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Case study — Rugs Outlet

From loss-making to $20M+ revenue in the global rugs market.

A leading online rugs retailer operating across North American and European markets came to us facing serious financial pressures — a ROAS of only 2.5x was leading to sustained losses. Four months later, ROAS had nearly doubled and revenue exceeded $20M.

ROAS improvement
2.5×→4.5×
Within 4 months
Revenue generated
$20M+
Across all paid media channels
Ad spend managed
$4.4M+
With improved efficiency
Brand
Rugs Outlet
Industry
eCommerce — Home & decor
Region
North America, Europe
Engagement
Active engagement
— Platforms
About the brand

A global rugs retailer with tens of thousands of SKUs.

A leading online rugs retailer operating under several brands across the North American and European markets. With the ability to ship internationally at highly competitive prices, the company serves a broad customer base across multiple categories.

The business manages a diverse portfolio, stocking tens of thousands of SKUs ready to ship, alongside a wide range of custom-made and washable rugs tailored to different home needs. By combining product variety, design flexibility, and strong operational capability, it has positioned itself as a trusted global retailer in the home decor and furnishings sector.

The challenge

From loss-making to profitable growth.

The business approached us while facing serious financial pressures, as low campaign performance was leading to sustained losses. With a ROAS of only 2.5x (250%), cash flow and overall financial health were being heavily impacted.

01

Sustained financial losses

Low campaign performance at 2.5x ROAS was making it impossible to achieve target KPIs, and cash flow was being heavily impacted.

02

Stabilization before growth

The task was twofold: first stabilize performance and bring the business back to break-even, then develop a scalable growth model to expand profitably beyond that baseline.

03

Massive SKU complexity

With tens of thousands of SKUs spanning multiple product categories and price points, the paid media strategy needed to handle product-level performance nuance at scale.

04

Multi-region scaling

Operating across North America and Europe required region-specific approaches while maintaining a consistent, data-driven framework.

Our approach

Close the leaks. Build the engine. Scale with data.

We began by assessing historical data to understand product-level sales performance and evaluate the effectiveness of each paid media channel in isolation.

01

Historical data deep dive

We assessed historical data to understand product-level sales performance and evaluate the effectiveness of each paid media channel. This included analyzing demographic trends such as sales by location, gender, and age to identify the strongest growth opportunities.

02

Leaky bucket elimination

We identified and closed all leaky buckets in the campaigns, cutting wasted media spend and reallocating budget into the highest-performing areas.

03

Full-funnel multi-channel strategy

With a stronger foundation in place, we designed a full-funnel, multi-channel strategy that ensured both potential and existing customers experienced the brand's ever-present visibility across search and social platforms.

04

Advanced segmentation and attribution

We synchronized all data points, introducing advanced customer and audience segmentation and deploying proven attribution models, supported by time-tested tracking frameworks.

The results

$20M+ revenue. 4.5x ROAS. Profitability in 2 months.

The data-driven approach provided clear feedback loops and enabled continuous optimization at scale, delivering a dramatic turnaround.

Ad spend managed
$4.4M+

Managed $4.4M+ in ad spend across paid media channels with improved efficiency.

To profitability
2 months

Returned the business to profitability within 2 months while maintaining sales volume.

ROAS achieved
4.5×

Increased ROAS from 2.5x to 4.5x within 4 months, delivering a significant uplift in efficiency and margins.

Revenue generated
$20M+

Generated $20M+ in revenue, driving both top-line growth and sustainable profitability.

Channel visibility
Full-funnel

Achieved full-funnel visibility across channels, strengthening brand presence in competitive home decor markets.

The ADSRUNNER team is exceptionally knowledgeable and professional. It’s clear they live and breathe performance marketing and have a deep understanding of what truly drives results. They did an outstanding job optimizing our campaigns and restructuring our entire account for scalable growth. Within just two months, we went from loss-making to profitable — a remarkable turnaround.
Ali H
Director, Rugs Outlet
What this proves

Stop the bleeding first. Then build for scale.

When a business is losing money on paid media, the priority is stabilization — plugging wasted spend, rebuilding foundations, and getting to break-even fast. Only then can you layer on the growth model. Trying to scale a broken system just scales the losses.

— The platform behind this work

Results like these are run on our proprietary infrastructure — AI agents monitoring the account 24/7, every change approved by a senior strategist before it ships, and a unified data layer the client owns.

Could we do this for your brand?

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