaigns to maximise the visual and audio impact of the ads. The goal was to create captivating ads that not only caught the eye, but also drove immediate action, while highlighting promotional offers in a clear and impactful way. This dynamic approach resulted in 0.25% higher click-through rates for video ads, while generating a higher ROAS than static ads of $23.
Result:
- ROAS of $61.87 with this creative, which alone generated 52% of sales for the Thanksgiving sales campaign.
Gradual budget increase
Budget scaling consists of gradually increasing ad spend on a consistent basis while maintaining optimal performance. For Maison Olive, this approach was applied methodically: before any increase, we first stabilised the key indicators (CPA, ROAS, frequency, CTR).
A key element of our scaling strategy is the Marketing Efficiency Ratio (MER), which measures the impact (in %) that ad spend has on a company's overall net sales. This KPI is not impacted by attribution models, cookie banners, or anything else that can impact the measurement of platforms' performance, and offers a global view of rentability. It is thus our main guide to growth, decrease and budgetary reallocation.
The purpose of scaling is to maximise sales without compromising margins. By following a gradual, controlled approach, we were able to quickly identify any signs of audience saturation or ad fatigue and adjust our strategy accordingly.
We have defined a target MER that must not be exceeded in order to ensure profitability.
- A temporary rise in the MER after a budget increase is normal. If the ratio stabilised below our target threshold within a month, we scaled further.
- If the ROAS of the platforms was high but the MER exceeded the target, we would adjust the structure of the campaigns ( budget reallocation, testing).
Thanks to this approach, we were able to increase ad spend by 185% while maintaining a MER below target. This strategy has enabled us to generate significant sales growth while maintaining excellent ad performance.
Result (during Q4):
- 14% YoY ROAS growth on Meta Ads
- Limited rise in MER to around 1%.
The Results.
October to December 2024 vs. the same period in the prior year.
in Q4 2025.
October to December 2024
