Yarn Boosts ROAS With Modern Advertising Budget Optimization

About Company

Yarn unites 35 diverse team members in creating an inclusive marketplace. It features unique Indigenous designs in apparel and homewares, fostering cultural appreciation and artist collaborations.

Challenge

As the online clothing shop strives to maximise its revenue and market presence, the company recognized the need to elevate its advertising strategy. Acknowledging the dynamic nature of the digital landscape, where consumer behaviour and market trends evolve rapidly, the company decided to invest in a cutting-edge ad-tech solution. The objective was clear: to boost the Return on Ad Spend (ROAS) by refining the allocation of budgets across various paid media campaigns.

The ultimate goal is to elevate the overall ROAS percentage, making every campaign more effective and ensuring a higher return on advertising investments.

Moreover, the company also looks forward to a future where this solution not only addresses the current challenges but also establishes a foundation for agile and data-driven ad campaign management.

Solution

Mutt Data developed a modern advertising budget optimization allocation for Paid Media campaigns. The mix of campaigns is managed by different ad platforms, which operate channels with their particular marketing strategies.

The budget allocation process pursues the maximisation of a target KPI (ROAS in this case) while taking into account a set of constraints that ensure a minimum level of performance or limit the budget to spend on the marketing mix.

We're AWS Advanced Partners, and this project utilized AWS tools such as Amazon EKS, Amazon DynamoDB, Amazon Aurora, and Amazon S3.

Impact

Our implementation led to a substantial enhancement in Return on Advertising Spend (ROAS), marking a significant 25.6% increase. This improvement was achieved through strategic channel optimization, refined audience targeting, and a focus on effective Ad creatives. Continuous monitoring and swift adjustments ensured adaptability to changing market dynamics, resulting in a more efficient use of advertising resources and reducing 40% of operational time previously dedicated to manual budget allocation analysis and execution.