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How NutritionFaktory tripled ad spend while achieving record profitability

How NutritionFaktory tripled ad spend while achieving record profitability
8 min read
Sep 29, 2025

Company Overview

NutritionFaktory began as a simple solution to a local problem. When Mike Bires moved to Tennessee in 2017, he couldn't find the top nutrition brands he was looking for in Murfreesboro. Rather than settle for subpar options, he decided to open his own store.

"I really just saw a need for a good nutrition store in the town of Murfreesboro, where I lived," explains Bires, founder and CEO of NutritionFaktory. "I was searching for these top brands that I had trouble finding, and I couldn't find them. I thought, well, let's open my own store and get rolling."

What started as a single brick-and-mortar location quickly evolved into a franchise operation. The customer experience was so compelling that shoppers began approaching Bires about opening their own NutritionFaktory locations. Within 18 months, the company had expanded from 0 to 12 stores, all driven by organic customer demand.

When COVID-19 hit, NutritionFaktory pivoted to e-commerce to keep employees working. This digital transformation unexpectedly became a major growth driver, with online sales growing rapidly and eventually becoming a cornerstone of the business model.

The Challenge: Agency After Agency, Same Problems

As NutritionFaktory's e-commerce presence grew, Google Ads became increasingly critical to their success. "Google ads is a huge piece of our business," Bires notes. "It's great to carry all the top brands, but if nobody knows you have them, it doesn't really help you."

Initially, the company managed their own Google Ads with limited success. They saw some correlation between ad spend and website growth, but eventually hit a plateau. This led to a multi-year search for the right partner—a search that would prove frustrating and costly.

The Agency Carousel Problem

NutritionFaktory worked with four different agencies over several years, each following a similar disappointing pattern:

Initial Promise, Rapid Decline: "I think the first six months, an agency's very excited. They're all in, and probably after about six months, it got very stale," Bires recalls.

Revenue Without Profit: Despite achieving seemingly impressive ROAS numbers, profitability remained elusive. "They would say to these agencies, after you look at shipping and credit card fees and boxes and labor and all these things, I don't know that we're making any money here."

Lack of True Partnership: Agencies focused on high-level metrics rather than understanding the business fundamentals. "The reporting was always very high level. It would just be about, again, here's how much you spent, here's how much revenue you drove. Really wasn't about profitability."

Product Mix Ignorance: With thousands of SKUs across different margin profiles, agencies struggled to optimize for the company's complex product catalog. "They never really looked at our overall product mix or our overall business as a whole."

One particularly painful example occurred during what appeared to be their best month ever—until Bires realized they were "hemorrhaging money because of free shipping and heavy energy drinks." Despite voicing concerns about Google automatically pushing high-spend, low-margin products, the agency continued the same approach.

"It got to the point where I was fed up with working with agencies because the experience was so poor that I was almost going to give up," Bires admits.

The MAI Difference: Deep Business Understanding Meets Advanced Technology

The turning point came through an unexpected channel. Bires was participating in a research group where entrepreneurs review products when he was introduced to MAI. What happened next was unlike any previous agency interaction.

Strategy Before Spending

"From my very first meeting, we sat down, we talked about my goals. We talked about my business," Bires explains. The conversation covered operational details that previous agencies had ignored
- Shipping cost structures and how they varied by product type
- Product margin analysis across different categories
- Inventory management considerations
- Which products could serve as profitable loss leaders

"It was super eye opening for me because I never gotten that from another agency," Bires reflects.

Comprehensive Integration and Transparency

MAI's approach differed fundamentally in its technical execution:

Direct Shopify Integration: Unlike previous agencies that relied on high-level reporting, MAI implemented direct integrations that provided granular visibility into product performance, true profitability, and attribution.

Continuous Optimization: Where traditional agencies might make 5-20 optimizations monthly, MAI's system performs 500+ optimizations per month. "The fact that MAI does 500 plus optimizations in a month is insanity. I don't know that there's humans that can do that."

Real-Time Performance Monitoring: "They were super clear on where our sales were coming from, what products were driving these sales, what Google's ad spend was on these sales.”

Results: From Stagnation to Explosive Growth

500+
Number of optimizations every month
3x
Increase in profitable spend

The Gradual Transition

NutritionFaktory approached the MAI partnership conservatively, initially allocating only 10-20% of their ad spend to test the approach. "Very quickly, the MAI approach was far more effective. It did destroy the approach of the other agency we were using."

As confidence grew, so did the investment. The transparency and detailed reporting made it possible to gradually shift the entire Google Ads budget to MAI.

Scaling with Confidence

"We were conservative on our ad spend with MAI, just overall with our ad spend on Google.”

However, the detailed profitability reporting enabled unprecedented scaling: "Because MAI was so successful, they were so transparent, showing us where our revenue was coming from, what our profitability looked like, it got to the point where we pretty much gave them a target profitability and just let them continue to grow our business."

Record-Breaking Performance

By August, the partnership had delivered transformational results:

Explosive Revenue Growth: "We just had our best July in the history of NutritionFaktory, which July is generally not the time of year that is generally exciting for the industry. So we were super excited to have our best month ever in July of 2025. And then our August just beat that July."

Profitable Scaling: "We've literally tripled our ad spend. Our ROAS is at 4x plus on a regular basis. So not only have we had record revenue months, but we've had record profitability months."

Future Growth Potential: "Those record profitability months have given us a whole new perspective on the opportunities for our business. We see a potential to triple the size of our company over the next 12 months."

This represented a complete transformation from the previous trajectory: "Before MAI, I mean, we were literally struggling just to match the previous year. In most cases, we were down 10, 20, 30%."

Validating the impact

NutritionFaktory conducted an experiment: "There was even a point where we slowed down our ad spend just to see what would happen. And almost instantly, our sales plummeted, like, almost on a day to day basis to see if our ad spend went down, our revenue plummeted. And I say plummeted. Didn't go down a little bit. It went down a lot."

Key Success Factors

True Partnership Approach

"They act like true partners for Nutrition Factory. MAI is essentially a nutrition factory employee”

Comprehensive Visibility

"Complete transparency, complete visibility of what's going on in your account. Even when things are bad, they're the first to point out and say, hey, what happened here? I noticed that this product plummeted."

Business-First Optimization

Rather than optimizing for vanity metrics, MAI focused on what actually mattered to the business: "They knew that we were partners and we were going to grow together. If we grow, they grow."

Conclusion

For NutritionFaktory, the difference between traditional agency management and MAI's approach came down to depth of understanding and alignment of incentives. By truly comprehending the business model, product mix, and operational realities, MAI could optimize for what actually mattered: profitable growth.

"The more money we spend with MAI, the more revenue we're going to have and the more profit we're going to have," Bires concludes. "Profitability is king and allows us to continue to reinvest in the business, continue to grow the business."

The partnership transformed NutritionFaktory from a company struggling to match previous year's performance into one planning to triple in size while maintaining industry-leading profitability—proof that the right approach to Google Ads management can be genuinely transformational for e-commerce businesses.