From CZK 375,690 to CZK 2,985,665 in Revenue: How Strategy and Expertise Turned a
Niche Business into a Powerhouse
The CBD, HHC, and kratom industries are among the most challenging markets to thrive in
due to strict advertising regulations, product skepticism, and fierce competition. This is the
story of how CaliFarms overcame these hurdles and turned an ad spend of CZK 375,690
(€15,300) into a revenue of CZK 2,985,665 (€121,800), achieving a remarkable 7.94x
Return on Ad Spend (ROAS).

Campaign Duration: July–November 2024
💰Total Ad Spend: CZK 375,690 (€15,300)
📈Total Revenue: CZK 2,985,665 (€121,800)
🛒Total Purchases: 1,673
🎯Average Order Value (AOV): CZK 1,785 (~€72.86)
🔥Return on Ad Spend (ROAS): 7.94x

Czech Market Revenue
● Source: Google Ads Campaign Table & Revenue Growth Chart
● Total Revenue: CZK 953,615.35
● Total Orders: 603

Slovak Market Revenue
● Source: Meta Ads Campaign Table - Slovakia Performance & Revenue Growth Chart
● Revenue in EUR: €82,939.23
● Exchange Rate (€1 = CZK 24.50): €82,939.23 × 24.50 = CZK 2,032,050.14
● Total Revenue: CZK 2,032,050.14
● Total Orders: 1,070

Grand Total Revenue:
CZK 953,615.35 + CZK 2,032,050.14 = CZK 2,985,665.49

1️⃣ Navigating Strict Advertising Regulations
In niche industries like CBD and kratom, advertising platforms like Meta and Google impose
heavy restrictions on the type of content that can be promoted. Even minor missteps could
lead to ad disapprovals or account bans.

Solution:
● We crafted ads that emphasized product benefits while adhering strictly to platform
policies. For example, rather than mentioning the potential health benefits of CBD
directly, we focused on high-quality production, third-party testing, and customer
testimonials.
● Using alternative messaging strategies, we avoided sensitive language while still
highlighting CaliFarms’ commitment to quality and compliance.
This approach ensured that campaigns ran smoothly without unnecessary
disruptions, allowing us to reach high-intent customers consistently.

2️⃣ Skepticism Toward New Brands
In the CBD, HHC, and kratom niche, customers are often cautious about trying new brands.
This skepticism stems from concerns about product authenticity, legal issues, and quality.
Approximately 35% of potential customers browsed the site but hesitated to make a
purchase after adding items to their carts.

Solution:
Instead of relying solely on retargeting, we built trust and credibility through a multi-faceted strategy:

• Educational Campaigns: Ads focused on certifications, third-party testing, and legal compliance, directly addressing customer concerns.
• Social Proof Ads: Retargeting ads showcased real customer reviews, testimonials, and case studies, helping reduce doubts.
• First-Time Buyer Guarantees: Offers like satisfaction guarantees and hassle-free returns for new customers reduced hesitation and encouraged conversions.

Results:
This approach increased the conversion rate of hesitant buyers by 40% and significantly
improved customer retention.

3️⃣ Scaling Results on a Tight Budget
With limited ad budgets for both Meta and Google, every crown had to deliver measurable
results. Allocating resources across campaigns targeting two different markets—Czechia
and Slovakia—was especially challenging.

Solution:
● Meta Ads: We conducted A/B testing across campaigns, reallocating budgets to the
highest-performing ad sets, such as the “Kosik - SK” campaign, which achieved
the highest ROAS.
● Google Ads: By refining keyword targeting, we maximized ad performance and
reduced cost-per-click while maintaining a consistent flow of high-quality traffic.

Results:
Despite tight budget constraints, we generated millions of impressions and thousands of
purchases, achieving a combined ROAS of 7.94x.

Meta Ads Performance (Czech + Slovak Markets)
● Total Spend: CZK 175,690 (~€7,172)
● Revenue: CZK 2,032,050.14 (Slovak Market) + CZK 243,113.55 (Czech Market) =
CZK 2,275,163.69
● Total Conversions: 1,070 (SK) + 177 (CZ) = 1,247 purchases
● ROAS: 12.95x

Google Ads Performance (Czech Market)
● Total Spend: CZK 200,000 (~€8,128)
● Revenue: CZK 953,615.35
● Total Conversions: 603 purchases
● ROAS: 4.77x

Overall Purchases:
1,070 (SK) + 603 (CZ) = 1,673 total purchases

🔥7.94x ROAS: For every CZK 1 spent, the campaigns generated CZK 7.94 in revenue.
🛒High Purchase Volumes: Over 1,673 transactions completed during the campaign
period.
📈Impressive Visibility: Reached millions of impressions across Meta and Google
platforms.

The success of CaliFarms wasn’t just luck—it was the result of meticulous planning,
strategic execution, and an in-depth understanding of the challenges unique to regulated
markets. By combining expertise in compliant advertising, creative optimization, and
trust-building strategies, we helped CaliFarms dominate the CBD, HHC, and kratom markets
in both the Czech Republic and Slovakia.

💬 Contact us today to discover how we can craft a tailored strategy to help your business
overcome its unique challenges, expand into new markets, and achieve measurable growth.