AI-powered Optimization Improves Return On Ad Spend by 43% for a sustainable footwear and apparel brand
Challenge
Identifying new audiences and scaling campaigns efficiently
To further its global expansion, the environmentally conscious brand sought to identify new audiences and brand enthusiasts who are excited about sustainable footwear and innovative products. However, their broadly-targeted campaigns led to inefficient ad spends.
Additionally, their manual approach to budget optimization was proving to be resource intensive and frequently overwhelming. To tackle these challenges, they decided to look beyond traditional campaign solutions
Solution
Leverage Pixis’ complete AI infrastructure to unlock growth and efficiency
The right audience: Hyper-targeting with AI
The brand leveraged Pixis Targeting AI to identify high-intent audiences specific to their brand and goals. Pixis Targeting AI consists of clustering models that create cohorts of the most relevant audience based on several factors such as demographics, psychographics, engagement data, and more. Based on their performance in live campaigns, these cohorts are updated in real-time, ensuring continuous refinement without incurring the high costs commonly associated with hyper-targeting.
After generating the right portfolio of targeting groups, the AI recommended a set of cohorts based on "Travel, Training, Food, Fashion & Accessories, Running, and Eco-Tourism". An immediate effect of targeting these refined audiences was an improved Conversion Rate of +33%.
The right performance strategy: Optimizing campaigns with AI
Once the optimal target audiences were identified, the brand had to deploy them across their omni-channel media buying efforts. To achieve this, Pixis Performance AI first conducts a predictive analysis of each campaign’s performance based on its historic learning and then implements continuous adjustments based on real time data and results.
Machine-learning based, scalable automation made this feasible for the company without putting undue strain on their existing resources. At the same time, the ongoing optimization resulted in positive down funnel effects, such as a +29% improved Cost Per Transaction.
Results
AI-powered growth through smart optimization
AI helped the innovative footwear retailer to launch and manage more campaigns simultaneously, to a larger set of audiences, with significant performance improvements.
By leveraging the Pixis codeless AI infrastructure, the team achieved a 43% improvement in Return on Ad Spend (ROAS) overall in the first two months of their partnership. Continuous subsequent improvements gave the brand the confidence to expand their partnership with Pixis, including a comprehensive test of Pixis’ Creative AI product.
