+17%
YoY Revenue Growth
+17%
YoY New Customer Rev.
+137%
YoY Contribution Margin
-22%
YoY Blended CAC
-24%
YoY Meta Ad Spend
+68%
YoY Meta ROAS (1d Click)
Madison Accessories is a South Australian fashion brand founded in 2022 by industry veterans with 20+ years of experience designing white-label bags for department stores. After years of success creating for others, the founders launched their own label, transforming from behind-the-scenes experts into independent brand innovators.
Madison Accessories achieved remarkable growth, scaling to 7-figures within just 18 months through aggressive digital advertising. However, this rapid expansion came at a significant cost—the business was acquiring customers unprofitably. Their previous agency wasn't monitoring critical metrics like acquisition MER (aMER) or new customer contribution margin, resulting in negative returns on acquisition. Their Meta Ads also suffered from poor performance due to suboptimal account structure.
While this growth-first approach successfully established their market presence, Madison recognised the need to pivot toward sustainable profitability. They partnered with Factor to transform their digital marketing strategy—balancing continued growth with profitable customer acquisition to create a sustainable business positioned for healthy, long-term success and expansion.
Solution
As always, Factor deployed our Meta Scaling System for Madison Accessories—a comprehensive triple-pronged approach combining Meta Ads, ad creative and a financial growth strategy.
Growth Strategy
First, we conducted a comprehensive analysis of Madison's financial history, examining several years of P&L data to understand their exact financial position. By determining fixed costs and analysing historical efficiency of paid media, we discovered that profitability was actually quite achievable with better management of ad spend and more strategic customer acquisition.
We implemented cohort-based forecasting to predict returning customer revenue, while using acquisition MER (aMER) modelling to forecast new customer revenue. By combining these approaches, we established data-driven growth targets that maximised profitability, with clear spend guidelines for each month, week, and day. Our daily profit tracking dashboard provided real-time visibility into all critical metrics, allowing both our team and Madison to monitor daily progress toward forecasted targets—eliminating end-of-month surprises when closing the books.
Meta Ads
Next, we completely restructured Madison's Meta Ads account, implementing our best-practice approach. We created product-led campaigns for each of Madison's bestselling SKUs, switched to click-based attribution (7-day click instead of mixed view-through), and implemented strict profit-focused cost controls that allowed Meta's algorithm to optimize spend based on real-time demand fluctuations.
This fundamental restructuring aligned with Meta's own best practices—approaches their previous agency had overlooked—and immediately improved performance. By focusing on incremental customer acquisition rather than inflated view-through metrics, we ensured that every dollar spent was driving genuine business growth.
Ad Creative
With the foundations in place, we focused entirely on what truly moves the needle: ad creative. While our growth and Meta fundamentals were necessary foundations, creative ultimately determines success. We produced a high volume of diverse, conversion-focused assets, systematically testing all styles and leaving nothing to chance in our pursuit of winning creative combinations.
Studio Ad Creative
First, we leveraged Madison's extensive product photography library, applying our creative playbook to generate hundreds of iterations from existing assets. This approach often reveals significant untapped potential, as brands rarely test their imagery in multiple formats. By transforming their photos into product shots, collages, slideshows, and grid layouts, we maximized the value of every asset. This methodical repurposing quickly uncovered several winning ad combinations without requiring new production.
UGC Ad Creative
Next, we conducted thorough research into Madison's bestsellers, analyzing customer feedback to identify their most compelling features. These insights informed conversion-focused UGC briefs highlighting the exact elements customers value most—a research-backed approach that consistently delivers results. We defined Madison's customer persona and engaged creators from our network who matched this profile. By managing the entire production process—from briefing and scouting to production and editing—we developed a robust library of authentic UGC assets. When launched on Meta, these research-driven creatives quickly produced additional winning ads, further improving campaign performance.
Elevated Native Ad Creative
Lastly, we introduced our "Elevated Native" creative format by partnering with a very talented creator. This concept strikes the perfect balance—shot on iPhone to maintain authenticity in social feeds, but with elevated production quality beyond standard UGC. Few brands or agencies employ this style because it's more difficult to produce, but for physical products like fashion accessories, visual presentation is paramount. Elevated Native showcases Madison's products in the most aesthetically appealing way possible while maintaining the authenticity of native content. This strategy uncovered additional winning ad concepts, further improving Madison's campaign performance.
Results
+17%
YoY Revenue Growth
+17%
YoY New Customer Rev.
+137%
YoY Contribution Margin
-22%
YoY Blended CAC
-24%
YoY Meta Ad Spend
+68%
YoY Meta ROAS (1d Click)
The results were immediate and dramatic. In the quarter following Madison Accessories' engagement with Factor, we delivered impressive growth alongside extraordinary profitability improvements. These figures tell a powerful story: we maintained Madison's growth trajectory while transforming their bottom line. The dramatic 137% increase in contribution margin demonstrates how significantly unprofitable their previous approach had been.
Even more revealing was our ability to drive these improvements while actually reducing advertising costs. By implementing our best-practice Meta Ads approach—product-led campaigns, click-based attribution, profit-focused cost controls—and testing hundreds of creative variations, we dramatically improved efficiency. Our high-volume creative testing strategy was crucial in achieving these results, allowing Madison to acquire more customers and generate more revenue while spending significantly less on advertising.
The integrated approach of our Meta Scaling System eliminated the guesswork typically associated with scaling, replacing it with a proven framework that transformed Madison's marketing from growth-at-all-costs to profitable, sustainable scale. Madison Accessories is now set up for long-term success — growing profitably, predictably, and without the chaos of unprofitability.
