Case Study: 91% CPA Reduction for Comfort-In
How Feisty Agency used AI-enhanced UGC video ads to reduce Comfort-In's cost-per-acquisition from $115 to $10 and achieve a 54.5x return on ad spend — a 1,059% improvement.
Client Background
Comfort-In is a Melbourne-based product business operating in the 4x4 and outdoor accessories market. They sell premium aftermarket products to customers across Melbourne and regional Victoria, with an average order value (AOV) exceeding $300.
As a family-owned business, Comfort-In had built a loyal customer base through word-of-mouth and community engagement in the 4x4 scene. However, their digital advertising efforts were underperforming, and they needed a scalable way to reach new customers profitably through paid channels.
The Challenge
Before engaging Feisty Agency, Comfort-In faced several interconnected advertising challenges:
- High cost-per-acquisition (CPA): Comfort-In was spending $115 to acquire each new customer through Meta ads, making it difficult to scale profitably given their product margins.
- Low ROAS: Their return on ad spend was 4.7x — acceptable for some industries, but below the threshold needed for profitable scaling in the accessories market.
- Creative fatigue and limited volume: With only a handful of ad creatives in rotation, performance degraded as audiences saw the same ads repeatedly. Producing new content was expensive and slow.
- Broad, untargeted campaigns: Comfort-In was advertising to broad audiences without systematic testing of specific segments, messaging angles, or creative formats.
The core problem was a common one for growing product businesses: they knew paid advertising could work, but couldn't produce enough quality creative at a cost that made scaling viable.
The Solution
Feisty Agency implemented a three-phase approach combining AI-enhanced UGC creative production with structured campaign testing:
Phase 1: Content Audit & AI Creative Production (Week 1–2)
We audited Comfort-In's existing content library — customer photos, unboxing videos, social media posts, and product reviews. From approximately 20 pieces of raw customer content, we used AI tools (including Veo3, Sora 2, and Kling 2.6) to produce the first batch of 50+ ad variations.
Each variation featured a different attention-grabbing hook — the critical first 1–3 seconds designed to stop users from scrolling. AI-generated hooks included visual effects, text overlays, and creative edits that transformed raw customer content into professional-quality ad creative.
Phase 2: Structured Campaign Testing (Week 2–4)
Rather than running a single campaign with broad targeting, we implemented a structured testing framework:
- Audience segmentation: Separated campaigns by audience type — 4x4 enthusiasts, camping and outdoor interests, competitor brand followers, and lookalike audiences based on existing customers.
- Creative rotation: Distributed the 50+ ad variations across segments, measuring which hook styles, content formats, and messaging angles resonated with each audience.
- Rapid iteration: After the first 1,000 impressions per variation, we cut underperformers and doubled down on winning combinations.
Within 2–3 weeks, clear patterns emerged: customer testimonial-style UGC with AI-enhanced hooks consistently outperformed all other creative formats, particularly when targeting the 4x4 enthusiast segment.
Phase 3: Optimisation & Scale (Week 5–8+)
With winning creative and audience combinations identified, we focused on scaling:
- Increased budget allocation to top-performing campaigns while maintaining profitable CPA thresholds.
- Produced new rounds of AI-enhanced creative variations based on the winning hook styles, preventing fatigue as spend scaled.
- Expanded audience targeting to include broader interest groups adjacent to the 4x4 community while maintaining ROAS targets.
- Implemented retargeting campaigns using different UGC angles to nurture users who engaged but didn't purchase.
Results
The AI-enhanced UGC campaign delivered significant improvements across all key performance metrics:
| Metric | Before | After | Change |
|---|---|---|---|
| Cost per Acquisition (CPA) | $115 | $10 | 91% reduction |
| Return on Ad Spend (ROAS) | 4.7x | 54.5x | 1,059% increase |
| Monthly Creative Volume | 5–10 ads | 50+ ads | 5–10x increase |
| Creative Production Time | 2–4 weeks | 2–3 days | ~90% faster |
Results represent peak performance metrics during the engagement period. ROAS of 54.5x reflects peak campaign performance; average ROAS across all campaigns was lower. Past performance does not guarantee future results.
Key Takeaways
Testing 50+ ad variations rather than 5–10 was the single biggest factor in finding winning creative combinations. AI-enhanced production made this volume economically viable.
Customer-filmed UGC with AI-enhanced hooks consistently beat studio-quality branded content in every A/B test. Audiences trusted real customer experiences over scripted ads.
Structured audience segmentation and creative testing revealed insights that would not have been apparent from running a single broad campaign. Data drove every decision.
The AI tools enhanced the reach and impact of genuine customer content. The winning combination was real UGC (trust factor) + AI hooks (attention factor) + systematic testing (optimisation factor).
Timeline
Strategy session, content library review, Meta Business Suite setup, tracking implementation.
50+ AI-enhanced ad variations produced from existing customer content. First campaigns launched.
Structured A/B testing across audience segments and creative formats. Identified winning combinations.
Scaled winning campaigns, produced new creative rounds, expanded audience targeting. Peak ROAS of 54.5x achieved.
Monthly creative refreshes, ongoing optimisation, new audience testing, and performance reporting.
Frequently Asked Questions
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Want Results Like Comfort-In?
Every product business is different, but the approach is proven. Book a free strategy session and we'll show you how AI-enhanced UGC ads could work for your brand.
Or email will@feistyagency.com