The brand in this case study preferred to stay anonymous. However, this means that we'll be able to disclose the actual numbers from the study. Here, we look at the effects of StrainBrain Boosts for this brand in a two-location retail chain.
The brand was part of our pilot trials for Sponsored Boosts, a new tool for cannabis brands to advertise effectively and compliantly. Using Sponsored Boosts, our AI Budtender recommends a brand's products more often to relevant consumers. Think "Google Search Ads" but for cannabis.
The brand's goal was singular:
Boost revenue in a cost-effective way
Getting set up on the dashboard took all of 5 minutes, at which point the brand was able to create their Boost campaign. All they needed to do was enter basic details, a budget, and choose the locations to boost at.
Location selection is very important, since the retailer will receive a significant chunk (up to 50%) of the money that you spend on the platform. This presents an opportunity to strengthen key relationships with retailers you want to cozy up with. Alternatively, you can enter the "choose the highest ROI spots" and your ROAS will be maximized, but no one retailer will get all of the rev-share.
To measure the results, we compared three periods: 1. The 11-week period before boosting 2. the 11-week Boosting period 3. the 8-week period after stopping boosting.
Note: the reason for looking at the post-boost period is to confirm that sales return to baseline after stopping boosting. This is done to mitigate external factors and to establish a causality between boosts and sales.
We saw a massive 166% increase in daily sales during the boost period, which fell back to near-baseline after boosting was ended. Over the 11-week Boost period, we generated an additional $24,871 in sales for the brand, just at two locations.
The brand was catapulted up to be a best-seller, representing a huge relative boost compared to other brands. During the 11-week pre-boost period, the brand was the 9th best performing flower brand at this retailer, which jumped up to #4 during the Boost period, then fell back again afterwards. Similarly, this was the best 11-week period for this brand on record.
If this weren't a pilot study, the brand would have had to pay ~$2,049 for these results, resulting in a 12.1x ROAS.
Note that up to 50% of this money — $1,024 — would have gone to the retailer hosting the advertisements. This can help foster a closer relationship with the retailer, which is also very important and can lead to bigger re-orders.
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