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E-commerce The United States

How STS Ranchwear Achieved a 15x Return on Ad Spend

Named for World Champion rodeo performer (and 4th generation rancher) Stran T. Smith, STS Ranchwear provides stylish clothing and accessories for the rancher in all of us. Their collection includes everything from wallets, vests, and accessories, to high-quality leather jackets and heavy-duty canvas backpacks. With 228 wholesale locations across the United States, STS Ranchwear has established a strong brand since their founding in 2011.

1
SIMPLE INTEGRATION
+1500%
RETURN ON AD SPEND
84%
LOWER COST PER ACQUISITION

Challenge

CHALLENGE: Expand marketing efforts to Google Ads, and begin running remarketing campaigns

Though STS Ranchwear’s brand was well-established, their website was out-of-date. Their online marketing was limited to email campaigns and a small social media presence. Online sales were flagging, resulting in a negative return on ad spend (ROAS) of - 2.5x. Essentially, for every $100 spent on ads, they were only seeing $40 in resulting sales. Beyond that, their cost per acquisition (CPA) was a staggering $43 for each customer. In an effort to expand and improve these marketing efforts, they developed and launched a new, more responsive website that could utilize other marketing channels.

After choosing Shopify for their Content Management System (CMS), STS Ranchwear discovered they could integrate with ROI Hunter Easy to enhance their marketing efforts. Easy’s pricing structure and positive reviews put them ahead of competitors, and STS Ranchwear decided they would be the ideal solution to work with.

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Solution

Easy began the cooperation by covering the lower tiers of STS Ranchwear’s marketing funnel with dynamic remarketing ads (ads targeting returning customers with images of products they viewed on the site), and the higher tiers with dynamic search ads (ads targeting relevant searches with headlines populated from the site or product feed; no keyword set-up needed).

The next part of the challenge was to add Google Smart Shopping into the mix to create one overarching strategy. Smart Shopping ads combine a company’s product feed with Google’s machine learning algorithms to display relevant ads in multiple formats. Smart Shopping ads even provide automated placement and bidding to ensure the most conversions possible.

ROI Hunter Easy (and Pro) now support Google Smart Shopping, enhancing company product data even further by adding product-level insights for each SKU (margin, stock levels, chance of return, and more).

With a standard Smart Shopping set-up, retailers can choose what they want Google’s algorithm to optimize for. But what if you want to optimize some products for scaling, without including all your low-margin products? Using ROI Hunter, you can easily create a new product group that fits your specifications; use product-level insights (like margin) to filter for which products you want to include in the group, and you’re done. Now instead of one mass of products, you have two groups; one full of high-margin products to scale, and one full of low-margin product to optimize for ROI, or anything else you’d like. Repeat for however many groups you’d like to create.
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Results

Before Smart Shopping even came into play, the results were substantial. The remarketing and search campaigns throughout the funnel increased ROAS from -2.5x to 6x, and decreased CPA from $43 a customer all the way down to $19.

That was round one. Once Smart Shopping had been combined with the earlier strategies, things really started taking off. Enhancing the data Google’s machine learning used to generate ads further increased ROAS from 6x up to 15x, and took CPA down from $19 to $6.90

Part of the reason behind such a significant change may be the timing (the Smart Shopping campaigns ran into Black Friday weekend), but the results have held steady since then. Measuring from before partnering with ROI Hunter Easy to run Google campaigns, STS Ranchwear improved their return on ad spend by over 1500% and decreased their cost per acquisition by 84%.

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1
SIMPLE INTEGRATION
+1500%
RETURN ON AD SPEND
84%
LOWER COST PER ACQUISITION
avatar
Drew Basinger, E-Commerce Director

"ROI Hunter allowed us to market on Google Ads with ease. That has been a huge help for us. Also, the remarketing opportunities on social media have contributed to our success. This has been a successful investment for us; we have seen a solid ROI."

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