AI-powered Budget Optimization Improves A Clothing Brand's Return On Ad Spend by 33%
Challenge
Frequent manual intervention for budget optimization
The company had invested a lot of time and effort to develop a system of rules that could be used to automate decisions to scale campaigns. Now, they had to find a sustainable way of maintaining and implementing these rules across different channels. In addition to this, the team found it challenging to tweak their system’s logic to accommodate fluctuations in cost and inventory. For example, they faced performance difficulties and inefficiencies at peak times during holidays and weekends, at which point frequent manual intervention was required. This prompted them to look for intelligent solutions that could help them solve these challenges permanently, with minimal supervision.
Lack of time to focus on strategy and messaging
Having observed that most of their quality resources were tied up in routine budget management, The activewear company's management was further motivated to find an intelligent solution. At the crux of the challenge was a desire to minimize human intervention on tasks that could benefit more from a high degree of machine and artificial intelligence, thereby, allowing their teams all the bandwidth to focus on strategy. In essence, they were looking for the best ways to automate their identified logic and strategies, products to help them discover channels with the most incremental revenue, and track budget allocation for the channels in real-time.
Solution
Pixis codeless AI infrastructure for campaign optimization
Pixis Performance AI scales the best performing campaigns, improving efficiency and incrementality through effective budget redistribution. The clothing brand initially deployed Pixis Performance AI through two A/B tests, which ran for approximately one month. In the first test, they limited the Performance AI system to budget optimization on an ad set level. This increased their Return on Investment (ROI) by 18%. In the second test, Performance AI redistributed their budget intelligently across campaigns, leading to a 33% increase in Return on Ad Spend (ROAS) while keeping their overall campaign budget constant. By doing so, true AI significantly outperformed two rule-based automation tools that were tested simultaneously.
An additional big win for them was finding a solution to their constant manual intervention. Deploying Pixis codeless AI infrastructure led to their campaigns being continuously monitored and managed in an autonomous manner. This gave the team more bandwidth for the development of new strategies and compelling messaging.
Results
AI-driven smart optimization of campaigns
The premium clothing brand scaled their high-performing campaigns through AI-powered optimization to improve their Return on Ad Spend (ROAS) by 33%. The higher degree of efficiency in budget redistribution enabled by a true AI solution also lowered their cost per incremental conversion by more than 30%.
Today, they are deploying Pixis AI infrastructure to automate additional aspects of their performance marketing such as supporting their marketing efforts on Tiktok and Google ads.
