Case Study: Cracking a Low AOV Socks Brand & Achieving 2.26X ROAS in 1 Month

Client Overview

Our client, a socks brand with a low Average Order Value (AOV), struggled with profitability due to the thin margins on their products. They approached us to create a profitable ad strategy that would scale their business while maintaining a healthy Return on Ad Spend (ROAS).

Challenges

  1. Low AOV (Average Order Value) – Profit margins were small, making it difficult to sustain ad costs.
  2. High Competition – Competing against well-established brands in the apparel industry.
  3. Need for Volume Sales – Due to low pricing, a high conversion rate was required to generate meaningful revenue.
  4. Cart Abandonment – Many users added products to the cart but didn’t complete the purchase.

Strategy & Execution

1. Product Bundling & Upsells

To counter the low AOV issue, we:

  • Created bundle offers (e.g., Buy 3 Get 1 Free) to increase order value.
  • Introduced cross-sell recommendations at checkout to maximize revenue per purchase.

2. High-Intent Targeting & Retargeting

We executed a 3-phase funnel approach:

  • Top of Funnel (TOFU): Targeted audiences interested in fashion, activewear, and affordable essentials.
  • Middle of Funnel (MOFU): Engaged past website visitors and video viewers.
  • Bottom of Funnel (BOFU): Used dynamic product ads (DPA) to retarget cart abandoners with limited-time offers.

3. Ad Creative Optimization

  • Used carousel ads featuring different sock designs & colors.
  • Ran UGC-style video ads showcasing comfort & durability.
  • Implemented seasonal & limited-time offers to drive urgency.

4. Budget Optimization & Scaling

  • Focused budget on high-performing ad sets.
  • Adjusted bids dynamically to reduce Cost Per Purchase (CPP).
  • Analyzed ad placement to allocate budget efficiently across Facebook & Instagram.

Results & Performance Metrics

Key Performance Indicators (KPIs)

  • Total Ad Spend: ₹246,170.65
  • Total Revenue Generated: ₹557,275.06
  • Total Purchases: 585
  • Average ROAS: 2.26X
  • Cost per Purchase: ₹420.80
  • Landing Page Views: 17,581
  • Checkout Initiated: 550

Breakdown of Best Performing Ads

  • Ad Set with ₹44,415.18 Spent:

    • Landing Page Views: 3,946
    • Purchases: 104
    • Revenue: ₹88,604.28
    • ROAS: 1.99X

  • Ad Set with ₹19,572.73 Spent:

    • Landing Page Views: 2,111
    • Purchases: 60
    • Revenue: ₹53,289.08
    • ROAS: 2.72X (Highest ROAS Ad Set)

  • Ad Set with ₹17,303.13 Spent:

    • Landing Page Views: 960
    • Purchases: 42
    • Revenue: ₹46,860.84
    • ROAS: 2.71X

Key Takeaways

  1. Bundles & Discounts Increased AOV – Customers were more likely to buy multiple pairs when offered incentives.
  2. Retargeting Boosted Sales – Cart abandonment retargeting played a crucial role in improving conversions.
  3. Optimized Creatives Drove Engagement – Carousel & video ads led to better CTR & conversion rates.
  4. Scaling with Data-Driven Decisions – Allocating budget to high-performing ad sets improved efficiency.

Conclusion

Through a smart ad strategy, product bundling, and audience retargeting, we successfully helped a low AOV socks brand achieve ₹5.57 lakh in revenue at 2.26X ROAS. This campaign proves that even low-margin products can be scaled profitably with the right approach.

Want to scale your eCommerce brand profitably? Let’s make it happen! 🚀

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