The direct-to-consumer (DTC) path has always been built on aggressive spending on Meta, with the expectation of quick conversions. However, as the cost of digital advertising rises and its effectiveness declines, Ruggable, the well-known washable rug brand, is changing the game, demonstrating how a shift in strategy to ShopMy creators has exploded sales.
Ruggable Reconsiders Ad Budgets: From Meta to Influencers
“We’ve been focused on changing the strategy for the last 18 months. The classic phrase: what got us here won’t get us there,” said Lauren Sherman-Caud, Ruggable’s Chief Marketing and Creative Officer.
Since last August, Ruggable has redirected approximately 10% of its total advertising budget from performance marketing channels like Meta to brand channels, including influencers and connected TV. Next year, the brand plans to increase these expenditures by another 15-20%. Sherman-Caud declined to disclose the specific marketing budget amount.
ShopMy: A New Conversion Engine
“We no longer need to show up in lower-funnel affiliate networks when ShopMy works so well as a conversion channel for us,” emphasized Sherman-Caud. Previously, influencer marketing was managed by a small team handling direct messages and spreadsheets. Now, only one person handles it, and the freed-up overhead has been reallocated to Ruggable’s marketing mix.
“Working directly with creators through ShopMy, Ruggable’s media effectiveness surpassed traditional advertising and even TikTok as a conversion channel,” noted Sherman-Caud.
The brand recorded approximately $3 million in revenue in the first month of its partnership with ShopMy. This figure doubled in the second month and tripled in the third. Influencer marketing efforts began last holiday season. Ruggable took over a million dollars from its performance budget, specifically from Meta, and invested these funds in ShopMy creators.
Dual Strategy for Working with Creators
The washable rug brand Ruggable has a two-pronged approach to creator marketing strategy:
- Affiliate marketers: for scaling and conversion.
Through ShopMy, Ruggable works with hundreds of creators, mostly as affiliates. The brand sets parameters regarding post format, content volume, and the product being promoted. Otherwise, Sherman-Caud says, “we let them do their thing.”
On the brand ambassador side, creators act as representatives, creating an “aura for the brand.” The DTC company collaborates with notable personalities such as culinary expert Dan Pelosi and media company Spread the Jelly. “It’s kind of a sandwich approach,” Sherman-Caud explains. “We have huge investments [in brand marketing], and then we use ShopMy to replace some of the less effective affiliate channels.”
The Future of Influencer Marketing and Ruggable’s IPO
According to Noah Eismann, Global Executive Director of Creators and Influencers at VML, Ruggable may be ahead of its time. However, more brands are starting to view their creator strategies more holistically. “People are just discovering the effectiveness and starting to wake up,” Eismann said.
Ruggable plans to go public within the next three years, making brand awareness a critical part of its marketing strategy. Ruggable is in the early stages of developing an internal ambassador program to build long-term relationships with interior designers and other related creators. According to Eismann, it’s a matter of maturity. Initially, influencers were part of a PR strategy. Now, brands combine performance marketing with affiliate creators, increasing brand awareness without sacrificing sales and conversions.
“It’s not a bifurcated approach,” Eismann believes. “They’re just thinking about their strategy holistically and understanding that there are different levers, tactics, and scales that can be used in accordance with the business goals they set for themselves.”
Frequently Asked Questions
What is content repurposing?
Content repurposing is the process of transforming existing content into new formats or for other platforms. For example, turning a webinar into 50 short videos for TikTok, Shorts, and Reels. This allows for content scaling, bypassing ad bans by creating unique creative variations, and adapting them for different social networks, which reduces costs compared to creating new content from scratch. Learn more about repurposing.
How Ruggable Uses ShopMy for Conversion?
Ruggable uses ShopMy to directly collaborate with hundreds of creators who act as affiliate marketers. This allows the brand to generate significant sales and conversions, utilizing influencers as an effective sales channel that has surpassed even traditional advertising and TikTok.
Why is Ruggable Ditching Meta for Influencers?
Ruggable is re-evaluating its strategy due to the rising cost of digital advertising and its declining effectiveness. Influencer marketing through platforms like ShopMy has shown significantly better ROI and has become a more effective conversion channel than traditional performance channels like Meta.
What is Ruggable’s “Sandwich Approach” to Marketing?
Ruggable’s “sandwich approach” involves massive investments in brand marketing (e.g., through brand ambassadors and large campaigns) combined with the use of ShopMy to replace less effective affiliate channels. This allows the brand to simultaneously build awareness and generate direct sales.
What are Ruggable’s Future Plans for Influencer Marketing?
Ruggable plans to develop an internal brand ambassador program for long-term collaboration with interior designers and other creators. This aims to strengthen community relationships and further increase brand awareness in anticipation of a potential IPO.
Conclusion
Ruggable’s experience demonstrates that content repurposing and strategic reallocation of advertising budgets towards influencer marketing can be a powerful growth driver. Abandoning outdated models and focusing on content multiplication through ShopMy creators has allowed the brand not only to significantly increase revenue but also to strengthen its market position. Consider how your brand can outsmart algorithms and repackage its content “matrix” for maximum effectiveness. Contact us to learn how we can help you with content uniqueness!