Lounge Underwear’s Snap Ads Drive 3000% Increase in Revenue with Male Consumers

Founded by husband and wife duo Melanie and Daniel Marsden in 2015 with just £1,000 of their own money, underwear brand Lounge Underwear experienced tremendous growth during the pandemic year, with no sign of slowing down. The brand grew over 300% during the pandemic, and so far this year, sales have increased 250% compared with the same period in 2020. ¹ For their Valentine’s Day Snapchat campaign, the brand was looking to drive purchases and increase revenue. In particular, Lounge Underwear’s team was looking to increase brand awareness and purchases among men, after struggling to convey their message to this audience via other formats and platforms. 

Lounge Underwear used a combination of Snap and Story Ads to get wide coverage on the platform and to maximise their reach. Story Ads proved pivotal in appealing to male users, while the brand used Snap Ads to expand beyond their existing customer base, having previously seen success with the format in generating revenue. 

Lounge Underwear ran A/B Tests for the Snap Ads to investigate the most effective format, and moved forward with stills for the creative. They also found that the majority of revenue generated from Snap Ads came from the first hour viewing window. When it came to targeting, they developed Lookalike Audiences based on past Lounge purchasers and optimized towards pixel purchase, meaning that they were able to reach high-potential customers in a cost effective manner.  

As a result of Lounge’s multi-product strategy, the campaign delivered a 20 point lift in Brand awareness, 19 point lift in Ad Awareness, 14 point lift in Favourability of Lounge Underwear and 14 point lift in Action Intent amongst all Snapchatters as measured through Snap Inc’s Brand Lift Survey. ² The campaign was also effective in driving incremental purchases, with a Snapchat conversion lift study showing 2.51% purchase lift amongst all Snapchatters. ³ Overall, Lounge Underwear’s campaign led to YOY revenue increase of 1076% ⁴, hitting much higher figures than the spend increase, and saw particularly successful results with male users.