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Case Study: How We Made A UK Surf Brand £330k In 5 Days

Updated: Jan 9

In October 2018, a UK clothing brand came to us with a problem.

They were making money. Their ads were at a healthy ROI. But they had no idea how to scale it higher.

They were in a good position, but couldn’t work out how to be in a great position.

Their current agency had done what we like to call “diseasing the funnel” - they’d relied on their retargeting too heavily. If you’re only talking to the same people, eventually they’ll become numb to your messaging. Plus, you’ll have no new customers coming in. Retargeting is great for making a quick buck, but they’re not a long-term solution for growth or scaling.

The funnel refers to the stages that your customers go through as they stumble across your brand.

1. At the top, you have awareness; this your ‘cold audience’ - people who haven’t interacted with your brand. Quite simply, people can’t purchase from your brand if they haven’t heard of them. That’s why most of your ad spend should be directed toward cold audiences, making new people aware of your brand and bringing in fresh customers. Don’t let the same audience grow stale and overmarketed.

2. The next step in the funnel is interest; this is the beginning of your warm audience - people who have interacted with your brand and are most likely interested in what you have to offer. This is where we start seeping into the warm audience; people who have seen your brand and begun interacting with you. Maybe they’ve looked around your website, added something to their basket, followed you on social media, etc. Anything that expresses that they’re interested in what you have to offer.

3. After that, we have the consideration phase. These are the people who are on the cusp of a purchase, but can’t quite bring themselves to do it. We’re at the end of the warm audience now teetering on the brink of hot. Something’s stopping them - it may be the price, it may be the wrong time of the month, it may be the shipping - whatever it is, they’re not quite ready to make a purchase.

4. Lastly, we have the purchase. Your hot customers. People who have fallen through the funnel and found the treasure at the end.

The previous marketing agency had relied on the low hanging fruits in the warm audience to get easy purchases - all they had to do was turn them from consideration to purchase.

Yet, when the brand wanted to spend more money and build upwards, the agency couldn’t deliver because there’s only so many people in the consideration phase, and spending more money would mean showing the same people more adverts which isn’t very useful.

Luckily, the brand had quite a healthy approach to advertising, opting for a holistic approach of PPC, emails, and so on opposed to just relying on FB ads as many other companies do. Because of this, the previous agency were essentially piggybacking off the efforts of these marketing schemes as opposed to adding value themselves.

When we took over, we knew that we needed to build up the funnel from the top, gathering interest and bringing in new customers to actually scale the brand. We have specific percentages that help us to split the budget for not only returns but longevity. The budget favours cold and leaves a little bit left over for testing whilst maximising the ROI from warm. Through a combination of tried and true groups and testing new and often obscure areas, we managed to drive more and more people into the business, gaining repeat customers and providing new profit whilst increasing ad spend.

For the last three months, we’ve added £30k extra ad spend whilst keeping a consistent ROI of 8x, so that we’re now spending £40k per month whilst making back over £320k per month.

As we enter key sales dates, such as Black Friday, the budget percentages change for each audience. In the lead-up, we’ll hit cold even harder so we have a larger pool of interested customers when the sale comes around. Once offer-season hits, we’ll then send more into the warm audience, changing those interested and considering customers into purchases. Once the date has been and gone, we’ll then back off and go back to normal.

Ramping up ad spend in the weeks prior to Black Friday can seem counter-intuitive. Surely you’d want to save all your ad money for Black Friday? In actuality, you want to open up your funnel so you have more interested customers to retarget when the time arrives.

By utilising these methods (and a few drops of the Spin secret sauce), we turned £13k into £330k over 5 days. That’s an ROI of just under 26x.

The way we handle business at Spin is through four key pillars:

1. Knowledge (of marketing, of sales, of ads, etc.)

2. Preparation

3. Individuality (in relation to the client, the market, the time of year, budget, etc.)

4. Communication (internally and with each client)

By utilising these four pillars, we continually create success and build toward the future. Always learning, always growing, always striving to be and deliver more than expected.

What can you learn from this?

- Don’t hit retargeting too hard. They’ll become bored and you won’t get any new customers coming in.

- Have patience with Facebook. They spend millions on their algorithm development for a reason, so thinking that you’re smarter will be your first step toward failure. When you create an ad, let it run for at least a week to gather learnings and adapt.

- Focus on cold if you’re trying to scale. You won’t see the best ROAS compared to warm, but your warm audience (and your business) need it to survive.

- Hire us. We know it’s scary, but we also know what we’re doing. We have proven track results in a number of different industries with a variety of companies at different levels in their journey. So, if you fancy a chat, book a call with one of our social media specialists.

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Spin Brands Ltd -
Mercury House




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