How We Saved a Client $6M in Wasted Ad Spend Without Losing Revenue
by Kylie Carrasco •
If your ads aren’t driving real profit, they’re just burning cash. For a high-end loungewear brand, aggressive spending on Google and Meta was killing their margins—without delivering growth. We saved them $6 million in wasted ad spend, no revenue sacrificed.
The Backstory
This brand grew rapidly, pushing nearly $100M in revenue, but by 2021, they’d hit a wall. Their ad budget was consuming 15% of sales, all in Google and Meta—channels they assumed were fueling growth. But their real profit picture told a different story.
The Challenge
The client needed a way to grow EBITDA without undercutting revenue. They believed ROAS justified their ad spend, but in reality, incremental growth was off the table. Strategic efficiency wasn’t just a choice—it was their only viable path forward.
The Approach
We ran incrementality tests and media mix models, revealing significant overspend, especially on Google. The data was clear: blended metrics gave an inflated view, but the impact was stagnant. By realigning spend to channels with true incremental lift, we helped them regain control over their margins.
The Results
We cut ad spend by 40%, saving them $6 million and freeing up cash for reinvestment. With revenue protected and margins restored, they now have the flexibility to build a profitable path forward.
Why This Matters
Incrementality isn’t a luxury; it’s a growth imperative. If your ad budget isn’t driving measurable profit, it’s time to recalibrate. Let’s make every dollar work.
Connect With Ben Dutter |
| Want to know more about how we help brands uncover hidden efficiencies and save millions in ad spend? Follow me on LinkedIn for expert insights, actionable strategies, and data-driven marketing tips that can fuel your brand’s long-term growth. |