SESSION:
Lift testing:
Why, when and how it will transform your
business like it did for Custom Ink
Chris Berejik, SVP, Marketing
Custom Ink
July 23, 2019
2
The leader in custom apparel and products
● Founded in 1999 - as a website to make it easier to create &
design custom t-shirts online
● Headquartered in Fairfax, VA, with offices in Dallas, Reno,
Charlottesville, and LA
● Approximately $400M in annual revenue and over 1,600
employees
● Beyond t-shirts - Now offer business, performance,
activewear apparel and promotional products
● Cont. growth through fundraising apparel platform, influencer-
led apparel platform (Represent), stores, innovative design
tools, and a focus on customer service
3
When launching Facebook advertising, Custom Ink was
looking first for profitability and then for scale
Custom Ink Goal #1:
Find self-funding paid marketing channels
Facebook Goal:
Prove that Facebook-only-attributed ROAS
was greater than 3x
Custom Ink Goal #2:
Maximize scale of self-funded paid
channels to inflection point of diminishing
returns
Facebook Goal:
Ramp spend consistently while maintaining
above a 2x marginal ROAS
Profitability Scale
4
The problem: Facebook was self-reporting attractive ROAS, but was
not discounting for the portion of customers who would have made
purchases anyway
Campaign Audience
Facebook
Self-Reported
ROAS
Background
Purchase Rate of
Facebook Users
Facebook
Incremental
ROAS
Facebook Retargeting
Site visitors who
did not buy
30x ? ?
Facebook Reactivation Past customers 45x ? ?
So what was the real impact of Custom Ink Facebook ads?
5
The solution: Custom Ink worked with Social Fulcrum to run a lift test
and determine the real impact of its ads
Some customers saw
real Custom Ink ads
Some users saw ads
in a control group
This tracks the background
purchase behavior of
Facebook users
6
The results: The test showed that Facebook had a very attractive
incremental ROAS in both retargeting and reactivation campaigns
● Real ads generated $880K in
revenue
● Control ads generated $260K
in revenue
So, real ads generated $620K
in incremental revenue, or
15x incremental ROAS
7
This data helped us ask the board for the capital we needed
to fund the expansion of Facebook
Attribute Before Lift Test After Lift Test
Facebook self-reported results ✓ ✓
Incrementality of other paid channels ✓ ✓
Understanding of background purchase
behavior of Facebook users
✓
Incrementality of Facebook results ✓
Understanding of real impact of Custom Ink
Facebook ads
✓
Confidence ✓
8
In result, we grew Facebook revenue by 850% in 2 years
● Lift testing helped Custom Ink understand the incremental impact of
advertising on Facebook
● Custom Ink was able to scale spend on Facebook with the confidence that
the channel was generating incremental revenue
● As a result of this process, we have grown revenue from Facebook by 850%
in the past 2 years
9
What now?

Lift testing: Why, when, and how it will transform your business like it did for Custom Ink

  • 1.
    SESSION: Lift testing: Why, whenand how it will transform your business like it did for Custom Ink Chris Berejik, SVP, Marketing Custom Ink July 23, 2019
  • 3.
    2 The leader incustom apparel and products ● Founded in 1999 - as a website to make it easier to create & design custom t-shirts online ● Headquartered in Fairfax, VA, with offices in Dallas, Reno, Charlottesville, and LA ● Approximately $400M in annual revenue and over 1,600 employees ● Beyond t-shirts - Now offer business, performance, activewear apparel and promotional products ● Cont. growth through fundraising apparel platform, influencer- led apparel platform (Represent), stores, innovative design tools, and a focus on customer service
  • 4.
    3 When launching Facebookadvertising, Custom Ink was looking first for profitability and then for scale Custom Ink Goal #1: Find self-funding paid marketing channels Facebook Goal: Prove that Facebook-only-attributed ROAS was greater than 3x Custom Ink Goal #2: Maximize scale of self-funded paid channels to inflection point of diminishing returns Facebook Goal: Ramp spend consistently while maintaining above a 2x marginal ROAS Profitability Scale
  • 5.
    4 The problem: Facebookwas self-reporting attractive ROAS, but was not discounting for the portion of customers who would have made purchases anyway Campaign Audience Facebook Self-Reported ROAS Background Purchase Rate of Facebook Users Facebook Incremental ROAS Facebook Retargeting Site visitors who did not buy 30x ? ? Facebook Reactivation Past customers 45x ? ? So what was the real impact of Custom Ink Facebook ads?
  • 6.
    5 The solution: CustomInk worked with Social Fulcrum to run a lift test and determine the real impact of its ads Some customers saw real Custom Ink ads Some users saw ads in a control group This tracks the background purchase behavior of Facebook users
  • 7.
    6 The results: Thetest showed that Facebook had a very attractive incremental ROAS in both retargeting and reactivation campaigns ● Real ads generated $880K in revenue ● Control ads generated $260K in revenue So, real ads generated $620K in incremental revenue, or 15x incremental ROAS
  • 8.
    7 This data helpedus ask the board for the capital we needed to fund the expansion of Facebook Attribute Before Lift Test After Lift Test Facebook self-reported results ✓ ✓ Incrementality of other paid channels ✓ ✓ Understanding of background purchase behavior of Facebook users ✓ Incrementality of Facebook results ✓ Understanding of real impact of Custom Ink Facebook ads ✓ Confidence ✓
  • 9.
    8 In result, wegrew Facebook revenue by 850% in 2 years
  • 10.
    ● Lift testinghelped Custom Ink understand the incremental impact of advertising on Facebook ● Custom Ink was able to scale spend on Facebook with the confidence that the channel was generating incremental revenue ● As a result of this process, we have grown revenue from Facebook by 850% in the past 2 years 9 What now?