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Case Study: Compass Cinema
Facebook Ads | Conversion Optimization
The Results
- 6x Growth in Monthly Revenue (from $13,500 to $80,000)
- Average order value increase by 50%
- ROAS improvement from 1.5 to 2.4
A great product that lost sales momentum
Compass Cinema is a boutique film production studio in Nashville, TN. After producing a critically acclaimed documentary “Is Genesis History?” in 2017 they experienced a boost in sales, both online and at the box office.
However they were unable to maintain growth and their online sales plateaued in early 2019.
Diagnosing the problem
We were brought on to boost online sales in August 2019 – specifically on Facebook.
Our diagnosis:
- Audiences were too large relative to ad spend
- Not enough ad creatives
- Insufficient funnel layers (audiences were not being warmed up properly)
- Average Order Value was too small (around $20 when we took over the campaign)
We were able to make an impact in 3 distinct areas and increase revenues by 320%.
The Solutions
Scaling audiences horizontally – Their existing campaign was using audiences that were far too large. We came in and did fresh audience and targeting research and developed 15 new interest audiences and lookalike audiences to test.
Scaling creatives – The existing campaign was only testing 2 ad creatives. We developed 10 more ad creatives by varying images, video, headlines and descriptions.
Developing a tiered advertising approach – The company was relying exclusively on cold traffic for DVD sales. However the conversion rate on that cold traffic was too low. We were able to add another layer to their funnel by retargeting video trailer watchers and product page visitors with an offer to watch the first 10 minutes of the film for free.
Increase Average Order Value through Upsells – Having an average order value of only $20 made it difficult to advertise profitably. Fortunately, the company had 5 other products.
