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How Generate Agency made paid ads profitable for Ella & I, achieving 3.51x blended ROAS at scale
Ella & I is a UK gel wax melt brand with strong product-market fit but tight margins that made paid media difficult to scale profitably. Generate Agency rebuilt Meta and Google Ads around strict breakeven economics, introduced high-intent Google search campaigns, and refined Meta creative strategy, delivering 3.51x blended ROAS and consistent profitability across both channels.
OUR RESULTS
THE PROBLEM
Ella & I had a strong product and loyal customer base, but paid advertising was operating within extremely tight margin constraints. At 35% margin and low AOV, the breakeven ROAS of 2.86x left very little room for inefficiency. The existing setup lacked the precision needed to consistently stay above that threshold, making profitability fragile and scale limited.
WHAT WE DID
1. Rebuilt campaigns around breakeven economics
We structured Meta and Google Ads around the 2.86x breakeven ROAS and maximum CPA, ensuring every decision was filtered through profitability constraints before scaling.
2. Meta creative focused on product differentiation
We shifted creative away from generic scent-led content and highlighted the functional advantage of gel wax melts, including clean removal, longer burn time and mess-free swapping.
3. Google Ads built on high-intent search demand
We targeted specific, purchase-ready searches such as gel wax melts and mess-free wax melts to capture users already in buying mode.
4. Tight CPA and margin control
We actively managed CPA through creative rotation and audience control to prevent efficiency drift and maintain profitability as spend scaled.
THE RESULTS
Profitability and efficiency
- 3.51x blended ROAS against 2.86x breakeven
- 19% CPA below maximum profitable ceiling
- Profitability maintained consistently across the tracked period
Meta performance
- 4.35x Shopify ROAS on Meta Ads
- 664 purchases generated through paid social
- 47 average daily purchases at stable efficiency
Google performance
- 18.32x Shopify ROAS from high-intent search traffic
- Consistent performance across tracked period
- Best-performing days exceeded 25x ROAS
Business impact
- Paid ads transitioned from fragile to structurally profitable
- Consistent acquisition achieved across both Meta and Google
- Stable scaling achieved within strict margin constraints
FAQs
Why is low AOV difficult for paid ads?
Because small margins leave very little room for acquisition cost error. Even small CPA increases can push campaigns into loss-making territory.
How do you make Meta Ads profitable in low-margin categories?
By improving conversion rate through creative that clearly communicates product differentiation and tightly controlling CPA through structured optimisation.
Why did Google Ads perform so strongly?
Because it captured high-intent searches from users already looking for gel wax melt products, resulting in higher conversion rates and lower acquisition costs.
What is breakeven ROAS and why does it matter here?
Breakeven ROAS is the point where ad spend equals gross profit. For Ella and I, 2.86x is the minimum required just to avoid loss.
Can low-AOV products scale with paid advertising?
Yes, but only with strict control over CPA, high-converting creative, and channels that capture both intent and efficiency.
READY FOR PREDICTABLE, PROFITABLE GROWTH?
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