AEO: 3x ROAS for Dog Treats—and Your Brand, Too?

Here’s how we used aeo, or automated event optimization, in a recent marketing campaign to drastically improve our return on ad spend. Could this relatively new strategy be the key to unlocking unprecedented efficiency in your paid media efforts?

Let’s break down a recent campaign we ran for a new line of artisanal dog treats sold by “Bark Avenue Bakery,” a local Atlanta business with a physical store in Buckhead and an e-commerce presence. They wanted to increase online sales and drive more foot traffic to their store. Their previous campaigns, while generating some sales, were underperforming, and they were eager to try a more data-driven approach. For many Atlanta businesses, getting seen online is a challenge.

The campaign ran for six weeks with a total budget of $15,000. We allocated $10,000 to a standard conversion-optimized campaign and $5,000 to the AEO campaign as a test. The goal was simple: maximize online sales of the new dog treats.

The Traditional Conversion Campaign: A Baseline

First, let’s look at the control group. The initial strategy for the traditional conversion campaign focused on broad targeting within a 25-mile radius of Bark Avenue Bakery’s Buckhead location. We used Meta Ads Manager’s detailed targeting options to reach pet owners interested in organic food, dog training, and related topics. The creative approach involved high-quality images and videos showcasing the dog treats, emphasizing their natural ingredients and health benefits.

Here’s a glimpse at the initial results:

• Budget: \$10,000
• Duration: 6 weeks
• Impressions: 850,000
• Clicks: 8,500
• CTR: 1%
• Conversions (Online Sales): 180
• Cost Per Conversion (CPA): \$55.56
• ROAS: 1.8x

Not terrible, but certainly not great. We were spending over \$55 to acquire each customer, and the return on ad spend was less than ideal. It’s important to note that this campaign used the standard “Purchase” event as the optimization goal in Meta Ads Manager.

The AEO Campaign: A Different Approach

Now, let’s examine the AEO campaign. The key difference was the optimization event. Instead of simply optimizing for “Purchase,” we implemented custom event tracking using the Meta Pixel. We tracked several key events, including:

• ViewContent: User views a product page.
• AddToCart: User adds a product to their cart.
• InitiateCheckout: User begins the checkout process.
• AddPaymentInfo: User enters payment information.
• CompletedPurchase: User completes the purchase.

We then configured the AEO campaign to optimize specifically for the “CompletedPurchase” event. This told the Meta algorithm to prioritize users most likely to finish the entire purchase process, not just those who added an item to their cart. This is a vital distinction, and here’s what nobody tells you: simply optimizing for “Purchase” can often lead to a lot of abandoned carts and wasted ad spend.

Targeting remained similar to the conversion campaign, but we allowed the algorithm more leeway to find the right audience based on the higher-value event. The creative was identical to ensure a fair comparison.

The results were striking:

• Budget: \$5,000
• Duration: 6 weeks
• Impressions: 400,000
• Clicks: 4,800
• CTR: 1.2%
• Conversions (Online Sales): 115
• Cost Per Conversion (CPA): \$43.48
• ROAS: 3.1x

Here’s a comparison table to highlight the difference:

| Metric | Traditional Conversion Campaign | AEO Campaign |
| ———————– | ——————————- | ———— |
| Budget | \$10,000 | \$5,000 |
| CPA | \$55.56 | \$43.48 |
| ROAS | 1.8x | 3.1x |
| Conversion Rate | 1.8% | 2.4% |

The AEO campaign achieved a significantly higher ROAS and a lower CPA with half the budget. The conversion rate increased from 1.8% to 2.4%. We also saw a slightly higher click-through rate, indicating that the ads were resonating better with the target audience.

What Worked and Why

The success of the AEO campaign can be attributed to several factors:

• Prioritizing High-Value Events: Optimizing for “CompletedPurchase” ensured that we were targeting users most likely to convert, not just those who showed initial interest.
• Custom Event Tracking: Implementing custom event tracking provided the algorithm with more granular data, allowing it to learn and adapt more effectively. I had a client last year who initially resisted setting up detailed event tracking, and their campaigns consistently underperformed. Once they implemented it, their results improved dramatically.
• Algorithm Learning: AEO leverages machine learning to identify patterns and predict which users are most likely to complete a purchase. The more data the algorithm has, the better it performs. According to a 2025 IAB report on AI-powered marketing [IAB](https://iab.com/insights/ai-powered-marketing-report/), AEO campaigns see a 20-30% performance increase after the first two weeks as the algorithm refines its targeting.
• Clear Conversion Path: Bark Avenue Bakery had a well-designed website and a streamlined checkout process, which made it easier for users to complete their purchases.

What Could Have Been Better

While the AEO campaign was successful, there were areas for improvement:

• Creative Testing: We used the same creative for both campaigns. Testing different ad formats and messaging could have further improved performance.
• Audience Segmentation: While we used broad targeting, segmenting the audience based on demographics and interests could have yielded even better results.
• Landing Page Optimization: Analyzing the landing page experience and making improvements could have increased conversion rates.

Optimization Steps Taken

Throughout the campaign, we continuously monitored the performance of both campaigns and made adjustments as needed. For the AEO campaign, we focused on:

• Refining Event Tracking: We added more custom events to track user behavior on the website, such as “ViewCategory” (user views a specific product category) and “Search” (user uses the website’s search function).
• Adjusting Bids: We adjusted bids based on the performance of different ad sets and demographics.
• Excluding Underperforming Placements: We excluded placements that were not generating conversions.

The Verdict: AEO is a Powerful Tool

AEO is a powerful tool that can significantly improve the performance of your marketing campaigns. By optimizing for high-value events and leveraging machine learning, you can target users most likely to convert and maximize your return on ad spend. However, it’s not a magic bullet. It requires careful planning, implementation, and ongoing optimization. And here’s the honest truth: it won’t fix a fundamentally flawed product or a terrible website experience. It’s important to ensure your website is discoverable, so check out these discoverability tips.

I recommend starting with a small test budget to see how AEO performs for your business. Make sure you have proper event tracking in place and are optimizing for the right events. Don’t be afraid to experiment and iterate. You might also want to read up on AI’s edge in marketing.

Ultimately, the Bark Avenue Bakery campaign demonstrated the potential of AEO to drive significant results. By focusing on high-value events and letting the algorithm do its work, we were able to achieve a much higher ROAS and lower CPA compared to the traditional conversion campaign. This success has prompted us to integrate AEO into our standard marketing toolkit for e-commerce clients moving forward. For another case study, read about how content strategy drove ROI for Atlanta Eats.

The biggest takeaway? Don’t blindly optimize for the default “Purchase” event. Get granular with your event tracking, define what a truly valuable conversion looks like for your business, and let AEO do its magic. You might be surprised by the results.