Challenge
How do you add more fuel to the (growth) rocket when you've already left the stratosphere? This is one of the challenges that we, in very close collaboration with The Poster Club, have managed to solve and still focus on delivering on a daily basis. The Poster Club very quickly achieved a strong positioning in the Scandinavian markets, but the journey wasn't going to stop there - they wanted to expand to more markets.
But expanding to more markets requires a certain degree of prioritization. Which markets should you focus on and how do you balance long-term branding with short-term performance?
The Solution / Approach
All too often, we find that when online retailers expand into multiple markets, they take a "try your luck" approach to their marketing strategy. This often results in wasted resources and lower profits than could have been achieved otherwise. In this case study, we will explore why a more considered strategy is the key to success when scaling into new markets.
ROAS or POAS?
One of the big keys to success for The Poster Club was switching from a ROAS (Return on Ad Spend) to a POAS (Profit on Ad Spend) framework. This helped them achieve a more accurate assessment of the profitability of their marketing campaigns - especially in their international expansion. ROAS measures the revenue per dollar invested in a marketing campaign, but does not take into account the actual costs of running a business. POAS, on the other hand, focuses on real profit, which gives a more accurate picture of the effectiveness of our marketing activities.
CO-CREATION
Our successful collaboration with The Poster Club is a result of a number of key elements. These include close collaboration through regular meetings and workshops. This form of co-creation has helped strengthen communication and knowledge sharing between our team and The Poster Club's talented marketing team. Ultimately resulting in effective digital marketing strategies tailored to each platform.
Exclusive sale
The Poster Club holds a sale once a year, which takes place during Black Week and has been dubbed the Exclusive Sale. This week is very important for the overall success of the entire year, and is therefore a week where nothing can go wrong.
Together with the team from The Poster Club, we closely monitor the sales throughout the week and make the necessary adjustments. This is where the POAS framework once again really comes into its own, as it makes it very clear whether we need to increase our media spend on the individual channels, campaigns and ads during the week.
The result
The Poster Club had already grown the top line over 100% in the past year when the collaboration started in the beginning of 2020. Still, The Poster Club manages to find even more fuel for the rocket and grow another 175% in the years 2019-2020, and another 60% when comparing 2020 to 2021.
However, the great growth was also helped along by COVID, which created a definite BOOM for many e-commerce businesses around the world. In 2022, we therefore saw a small (but relatively natural) setback in revenue of 4.2%, and we still beat expectations for the year.
This year (2023), we see a nice growth so far, and if the curve continues, we will end up beating the ATH from 2021.
Comparing total revenue from 17-19 to 20-22, Mighty Monday helped The Poster Club grow the top line by over
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We've rolled up our sleeves and are ready to help you expand your business into new markets.