Case Study: Scaled GIP FULFILLMENT to 7-Figures Revenue

About GIP Fulfillment

GIP Fulfillment is a company specializing in import/export and warehousing services in the Southeast Asian market. Headquartered in Quezon City, Philippines, and with a team of over 150 employees, they initiated this project in 2020 but didn’t begin expanding until 2022. Our collaboration with GIP Fulfillment started in June 2022.

GIP aims to leverage Facebook Ads to reach new potential customers. Their target audience consists of businesses with substantial budgets and a need for fulfillment and logistics services in the Philippines and Vietnam.

Difficulties When Scale Up

However, during the first half of 2022, GIP Fulfillment encountered significant challenges. Primarily, the implementation of their Facebook advertising plans did not go smoothly, causing considerable frustration for the GIP team.

More specifically, despite GIP correctly implementing the Marketing Funnel strategy, and achieving some success with Traffic, Brand Awareness, Lead Generation, and Engagement campaigns, their Messages and Conversions were weak points. Consequently, the final stage of the funnel failed.

For the final stage of the funnel, GIP experimented with potential ads and identified a list of high-performing “winning ads“. However, they were unable to scale these campaigns effectively. Despite having a pre-existing list of winning ads, when they increased the budget to scale up these campaigns, Facebook rejected most of them.

During this phase, they encountered numerous restrictions from Facebook. Specifically, GIP ran Facebook Ads with 10 ad accounts, but only 2 of them functioned properly. The remaining accounts experienced issues such as:

• Unverified ad accounts: Ads were frequently rejected.
• Accounts with unclear payment information: Accounts encountered payment errors, preventing ads from running.
• New ad accounts: Accounts were suspended.

GIP’s solution at the time was to purchase and use several ad accounts with spending limits, as well as Facebook Pages, from various Facebook Account providers in the region. They used these to rerun their potential ads. However, these accounts still encountered numerous errors. They continued to face Facebook sweeps, ad rejections, and some accounts being restricted without clear reasons.

As a result, revenue and most advertising metrics were alarmingly in the red:

• Excessively high advertising costs: In January and February 2022 alone, GIP’s ad spending was $2739 (47%) and $3177 (59%), respectively.
• Consistently high CPM and CPC: CPM > $40, Average CPC ~ $11.4.
• Low conversion rates: Averaging between 0.4% and 0.7%.
• Significant decrease in impressions: Dropping by ~33% each month.
• Sharp decline in reach: Decreasing by ~47% each month.
• Low ROAS: 1.5x
• Ad Spend: $27k
• Total Revenue: $40.5k

GIP eagerly sought an agency capable of providing high-quality ad accounts. This is why they initiated a partnership with GDT Agency.

Collaboration Process And Initial Results

GDT Agency analyzed and identified the current state of the B2B model and proposed the following specific solutions to these issues:

• Low-quality accounts: GDT Agency determined that for robust growth with paid advertising, GIP Fulfillment must abandon all low-quality, unverified Facebook accounts without a spending history.
• Ineffective content: GIP’s current ad content is unstable. Despite using the Marketing Funnel strategy, GIP doesn’t fully understand this model and how to effectively apply content at each stage.
• Excessively high ad costs: GDT Agency observed that GIP’s ad costs are too high due to a lack of budget optimization and the use of domestic cards for payment. Additionally, GIP overspent on Traffic and Brand Awareness ads, neglecting the crucial task of creating conversion-focused ads.
• Incorrect optimization and measurement: While GIP understands how to measure and optimize ads, they lack a consistent approach and standardized process.

Upon deciding to collaborate with GDT Agency, GIP was prepared and confident with an average advertising budget of ~$3500 per month. We proposed the following plans and solutions:

• Guidance for GIP on using the Facebook Agency Account.
• Instruction on using the Facebook Agency Account to set up campaigns, duplicate ad sets, scale up, etc.
• Restructuring all Ad Campaigns and Ad Sets in a systematic manner.
• Guidance on effective targeting of Facebook Groups and Retargeting.
• For critical campaigns like Conversions, Messages, and Lead, GDT Agency assisted GIP with several testing and scaling steps.
• Thoroughly addressing issues with slow ad review, ad rejections, ad interruptions, etc.
• Providing detailed monthly reports and invoices to GIP.

During this phase, we worked directly with Loki Tran, the Founder of GIP Fulfillment. He shared, “In the initial stages of our collaboration with GDT Agency, we were pleasantly surprised. They didn’t just provide agency account rental services, but also enthusiastically supported us in reviewing ad content, creating detailed advertising plans, and guiding us through optimization and measurement steps.”

The Results

After one month of collaboration, we achieved promising initial results:

• GIP’s June revenue increased from $12k to over $16k: An increase of ~58.3%.
• New reach: 15k+
• Number of new orders: 8k+
• Conversion rate: ~7%
• Advertising cost: 23%

After 2 months of cooperation, GIP Fulfillment and I achieved extremely surprising results:

• 7-figure revenue: ~$1.2 million
• Average 100+ new clients per month.
• On average, 10+ large businesses place orders each month.
• Number of conversion orders: ~10k
• 12% higher conversion rate.
• Advertising costs: 26%.
• Average monthly ROAS: ~3.04
• Total Ad Spend: ~$12k
• Total Revenue: ~$40.8k

To achieve these outstanding results, GDT Agency’s team of advertising experts diligently studied and gained a deep understanding of the Philippines’ Fulfillment/Logistics market. We combined multiple strategies, from surveying and interviewing businesses with import needs to optimizing and measuring ad performance. During this phase, GIP Fulfillment also provided us with valuable resources to facilitate effective Facebook Ads. Thanks GIP Fulfillment for the wonderful journey with us!

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