Facebook ADS cASE sTUDY

Case Study: Driving Sales for a Niche E-commerce Fashion Brand with Facebook Ads

1. The Client & The Challenge

Our client, “Luxe Threads,” is a small, emerging e-commerce fashion brand specializing in sustainably-made, high-end casual wear for women aged 25-45. Despite having a strong brand identity and a visually appealing Instagram presence with an engaged following, their website traffic and online sales were inconsistent. They were heavily reliant on organic social media and influencer collaborations, which made their revenue unpredictable.

The primary challenge was to scale their business and generate consistent, profitable sales without a massive ad budget. Their existing ad campaigns were unstructured and lacked a clear targeting strategy, resulting in a low Return on Ad Spend (ROAS) and high Cost Per Acquisition (CPA).

2. Our Solution: A Full-Funnel Facebook Ads Strategy

We developed and implemented a comprehensive, three-phase Facebook and Instagram ad strategy designed to nurture potential customers at every stage of the buying journey. The core of our approach was to move beyond simple product promotion and build a community around the brand’s values.

Phase 1: Brand Awareness (Top of Funnel) The goal of this phase was to introduce Luxe Threads to a broad, relevant audience.

Objective: Maximize reach and video views to build brand awareness.

Targeting: We created broad, interest-based audiences, targeting users interested in topics like “sustainable fashion,” “ethical clothing brands,” “eco-friendly living,” and specific high-end fashion publications. We also used a small portion of the budget to test new, unexplored interests.

Ad Creative: We used high-quality, short-form video ads showcasing the brand’s commitment to sustainability and the unique story behind their products. Lifestyle imagery of models wearing the clothing in natural, relatable settings was also a key component. The ad copy focused on the brand’s mission, not just the product.

Phase 2: Consideration & Retargeting (Middle of Funnel) This phase was designed to engage with warm audiences who had already shown interest.

Objective: Drive traffic to the website and increase “Add to Cart” and “Initiate Checkout” actions.

Targeting: We created retargeting campaigns for audiences who had:

1. Watched 50% or more of our awareness videos.

2. Engaged with our social media posts (likes, comments, shares).

3. Visited the website in the last 30-60 days but had not purchased.

Ad Creative: We used carousel ads featuring specific products with their price and unique selling points (e.g., “made from organic cotton,” “limited edition print”). The ad copy included a clear Call-to-Action (CTA) like “Shop the Collection” and created a sense of urgency. We also leveraged customer reviews and user-generated content (UGC) to build social proof.

Phase 3: Conversion (Bottom of Funnel) The final phase was aimed at converting highly engaged users into paying customers.

Objective: Maximize purchases and sales revenue.

Targeting: We ran Dynamic Product Ads (DPA) that automatically showed users the exact products they had viewed or added to their cart on the website. We also targeted a Lookalike Audience of the brand’s top 10% most valuable customers to find new, high-quality prospects.

Ad Creative: These ads were highly focused on a direct call to action, offering a small incentive like free shipping or a limited-time discount to encourage immediate purchase. The creative was simple, highlighting the product with a clear price and a “Shop Now” button.

3. The Results

Within a three-month campaign, our structured full-funnel approach delivered significant and sustainable growth for Luxe Threads.

Increased Social Ad Revenue: We achieved a 219% increase in social ad revenue, with only a 50% increase in ad spend, demonstrating remarkable efficiency.

Return on Ad Spend (ROAS): The overall campaign ROAS was 4.73x, with the retargeting campaign achieving an even higher 5.05x ROAS, proving the effectiveness of our middle- and bottom-of-funnel strategies.

Cost Per Acquisition (CPA): The cost to acquire a new customer was reduced to $9.75, allowing the brand to scale its ad spend profitably.

Sales Uplift: The partnership led to the brand’s best sales month ever, with a 33% increase in total site revenue year-over-year.

4. Key Takeaways

Strategic Funneling is Crucial: A simple, single-objective ad campaign is not enough. A multi-phase funnel that addresses different customer intent—from awareness to conversion—is essential for sustainable growth.

Creative is King: High-quality, brand-aligned creative, particularly video and user-generated content, drives engagement and trust.

Dynamic Retargeting Works: Using Dynamic Product Ads to show users products they have already viewed is a powerful way to convert abandoned carts and turn visitors into buyers.

Leverage Lookalikes: Building lookalike audiences based on high-value customers is one of the most effective ways to find new customers who are likely to convert.