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Case Study

Funko x Loungefly

Starting in a small warehouse in 1998, Loungefly has grown into a design-driven lifestyle accessory brand known for its innovative, inspiring, and unique licensed products featuring Disney, Marvel, Star Wars, Sanrio, and Pokémon, available nationwide.

Summary

In the dynamic and competitive landscape of Q4 2023, Funko embarked on an ambitious journey with our agency, aiming to redefine its digital footprint and capitalize on the critical holiday shopping season. This pivotal moment marked a strategic shift towards an intensified focus on paid media, propelled by the necessity to navigate the evolving digital marketplace and heightened consumer expectations. Our partnership was forged on the principle of leveraging innovative marketing strategies to amplify Funko’s brand presence and drive unparalleled sales growth.

Challenge

Funko faced the dual challenge of optimizing their marketing expenditure to cut through the noise of the holiday season and effectively launching and scaling new product lines, Rewind and Bitty Pop. The advent of iOS 14.5+ updates introduced additional complexities, demanding a nuanced approach to digital advertising for precise campaign measurement and attribution. Overcoming these hurdles was crucial for Funko to sustain and enhance its position in the collectibles market.

Approach

Our comprehensive strategy focused on a holistic revamp of Funko’s paid media campaigns across key platforms such as paid social on META and TikTok and paid search on Google and Bing. Our objectives were to secure a groundbreaking return on ad spend (ROAS), attract a significant number of new users, and boost overall brand engagement. The plan was to capitalize on the holiday season’s potential while ensuring the successful market introduction of Funko’s new product lines through coordinated and complementary marketing efforts.

Solutions

We initiated a series of strategic interventions, including a significant investment in META’s holiday campaigns and an expansion of dynamic retargeting to capture audiences with high purchase intent. We placed a strong emphasis on video content on TikTok, markedly increasing our efforts with a focus on high-engagement creatives. Adapting to real-time performance data, we reallocated funds from less effective search ads to PMax campaigns for broader reach. Our approach was characterized by continuous experimentation, leveraging insights from ongoing analyses to refine and optimize our strategies.

Outcomes

The fruits of our collaborative efforts with Funko were extraordinary:

  • META Campaigns: Achieved significant ROAS, surpassing initial benchmarks and historical performances.
  • TikTok Initiatives: Realized an increase in conversions and a surge in revenue, validating our video-centric content strategy’s effectiveness.
  • Paid Search and PMax Campaigns: Notably improved efficiency, with PMax campaigns outperforming expectations and contributing to an overall uplift in brand visibility and engagement.
  • Dynamic Retargeting: Demonstrated exceptional performance with high ROAS during the sale period, emphasizing the value of targeted remarketing efforts.

The outcomes of the Q4 campaigns exceeded our ambitious objectives, catalyzing a strategic shift within Funko towards prioritizing paid media as a fundamental component of their marketing ecosystem. This period of significant momentum has not only set new performance standards for Funko’s marketing activities but also highlighted the brand’s adaptability, resilience, and commitment to innovation in the face of a rapidly changing digital landscape.

Results

  • Meta ROAS Increased

  • TikTok Conversions Increased

  • TikTok Revenue Increased

  • Dynamic Retargeting ROAS