7X ROAS & 41% Younger Audience Growth Through Strategic Channel Expansion

The Challenge

Chamäleon Theater Berlin, a leader in modern circus and contemporary performance art, was facing a critical growth challenge despite seemingly positive paid media metrics.

On the surface, the numbers looked good: attributed ROAS from their Google and Meta campaigns had increased by 30%. However, a deeper analysis revealed a concerning trend. While platform-attributed sales were growing, the ratio of total revenue to paid media investment was actually decreasing.

The problem became clear when we examined the bigger picture:

• Cannibalization of organic traffic: Paid media went from accounting for 50% of total sales to 67%, indicating that increased ad spend was primarily capturing customers who would have purchased anyway through organic channels
• Diminishing incrementality: Each additional euro invested in existing channels was generating less true incremental revenue
• Audience saturation: The theater wanted to attract younger audiences (25-34) but struggled to do so cost-effectively on Google and Meta
• Platform attribution limitations: Existing channels were claiming credit for conversions that weren't truly incremental
• Need for true growth: To expand the business, Chamäleon needed to reach genuinely new audiences, not just re-market to existing fans more aggressively

The Strategy

Rather than continuing to increase investment in saturated channels, I recommended a strategic channel expansion approach focused on reaching genuinely new audiences where they naturally spend time.

Why Pinterest?

Pinterest emerged as the ideal platform for several reasons:

• Demographic alignment: Pinterest's user base skews younger and is highly engaged with cultural and entertainment content
• Intent-driven platform: Users come to Pinterest actively planning experiences and activities, not just scrolling passively
• Visual storytelling: The platform's visual-first nature perfectly suited the theatrical and artistic nature of Chamäleon's performances
• Lower competition: Many entertainment venues overlook Pinterest, creating an opportunity for lower CPMs and CPAs
• Discovery mindset: Pinterest users are open to discovering new experiences, making it ideal for reaching people unfamiliar with modern circus

Strategic Approach

The strategy centered on three core principles:

• Proper measurement foundation: Ensure accurate tracking and attribution from day one
• Leverage existing data assets: Use first-party data to accelerate learning and performance
• Platform-native creative: Design content that fits naturally into the Pinterest user experience

Implementation & Key Optimizations

1. Technical Foundation: Pixel & CAPI Installation

Before launching any campaigns, I established a robust tracking infrastructure:

• Pinterest Tag installation: Implemented the Pinterest web pixel to track on-site conversions and user behavior
• Conversions API (CAPI) integration: Leveraged Chamäleon's existing server-side tracking infrastructure to send conversion data directly from the server to Pinterest, bypassing browser limitations and improving data accuracy
• Event mapping: Configured key events including page views, add to cart, initiate checkout, and purchases
• Value tracking: Ensured purchase values were accurately passed to enable ROAS optimization

This dual-tracking approach (pixel + CAPI) provided maximum data accuracy and resilience against cookie blocking and iOS privacy restrictions.

2. Audience Strategy: First-Party Data Activation

Rather than starting from scratch, we leveraged Chamäleon's existing customer data:

• Customer list upload: Uploaded hashed email lists of past ticket buyers to create custom audiences
• Lookalike audiences: Built lookalike audiences based on high-value customers to find similar users on Pinterest
• Engagement audiences: Created retargeting audiences based on website visitors and video viewers
• Exclusion lists: Excluded recent purchasers to avoid wasted spend on customers who already bought tickets

This data-driven approach allowed the campaigns to perform effectively from day one, rather than requiring weeks of learning period.

3. Creative Optimization: Visual-First Content

Pinterest requires a different creative approach than Google or Meta. I worked with Chamäleon's creative team to develop:

• Vertical video content: Adapted performance footage into 9:16 vertical videos optimized for mobile Pinterest users
• Static pins: Created visually striking images showcasing the theatrical, artistic nature of the performances
• Inspirational framing: Positioned tickets not as transactions but as experiences and date night ideas
• Platform-native aesthetic: Avoided overly promotional content in favor of aspirational, discovery-oriented creative
• Multiple formats: Tested standard pins, carousel pins, and video pins to identify optimal formats

4. Campaign Structure: AI-Optimized Approach

Launched campaigns using Pinterest's latest AI-driven campaign types:

• Performance+ campaigns: Utilized Pinterest's AI optimization to automatically distribute budget across audiences and placements
• Broad targeting: Rather than narrow demographic targeting, allowed the algorithm to find the right audiences based on behavior and intent signals
• Conversion optimization: Set campaigns to optimize for purchases rather than clicks or engagement
• Budget pacing: Started with conservative daily budgets and scaled based on performance data

Results

The Pinterest channel expansion delivered immediate and substantial results, proving the value of strategic channel diversification:

Efficiency Metrics

• 7X ROAS in the first month – Far exceeding the 3X ROAS benchmark for profitability
• 40% lower CPA compared to Meta for similar audience segments – Demonstrating the efficiency gains from reaching audiences on their preferred platform
• Immediate profitability – No extended learning period required due to strong technical and data foundation

Audience Breakthrough

• 41% of sales from users aged 25-34 – Successfully attracted the younger demographic that was difficult to reach cost-effectively on other platforms
• Incremental reach: Analysis showed minimal overlap with existing Google and Meta audiences, confirming true incremental growth
• New customer acquisition: Majority of Pinterest conversions came from first-time ticket buyers

Business Impact

• Improved overall media efficiency ratio (MER): Total revenue to total ad spend ratio improved as Pinterest brought truly incremental sales without cannibalizing organic
• Diversified revenue sources: Reduced dependency on any single platform, improving marketing resilience
• Audience expansion: Successfully reached and converted a younger demographic, expanding the theater's customer base

Key Takeaways

This project reinforced critical lessons about channel strategy and incremental growth:

• Channel strategy is key to growth: Understanding where bottlenecks exist in your media mix by analyzing incrementality and MER (not just platform-attributed ROAS) leads to better strategic decisions. Sometimes the answer isn't to spend more on existing channels, but to find new ones.
• Don't force channels to fit audiences: Trying to "force" a channel to appeal to a specific audience can be inefficient and expensive. Instead, utilizing broad targeting on platforms where your desired audience naturally spends time – combined with creative designed to resonate with them – can achieve incremental growth without sacrificing efficiency.
• Data strategy enables rapid scaling: Brands with existing first-party data and server-side tracking infrastructure can achieve immediate results in new channels. The combination of CAPI and customer data upload eliminated the typical learning period and drove profitability from day one.
• Platform attribution can be misleading: An increase in attributed ROAS doesn't always mean business growth. Looking at total revenue relative to total ad spend (MER) reveals the true incrementality of your marketing efforts.
• Creative matters on every platform: Platform-native creative isn't just nice to have – it's essential for performance. Content that works on Meta won't necessarily work on Pinterest, and adapting to each platform's unique user experience drives better results.