2025 In Review & 2026 Scaling Plan of 60M Brand [Ecom Case Study]

Summary

In this case study, the team shares their successful strategies in scaling their business, spending over $50 million on Facebook ads, and achieving 80% growth despite a challenging year. Key insights include continuous offer testing, creative diversification, and leveraging third-party pages for Facebook ads. They emphasize the importance of humanizing the brand, using TikTok Shop and Amazon for added growth, and adapting resource allocation to meet business needs. With a focus on LTV improvement through new product launches and future telly health expansion, the team highlights the importance of flexibility, learning, and smart scaling in 2026.

Takeaways

• 😀 Offer testing is essential for optimizing contribution margin. By continuously testing offers, the brand was able to increase Average Order Value (AOV) and spend more on customer acquisition.
• 😀 Creative diversification through different creators and ad angles helped scale the business. They utilized a wide range of creators to reach new customer segments effectively.
• 😀 Scaling efficiently on Meta (Facebook) was a key to growth. The brand recognized Meta as the most significant spending channel and optimized ad spend to increase revenue.
• 😀 Facebook ads work best when they are amplifying successful campaigns. Facebook is seen as a tool to fuel what's already working, rather than a primary driver of success on its own.
• 😀 Testing multiple concepts in ad sets, even under the same campaign, led to a higher hit rate. This approach allowed the brand to identify more winning variations compared to traditional CBO setups.
• 😀 Budget allocation plays a crucial role in scaling ads. Using strategies like Advantage+ Shopping campaigns with cost caps enabled them to scale effectively without hitting budget constraints.
• 😀 The brand's success with TikTok Shop resulted in increased cross-channel efficiency. Spending on TikTok boosted performance on Meta and even Amazon, showcasing the power of channel interdependence.
• 😀 Organic content creation, especially humanizing the brand with founder-led messaging, became a focal point. This helped build trust and customer loyalty, particularly in the skincare industry, which is often distrusted.
• 😀 Product diversification is key to improving Lifetime Value (LTV). By introducing new products like water filters and telly health services, they aimed to increase customer retention and overall profitability.
• 😀 The brand emphasizes hiring A-players for each department. Their hiring process is thorough, utilizing recruiters and tools like predictive index reports to ensure cultural and role fit, helping scale operations smoothly.

Q & A

What was the primary factor that drove the 80% growth for the company in 2025?

The primary factor was offer testing, which allowed the company to increase their average order value (AOV) without sacrificing the conversion rate. This improvement in contribution margin per order enabled them to scale ad spend significantly.

Why is offer testing considered crucial for the company’s success?

Offer testing is crucial because it allows the company to optimize for contribution margin and maximize dollars per order. By continually testing and refining their offers, they can increase their ability to acquire customers more profitably.

How did the company manage to scale its ad spend without sacrificing conversion rates?

The company managed this by framing their offers as no-brainer deals for customers, increasing the perceived value without tricking the consumer. This led to more purchases, increased AOV, and more profitable ad spend.

How did the company leverage Facebook ads to amplify its growth?

They used a variety of Facebook ad strategies, including running ads under multiple third-party pages to increase creative diversification. This allowed them to reach different audience segments and improve the ad account’s overall performance.

What role did creative diversification play in the company’s advertising strategy?

Creative diversification was key because it allowed the company to use a wider range of creators, targeting different ethnicities, age groups, and styles of communication. This led to new audience segments and improved ad performance.

What was the company’s approach to testing ad creatives and finding winners?

The company tested many different ad concepts, using multiple ad sets and creators. Instead of consolidating tests, they allowed for a larger variety of tests, resulting in a higher hit rate (around 30%) compared to typical consolidation strategies.

What is the company’s philosophy regarding direct and specific messaging in advertising?

The company believes that being specific and direct with messaging actually leads to greater scale because it resonates more with consumers and aligns with their internal voice. This leads to higher conversions.

What changes did the company make in its ad account management to improve scaling?

The company used Advantage Shopping Plus with a cost cap to allow Facebook to spend more freely based on performance. This approach helped them scale during high-conversion periods, like weekends and Black Friday, by removing budget constraints.

Which new channels did the company add to their marketing mix, and what impact did it have?

The company added TikTok Shop, which helped them unlock new audiences and improve performance on Meta (Facebook/Instagram) and Amazon. This created a halo effect, boosting efficiency across other channels.

How did the company approach resource allocation when expanding into new markets, such as France and Germany?

The company took a cautious approach, allocating a separate budget and resources for international markets like France, while ensuring no resources were taken away from existing markets. They learned from the initial tests, finding success in France and deciding to continue localization efforts there.