An established 8-figure DTC brand came to LuckyRev at the end of Q1 2024 with over 40% of their Google Ads budget going to brand search, a channel they believed was driving strong returns.
This established 8-figure DTC brand had invested heavily in Google Ads, with over 40% of their budget dedicated to brand search. In-platform, it looked like their best-performing channel, with a 24.7x ROAS.
But LuckyRev's team had a hypothesis: was brand search actually converting incrementally, or was it capturing demand that would have converted organically anyway, cannibalizing free traffic and inflating reported ROAS?
The brand's Google Ads platform showed an impressive 24.7x ROAS on brand search. But LuckyRev hypothesized this was largely capturing demand that would have converted organically, cannibalizing free traffic and inflating reported ROAS without driving real incremental revenue.
A significant share of search budget was capturing demand that would have converted organically, inflating ROAS while limiting true incremental growth.
Strong reported ROAS across channels gave a false sense of confidence, obscuring the channels that were actually moving the needle.
Without a Media Mix Model, there was no way to know which spend was truly driving revenue vs. taking credit for it.
LuckyRev's data science team ran their proprietary Media Mix Model to determine the true incremental contribution of brand search. The MMM revealed a Q1 median ROI of 8.5, far below what the platform reported, then systematically reduced brand search spend and reallocated to net-new customer growth.
Ran LuckyMMM to determine the true incremental value of brand search vs. organic conversion capture.
LuckyMMMReduced brand CPC and overall brand search share of wallet in a controlled test environment.
Google AdsShifted spend to non-brand campaigns targeting new customers with genuine incremental intent.
Google AdsMMM ROI improved from 8.5 to 14.7 in Q2, confirming the strategy and validating the model.
AnalyticsHere's what LuckyRev delivered for 8-Figure DTC Brand, in numbers that matter.
Brands often don't take a deep look into the question of "how important really is brand search for our business?" Plenty of agencies will simply say "you need to max out brand budget for brand defense" without a deeper analysis. But the need for brand investment varies significantly depending on retailer, competitor presence, and budget. Further come the questions of how much am I willing to spend on branded clicks and overall brand budget? LuckyMMM has helped tremendously in determining the right costs and percentage of total ad budget to allocate to brand campaigns on a business-by-business basis.
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Rebuilt acquisition strategy with data-backed creative, UGC sourcing, and new customer nCPA focus.
In-platform ROAS was misleading. LuckyMMM isolated true incremental contribution and right-sized the budget.
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