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Hug Sleep

Hug Sleep Quadrupled Revenue in Six Months Using Facebook and Google.

91%
Increase in Total Revenue from Facebook
118%
Increase in Purchases from Facebook
200%+
Increase in Conversions from Google

The Overview

Hug Sleep, known as the “Blanket That Hugs You Back,” is the brainchild of husband / wife team, Matt and Angie. The entrepreneurial couple dreamed up Hug Sleep with a simple goal: ​​to help people sleep better. After rising to fame on ABC’s Shark Tank in 2020, the DTC brand came to MuteSix for a “responsibly aggressive” omnichannel Paid Media campaign that drove record-breaking growth in just six months.

The Strategy

Investing in Facebook to Boost Upper-Funnel Traffic

Throughout Q4 2021, Paid Social, in particular Facebook, was the main driver for Hug Sleep’s growth. Understanding the data-tracking ramifications of 2021’s iOS 14+ rollout, we took a leap of faith, trusting that there was a lot of unattributable revenue and that Facebook was driving the lion’s share of upper-funnel traffic, some of which directed shoppers to Hug Sleep’s website, Google, and Amazon. As such, we continued to scale aggressively there.

A huge part of our success was holistic reporting. Due to the data volatility in a post-iOS 14+ world, MuteSix and Hug Sleep had to get creative and collaborative when it came to data. In order to best determine where, when, and how much to scale, we “swapped” holistic data on a weekly basis, combining revenue from Facebook, Google, and Shopify. This method allowed us to be agile and aggressive with scaling the account, while hitting the client’s 3X+ blended ROAS goal during a challenging time for most brands.

Prior to working with MuteSix, Hug Sleep was running Paid Social campaigns under the direction of a different agency who struggled to churn out the conversion-boosting campaigns necessary to meet their revenue goals. The MuteSix Paid Social team determined early on that this would require them to tackle two major strategies:

1. Optimize Direct Response Creative

Prior to working with us, Hug Sleep had been using generic footage that did not fully celebrate the brand’s unique, most compelling attributes. MuteSix quickly identified the winning creative: a high-quality direct response video that used Shark Tank as the main hook, then highlighted the blanket’s key differentiators (including its reliance on compression, not weight, to hug the body, allowing for more breathability). The direct-response optimized video doubled performance for the brand practically overnight.

2. Leverage Facebook to Build a More Robust Funnel

For optimal success on Facebook, we implemented MuteSix best practices. First, we built out a more “sound” funnel, via audience testing and leveraging interest groups and broad targeting, which proved wildly successful. For acquisition targeting, we excluded all previous website visitors, past purchasers, and Facebook / Instagram engagers. Then, we turned our focus to remarketing–which had previously been put on the backburner–by targeting warmer audiences like website visitors, Email subscribers, video viewers, and Facebook / Instagram engagers, excluding past purchasers. 

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Leveraging Google & YouTube for Lower-Funnel Conversions

Because of iOS 14+, remarketing proved to be a challenge on Facebook. As more and more Apple users opted out of app tracking, there were fewer and fewer customers to target in the shrinking remarketing pools. CPMs became increasingly costly as a result, with remarketing becoming more expensive than acquisition. 

To solve for this, the MuteSix Paid Search team stepped up to the plate to clean up Hug Sleep’s middle- and lower-funnel traffic and exponentially boost conversions. 

Prior to MuteSix, Hug Sleep was running Paid Search acquisition and brand campaigns that failed to leverage proper keyword negations and lacked a focus on customer-converting lower-funnel best practices, such as remarketing-focused Display and YouTube campaigns.

In order to adequately scale the account, the MuteSix Paid Search team leaned more heavily into Shopping, Brand, and Pay-Per-Click (PPC) campaigns. After extensive A/B testing of creative and different campaign types, we were able to meet and exceed performance expectations. 

We also found success with Display and YouTube remarketing by consistently testing different videos, headlines, and descriptions in order to push the right audiences through the funnel.

The Impact

Our omnichannel strategy proved impressive because, despite iOS 14’s performance tracking ramifications, we were able to remain agile and aggressive with scaling the Hug Sleep account, while hitting the client’s 3X+ blended ROAS goal. 

This was due to our winning combination of optimized direct response creative, fluidity between Paid Social and Paid Search, full-funnel optimization, and holistic data reporting to circumvent signal loss. 

As a result of Hug Sleep’s success on Facebook and Google, Hug Sleep has since ramped up their MuteSix-led omnichannel efforts to include TikTok, Amazon, and Influencer Marketing.

The Success

By optimizing the sales funnel with Facebook and Google / YouTube, Hug Sleep was able to quadruple revenue in six months, with Q4 performance far outpacing that of Q3 across the board:

FACEBOOK

 

105%
Increase in Ad Spend
91%
Increase in Total Revenue
118%
Increase in Purchases

 

GOOGLE

 

200+%
Increase in Conversions
78%
Increase in ROAS
41%
Decrease in CPA

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