Published on

January 24, 2024

Case Study

LA/VIE Client ROAS Skyrocket with Custom Ad Creative Predictive Model

Learn how LA/VIE, a media buying group, uses Akkio's predictive models to optimize ROAS and achieve better results for their clients.
Sydney Walz
Product Marketing Manager
Case Study

The Old Approach

LA/VIE had to separately test each advertising element to ensure accuracy. This lengthy and laborious process meant that confirming their strategies and refining their ads took several weeks for each platform.

The AI-Optimized Approach

Akkio’s ad creative predictive model saves LA/VIE time via aggregate data analysis and provides suggested creative optimizations to drive an increase in ROAS in minutes.

  • 247% increase in revenue 
  • 208% Increase in return on ad spend (ROAS)
  • 2x increase in revenue per client

The Challenge

LA/VIE is a digital marketing consultancy founded by marketers based in Los Angeles and Vienna. They believe that the status quo digital marketing agency model is no longer effective. Most agencies improperly invest their marketing budgets, campaigns are often scaled inefficiently, and creatives are optimized poorly. To complicate matters further, Magna predicted that the current market climate will likely cause global advertising spend to slow in 2024. With spend slowing and customer expectations growing, the market is shifting. Digital agencies must be able to offer their clients a higher return on investment while spending less. Given these pressures, LA/VIE knows that they must capture target audiences' attention better than competing brands at scale. 

There is a science behind winning digital attention to scale ad accounts rapidly and drive a meaningful Return On Ad Spend (ROAS). LA/VIE has lived this truth for some time and has taken action by creating an intricate tracking system to optimize creative campaigns for a book of business totaling more than $250M in ad spend. This system encompasses categorizing and cataloging ad and landing page creative components in painstaking detail within a collection of Google Sheets. Tracking occurs across multiple ad platforms and many promotion variations, which takes considerable time to A/B test when testing one variant per variable at a time. LA/VIE needed a quicker way to analyze vast amounts of promotional category A/B test data across multiple ad platforms without needing to increase ad spend.

The Solution

When Peter Delle, Co-Founder of LA/VIE, came across Akkio, the potential added value of generative business intelligence was apparent from the start: "Akkio's fast data manipulation, easy reporting, and readily available insights let my team build systems to optimize creative to drive higher ROAS and improve client communications."  

After LA/VIE connected their campaign performance to Akkio, they were able to create a machine learning model to predict the performance of an ad. The model estimates the ROAS based on the historical performance of each creative component. Akkio’s model ingested trackable creative components from the previously connected .CSV file such as ad body, promo type, creative title, and internal LA/VIE ROAS performance data to generate the predictive model. With the model complete, LA/VIE was able to make data optimization decisions at an aggregated level for the first time. 

With Akkio, they no longer needed to wait for individual ad variants to reach a point of statistical confidence. Instead, they now could make decisions based on the trends in terms of ROAS performance, cutting low-performing variables based on the cumulative results. As a result, the team collected learnings and optimizations more quickly, which drove business results for clients in record time.

 “One of our larger clients had never hit their ROAS targets before working with us. We had made improvements prior to Akkio, but implementing this AI strategy was the key factor in getting that account to a place of profitability and ultimately scale." - Peter Delle

Without changing ad spend, the predictive model highlighted which creative elements would most likely increase ROAS. Akkio rated each body copy variation by their likely contribution to ROAS. These insights made it easier to make creative decisions that are normally subjective. This new layer of insight allowed Peter and his team to predict the combination of creative elements that would be most likely to drive the highest return on investment. 

One such surprising insight for a collectible coin e-commerce client found ad copy focusing on "fate and flipping the coin" outperformed other standard types of ad copy. Inspired by this insight, the team moved more ad spending behind this content type to increase ROAS without having to increase ad spending. AI surfaced insights were instrumental in crafting LA/VIE’s creative ad content strategy:

"We were surprised by the variables Akkio identified as playing a greater predictive role in driving ROAS than the ones in our plans. This has improved the quality of our team's campaign strategies." 

The Impact

Once LA/VIE started using AI to model key outcomes, they were able to double their impact with their clients - which drove additional ad spend. Before, they worked with most clients, even e-commerce or fashion brands, who didn't spend enough on ads or stay under LA/VIE's stewardship as clients. By optimizing their book of business, they doubled the revenue produced for each client. 

Thanks to Akkio, LA/VIE has amplified the effectiveness of its data-driven creative brainstorming process. They’ve found a way to fix the issue of creative testing at scale. By being early adopters of AI, they have positioned themselves as a formidable force within the digital marketing ecosystem—enhancing their competitiveness and helping them win more deals.

As Peter summarizes: 

"AI-driven technologies are evolving and scaling faster than digital marketing companies are. The marketing firms that thrive and survive in years to come will be the ones that operationalize the use of these technologies now. We've built an AI technology stack on Akkio that allows us to learn from our decades of cumulative campaign management experience and accelerate results."

With our recipe, learn how to replicate the success of LA/VIE using your own data in Akkio to increase ROAS by up to 208%. Start for free today - no credit card required.

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