Pet Tech Company | Google Ads

How to decrease CAC by over 50% while securing growth in a leading pet tech company?

Services
Google Ads
Market
USA
Industry
Pet Tech

49.98%

increase in the client's revenue

110.77%

increase in ROAS

58.41%

decrease in CAC

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Sneak peek

How do you achieve significant revenue growth while reducing costs in a highly competitive market? This is the challenge our client, a leader in pet safety innovation, faced. Offering a premium AI-driven GPS dog fence, their product promised peace of mind for pet owners, but marketing inefficiencies and external challenges limited its full potential. Through strategic campaign restructuring, advanced attribution tools, and audience-specific messaging, we helped transform their approach.

The results? Lower costs, higher ROAS, and impressive market share growth. Here’s how we did it.

Team involved

Sasha Yasenchuk

Google Ads Strategist

Andrzej Zieliński

Google Ads Specialist

Brand overview

The client is a pioneer in pet safety innovation, offering the most accurate GPS dog fence on the market with their latest AI-driven PrecisionGPS™ technology. This product integrates real-time tracking to ensure pets stay within designated boundaries, providing pet owners with unparalleled peace of mind.

Goals

One of the goals was driving year-over-year revenue growth, with a set target of achieving at least a 20-30% increase compared to the previous year. This revenue growth was established as a top priority KPI alongside CAC (Customer Acquisition Cost) and ROAS (Return on Ad Spend).

Initially, ROAS was not strictly defined, but after further business analysis, the client set a benchmark of 4.4, meaning they needed to earn at least four times the amount spent on ads. To achieve this, we worked with bROAS (Business ROAS) rather than classic blended metrics, incorporating the business’s fixed costs into the calculation. This approach allowed us to evaluate the actual return from a profitability perspective, not just marketing performance, making it a crucial metric for assessing campaign success.

Additionally, maintaining month-over-month revenue growth was essential to ensure consistent progress. We also monitored Share of Voice (SOV) within the market to ensure the client was the leading presence in relevant search queries, further solidifying their position and maximizing visibility. These KPIs created a comprehensive framework for sustained growth and performance optimization.

Challenges

We began by launching brand awareness campaigns across platforms like YouTube and Display, which improved traffic and revenue month over month. However, proving their direct impact was challenging due to the long purchase cycle of 4-6 weeks, as conversions weren’t immediately attributed to these campaigns. To resolve this, the client adopted Northbeam, an advanced attribution platform that tracks both click- and view-based conversions, providing clearer insights into campaign performance and helping us demonstrate their effectiveness.

Additionally, we tackled seasonality issues that previous agencies had overlooked, such as overspending during low-demand months like December and underfunding campaigns in high-demand periods like March. By aligning budgets with seasonal demand, improving attribution tracking, and addressing reviews, we significantly enhanced campaign efficiency and ROI, enabling the client to navigate these challenges effectively.

Lastly, we addressed their low product ratings, which averaged around 3 stars and were mainly due to false reviews from non-buyers. While we don’t directly manage reviews, we identified this as a significant barrier to sales and recommended the client take action, which they successfully did before the peak season.

Solution

To address the client’s challenges, MTA Digital implemented a comprehensive restructuring of its digital marketing strategy and campaigns. Key steps included:

  1. Campaign restructuring:
    • We reorganized campaigns into clear categories, separating upper funnel, prospecting, remarketing, and brand activities. This allowed for more targeted and efficient ad spend.
    • One of the key improvements we implemented was optimizing the media mix by restructuring the client’s Performance Max (PMax) campaigns. Previously, they used a single PMax campaign to handle brand conversions and prospecting for new traffic.
    • When we took over, we split this into two separate campaigns, each focused on distinct goals. This adjustment made both campaigns significantly more effective, ensuring we weren’t overpaying for brand traffic or underinvesting in acquiring new users. This strategic decision was a crucial first step toward improving their advertising efforts’ overall efficiency and performance.
  2. Data analysis using third-party platforms:
    • We leveraged third-party platforms to cross-check data from various campaign types and channels, identifying the drivers of new traffic and pinpointing the most effective strategies during the consideration process.
    • This also helped us determine what closed deals at the lowest Customer Acquisition Cost (CAC) and the best ROAS.
  3. Keyword optimization:
    • Introducing and implementing new category keywords with growing trends helped increase impression share within the product category.
    • A key improvement in our campaign strategy involved segmenting keywords into distinct categories to better align with the product’s unique selling points and audience intent.
    • Previously, all keywords, such as GPS, shock collars, and electric fences, were grouped, leading to generic messaging that didn’t address the nuances of each search intent. We restructured this approach by creating three separate keyword categories.
    • The first focused on product-related keywords, like “GPS wireless dog fence,” where we could directly promote our client as the ideal solution, highlighting its GPS and Wi-Fi functionality.
    • The second category targeted keywords unrelated to the product but relevant to the category, such as “electric dog shock collars.” Here, we tailored messaging to emphasize why users should switch to the client’s products as a safer, shock-free alternative.
    • The third category focused on competitor-related keywords, ensuring the client appeared in searches for similar products, capturing users who might not yet know about the client but are familiar with competing brands.
    • This segmentation allowed us to deliver more targeted and effective ad messaging, increasing relevance and improving campaign performance.
  4. Ad copy adjustments:
    • Refining ad copies improved the quality score and reduced costs, making campaigns more cost-effective.
    • Previously, searches for some of the products were targeted with a single ad copy that generically promoted the GPS feature. However, since the product isn’t a shock-based device, this approach lacked relevance for many users.
    • With our updated campaign structure, we’ve tailored the messaging to match user intent better.
    • For searches related to GPS tracking, we emphasize the product’s advanced GPS functionality, presenting it as the ideal solution.
    • We take a different approach for searches focused on shock-based devices, encouraging users to “ditch the shock” and choose our product as a safer, superior alternative.
    • This personalized messaging ensures we address specific user needs while highlighting the product’s unique advantages.
  5. Brand awareness campaigns:
    • We launched brand awareness initiatives to attract new prospects, feeding them into other campaign types for nurturing and conversion.
    • We launched dedicated brand awareness campaigns on platforms like YouTube, Google Display, and Demand Gen (previously Discover), targeting broad audiences to drive traffic and build awareness.
    • This was followed by focused remarketing efforts to re-engage users who interacted with the initial campaigns.
    • Previously, the client’s campaigns grouped all efforts—brand, prospecting, and conversions—into a single Performance Max (PMax) campaign, leading to overspending on branded searches and underinvestment in prospecting.
    • We restructured the campaigns to separate upper-funnel brand awareness initiatives, prospecting for new customers, and conversion-focused campaigns, ensuring efficient budget allocation.
    • To optimize for new customer acquisition, we emphasized Customer Acquisition Cost (CAC) as a key KPI, shifting away from the previous agency’s focus solely on revenue, which included accessories and subscriptions that often relied on existing customers.
    • We introduced tools like Northbeam, which provided advanced attribution by tracking not only clicks but also views, helping us better measure the incremental impact of campaigns. Additionally, we used House to analyze incremental gains and adjust budgets for maximum efficiency.
    • Finally, we significantly scaled efforts on Meta, where previously, the budgets had been minimal. These campaigns educated audiences about modern solutions like wireless systems, addressing a lack of awareness and driving engagement from new users unfamiliar with the product’s unique value proposition. This integrated approach ensured a more strategic, data-driven marketing mix that balanced awareness, acquisition, and conversions.
    • To optimize performance, we adjusted budgets to align with the clear seasonality of the business.
    • After analyzing historical data from the client’s accounts, CRM, and sales records, we identified a strong seasonal trend. Despite being a product for dogs, demand peaked significantly between late February and early June, with the highest sales occurring in spring. Conversely, summer and winter (especially January and February) showed much lower activity. The fall season presented moderate demand, boosted by events like Black Friday and seasonal promotions. Additionally, insights from Google Trends confirmed these patterns, showing spikes in keyword interest that directly correlated with the client’s sales data.
    • This analysis allowed us to focus ad spend during peak demand months while reducing investment during slower periods, ensuring more efficient budget allocation and maximizing ROI.
  6. A new conversion strategy:
    • To drive growth for this single-product e-commerce business, we focused heavily on acquiring new customers and optimizing core product sales, excluding subscriptions and accessories from our primary goals.
    • We implemented a new conversion strategy centered exclusively on selling the main product, recognizing that this is not a typical e-commerce model where repeat purchases are frequent. Customers are unlikely to make multiple purchases with a high-priced item (between $700 and $990), so the key challenge was acquiring new users.
    • Once customers buy the product, they are likely to subscribe to the service (required for functionality) and purchase accessories over time, making customer acquisition the cornerstone of success.
    • To ensure profitability, we worked within the client’s CAC (Customer Acquisition Cost) KPI, targeting a maximum of $160 per new customer. This approach ensured that a customer’s lifetime value (LTV)—often exceeding $1,600 over one to two years—made the investment worthwhile.
    • While revenue and ROAS remained important, our primary focus shifted to meeting the CAC goal, laying the foundation for sustainable long-term growth.

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Results

49.98% increase in the client's revenue

110.77% increase in ROAS

58.41% decrease in CAC

The strategic overhaul yielded impressive results for the client. Comparing year-over-year (YoY) data:

  • Cost Reduction: Digital media spend was reduced by-33.96%% while the overall business marketing spend decreased by -39.60%, revenue increased by +18.97%, and items sold increased by 22.66%, while ROAS improved from 1.95 to 3.84, and CAC decreased from $332 to $163.
  • Revenue Increase: Business revenue increased by 18.97% (Google ads revenue increased by +117%), significantly boosting business ROAS from 1.95 to 3.84.
  • Lower CAC: The cost to acquire a customer dropped from $332 to $163, further enhancing profitability.

  • Category Growth: The client’s presence in the category grew by 60%.
  • These results surpassed the initial goals and positioned the client for sustained growth and success in the highly competitive pet safety market.

A report generated by Google specifically for this client

Conclusion

MTA Digital successfully revitalized the client’s digital marketing strategy through a meticulous and data-driven approach. We delivered substantial cost savings and revenue growth by focusing on clear campaign structures, precise KPI tracking, and targeted keyword and ad copy optimization. This case study exemplifies our commitment to driving measurable results and establishing our clients as industry leaders.

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