About the Case
PicMonkey, a graphic design and photo editing tool with 20 million users worldwide, wanted to improve its PPC numbers. The priority was increasing the quality of customers while bringing CAC down, and to accomplish this, they needed to overhaul their existing approach to PPC.
Problem + Goal
PicMonkey’s previous agency was focused on Target CPA bidding, an automated bidding strategy. The agency had spread PicMonkey’s budget wide under strict CPA caps, with the hypothesis that so long as the spend stayed below the CPA caps, their approach would support PicMonkey’s goals. On the contrary, because this approach didn’t take (Return on Advertising Spend) ROAS and LTV into account, it didn’t differentiate between acquiring low value customers versus customers worth 20x the average LTV.
Moreover, organic blog landing pages and long-tail research keywords with low conversion rates were eating up to 30 percent of the company’s monthly budget.
PicMonkey’s goal was to increase LTV while decreasing CAC. They needed a PPC partner that could undo the work of their previous agency and lay a new foundation while continuing their ongoing campaigns.
Summary
The Jarrah team initiated a comprehensive ad account audit to understand PicMonkey’s current state. Our priority was changing the focus of PicMonkey’s current PPC strategy. Our paid advertising specialists moved PicMonkey towards a tROAS bidding model, which uses AI to predict the value of a potential conversion, making it easier to predict customer LTV. This supported the bespoke Predicted LTV model Jarrah applied for PicMonkey.
We also leveraged PicMonkey’s BigQuery setup to create a Predicted LTV and pass that back to the company’s ad platforms for optimization. We also identified inherited ad account goals that were not tied to deeper business performance. For instance, there were tens of thousands of registrations with very low conversions into subscribers. By aligning bidding, optimization, and spend allocation to high conversion intent keywords, we were able to pay immediate dividends for performance.
The PicMonkey and Jarrah partnership was a success. The PPC overhaul reduced CAC by 10% and doubled LTV in 4 months, going from over $400K in January to nearly $800K by April. We also conducted several landing page experiments which improved conversion rates up to 30% and generated an additional $142,000 in incremental ARR. Meanwhile,
Frits Habermann
COO
We needed a data-driven approach to help us optimize our acquisition in preparation for a potential sale. A colleague recommended Jarrah and wwe were not disappointed. They revamped our account and allowed us to scale without bloating the cost of acquisition. Amazing team and great partner.
