HOW TO BOOST SALES WITH GOOGLE ADS IN A NEW MARKET FOR MONTESSORI TOYS AND FURNITURE?

Manufacturer of developmental soft play blocks for children

The client, a producer of educational children’s toys, has been successfully operating in Latvia and European markets since 2015. However, the challenge was to penetrate the U.S. and Canadian markets using digital advertising while achieving the key performance indicator (KPI) of a 3.5 ROAS.

To achieve this goal, a full-funnel marketing strategy was implemented, covering every stage of the customer journey—from attracting potential customers to converting them into loyal buyers. This strategy was tailored to align with the customer journey and deliver relevant value at each stage. The full funnel consisted of three key phases:

1. Top of Funnel (TOFU): Building awareness (How does the product solve or enhance the customer’s life or daily routine?)
2. Middle of Funnel (MOFU): Engaging the audience (Why is this brand the best choice?)
3. Bottom of Funnel (BOFU): Persuading and fostering loyalty (Why should the customer choose this service now and from us specifically?)

Given the need to enter a completely new market, the TOFU phase was particularly crucial. Brand awareness was essential to establishing long-term relationships with consumers and securing a solid market position. To achieve this, the following steps were taken:

• Clear and Captivating Brand Identity:
  Visual materials were carefully designed to resonate with the target audience. Content included user reviews, expert testimonials, and product imagery to establish trust and interest.
• Effective Brand Messaging:
  The company’s values and unique offerings were clearly defined and highlighted, emphasizing competitive advantages.

While building brand awareness, efforts also focused on the MOFU and BOFU phases to drive sales early on. This targeted users who had already shown interest in the products.

Given a modest budget relative to the market and competition, a highly consolidated campaign structure was adopted to optimize campaigns quickly and efficiently. Search campaigns and Performance Max campaigns (which combine all Google Ads types into one) were launched to achieve maximum impact.

From January to April, revenue grew steadily month-over-month. However, a slight decline was observed from April onwards due to seasonality and sudden budget changes.

The ROAS target of 3.5 was achieved within five months (February–June), with only the first month falling short of the goal. The highest ROAS was recorded in April, coinciding with the largest monthly advertising budget investment. Despite the typical correlation between higher budgets and lower ROAS, in this case, the larger budget allowed campaign algorithms to optimize better due to the increased availability of data points.