About the project:
An online store that sells seeds for growing cannabis at home or in the yard. Delivery is available worldwide to countries where growing cannabis at home is officially permitted. The store owner and marketing director were frustrated that advertising campaigns on Facebook were constantly being rejected and they had to launch “veiled” creatives that either did not generate any purchases at all or generated purchases at an astronomical price of $200-$250 per purchase. The domain was blacklisted by Meta, so it was impossible to install the Facebook pixel, and all advertising campaigns were launched either for the “Traffic” target or for the WhatsApp message target, which did not allow for any optimization for purchases.

The advertising budget for 9 months of work amounted to $155,760

Advertising campaign goals:

• Launch cannabis seed advertising bypassing Meta moderation
• Install Facebook pixel bypassing moderation to collect accurate purchase information
• Scale advertising campaigns to maximize profits and new customers

Stages of advertising campaign implementation:

Stage 1: Creation and launch of unique advertisements bypassing Meta moderation

We have extensive experience in launching advertising campaigns for cannabis-related businesses. We understand which advertising creative formats can deliver maximum results. We have created several ad formats that showcase the product itself and highlight its advantages.

You can see examples of creatives below

Step 2. Installing the Facebook pixel to bypass moderation

This is the most important step in the entire advertising setup process. It is the pixel that helps Meta's algorithms select the target audience and collect information only about those who have paid for an order on the website. In the future, we will also use this information to create LaL audiences in the advertising account.

In simple terms, we set up data transmission not directly from the website, but from its server, and this is done in such a way that Facebook simply cannot see which domain the data is coming from. This also allows you to see the net profit from advertising directly in the advertising account, as you have access to the “Purchase Conversion Value” metric, which you can use to create various calculation formulas directly in the advertising account.

After this stage, your business becomes virtually “white” for moderation, the ads with the materials you want to launch are launched, and the target actions of people on the site are collected. All that remains is to use these tools correctly and start scaling your advertising campaigns competently.

Stage 3. Scaling advertising campaigns

At the beginning of our collaboration, our target metric for evaluating advertising effectiveness was net profit, calculated using the following formula:

Purchase conversion value * (Gross profit / Net profit (gross profit - shipping, taxes, packaging, etc.)) - advertising costs

We had information about gross and net profit indicators for each country, and we started running ads based on net profit for each country. After two months, we analyzed the quality of advertising traffic from Facebook and concluded that 95% of orders that came from us were from new customers, and that it was unreasonable to focus on the amount of the customer's first order for scaling, as it is not very large for the first purchase. Therefore, we concluded that for better scaling, it was necessary to focus on the purchase price and start capturing the overall market share. The calculation of the acceptable purchase price was carried out with the campaign's finance department and included the calculation of the LTV of each new customer from each country.

After that, we proceeded to further scale up advertising campaigns and attract new customers.

Below you can see the results for some countries.

Advertising campaign results:

Over the course of nine months of cooperation, we spent $155,763 of the advertising budget. With this budget, we received 3,951 purchases with an average purchase price of $39.42. The total value of purchases is $251,056, but we cannot disclose the net profit figures due to an NDA agreement.

Our cooperation continues and the results are constantly improving, which allows us to invest even more advertising budget.

If you also want to launch advertising for your project, write to us in our messengers to discuss your project.