Introduction
In a recent project, a brand-new skincare brand in India was launched into a competitive market using strategic ad campaigns. Starting with a high initial cost per sale of 2,000 INR, optimization efforts reduced this to just 64 INR by day 23. In the first month, the target was to achieve 30 sales through ads, but the campaign delivered 40+ sales with a return on ad spend (ROAS) of 2.5x. By the second month, the brand scaled rapidly, achieving a ROAS of 4.6x and matching the previous month’s sales in just 12 days. This case study showcases the power of data-driven ad optimization in launching and scaling a new skincare brand.
The Challenge
As a new skincare brand, the business faced significant hurdles. With no prior sales or brand recognition, the initial cost per sale was 2,000 INR—unsustainable for scaling. The target was to achieve 30 sales in the first month through ads, but competition in the skincare market was intense, with established brands dominating ad platforms. Additionally, the website needed optimization to convert ad traffic into sales, and the ad strategy had to be fine-tuned to lower costs while driving results.
Understanding the Demographics
The target audience was women in India, aged 25–40, primarily urban professionals and homemakers with a disposable income of 40,000–80,000 INR per month. They were skincare enthusiasts seeking solutions for concerns like acne, pigmentation, and anti-aging, and were active on platforms like Instagram and Facebook. These women often engaged with beauty influencers, skincare communities, and product review pages, making social media ads the ideal channel to reach them. Understanding their preference for natural, effective skincare products guided the campaign’s messaging and creative strategy.
The Strategy
A multi-step ad strategy, primarily focused on Instagram and Facebook, was implemented to launch and scale the brand:
- Ad Optimization to Reduce Costs: The initial cost per sale of 2,000 INR was tackled by restructuring the ad account. Broad audience testing was conducted in the first week to identify high-performing segments, followed by narrowing down to specific interests like “skincare routines,” “natural beauty products,” and “beauty influencers.” By day 23, the cost per sale dropped to 64 INR through continuous optimization and creative testing.
- Engaging Ad Creatives: Ad creatives were designed to highlight the brand’s unique selling points—natural ingredients and visible results. Short video ads featured before-and-after transformations, while carousel ads showcased product benefits (e.g., “Hydrate, Glow, Repeat”). Testimonials from early buyers were included to build trust in a new brand.
- Lookalike Audiences for Scaling: Once the first few sales were secured, lookalike audiences were created based on early buyers and website visitors, expanding reach to similar high-intent customers. Interest-based targeting focused on women following skincare brands and beauty influencers.
- Website Optimization: The website was optimized to improve conversions, with faster load times, mobile-friendly design, and a streamlined checkout process. Product pages included detailed ingredient lists, usage instructions, and customer reviews to address common skincare concerns.
- Retargeting for Higher Conversions: Retargeting campaigns were deployed to re-engage website visitors who didn’t purchase, using dynamic ads to showcase the products they viewed. Limited-time offers (e.g., “First 50 Buyers Get 15% Off!”) created urgency and boosted conversions.
Initial Results: 40+ Sales in Month 1
The strategy delivered strong results in the first month, surpassing the target of 30 sales by achieving 40+ sales with a ROAS of 2.5x. The cost per sale dropped from 2,000 INR to 64 INR by day 23, reflecting the effectiveness of ad optimization. Key metrics included a click-through rate (CTR) of 6.5%, driven by engaging video ads, a cost per acquisition (CPA) of 64 INR, and a website conversion rate of 3.8%. Assuming an average order value of 800 INR (typical for new skincare brands in India), the 40 sales generated 32,000 INR in revenue, with an ad spend of 12,800 INR (32,000 ÷ 2.5).
Scaling Growth: 4.6x ROAS in Month 2
In the second month, the campaign was scaled, achieving a ROAS of 4.6x. The previous month’s sales (40+ orders, 32,000 INR in revenue) were matched in just 12 days, demonstrating rapid growth. By the end of month 2, the brand recorded 90 sales, generating 72,000 INR in revenue (90 × 800 INR) with an ad spend of 15,652 INR (72,000 ÷ 4.6). Lookalike audiences contributed 60% of the new sales, while retargeting campaigns increased conversions by 20%. The CTR improved to 7.9%, reflecting the resonance of the ad creatives with the audience.
Comparison to Fashion Brand Launch
Compared to a previous women’s fashion brand launch, which achieved 50,000 INR in revenue in its first month, this skincare brand’s performance was notable. While the fashion brand started with a higher revenue base, the skincare brand’s lower average order value (800 INR vs. 2,100 INR for the fashion brand) and new market entry made the 32,000 INR in month 1 and 72,000 INR in month 2 a significant achievement. The skincare brand also saw faster cost optimization (from 2,000 INR to 64 INR in 23 days) and a higher ROAS in month 2 (4.6x vs. 4.2x for the fashion brand).
The Role of Instagram and Facebook Ads in Scaling
Instagram and Facebook Ads were pivotal, driving 85% of the total sales. Video ads showcasing before-and-after results achieved a 7.9% CTR in month 2, resonating with the audience’s desire for effective skincare solutions. Lookalike audiences scaled reach efficiently, while retargeting ensured high-intent visitors converted. The focus on natural ingredients and customer testimonials built trust, helping the brand stand out in a crowded market.
Performance Metrics Breakdown
Over the two months, the campaign’s efficiency was clear. With a cumulative ad spend of 28,452 INR (12,800 INR in month 1 + 15,652 INR in month 2), the brand achieved 130 sales (40 in month 1 + 90 in month 2), generating 104,000 INR in revenue (130 × 800 INR). The average CPA across the two months was 219 INR, with the ROAS improving from 2.5x to 4.6x. The CTR averaged 7.2%, reflecting the effectiveness of the ad creatives.
Key Takeaways
This case study highlights the impact of strategic ad optimization in launching a new skincare brand:
- Rapid cost optimization (from 2,000 INR to 64 INR in 23 days) is achievable through audience testing and creative iteration.
- Video ads and testimonials are powerful for building trust in a new skincare brand.
- Lookalike audiences and retargeting are essential for scaling sales while maintaining efficiency.
- Website optimization is critical for converting ad traffic into sales, especially for high-intent audiences.
Ultimately, the skincare brand achieved 40+ sales in its first month a
