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Challenge
Ceiling on scaling and ineffective advertising
The Sneaker Store sought to scale through paid ads, but met a plateau at a certain amount of spend so that when they scale spend, the CAC increases, and then they are status quo again. Their marketing was primarily focused on low-funnel customers, which limited scaling opportunities and meant they struggled to penetrate to a wider market.
Additionally, their Google Ads strategy was inefficient and lacked the synergy between platforms, causing too much of the budget to be spent on branded searches instead of driving growth through new customers. Finally, their product feeds were not optimized, hampering Google Shopping performance and making it difficult to target the right products to potential customers.
Solution
The strategy was divided into three phases:
1. In-depth market research and onboarding
First, the market was analyzed in depth through onboarding and market research. This included a mapping of customer avatars, their buying behaviour and motivations, which formed the basis for an optimised marketing approach.
2. Optimization of paid social funnel
Paid social-funnel was redesigned, where marketing was adapted to a wider audience through creatives, copy optimization and the introduction of a scalable starter kit offering. This ensured a higher perceived value for the customer, without The Sneaker Store having to provide discounts that would reduce their coverage contribution. The media mix extended to TikTok Ads, which leveraged organic traction for paid advertising and created a more diversified and less risky traffic structure.
3. Restructuring Google Ads for maximum profit
The Google Ads strategy was completely restructured. This included improved product feed structure, use of GTIN for better product matching, splitting products into segments based on margin, and excluding branded searches to ensure the ad budget was spent more efficiently.
In addition, a proactive reporting system was established, with The Sneaker Store now having full insight into how their ad budget is being spent and where profits are being generated. Optimizations of Google Shopping ads have resulted in a more strategic exploitation of seasonal trends, increasing their competitiveness on popular sneaker models.
Solution
Significant growth and international expansion
The Sneaker Store has experienced more than 100% YOY growth for two years in a row. Paid social spend has scaled by over 2000%, while the average CAC has decreased. Google Ads now generates significantly higher profits with a lower wasteful budget, and impressions and click-through rates have improved significantly.
The new approach to Google Shopping has led to a sharp increase in traffic and conversions, as product feeds are now optimized for maximum performance. By implementing a scalable marketing setup, The Sneaker Store has gone from being a Danish e-commerce company to now expanding internationally, where they are already successful in the Swedish market.
The strategy has not only increased revenue, but also reduced reliance on individual platforms, creating a more stable and predictable growth journey. The Sneaker Store is today positioned as one of the leading sneakershops in the Nordic region and has created a strong foundation for continued expansion throughout Europe
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