How a Legacy Children’s Brand Drove Subscription Efficiency at 30% Higher AOV with Bamboo
The brand is an American children's magazine and learning subscription renowned for its engaging blend of stories, puzzles, games, and activities designed to foster creativity, critical thinking, and moral development.
24%
lower CPA using cost cap
30%
higher AOV
The Challenge
The brand was interested in testing whether cost cap could reduce CPAs
The teams were looking to improve acquisition efficiency across two key product categories on Meta. The objective was to test whether Cost Cap bidding could reduce CPAs and drive higher value while maintaining scale.
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Bamboo's Approach
Bamboo tested Cost Cap against Lowest Cost campaigns for subscription products over 4 weeks, then extended testing for 4 months after seeing positive results in CPA, AOV, and spend efficiency.
To validate Cost Cap’s effectiveness, Bamboo:
- Ran side-by-side tests of Cost Cap vs. Lowest Cost campaigns.
- Focused initial testing on Subscription products where conversion rates were strong.
- Measured performance across key metrics: CPA, AOV, and spend efficiency.
- Ensured creative consistency across both bidding strategies to isolate performance differences.
Launched a 4-week test with a dedicated Cost Cap and Lowest Cost campaigns.
- Monitored both platform-level and GA4-level CPA and AOV.
- Applied learnings from early success to continue Cost Cap testing on Subscription for the following 4 months.
The Results
The teams saw that Cost Cap can be a valuable tactic for high-converting product sets looking to drive down CPA and boost AOV.
For their subscription products:
- Cost Cap drove 24% lower CPAs than Lowest Cost
- Delivered 30% higher AOV week over week
- Outperformed Lowest Cost on both Meta and GA4 tracking
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