Floatspace

February 15, 2024 by

Floatspace

Hospitality | Yachting Industry

FloatSpace created a strong brand business to grow from a Sydney based concierge service for boat and yacht rentals, to an international business sought out for its niche services. FloatSpace made use of netstripes expertise in advertising strategies to address their high acquisition costs and within 30 days of implementation, experienced a reduction in acquisition costs by over 30%, demonstrating immediate and significant financial savings.

Client Description

FloatSpace was founded by CEO Hugh Treseder, Rolf Hansen, and Tim Fung, in 2020, as a concierge service for boat and yacht rentals, hiring out private boats for corporate and private events. The business now charters boats in NSW, Queensland, WA and Victoria, as well as Auckland, New Zealand and USA.
Hugh faced a critical challenge threatening Floatspace’s operational cash flow due to high advertising costs. To optimise spending and maintain its market position, Hugh sought the expertise of Netstripes to overhaul his Google Ads strategy and reduce the cost per acquisition (CPA) without compromising on results.

Challenges

The massive cost of running Google Ads each month was running over budget.
The business needed to reduce cost per acquisition aggressively and quickly, as the total cost of advertising had a negative impact on cash flow. A notable drop in conversion rates from September to October further compounded the urgency, despite an increase in advertising expenditure by 60% between August and October.
They needed the total ad spend to reduce from $20K – $30K to $8K – $12K while achieving results.

Our Solutions

Conversion Rate improvement: FloatSpace’s Google Ads performance was refined to bid on relevant, high-value keywords aligned with the campaign’s strategic goals. This focused targeting aimed at capturing the audiences most likely to convert, thus optimising the ad spend efficiency.
Retarget Advertising: FloatSpace’s advertising campaign was supported by retargeting ads, re-engaging visitors with tailored messages to increase conversion rates.

Result

Reduced Acquisition Cost:
Reduced Acquisition Cost: Within 30 days of implementing the new strategies, FloatSpace experienced a reduction in acquisition costs by over 30%, demonstrating immediate and significant financial savings.

Lead Acquisition Cost Reduction:
Over six months, the cost per lead acquisition saw a dramatic reduction of 38%, underscoring the long-term effectiveness of the optimised advertising approach.

Cost Per Sale Halved:
Year-on-year comparison revealed that the cost per sale in 2023 was reduced to 50% of what it was in 2022, with some months witnessing reductions as steep as 60+.

Benefits

A massive reduction in advertising budget meant that Floatspace significantly improved their cash flow, delivering much relief to the leadership due to the extremely high cash burn rate they experienced in the previous years.
One contact point they could work with and trusted intimately due to the drastic performance improvement and a point of escalation at netStripes. Floatspace leadership also had the freedom to discuss strategy outside the bounds of technical advertising.
The profound benefit of an agile, responsive marketing team, who although external, operated like an internal team without the financial or management overhead.

“The team at NetStripes are a committed and responsive team. They really are a breath of fresh air and quickly demonstrated great improvements and return on investment. No hesitation in recommending this company to businesses at any stage of their journey. Sales growth, scalable solutions and integrity. A winning combination.”

Hugh Treseder