Scaling Revenue For Magic Story Over 800% Quarter-Over-Quarter
Understanding and Testing Customer Motivations
Our creative approach involved testing various messages across a spectrum of potential purchase motivators. We first build out micro personas (sentimental grandparent gifters, milestone celebrating aunts/uncles, educating parent who wants to teach their child respect, etc). Then, we tested different angles targeting each avatar: hyper-specific pain points that would resonate with the customer.
We quickly identified certain angles that worked: from a visual perspective, a consistent theme in our top-performing ads was a "hook" showing the child's face alongside their AI-generated storybook. From a messaging perspective, we saw that holiday gifting targeting grandparents was a massive winning angle. Parents resonated more with educational angles related to how the book could teach their child lessons like respect, or help their child face fears like monsters or the dark.
Maximizing Revenue During Black Friday
As this would be the brand's first ever Black Friday, we could not rely on historical data to determine what sort of sales bump they would see for the weekend, or when the elevated demand for holiday gifting would die down.
To address this, we aimed to scale as much as possible before the holiday shipping deadline (roughly December 15th) elapsed. Additionally, we put the majority of our incremental budget into a dedicated Black Friday campaign, so that we could easily scale it up and down without sending our evergreen campaigns back into the learning phase. This proved to be an effective combination: our evergreen campaigns, because of their historical learnings and built-up social proof, were extremely efficient during the BFCM weekend, while our dedicated sale campaign allowed us to quickly scale up, pausing at the end of the weekend to ensure efficiency.
Results
We were able to scale incremental revenue by more than 800% in a 60-day period during BFCM and the holiday gifting window, while bringing Cost Per Subscriber down by roughly 60% during the same time period. More than 200 ads were launched during this time, and this elevated creative velocity helped us to quickly gain the creative learnings necessary to scale Magic Story quickly. A great product always makes a marketer's job easier, and Magic Story's unique take on storybooks did exactly that!
