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Case Study: Distillery - Going from Unprofitable to Profitable with Facebook Offer Ads

Amongst a number of industries heavily impacted by the pandemic, the Food & Beverage vertical was forced to pivot and adjust on the fly. The most savvy owners and managers sought new opportunities as a means of survival, and one local distillery in the greater Madison area struck value through HyperValue’s barter program and digital marketing services.

In the Fall of 2020, HyperValue approached this business with an offer for bartered services. The agreement allowed the distillery to obtain a Google Tag Manager build, Google Analytics setup, and a Facebook Advertising campaign at no direct cost (a particularly valuable benefit during the pandemic).

With a limited marketing staff and budget, this local business had no established analytics accounts, so HyperValue guided the client on the installation process and populated the GTM container with a variety of important tags and tracking configurations. With a Google Analytics tag deployed, the client would be able to track website activity for years to come, whether or not they chose to continue working with HyperValue.

HyperValue then deployed a Facebook pixel on behalf of the client and constructed an ads campaign following the List, Offer, and Creative model for maximum impact. Ads were targeted to locals with behavioral tendencies related to dining out and alcoholic beverages, with compelling ad content highlighting the distillery’s most popular products.

After a couple weeks, the distillery received over 40 clicks to their website on a low-budget campaign, but it wasn’t clear how impactful the ads were in terms of Return on Investment. This is a common challenge for local businesses when it comes to digital marketing.

To increase the impact of the campaign, HyperValue recommended a new Facebook Ad format with a more compelling offer, and the distillery agreed to test a coupon promotion. A critical benefit of this format is an automatic reminder that Facebook sends to each user who redeemed an ad offer, which encourages them to redeem the offer in person.

Under this new approach, the distillery saw a speedy uptick in website visits, coupon retrievals, and profit. Within just one week, 22 people clicked the ad and retrieved the coupon, at cost per retrieval of less than 25 cents.

Of course, retrievals are not redemptions. Thanks in part to Facebook’s automated reminder system, the distillery earned a net income over $80 in the short time frame of the test. The Facebook Ads campaign finished at a cost of just $34 over that time span, for a Return on Ad Spend (ROAS) of 2.35. Most importantly, the distillery uncovered a profitable digital marketing channel, which would be used in the future to promote events and new product offerings.

HyperValue has served clients across a number of different verticals, and each one requires a strategic media mix to maximize profitability. Prior to the campaign adjustment, ROI was unclear and viewers of the ad did not have a reason to take immediate action. After the coupon promotion was added, there was no doubt the campaign had produced positive returns, even on a very small budget.

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