E-commerce Furniture: €2.8M Annual Revenue

Client Overview

A large online furniture and home goods retailer came to us with a familiar growth problem: every time they tried to increase their ad budget, cost per acquisition spiked sharply and profitability on low-margin items collapsed. Scaling spend without scaling waste required a complete rethink of how the account was structured.

Within 12 months, the account reached €2,878,684 in annual revenue on an advertising budget of €70,921 — an ad spend ratio of just 2.4% and a 4,059% ROAS, with 40% gross margin and €1,080,552 in net profit after advertising.

Strategy

• Product segmentation by profitability — custom labels in Google Merchant Center grouped products by margin, allowing aggressive bidding on high-margin items while capping spend on low-margin SKUs.
• Multi-channel campaign structure — Performance Max handled broad reach and remarketing, while dedicated Search campaigns targeted specific high-intent queries (e.g. “grey loft corner sofa”).
• Automated budget protection — a custom “Zero-Waste” script monitored underperforming products around the clock, automatically reducing bids or pausing items that stopped converting.
• Seasonal scaling — budgets increased 3-4x during peak periods (autumn, pre-holiday season), with competitor audiences built in advance to capture cheaper traffic before demand spiked.

Implementation

The Merchant Center feed was restructured around custom labels reflecting real-time profitability, not just category. This became the backbone of bid strategy: Performance Max campaigns used these labels to allocate budget toward the most profitable inventory automatically, while Search campaigns picked up long-tail, high-intent traffic that Performance Max under-served.

The Zero-Waste script ran continuously against performance data, flagging and pausing products whose cost per acquisition crossed profitability thresholds — removing the need for manual daily account checks.

Results

Metric	Result
Annual revenue	€2,878,684
Advertising budget	€70,921
Ad spend ratio	2.4%
ROAS	4,059%
Gross margin	40%
Net profit after advertising	€1,080,552

The combination of profitability-based segmentation and automated waste protection let the client scale ad spend during peak season without the cost-per-acquisition spikes that had previously capped growth.