How we streamlined this outdoor brands performance marketing strategy to double their Media Efficiency Ratio (Total Sales Divided By Ad Spend) in 4 weeks
What is MER?
MER or otherwise known as Media Efficiency Ratio, has flown to great popularity for e-Commerce business as in-account ROAS has dwindled with the loss of attribution most brands have experienced in the last 6-12 months. MER is a performance marketing overview metric that takes your total sales, and divides that by your total ad spend across all of your acquisition mediums. A powerful performance overview metric, when coupled and measured alongside ROAS.
This brand came to us from one of the most prestigious e-Commerce agencies in Australia & the US. Core infrastructure of their core 3 was fundamentally sound (Facebook, Google, Klaviyo) although agency billing structure was highly-geared towards the agency, and very little towards the client. Both MER & ROAS business metrics had been treated poorly, with revenue being the sole metric at the top of the pyramid, and not looked at in conjunction with client to ensure profitability. Typically known as an agency-centric model.
Strategising an under-performing ad-sets + ads account pull-back without putting a halt to all revenue, and implementing a new funnel structure roll-in. Their were some aspects of the accounts that had worked, although not perfectly implemented. Their were also large portions of the accounts, spending without any $$ return.
- Systematizing their acquisition funnels on both Facebook & Google and putting a big focus on the customer journey, content deliverability and messaging at different points of the customer life-cycle.
- Killing all under-performing ad-sets and ads, pulling out key winners from testing and isolating for scale.
- Restructuring to our core structure, TOF (top of funnel), Isolated TOF for testing, MOF (middle of funnel) and BOF (bottom of funnel)
- Rolling in new STAG (single theme ad groups) & SKAG (single keyword ad groups) campaigns based on their highest performing verticals
- Implementing segmented shopping campaigns and optimising their Google Merchant Centre Feed.
MER DOUBLED, within 4 weeks. Simply by putting a large focus back on true partner profitability, implementing a PROVEN funnel strategy, a high attention to detail and spending the required hours in account to ensure nothing gets left behind. Strategic account restructuring allowing us to increase our analytical vision, and identify areas and angles that resonate with the audience through positioned testing.
MER doubled, from 2.2 to a 4.4 - within just 4 weeks.