Case Study
Cart.com and Lovisa Reclaim Brand Spend to Drive 387% YoY Revenue Growth
Facing a volatile holiday season, the global jewelry retailer leveraged Revvim’s AdAi to convert defensive waste into a high-impact growth budget, securing revenue gains in the UK and neutralizing market inflation in Australia.
- Company: Lovisa
- Challenge: To drive aggressive growth during the critical holiday season, Lovisa needed to fund upper-funnel demand without sacrificing bottom-line efficiency amid rising market costs.
- Solution: Revvim AdAi
Objectives:
- Reduce Ad Cost
- Maintain Ad Performance
- Create Growth Budget
Challenge: Financing a Full-Funnel Strategy in Q4
For Lovisa and their agency partner, Cart.com, the fourth quarter represents the defining sales period of the year. The strategy was clear: generate new demand via upper-funnel video investment and capture it via high-intent search.
However, executing this dual strategy required countering rising auction costs:
- Budget Constraints (UK): To fund the awareness layer on YouTube, the team needed to unlock liquidity from their existing search budget. Paying a premium for uncontested brand clicks – the brand tax – was an inefficiency they could not afford.
- Market Volatility (Australia): The Australian market faced intense seasonal pressure. Competitor activity and holiday demand were driving account-wide costs up by 33%, threatening to erode margins if left unchecked.
Cart.com required a solution that could act as both a funding mechanism for the UK and a cost-control safeguard for Australia.
Results
- 387% Increase in YoY Revenue on Brand Terms (UK)
- 42% Decrease in CPC’s during peak months (UK)
- 205% Increase in ROAS for branded search campaigns (AU)
- Maintained flat Brand CPCs despite a 33% market-wide cost surge (AU)
Solution: Intelligent Allocation and Defense
Cart.com deployed Revvim’s AdAi to inject patented, near real-time intelligence into Lovisa’s search operations. By continuously monitoring auctions for competitor signals, the team executed a market-specific strategy:
- The Funding Mechanism (UK): In the UK, AdAi identified moments of zero competition and automatically optimized bids to the floor. This reduced Lovisa’s investment in defensive search by 41%. Instead of banking the savings, Cart.com reallocated this capital into a targeted YouTube views campaign. This investment generated a 24% lift in Brand Search Impressions, creating a surge of new demand that Revvim then captured at the lower, optimized cost basis.
- The Inflation Shield (Australia): In Australia, AdAi served a defensive role. While external factors drove account-wide CPCs up by 33%, Revvim’s near real-time bidding countered this inflation. The system ensured Lovisa paid only the minimum required to win, keeping branded search CPCs flat year-over-year despite the aggressive market conditions.
Cart.com - "Revvim gave us the operational leverage we needed. By automating the efficiency on branded search, we were able to shift our focus and our budget toward growth initiatives. We turned what could have been a defensive quarter into a period of significant revenue expansion."
Results: Immediate Revenue Impact
The alignment between Cart.com’s strategy and Revvim’s automation delivered exceptional performance across both regions for Lovisa.
Driving Profitable Scale in the UK
The reallocation of defensive spend into upper-funnel awareness created a virtuous cycle of growth.
- Revenue from brand terms grew 387% YoY during Nov-Dec.
- Account-wide ROAS jumped 234% YoY, moving from 3.8 to 12.8.
- These gains were achieved while securing a 42% reduction in brand CPCs.
Protecting Margins in Australia
While the broader market saw costs rise, Lovisa maintained strict efficiency.
- AdAi successfully shielded the brand from the 33% cost increase seen elsewhere in the account.
- This discipline drove a 205% increase in ROAS for branded search campaigns, achieving a blended ROAS of 21.9.
Lovisa - "Q4 is always a battle for attention. We didn't want to just defend our position; we wanted to expand it. The challenge was finding the budget to aggressively test new channels like YouTube without blowing out our CPA or losing ground on our core search profitability."
Conclusion: Smart Capital Deployment
The partnership between Lovisa, Cart.com, and Revvim proves that efficiency is the foundation of scale. By utilizing AdAi to eliminate waste in the search auction, Cart.com secured the capital needed to fund new demand, turning a standard operational cost into a strategic growth asset.